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

-Volatility
-Regulation

These are the main difference between stock and crypto.

The difference in volatility: in the cryptocurrency market it is higher; on the cryptocurrency exchange, the price change is due to the appearance in trade of large volumes belonging to large players or groups of persons, so it is important to have time to detect the beginning of changes and open the appropriate orders.

The advantage of crypto trading over stock market trading is that crypto can be traded 24/7 while the stock market is just open on business days. There would be more opportunity for profit in crypto compared to stocks and it is easier to trade in cryptocurrency when it comes to requirements because as long as you know how to use the platform then you can trade whereas when it comes to stocks, there are a lot of documents needed before you can open an account and trade and it has higher minimum amount to trade than cryptocurrency.

As full times trader, i can handle and to do stocks and crypto trading at the same times, in stocks trading i more focus in swing trading by chooce strong fundamental stocks with high market cap, and in crypto market, i will trade it by day trading. Crypto market open 24/7 and this is big opportunity to make profit from day trading, but stocks market only open about 7 hours aday from monday to friday. Trade on stocks market and crypto market has the same risk, but the risk we can minimize by trading plan.

The regulations create a wide difference between cryptocurrencies and stock market for now but time is coming that regulations of cryptocurrencies market by the governments will be achieve. Governments will actually one day try to regulate cryptocurrencies market by then some of the tokens and coins we have today will be centralized.  However,  we should see cryptocurrencies industry as the money and capital market.  Bitcoin is decentralized and it can serve as money market why some coins and tokens we have now are like capital market.

Stock market investment as well as cryptocurrency investment both are difficult to handle but there is high chance of getting huge profit from the crypto currencies especially the Bitcoin that generates maximum profit for us. This is possible only if we have knowledge of it and can handle properly so similarly other investments like stock market are also in benefit which means to diversify your savings is always a good strategy.

I am going to try not to spam with you with text but rather show you a website that you can check out https://www.cryptocointrade.com. Its all about trading coins, including trading platforms, fees, regulations, strategies, apps, charts, bots, and much more.
On the side of your question, we can easily summarize differences in bullet points:
- stocks are a lot less volatile than coins
- stocks are regulated heavily by governments, cryptos are not
- stocks represent individual businesses or groups of them, cryptos represent ideas and solutions
- stock market is centralized, cryptocurrencies are not (mostly)
- stocks represent the value of a company and assets it has, cryptos are determined by the market trends and have almost no physical assets to speak of

There are few more, but these should be efficient so you would know what you're dealing with
Read articles on the website I provided to get a better idea of how and what to trade and keep learning from other sites as well!
Happy trading!

There are differences between the stock market and cryptocurrencies. The cryptocurrencies are centralized which means that they are not control being controlled by anybody or corporate bodies but only by the market sentiments. cryptocurrencies can not be used as a security only to be used for P2P transaction. While Stock market is centralized and being controlled by the SEC. Stocks are underwriters securities which can be used for surety in case of other financial dealings of the person holding the stock.

This is not true, there is no such thing as a rule in the stock exchange where the companies' stocks needs to run smoothly it will always depend on the performance of each individual company that is why some stocks of companies fly faster or fall down faster as it reflects on the company's performance. There is also no minimum amount of investment for you to earn in the stock market, you may double or even triple your money in cryptocurrencies but you can also do that with a few hidden gems in the stock market.

Then you really have not seen penny stocks. That is for another day though! However, it is a good point stating that stock market has a higher market cap and since it is regulated, there are some manipulations that would be very hard to see in the market unless you want to go to jail as the manipulator which makes it less of a volatile market than crypto but does not mean it does not have its own volatility based on fundamental view of the particular stock.

They still operate in about the same way and it is the same strategy you will use to trade in some stocks and hit good profit, is also the same strategy you will use in cryptocurrency to make good profit.

I think it can also happen on stock market .  if big players or whales will buy more stocks , the price of stock can also increase . same as when they sell a lot of stocks , the price can also decrease just like what we have on the market of cryptos .

But in cryptos , the value of a coin can go high in a verry un-usual state and i think that is the main difference between stock market and cryptocurrency market .

At crypto-exchange exchanges, price changes occur mainly due to the appearance of large volumes belonging to large players or groups of persons in trade, so it is extremely important to have time to discover the beginning of the changes and open the corresponding orders.

In fact, digital currency rates depend on individual groups of players pursuing different goals and capable of dramatically increasing trading volumes. At the same time, many traders successfully use separate elements of technical analysis to predict the movement of rates when trading crypto-currencies.

I have seen more people point that out, but essentially it doesn't mean much on its own, especially when it comes to preventing scams. There is plenty enough illicit activity within the stock market even with these regulations.

Stock market scams are less obvious because they're meant to run for a couple of years, and that while crypto related scams aim to scoop up people's money in a very short period of time.

In most cases you can right away spot a crypto scam because of how it's set up. Try spot obvious scams within the stock market. You'll only find out that you have invested in a scam when it is too late.

