The Motley Fool

Forget Bitcoin. I’d buy-and-hold cheap FTSE 100 shares to become an ISA millionaire

The strong performance of Bitcoin has been enough to lure some away from investing in conventional FTSE 100 stocks over recent weeks. After all, many anticipate a second major sell-off in equities and are fearful regarding the long-term recovery of the global economy. It seems that the stock market crash has widened the appeal of alternative assets such as cryptocurrencies.

That said, I strongly believe that investors who buy and hold cheap FTSE 100 shares today will have superior prospects of building long-term wealth than those who pile cash into Bitcoin. What’s more, the uncertainty and volatility that characterises cryptocurrencies like Bitcoin mean it’s certainly not an investment for the faint hearted.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

The appeal of Bitcoin

It’s easy to see why Bitcoin may appear an attractive alternative for your hard-earned cash at present. The price has surged by around 43% in 2020, while the FTSE 100 is down by 18%.

A quick scour of the Internet reveals numerous forecasts that predict Bitcoin’s price to surge over the next few years. But it’s worth remembering that the cryptocurrency’s valuation is based on sheer speculation, rather than fundamentals. This goes a long way to explain why the digital currency is so volatile.

Additionally, the future of Bitcoin is by no means certain. Various problems arise when considering its long-term prospects. For one, the virtual currency is still not widely accepted even after 11 years in circulation. And moving forward, Bitcoin also faces a degree of regulatory uncertainty that could weaken its ability to replace traditional currencies.

The appeal of the stock market

On the other hand, there’s the possibility of investing your cash in the stock market. With many shares trading below their average historic valuations, I think buying cheap FTSE 100 stocks is a superior way of building wealth over the long term.

Admittedly, the short-term outlook for the stock market leaves a lot to be desired. Share prices could well take another tumble if various world events and economic data filter their way through to financial markets.

However, things look far more attractive with a long-term perspective. In the past, the stock market has never failed to recover and, ultimately, go on to reach new highs. With that in mind, buying cheap FTSE 100 shares and holding them forever could deliver serious returns. In addition, adopting a buy-and-hold strategy means you can ride out any temporary market downswings and allow time for your returns to compound. What’s more, using a Stocks and Shares ISA means you won’t have to pay any tax on your investments. This can have a substantial impact in the long run.

All things considered, buying cheap FTSE 100 shares, as opposed to Bitcoin, could immensely boost your chances of making a million through a combination of share price appreciation and dividend pay-outs.

If you're looking to build wealth over the long term, this could be incredibly helpful...

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.