Difference Stock Trading and BTC trading

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Quote from: rexxarofmoknathal on August 02, 2020, 04:24:15 PM

I think technical analysis is less effective on crypto markets than it is on stock and forex. The market structure of crypto markets is often completely erratic and no sense can be made from it (although people still try).

I'd stick to fundamental analysis if you plan to trade cryptos, it will steer you in the right direction for medium to long term picks.

That is odd because I think the opposite, fundamental analysis does not really work in this market as it does not make sense that a coin that everyone knows is a scam goes up in value dramatically while some decent projects never get the attention of the community, technical analysis works in this market, it is true that it is difficult to predict when a spike in the price will happen but once that happens it is easy to determine if what we are seeing is a fake movement or if it is the real deal.

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I think technical analysis is less effective on crypto markets than it is on stock and forex. The market structure of crypto markets is often completely erratic and no sense can be made from it (although people still try).

I'd stick to fundamental analysis if you plan to trade cryptos, it will steer you in the right direction for medium to long term picks.

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Quote from: RealMalatesta on July 28, 2020, 12:09:19 PM

Liquidity is not really all that troubling because considering in the stock world we are talking about a lot of stocks, there are some like bitcoin and there are some that is more volatile than bitcoin and there are more stable ones than bitcoin. Of course you are not going to see a lot of stocks that goes down 20% and up 50% in a month, but bitcoin can do it however that doesn't mean those stocks do not exists.

You have to think bitcoin like an individual stock and not the whole stock market, if you do that there is absolutely nothing that resembles it, but if you take it like an individual stock, you can find ones that are resembling each other and that is what matters when you are trying to compare it to something, if you don't do that you can't compare it to anything.

Do not forget the legality as well. Most of the time when you are doing stock trading you are in way more harsher legality zone as well, when you are in crypto you could make it a bit more hush hush and stay anon as much as you can, not saying you will be successful but you can at least try that, when you are in stock world you are basically in governments and banks lap and they will take as much from you as possible.

You can't really get into stock world with 100 bucks and assume that you could make a decent profit, at least %5 of that will be gone between fee's anyway so you need to make more, and stock market is not as volatile so its going to be quite the challenge as well. I don't know the advantages of it but surely there must be some since people are doing it in trillions of dollars.

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I guess liquidity and the volatility.

Since there are a lot of people that trade their stocks, people can easily sell and buy these stocks unlike bitcoin where you can only get some certain options. Skme country don't even include bitcoin. Another thing is volatility, as we all know cryptocurrencies are usually so volatile unlike in stock.

They are also hugely affected by pandemic and other stuffs while Bitcoin is not that much affected by it.

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Stock trading operates in regular days while BTC trading is operating 24/7. There’s a lot could happen in a whole day of trading in crypto trading. I guess if you’re good enough in crypto trading, you will be able to get more money. You can easily purchase tokens in cryto trading rather than stock trading. There a lot of process needed to accomplish to be a trader in stock trading while in crypto trading you can be quickly a trader.

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Quote from: Harlot on July 28, 2020, 10:43:48 AM

I think the biggest difference between the two is with stock trading you can overlap both technical and fundamental analysis when trading where in crypto trading only TA is present. What I mean about an overlap is you can used both analysis to make your price prediction more accurate as fundamental analysis is something good to be used if you are betting on a financially good performing stock. Crypto on the other hand only has TA and also news that can trigger FOMO and FUD which makes it harder for you to rely only on its chart.

Since I have only traded bitcoin I have not really thought about it but I think you are right, when it comes to stocks you can anticipate many of their movements before they actually happen, if you think there is going to be a significant increase in the profits being reported then you can take a position way before this information is revealed and take some easy profits as those that are not putting attention buy after the fact, it may seem too simple to actually work but I do not see why it would not.

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To: OP

- The type of purchase and sale currency: Fiat. Bitcoin. (obvious but ... must be said) consequently technology makes them intrinsically different.
- mmmh! regarding what? volatility are different, volume is different,
- Yes, but it may be that your strategies, knowledge, must be adapted.
It is as if you are an expert swimmer in Olympic pools. In crypto, it is open water, you have to practice.

GB.