The volatility of the crypto currency is hundreds of times higher than that of securities and fiat currencies. As a rule, on stock exchanges of securities, the exchange rate changes smoothly and significant amounts must be traded to obtain tangible profits. But in the trade of crypto currency it is quite possible with investments of only 5,000 rubles. earn a few days 30 000-40 000 rubles.

Stock market under regulation and the fluctuacion lower than crypto,  and others different is in crypto market normally all  Coins will bullish and bearish the same periode and stocks market is not,    in stock market has higher market  cap even popular stock like Apple has market cap more than $1 trillion alone. The price of crypto can be going down to zero,  but i dont see any stocks like that.

I have known stock market for the long time 'cause I am a business student a we study and talk about it very often. I am about to graduate and i am planning to invest but I don't really know which is better. So I am hoping you guys could help me out, coz I know some of you have been investing for a long time. Don't hesitate to tell about your thoughts and investment experience.

Stocks are centralized, the platforms you trade stocks are centralized, but crypto is about decentralization. But today most tokens are centralized and you trade them on dex 

Yeah ,is possible to make bitcoin growth the price if some nation are also involve to crytolanld ,,like you said Russia are also considering to accept inolved in the market,despite some of nation bitcoin will banned,so that take a lot of research is also key to plan carefully before decided to this path, because  you must also responsable to your future,.

Whether this is a good thing or a bad thing, you be the judge.

The market is never closed, ever.

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.

In my personal opinion,the stock market investments are ot for everyone because it needs more knowledge and technical analysis skills,and most of the newbie stockmarket investors are losing their capital but in crypto currency we don't need much knowledge and een we can invest here with little capital and the profits will be according to that.

maybe this is what I can describe between stock differences and cryptocurrency like this

stocks: slow movements, capital must be large, there are financial supervisors, famous companies are all there, not anonymous.

Cryptocurrency: the movement is significant fast, the capital does not have to be large, there is no financial controller so if the losses and keuntungn not in charge by the government, any company can enter.

The main difference in Crypto Market and Stock Market is that crypto market run 24 hours and day and 7 days a week and No holiday in the crypto market. But Stock Market does not work on Holiday like Saturday and Sunday. So this is the main difference according to me in crypto and the stock market.

The crypto market still involves purchasing and trading of a commodity of value, just like in the traditional stock markets and money markets. In both scenarios, a purchase is made in the hope that the value will increase and result in a profit.
We have more info on this in our blog post...profit and loss margins, risks, etc. so check it out:

Bit.ly/StockVersusCryptoMarket

both are good why not invest on both. stocks is safer also some is tangible but crypto is more volatile and faster. being more volatile means more price action, more price action is better for traders

GBTC was a very good investment earlier this year but the premium has skyrocketed to extreme highs. I exited at $174 because I thought the premium was too high then. Unless you are day trading, I would stay away from most of the current stock offerings directly related to Bitcoin. On the other hand, I still like ARK, ARKW, and ARKK that focus on emerging tech with some exposure (>10%) to Bitcoin investments.

For trading cryptos, I suggest trying <https://www.bmybit.com/ no ref link> / <https://bmybit.com/?r=124185 with ref link>. It is transparent and you do not need to give the platform access to withdraw funds from your exchange accounts. If you create an account, you can see how I am doing there just letting a few strategies run https://www.bmybit.com/users/Pistachio/. Here's a screenshot from today,


Good luck! 

I had been trading stocks for the last decade and then decided to go full time in bitcoins. In the country where I am currently at, I had noticed that stock market crashes whenever the elections are coming (2007 and 2016), especially when the newly elected leader is making some goofy decisions (such as switching allies from America to China, vice versa). I want to give you an example where the government directly affects the price of a stock; in 2014 I have bought a few thousand shares of a nickel-mining company but unfortunately the government declares a nationwide ban for mining, therefore, that stock went down 50% and I have no choice but to cut-loss and move on. I also have a few shares of Casino stocks but 2 years ago, the government went rocky with the Chinese so that particular stock did not perform very well. I am still holding that stock though.

Now, with bitcoins and cryptocurrencies, the government doesn't have direct influence to it's price. You may also say that the community decides about the fate of it. Another great thing about cryptocurrency is it is not regulated by SEC. it is tax-free in my country too.

Dividends are so minimal in the stock market, compared to the growth some crypto's can experience in a few days.
Sometimes I hear someone talking about his 5% yearly div, and in my mind I just lol.

Btw, there are enough coins/tokens that provide a "dividend" as well.

One difference is that there are many stocks where you get a dividend each year.
Another difference is that the crypto market in general is much more volatile than the stock market.
And then I must say that it is easier to get information on stocks. Each company must publish numbers every few months.
The earning options in trading and in simple holding as well are much higher with crypto currencies.

The major difference I see very relevant is that no one can just sit at the back of computers or even phones and trade stocks without having a particular certification to engage in such. Over here one needs to have been a member of one stock brokers association to be able to trade and without that, you cant unlike crypto where what it will costs me is to just open an account on a website and boom I put a run for my money whether I am knowledgeable or not, is another discussion.

I have never tried stocks but for me cryptocurrency makes pumps dramatically. This thing attracts more people to become a crypto trader like me.

This.

