Topic: Stock market vs cryptocurrencies. What are the main differences? - page 2. (Read 1575 times)

In order to trade on the cryptocurrency exchange profitably, it is necessary to understand what its differences are from the usual securities markets and traditional currencies. Consider the main ones.

HIGH VOLATILITY
The volatility of cryptocurrencies is hundreds of times higher than that of securities and Fiat currencies. For example, during 2013, the bitcoin exchange rate increased by 5,500 %. Such dynamics during the year has never been observed in the stock market or conventional currencies.

As a rule, on the stock exchanges rates change smoothly and to get a tangible profit you need to trade for significant amounts. But in trading cryptocurrency it is possible with investments of only $ 5,000. earn in a few days, 30,000 to 40,000 dollars.

But the possibility of rapid growth also means high risks. Huge volatility can instantly destroy the entire Deposit. Success depends on the experience of the trader, his ability to quickly predict the movement of rates and to analyze the market.

On the exchanges of crypto-currencies, price changes are mainly due to the appearance in trade of large volumes belonging to large players or groups of individuals, so it is extremely important to have time to detect the beginning of changes and open the appropriate orders.

Another danger lies in the fact that some players deliberately stimulate a sharp price movement in order to attract the attention of other market participants, who, without understanding the situation, are quickly included in the trade and thus contribute to further strengthening of the movement.

Only by understanding the features of the cryptocurrency market and taking them into account in your trade, you can expect to receive high profits in transactions with digital currencies.

Stock market ---
1. It is centralised in nature and operate by central authority.
2. Risk is very very low for getting scammed by someone.
3. We are tax payer for capital gain from stock market.
4. Opening and closing timing for market

Cryptocurrency ---
1. Decentralised in nature no third party involved.
2. High risk involved, high chance of getting fraud by someone.
3. 24*7 working platform.
4. Not properly regulation comes for cypto trading.

To begin with, even when the value is based on the idea of the currency or the stock, in the stock market you actually invest in the company, in the cryptocurrency market you invest in the technology or the currency, however you want to see it, but you never really get to own any part of the company, even if the business of the company affects the price of the currency.This also affects the total evaluation of the cryptocurrency market, there is none. No one really knows what the total market capitalization for cryptocurrencies is. The cryptocurrency market also acts ten times faster (I don't know how true this statement is, but it is my guess, as I've said before). This affects everything. Prices go up faster, prices go down faster, prices change at larger magnitudes.

Well, stock market is for business' and if you are buying a stock you are buying the company at least a small share of it. Hence, when that company makes money your stock value goes up (most of the time at least) and when that business loses money than the stock loses value as well. Basically the stock is tied to a company directly.

However, bitcoin is not tied to anything other than what people put a value on it. Collectively we believe bitcoin should worth something and it does, we decide on the price of bitcoin and how much it should be, for all other crypto coins as well.

When a stock gets manipulated or done something to it so it worths less than what it should, people still flock to it insanely because it is still tied to a company and if it is making money and worths a lot than even if whales try to drop the price you still buy it knowing fully well that company is doing well so no reason to panic.

I have never traded the stock market, but for trading cryptocurrency here where holders are the drivers of coin value changes, especially large holders, many say that the crypto market is a market that can be manipulated at any time by large holders (whales). For transactions fee you can see in coinmarketcap and choose a market for which the fee type is written with no fee.

Stock market trading and cryptocurrency market are different in many respect., stock market is centralized under the control of  a government or other entity,  whereas  cryptocurrency market is decentralized and does not need any supervision or regulations!   

The crypto market is a free market where all the problems are always there and manipulation, fraud and hacking everywhere because the absence of laws related to cryptocurrency is certainly very different from the stock market of many aspects, fluctuations are very big differences, Cryptocurrency is more risky compared to stocks, of course with profits too, so we don't have to just put all the money away, it has the potential to harm ourselves.

maybe what can make this exchange place different is from their transparency and maybe also in terms of their security, usually the place of exchange must be clear and security must also be guaranteed. for now I only choose to use cryptocurrency which is very clear in circulation.