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Quote from: MCobian on July 26, 2020, 06:12:55 PM

Both stock trading and Bitcoin trading have advantages and disadvantages, so it depends on us more suitable trading stocks or Bitcoin.
But I prefer Bitcoin trading because the price is volatile, in contrast to trading stocks because of more liquidity. For me the price of Bitcoin
is volatile, it's easier to make profits. Therefore even though the risk of Bitcoin trading is greater, I consider Bitcoin to be more profitable.

Trading is similar to gambling, you take higher risks and you get higher rewards that can be called as bitcoin trading while taking lesser risks but also lower profits that can be considered as stock markets.

I have never done stock trading because I always thought a lot of legal work is required to get that done but with bitcoins it seems very simple because I just see the prices of bitcoins and other alt-coins and all I have to do is buy at a particular price and then sell once the prices moves up. I heard stock trading requires a lot of legal work as you actually buy shares into a company and you basically own rights for the company as you gain more shares.

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Quote from: diazepam666 on July 28, 2020, 03:06:06 PM

Trading is a mutual for both the platform so we just think how we split crypto and Stock market in all time. But crypto trading is totally unbelievable for beginners. Stock level is always predictable so we pic the two to three projects we make some profit. But Bitcoin different from all the altcoins. The current market is growing rapidly so those are interested to investment in BTC they makure huge regards on fupim

Maybe crypto trading will good for the beginners as they don't have to learn many complicated lessons than the stock trading. The beginners can try to learn the lessons about one or two indicators, and keep learning of that so they can understand the point of the lesson. I think if they can master the lesson, they can have a chance to make a profit because if they try stock, I am not sure if they only need to learn one or two lessons to understand the stock trading.

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Trading is a mutual for both the platform so we just think how we split crypto and Stock market in all time. But crypto trading is totally unbelievable for beginners. Stock level is always predictable so we pic the two to three projects we make some profit. But Bitcoin different from all the altcoins. The current market is growing rapidly so those are interested to investment in BTC they makure huge regards on fupim

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Quote from: ReiMomo on July 24, 2020, 12:37:01 PM

All have been mentioned earlier replies but I have something to add in here. First thing first here, crypto trading isn't to give any legal entitlement to the owner. Because since crypto is unregulated, legal rights weren't there. Not unlike stock market, traders have fully regulated they they pay their taxes.

While you are correct but buying a portion of bitcoins does give you a share of the total bitcoins and while it doesn't give any legal entitlement it does give you shares basically what we all hold are shares of the total bitcoins, no?

You have to pay taxes on trading indeed, unless you want to evade tax and yeah you aren't forced to pay taxes but you must if you are trading legally. I guess stock trading is inclusive of taxes in my country but when you are making more profits out of stock trading then you need to pay income tax which must be another thing after the taxes for stocks and trading related.

Quote from: ReiMomo on July 24, 2020, 12:37:01 PM

There are too many factors to consider it's differences, I only state those basic pieces of information and also others are already mentioned above. Or for further information, I leave here a link that has a good article that worth it to read.

You might have forgotten to link the article so please do, because it is always good to learn something new

(I am sure that I have double checked).

RealMalatesta

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Liquidity is not really all that troubling because considering in the stock world we are talking about a lot of stocks, there are some like bitcoin and there are some that is more volatile than bitcoin and there are more stable ones than bitcoin. Of course you are not going to see a lot of stocks that goes down 20% and up 50% in a month, but bitcoin can do it however that doesn't mean those stocks do not exists.

You have to think bitcoin like an individual stock and not the whole stock market, if you do that there is absolutely nothing that resembles it, but if you take it like an individual stock, you can find ones that are resembling each other and that is what matters when you are trying to compare it to something, if you don't do that you can't compare it to anything.

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I think the biggest difference between the two is with stock trading you can overlap both technical and fundamental analysis when trading where in crypto trading only TA is present. What I mean about an overlap is you can used both analysis to make your price prediction more accurate as fundamental analysis is something good to be used if you are betting on a financially good performing stock. Crypto on the other hand only has TA and also news that can trigger FOMO and FUD which makes it harder for you to rely only on its chart.

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Quote from: BlackFor3st on July 28, 2020, 07:42:00 AM

Stock market has a high liquidity and in case of the cryptocurrency it depends on the coin. Also, the cryptocurrency is very volatile that can doom or boost your investment in just a short time. If you are good in trading stocks therefore you can do good in trading cryptocurrency since they are using the same fundamentals and techniques.

