Stock Market vs Crypto Market | Bitcointalksearch.org

Deborah Christine

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Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Hi all, I'm new to crypto market. Would like to ask is Crypto market correlated to Stock market ? And can we apply Stock investment strategy & technique in Crypto market Huh

The crypto market does not correlate with global stock markets and traditional markets such as equity. Bitcoin or cryptocurrency prices as a whole always have independent price movements, regardless of financial market performance. However, in terms of investment and technical strategies you can apply them to both the crypto and stock markets.

Febo

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Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Hi all, I'm new to crypto market. Would like to ask is Crypto market correlated to Stock market ? And can we apply Stock investment strategy & technique in Crypto market Huh

Crypto marekt is 10000 coins. They are very diferent. Some are used for store of value whiel other are used for dentists. There is no corelation among different coins. So you cant realy expect it with all stocks.

ashour

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Crypto markets are mostly known for their exceptionally volatile nature. If you look at the crypto market, you will see high price spikes and downfalls which are never good for a portfolio. In case you are wondering, how can this happen?

It depends on price manipulations done by bots, lack of proper regulations and some dump schemes, for example. However, some of these issues are solved. Whereas in case of regular investments in stocks, governments and stock markets have finally come to realisation that impartiality will be beneficial for everyone involved in the stock market.

Sweetbtc

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Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Hi all, I'm new to crypto market. Would like to ask is Crypto market correlated to Stock market ? And can we apply Stock investment strategy & technique in Crypto market Huh

Both of the markets has unique advantages and disadvantages but crpto market is not yet fully matured and there fore we have better chances of gaining more profit from there. You can read some details here https://www.thebalance.com/should-you-invest-in-stocks-or-bitcoin-4121151 and then will be in a better position to decide which investment is better of the two.

pieppiep

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I think the crypto market is not correlated to the stock market because it has a different component to trade. But basically, I think the analysis is almost the same between the crypto market and the stock market. I think you can try by yourself so you will know if the strategy and technique can work or not. If you have good skills in stock, I think you can use it in crypto trading, and I don't think that you will get a problem. You only need to familiarize with the command in the exchanges and practice for some time. After that, I think you can analyze with using the indicators that are available in the exchanges.

But don't expect to make a bigger profit in one time trade because that will be difficult to get, especially if the market is not stable like now. As long as you can make a profit, it is enough to you while you are still learning on the crypto trading.

Velkro

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Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Hi all, I'm new to crypto market. Would like to ask is Crypto market correlated to Stock market ? And can we apply Stock investment strategy & technique in Crypto market Huh

There is slim to none correlation.
Crypto market have so much differences like no regulations, trading 24/7/365 which alone causes whole different spectrum of behaviour.
Nothing compare, but allows different market plays which is illegal on stock market. Noone knows how many of that is happening now, i bet many made millions by that already.

Dabs

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The total stock market includes more than 3000 publicly listed companies, and maybe more than ten thousand different kinds of bonds. Then there are mutual funds and ETFs, which you could consider part of the stock market. These are regulated. There are laws and requirements. Banks and other financial institutions required KYC-AML and other info.

The crypto market does not have any kind of derivatives yet. Unregulated. Can not be controlled directly. It's a different kind of asset class.

futureofbitcoin

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While market watchers await the arrival of Dow 20,000, Bitcoin, the nascent digital currency nearing its 8th birthday, make actually reach its own milestone before the Dow as it continues its multi-year bullish rally towards $1000.
Since the Presidential election of Donald Trump, markets can more clearly price future expectations and in turn, both Bitcoin and the Dow Jones Industrial Average are rallying to near unprecedented heights. The surge of Bitcoin’s price, however, has primarily been fueled through interest abroad, with geopolitical pressures and monetary environments in China, India, and Venezuela pushing investors towards the independently minded digital alternative.

elyorman

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somehow they are totally different!
1. coins can easily increase or decrease 100x its initial value as cryptocurrency market is also easily manipulatable.
2. 24/7 Market
3. no Security Insurance needed in most crypto exchanges
4. Price Inconsistency. Therefore, the best bid in cryptocurrency is never stable. This is why it is the trader’s job to find the best exchange to trade with.
5. There is no User Base and Revenue for most of the coins
6. If the user’s cryptocurrency is stolen or lost, there is almost no chance of recovering it. In the stock market, most of hacked assets could still be recovered.

JensenLim

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Quote from: akhjob on September 25, 2019, 08:51:00 PM

Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Would like to ask is Crypto market correlated to Stock market ?

I'm not a trader rather a HODLER. Crypto market is not correlated to Stock market, it depends on the bitcoin movement.
Bitcoin Pump = Altcoin Dump
Bitcoin Dump = Altcoin Dump
Bitcoin Sideways = Altcoin Pump

Quote from: JensenLim on September 25, 2019, 08:16:44 PM

And can we apply Stock investment strategy & technique in Crypto market Huh

If your investment strategy is based on fundamental analysis, there is difference. If it's based technical analysis, there is not much difference. If its based on both, you would have to understand the fundamental part better.

