Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Bitcoin vs Gold: What are the Differences in a Long-Term Portfolio?
Ruby Layram
8th Oct 2025
When it comes to building a long-term portfolio, few debates are as popular as Bitcoin vs gold. Both are often seen as a way to diversify your portfolio outside of traditional stocks and bonds.
But how do they really compare? And which one might investors be interested to have in a long-term portfolio?
Why Gold Has Been the Traditional Hedge
Gold has been trusted as a store of value for thousands of years.
Its key strengths might include:
- Tangible asset: Gold is physical, scarce.
- Inflation hedge: Historically, gold has held purchasing power when currencies weakened.
- Safe haven: In times of crisis, gold can be one of the first investments to recover.
Gold has managed to stand the test of time and is still considered a sign of wealth.
That said, gold isn’t perfect:
- It doesn’t generate income (like dividends or interest).
- Its price can stagnate for long periods. It can also underperform during inflation.
- Storing and insuring physical gold can be costly.
- Unlike Bitcoin, though, the supply of gold can increase when prices rise, as new mines open and previously unprofitable, high-cost mines resume production.
Gold is best viewed as wealth preservation, not wealth growth.
Bitcoin is a New Comer
Cryptocurrencies, led by Bitcoin, are much newer on the scene. But they’ve quickly attracted attention as an alternative investment.
– Perception of Scarcity: Bitcoin’s supply is capped at 21 million coins, so more can’t be “printed”.
– Borderless and digital: People can buy, sell, and transfer globally, without the limitations of physical storage.
– Self-sovereign: If you hold your crypto in your own wallet, you can be your own “bank”.
But crypto comes with a lot of risk
- Volatility: Prices can swing dramatically in short periods. It could trade like a high-risk asset during this time, and may not recover as quickly as gold.
- Regulatory uncertainty: Rules are still evolving around the world.
- Technology risk: Hacks, lost passwords, and scams remain a concern for the unprepared.
- It might underperform during deflation.
Crypto and Gold: The Debate
While they may seem like opposites in the alternative investment world, crypto and gold actually share some similarities, which is why the debate stands.
Their similarities include:
- Both are outside the traditional financial system of bonds and stocks.
- Both are seen by some investors as hedges against inflation, stagflation, and the risks of currency devaluation or debasement.
- Both are “finite” assets, gold by geology, Bitcoin by code.
How to Think About Them in a Long-Term Portfolio
Both Gold and Bitcoin could have a space in your portfolio.
- Gold’s role: Stability, preservation, diversification.
- Bitcoin’s role: Growth potential, exposure to innovation.
A balanced approach might mean holding some gold as a defensive anchor, while allocating a smaller portion of your portfolio to Bitcoin for growth opportunities. But both could both fall in value with no warning, so don’t spend more on either asset than you can afford to lose.
The exact allocation will depend on your risk tolerance and goals.
Also read: What is an 80/20 portfolio split?
How to Buy Crypto with CoinJar
If you’re ready to add crypto to your portfolio, CoinJar makes it convenient:
- Sign up: Create an account, show ID. You have to wait for a 24-hour “cooling off” period and pass a quiz before making your first purchase, as per regulations in the UK.
- Deposit funds: Add money via bank transfer or card.
- Buy crypto: Choose from Bitcoin, Ethereum, and a wide range of digital assets.
- Store your investment: CoinJar provides a protected wallet so you can store your crypto in your CoinJar account.
CoinJar is designed for both beginners and experienced investors. Its user-friendly app makes it convenient to buy, sell, and track your crypto portfolio.
Final Thoughts
Gold and crypto don’t have to compete in your long-term portfolio, they can complement each other. Gold might give you stability, while crypto might offer growth potential.
By understanding their differences (and similarities), you could consider using both to build a more balanced, resilient investment strategy.
If you’re interested in exploring crypto, CoinJar is a beginner-friendly way to get started.
| Standard Risk Statement |
| The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies. The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results. |
| UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor. New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.). |
| Cryptocurrency is currently not regulated in the UK. It’s vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments. You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you’re unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) if something goes wrong. |
| Remember: |
| Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more: www.coinjar.com/uk/risk-summary. |
| If you use a credit card to buy cryptocurrency, you would be putting borrowed money at a risk of loss. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. |
| Note the standard risk warning from the CoinJar website. |
Leave a Reply