I'm not sure how this be good and efficient because crypto trading is having a big difference in the stock market trading. The volatility in crypto will outplay those trading fundamentals and strategies that we use in stock trading and yeah, it finds not really effective as it was.

They are all pertaining to such risk but can't deny that BTC trading involves high-risk than stock trading. With that matter, those low risk-takers will never choose crypto trading rather than stick with the stock market.
Anyway, no matter what kind of trading you use but the result will ultimately depends on you and how you manage it. It is not the case that you choose hig-risk trading but it how you make an adjustment to its shift.

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Quote from: sakurro on July 22, 2020, 02:15:11 AM

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Stock market has a high liquidity and in case of the cryptocurrency it depends on the coin. Also, the cryptocurrency is very volatile that can doom or boost your investment in just a short time. If you are good in trading stocks therefore you can do good in trading cryptocurrency since they are using the same fundamentals and techniques.

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Quote from: pawanjain on July 24, 2020, 10:11:19 AM

Stocks have more liquidity and are less volatile whereas crypto has less liquidity than stocks but are highly volatile.
Cryptocurrencies can be bought in decimals for example you can 0.0001 bitcoin too whereas for a particular stock you must buy at least 1 whole share.

That basically is the most significant factor a lot of people use it for their advantage while a lot of traders feel under pressure because with high volatility comes higher risk and you must have some solid backup to cope with the loss in case the price goes down and even harder for leverage traders. There are times when you would need higher risk-appetite or you will have to sell your bitcoins in loss as some investors/traders sold their coins in March when the price dropped like a sack of cards.

But at the same time, high volatility means you can easily use it for your advantage too and get bigger profits.

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Quote from: sakurro on July 22, 2020, 02:15:11 AM

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

There are some differences, the main one is that stocks tend to move inside a range for a very long time and they do not trend very well, as such a system that takes small profits on each trade seems the most effective, bitcoin moves in a way more similar to other commodities like gold, silver, coffee, corn and beans, as such there are times in which the market does not move at all but then it begins to go up very rapidly, so your best option is to have a system that stays in the market for the majority of the trend and tries to get as much profit as it can from it.

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Fundamental analysis is a major way to trade in stock market while crypto trading is more in technical analysis and because of volatility of crypto trading in small period of time many traders are failed to accomplish what supposed to be they want to earn.
The possibility of permanent loss of money are found in these two but unlike stock trading you can determine or clarify the situation why you did your money loss or maybe the hackers get your money since its regulated by SEC while crypto trading have no such guarantee that you can be able to get back your loss money.

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Quote from: sakurro on July 22, 2020, 02:15:11 AM

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

Answering your question of fundamental difference there is a complete fundamental difference when it comes to stocks and crypto. Both just can't be measured on the same base. First and foremost reason for this is that the companies always strive to increase wealth to shareholders therefore trying to stabilize and increase stock price by getting good results. While in cryptocurrency developers are least worried about it after listing. Even if they take some measures to stabilize price these methods never are organic and ethical.

Secondly coming to trading there are a few differences:
1. The 8 hour stock market vs 24 hour cryptocurrency market is a big difference. It's because in 8 hour you would get a lot of volatility together while same isn't the case with 24 hour markets. Moreover gap ups and gap downs are also I would say a limitation of stocks
2. FUD in cryptos is much higher than in stocks. Stocks being more regulated experience less FUD therefore lesser volatility so your stop losses won't hit pretty often
3. No doubt stocks can be manipulated too but cryptocurrency are more prone to manipulation by big traders.

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Quote from: sakurro on July 22, 2020, 02:15:11 AM

Could you be an expert about stock trading and then do wwll on cryptos as well?

Yes, but you must have high stock trading and crypto skills so you can trade both without any problem. But stock trading and crypto trading are different, and the lesson will not be the same as the crypto market is online 24/7 without stop. Stock trading will be more difficult to learn, as there are many indicators that you need to learn. The crypto market will be big than the stock as many project releases every month on the market, so people will have more chances to profit in the crypto market.

Topic: Difference Stock Trading and BTC trading (Read 611 times)