Also, because cryptocurrency trading is unregulated you see practices that got outlawed in the stock market back in the 1930's - insider trading, pumper-dumper groups, fake news designed to panic people, even people DDOSing exchanges to take them off line at crucial moments and make investors panic.

Volatility and growth rate are the most important differences I think, they make up for a better ROI.
A stock trader for example would be very happy with +10% in a day, while a cryptotrader sees things like this on  a daily basis.

Very few websites like poloneix offer low trading fees but mostly the big exchange websites have a trading fee of 0.0015 to 0.002 BTC. The market is run by pumps and dumps unlike the stock market which does have fluctuations but not this huge and regular ones. There are bots that you can use for trading but it's better you start manually trading on sites and get an experience and unlike stock markets that have a stable rate for all company shares, crypto currency prices are different among all websites. You can check coinmarketcap.com to get a fair idea of which crypto currency is traded on which website and the corresponding price (like BTC, eTH and so on).

Yes you are right that there is no any authority interfering crypto market but govenment of few country specially china can still influence the market like yesterday a ban of ico in china cause huge panic on the market which might not be same in forex trading.

When you are into crypto trading you will actually own those crypto but in forex what you will trade there is mostly digital assets which is not under your full control.

Margin trading on crypto is quite rare and don't have leverag of over 2.5x while in forex you can get more than10x leverage.

I find ease of use and simplicity to trade the difference between stock market and cryptocurrencies. In stock market you have to go through some formalities before you can start trading, where as in crypto its very easy and nearly hassle free. And basically stock market is regulated by government and Bitcoin is not.

And about volatility as mentioned by many, I found even some particular stock in stock market sometimes being volatile. But yes I get huge options in stock market considered to available crypto coins.

A little bit difficult to answer your question. Furthermore i know that stocks has a downtime like you said and it is too different from cryptocurrency because you can trade all day long as much as you want, the only limit is your money and your skills even though i know you have some skills but in crypto reseaeching in a Altcoins is much needed before investing.

Couple of reasons which differentiate them are

- Stock market is being controlled and regulate by an institution. Bitcoin is not government by any body.
- Stock market are less volatile and there are circuits in place if it jumps or fall above a certain %. In bitcoin there no circuit as only the buyer/seller needs to decide when to buy/sell.
- Earning wise bitcoin is the best as due to volatility the market rises and fall accordingly and so if you are on right side of the swing you can easily make lots of money and in stock market you will have to be little patience as only when the market and stock rise you will be able to make money.

There are several differences.

1. Crypto is much more volatile, the S&P annualized long term volatility is 15% whereas BTC is 100%+. A 20% to 30% move n crypto is nothing.

2. Crypto is more difficult to short, the shorting functionality is less mature than in teh stock market where you. Bitfinex is one o thefew  providers where you can do margin trading and shorting.

3. Crypto has less anchors for valuation unlike stocks which the valuation may be tethered on estimates of sales, earnings, EBITDA, book value, etc. Crypto has Metcalfe's law which says the network value is proportional to the square of the number of users.

4. Metrics are very different, crypto has development strength (e.g. # of github code commits), # of users, management/development team depth. Two factors they share in common are market cap and age of the business.

stock market is regulated while crypto currencies market is not.
stock market is huge but the altcoin market is usually referred to as penny stocks because of its uselessness and it being small.
you can not manipulate stock market but manipulation is a part of altcoins market and to some extent it is even available in bitcoin market too.
you can use technical analysis and speculate stock market with more effectiveness than you can do it with crypto markets because of the above points.
stock market has a open and close time, it is off on weekends but crypto market is 24/7

Correct, there is not a market opening or closing, you're just placing orders any time of the day. Another big difference is these cryptocurrencies are extremely volatile because it's a new technology. They are also not the same as companies or businesses. They are more like a fiat currency exchange.

Also the exchanges are more risky that the stock market because they can close or go out of business at any time and can be hacked, so we are taking risks.

Thanks. Will check it out The transaction fee seems low, I have grown accustomed to something around 0,6% so it would be a nice change

As you said, the market works 24/7, every single day. Bittrex has 0,25% fees on both asks and bids, but its a nice trusted site with many coins offered in their exchange. Give it a try!

Thanks for the input Yeah it is true that stocks' price doesn't move as fast as cryptos. However, I used to trade small and middle sized companies' stocks, so it was very volotile at times. Also, I think that apart from bitcoin it is hard to actually predict the movement of the price trends of the coins. I mean it's not like we get actual information on the company financial state

I read an article some days ago that Russia was considering accepting cryptocurriences on thier market. Do you think that it was something that made the growth to almost 5000$ possible?

Also, I have never heard about ICOs. They seem like a great idea

Never tried to trade with stock market but i think the different of trading with cryptocurrency is the movement of the price was fast than in stock market this is just base what i saw or experience that is why they are more people are trading with cryptocurrency because of the fast movement of the price..
But the problem right now i heard that ICo and altcoin are ban in china that causes the price of bitcoin down..

You can try to trade with CEX,io or go to https://coinmarketcap.com/ and choose what altcoin you want to trade and click market you can see almost list of exchange site. .

Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?