Tip: If you are looking for long-term investment in BTC, results will be profits Grin

for short-term market fluctuates.

For the bitcoin movement :
Bitcoin Pump = Altcoin Dump
Bitcoin Dump = Altcoin Dump
Bitcoin Sideways = Altcoin Pump

I understand that if bitcoin pump = altcoin dump because most of the investor will pump in money to the bitcoin and affect altcoin. But why bitcoin dump will affect altcoin dump also ya ? Huh

CryptopreneurBrainboss

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Quote from: hugeblack on September 26, 2019, 09:18:08 AM

There is a fundamental difference between the cryptocurrency & stock market. So the same techniques won't be the same.

Exactly besides the emotional effect, positive or negative news have on the separate market aren't the same. A positive news toward a particular stock generally leads to a positive movement of the price of that stock although that isn't gauranted with cryptocurrency. A popular example was the hack of Binance exchange which the market reacted positively to, instead of negativity.

The cryptocurrency market is still been influence by emotions that's why, manipulation of price value is still recording a huge success. An observation of the recent 2-3 bitcoin market price movement and you'll observe the market is just been manipulate as there isn't any reasonable explanation behind the decline or increase in price value.

Niya

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Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Hi all, I'm new to crypto market. Would like to ask is Crypto market correlated to Stock market ? And can we apply Stock investment strategy & technique in Crypto market Huh

Crypto market is far more volatile, so there are many differences you should take care of because implementing your trading strategy. Also, since Bitcoin's dominance is so strong, any other altcoin is related to it.

hugeblack

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There is a fundamental difference between the cryptocurrency & stock market. So the same techniques won't be the same.
Through the stock market, you know how to read charts and calculate changes based on some technical factors and averages.
The cryptocurrency market is a high-risk market and its results are unpredictable, so news plays an important role in predicting the price, in addition to some averages if the news does not succeed.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Would like to ask is Crypto market correlated to Stock market ?

Not directly. Sometimes we have seen opposite site movements in stocks but whether that was due to crypto being dumped to buy stocks is debatable and not verifiable. You should know that stock markets are very much regulated. You wont find people buying and selling huge volumes to crash their markets everyday but this is very common on bitcoin markets.

Quote

And can we apply Stock investment strategy & technique in Crypto market Huh

You can apply similar technical and fundamental analysis. If you are looking forward to trade in crypto market a background knowledge of stock markets will definitely help you and frustrate you at some points. Cheesy

Jet Cash

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One of the unique aspects of Bitcoin is that it is not correlated to any other asset class. Most assets have direct or inverse relationships with other assets, but Bitcoin is in a class of its own. This does not refer to all crypto assets or tokenised securities, and you will need to read the white papers to establish their inter-dependence.

Bitcoin_Arena

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฿itcoin for all, All for ฿itcoin.

I do lots of crypto day trading. If you are a day trader like me where you capitalize on daily fluctuations for profits then you can apply the same basics, nothing much different apart from the exchange platforms you use.

However, i believe crypto is very volatile compared to stocks. Whether you are trying to do short term or long term trading. Some assets not among the top assets( what we call shitcoins) can move from assets of value to assets of no value in a very short period of time.

The correlations between stock and crypto markets is not really there, if it is there then it is very negligible.

QueenVera

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They have similarities but aren't correlated, one is too volatile while the other is less volatile therefore the same trading strategy can't be applied since the market has different volatility nature. The buy low and sell high phrase isn't a strategy per se, it's the principle of how trading market (all around the world) operates. For investment strategy, yes you can apply the strategy that involves hodling your investment for both market but as for technical analysis, although I don't use those but since the volatility nature of both markets are different therefore the technicality nature of the market has to be different too.

prix

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Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Hi all, I'm new to crypto market. Would like to ask is Crypto market correlated to Stock market ? And can we apply Stock investment strategy & technique in Crypto market Huh

Yeah, the same strategy here - buy low sell high.
Seriously, the crypt reminded me of an early stock market. But the farther, the less inefficiencies.

UserU

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Hardly. Currently the stock market has taken a beating over the past few months while Bitcoin only recently took a dip.

akhjob

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Buy Bitcoin

Quote from: JensenLim on September 25, 2019, 08:16:44 PM

Would like to ask is Crypto market correlated to Stock market ?

I'm not a trader rather a HODLER. Crypto market is not correlated to Stock market, it depends on the bitcoin movement.
Bitcoin Pump = Altcoin Dump
Bitcoin Dump = Altcoin Dump
Bitcoin Sideways = Altcoin Pump

Quote from: JensenLim on September 25, 2019, 08:16:44 PM

And can we apply Stock investment strategy & technique in Crypto market Huh

If your investment strategy is based on fundamental analysis, there is difference. If it's based technical analysis, there is not much difference. If its based on both, you would have to understand the fundamental part better.

Tip: If you are looking for long-term investment in BTC, results will be profits Grin

for short-term market fluctuates.

Topic: Stock Market vs Crypto Market (Read 234 times)