I have experience in my local stock market & started actively investing in crypto at the beginning of 2017. I was lucky to start at that time as it was the beginning of the crypto bull market. The ROI is incredible.. However, you need to learn how to handle with crypto exchanges, wallets, private keys & safeguard your digital assets. I learned many crypto knowledge from Youtube. Crypto market is a very volatility.. High risk high gain.. Fundamental analysis & technical analysis can be apply too.

In the Crypto market, you will never know what your investing company is doing with your investment. In addition, the Crypto market is always manipulated and there are always risks.
I think you should return to investing in the stock market and not join this market. You will get a bad result.

If you google or search the forum and explore more about cryptocurrencies then you will get to know that there are several differences in between a stock market and a cryptocurrency market. The major factor is that crypto market is spread throughout the world and is operational 24 x 7 . Cryptocurrencies are more volatile than any stocks or bonds. This is why we have to be careful and plan out our strategy well before we execute it. There will be many shitcoins too and that's why we have to research thoroughly before we invest out money in it.

First is the regulations, stock market is regulated by the government while cryptocurrency is decentralized. Another diffrence is the level of volatility. The crypto market is 10x riskier than the stock market. It fluctuates almost every minute. Lastly, the shares in the stock market comes from very prestigious companies worldwide while most of the coins in the crypto market are still unknown by the majority of the people.

First of all, both of the markets function the same way. By their simplest, the price of both are determined by demand, meaning how much people are willing to pay for a share or a currency. This means that when someone pays more than the previous person the price goes up. When no one is willing to pay a certain amount at a certain time, and someone is willing to let go of their ownership for less, the price goes down.Secondly, both of them can be valued based on the idea behind them. A stock is based on the business behind it and a currency is based on the idea, but the value in both lies behind the idea to some extent.Thirdly, both of them are so far valued in fiat currencies. This might change, if the dream of cryptocurrencies comes true.

actually the stocks in the market can declare income or not as the company will unlike in the cryptocurrency the money will provides income as many and as the company provide.

Fees are just been part but not really a major thing which we can compared of between stocks and crypto. Regulation is the main thing where we do know that assets or stocks is on which is really entirely opposite on crypto since you do talk about fees i dont see it to be bigger but rates are just usual deduction on where most banks or 3rd party service when you do make fiat deposits or withdrawals.

Talking about volatility too we do see on how prices moves on stocks which is slow or less volatile and also less profitable unlike crypto which is entirely different.

I find that there are two main differences between stock market and crypto which are the fees and regulation.

1) Stock market has higher trading fees than crypto
2) Crypto is unregulated unlike Stock market

I will recommend Binance exchange which is top crypto exchange around. Good trading experience and I have no problem with withdrawal until now.

The big difference of the cryptocurrency and the stocks are the legality between the transactions,
wherein the stocks gives more a assurance that all transactions are proctected by the law.

I never tried to deal in stock market, but i have been studying it because also of my course and field. Actually i have studdied stock exchange first before this cryptotrading. And as i expolore cryptoworld, I see no diff between them in terms of nature, and the way trading moves. Well, All i can say is stock exchange is more extablished than cryptocurrency. And that's understandable.

Well, obviously in crypto we can earn for as many percentage as we can that can go to 2000% if we are lucky enough.

In trading crypto currency it needs good exposure on the internet to have a good running trades and it will surely boost the value in no time. I don't know much about stock markets but I'm sure the similarities on these two are almost alike well i think stock market was the main idea why crypto's was created. Crypto's rely on the internet's power to increase their morale and connections stock market may rely on it too but the visibility are limited to business minded people only. Crypto are mostly focused on the internet while stock market rely on connections on real living persons and deep relations with good dealship.