Bitcoin and crypto are just a stock market on steroids

masterzino

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Quote from: OpenCryptoSystem on January 16, 2021, 06:08:14 PM

Crypto = more volatility
Bigger losses bigger winnings!

Its just the stock market on steroids

So whos good on crypto can do well on stock market
Whos good on stock market the crypto might be too fast

Not only on steroids but also like the Wild West - wash trades, fake volumes, fake news, big FUDs and so on.

You have to be twice careful here.

jimmywh

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Quote from: Tytanowy Janusz on January 17, 2021, 06:14:09 AM

Quote from: jimmywh on January 17, 2021, 04:41:14 AM

For many people, mentally it does.
If you own a share in a company you have a voting right. For many crypto projects I have invested in this is not the case.

mentally. And thats it. Voting power? And what can I do as 0.000001% owner of Alphabet Inc. ? Pay 2000$ for ticket, spend 30 h in plane to go for shareholders meeting to say that I don't like how youtube is censoring and demonetizes videos that was never targeted and kids for not kid friendly content? What will that change? You own just a piece of paper.

Owning 0,000001% of a company is enough to force the CEO and board of directors to hear out your opinion. Doesn’t matter if you are a minoriy og majority shareholder. That is imo pretty special.
However, I get that this is pure theory in many countries, as the cost and time spent participating is too much. But in many european countries, Denmark for example, logistics isn’t a problem.

AakZaki

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zknodes.org

Quote from: ChrisPop on January 17, 2021, 06:17:54 AM

Bigger volatility does not necessarilly imply bigger results (negative or positive). It all depends on the strategy the trader/investor is using. Forex is quite "peaceful" in terms of volatility, but when you're using leverage a 1% move could represent a 20% move for you.

Someone who is successful at trading stocks does not necessarily mean he will do as good in crypto and vice-versa. There are millions of strategies one can employ on the markets.

You are right about forex, the voting is not high and tends to be stable. Unlike crypto which has a high vote with a higher level of risk too. But when the leverage used is too large, the risk for liquidation is also greater. Money used to trade in stocks will disappear if you do not do capital management properly. Trading stocks and crypto have their advantages and disadvantages, depending on how to implement the strategy that has been created. and most importantly the psychology in trading.

amishmanish

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Quote from: jimmywh on January 17, 2021, 04:41:14 AM

If you own a share in a company you have a voting right. For many crypto projects I have invested in this is not the case.

Really depends on what you have invested in and how much. I doubt any retail investors, including I believe you, care about "voting" what direction a publicly listed corporation takes if you buy their stock. You just buy it based on personal judgement that it will give returns. Sometimes you invest in whole sectors, judging that the sector will go up. Those are mature markets with variety of hedging techniques too.

Compare that to crypto where from innovators are already trying to get people involved through governance tokens. You can actually stake simple stablecoins on these platform, earn back their governance tokens and have an actual say in the decision making process with your vote. I think that is more "voting right" or atleast as equal as any that a stock market share will give you.

EDIT: I pretty much disagree that BTC is stocks on steroids. Just because its volatile doesn't mean that its only meant for trading. If you day-trade, you WILL lose to smarter and luckier people. If you just Hodl, it only benefits in the long run. So BTC is far from stocks. Rest of the crypto though is the wildest west that a stock market can be.

yazher

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You own the pen

We already know the risk of investing in it but the assurance is just good and we already have some evidence that the price will not sink to the bottom even if we face another bearish trend again. It's just how it works. There are already lots of people who took the chance to invest in it and most of them had already earned some decent amount of income and most of them are users from this community who are satisfied with the outcome of the crypto market. No matter how you describe the current market situations, people won't stop buying and using Bitcoin.

ChrisPop

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Not your Keys, Not your Bitcoins

Bigger volatility does not necessarilly imply bigger results (negative or positive). It all depends on the strategy the trader/investor is using. Forex is quite "peaceful" in terms of volatility, but when you're using leverage a 1% move could represent a 20% move for you.

Someone who is successful at trading stocks does not necessarily mean he will do as good in crypto and vice-versa. There are millions of strategies one can employ on the markets.

Tytanowy Janusz

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Quote from: jimmywh on January 17, 2021, 04:41:14 AM

For many people, mentally it does.
If you own a share in a company you have a voting right. For many crypto projects I have invested in this is not the case.

mentally. And thats it. Voting power? And what can I do as 0.000001% owner of Alphabet Inc. ? Pay 2000$ for ticket, spend 30 h in plane to go for shareholders meeting to say that I don't like how youtube is censoring and demonetizes videos that was never targeted on kids for not kid friendly content? What will that change? You own just a piece of paper.

jimmywh

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Quote from: Tytanowy Janusz on January 17, 2021, 03:47:30 AM

Quote from: jimmywh on January 16, 2021, 07:28:13 PM

Most crypto investing have nothing to do with stock investing. When you invest in a stock you own a small part of a physical company. Investing in crypto is more based on trust and potential as it normally isn’t backed by anything else than the value we give it. (hot air) This also means that the risk when investing in crypto is way bigger.

Does it change anything for shareholder? There is nothing you can do with your shares, just piece of paper.

For many people, mentally it does.
If you own a share in a company you have a voting right. For many crypto projects I have invested in this is not the case.

Wind_FURY

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Quote from: OpenCryptoSystem on January 16, 2021, 06:08:14 PM

Crypto = more volatility
Bigger losses bigger winnings!

Its just the stock market on steroids

So whos good on crypto can do well on stock market
Whos good on stock market the crypto might be too fast

But anyone who is bad in crypto will be bad in the stock market and crypto, and anyone bad in the stock market will also be bad in crypto and the stock market. The 90% who loses to the 10% of earners in any market. Haha. The solution, Buy the dip and HODL. Don’t let anyone in this market to take away what they actually want from you. Your Bitcoin. Cool

Tytanowy Janusz

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Quote from: jimmywh on January 16, 2021, 07:28:13 PM

Most crypto investing have nothing to do with stock investing. When you invest in a stock you own a small part of a physical company. Investing in crypto is more based on trust and potential as it normally isn’t backed by anything else than the value we give it. (hot air) This also means that the risk when investing in crypto is way bigger.

Does it change anything for shareholder? There is nothing you can do with your shares, just piece of paper.

Quote from: OpenCryptoSystem on January 16, 2021, 06:08:14 PM

Crypto = more volatility
Bigger losses bigger winnings!

Its just the stock market on steroids

So whos good on crypto can do well on stock market
Whos good on stock market the crypto might be too fast

Market is a zero-sum game (your earnings = other loses) so if you want to fight for bucks with banks, wall street guys, governments (and their infinite money supply and insider knowledge) you go on forex/regulated stocks (by your opponents), you want to fight for bucks with tech nerds, lambo guys you come to crypto

I prefer second option.

jimmywh

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Most crypto investing have nothing to do with stock investing. When you invest in a stock you own a small part of a physical company. Investing in crypto is more based on trust and potential as it normally isn’t backed by anything else than the value we give it. (hot air) This also means that the risk when investing in crypto is way bigger.

GreatArkansas

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Its just how it works, it's just like the saying, "With great power, comes with great responsibility".
Higher risk will result higher losses and winnings indeed!
But some trader are practicing or already doing the minimizing the risk and maximizing the profits by having a risk management, not only traders but for sure some investors are doing it too.

OpenCryptoSystem

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Crypto = more volatility
Bigger losses bigger winnings!

Its just the stock market on steroids

So whos good on crypto can do well on stock market
Whos good on stock market the crypto might be too fast

Topic: Bitcoin and crypto are just a stock market on steroids (Read 183 times)