Topic: What is the difference between crypto trading and traditional stock trading (Read 439 times)

Yes, and at the same time, the work of the stock exchange is legally regulated, unlike the cryptocurrency market. And as a result, we see high volatility of the cryptocurrency, as well as the presence of a large number of fraudulent projects.

I think there is not much difference between cryptocurrency trading and forex.  Maybe there are some forex terms that can’t find on crypto such as Pip and Lot, which are about the number of decimals of the price, and in crypto it doesn't exist because maybe the crypto price already consists of decimals.  Another difference is that crypto is available 24/7, while forex is closed on weekends.  In my analysis, I think all forex methods can be applied to crypto.  Perhaps, to start trading crypto you must first get to know potential coins and find a famous and safety exchange.  Because in the crypto world there is more spam and scams than forex.  You can visit coinmarketcap.com to look at potential coins and exchanges or ask an expert. And also crypto world is so volatile, so get ready for cardiac exercise. Hope this help you.

I mean the difference is that the money that is actually being sent there, you do own digitally but you can withdraw it to your pocket, how are you going to do that with the stock companies? For example, for a crypto exchange to let you trade, you need to send either money or crypto, so it goes in, but when you are talking about stocks, you just buy it digitally from the centralized government approved places, which means that, they are doing it for you, in crypto, you are doing against others.

There is no middleman with crypto exchanges, you may think that there is, but they just give you the meeting point. So when you want to withdraw crypto, to your wallet, you can, this is why you can't do that with stocks, what are they going to do, send you some papers that proves you have the stock? They won't.

Yeah but when you do trade stocks, you are also owning digitally, which is stored in a database telling you owned x amount of y stocks.
So if you do that in a centralized trading exchange in cryptocurrency, it's the same also, you are also trading digitally.

All markets are manipulated, it is just that the whales of the stock market are many times bigger than the whales you can find in this market, however with institutional investors becoming a predominant force on this market, this will change and the whales of this market will be just as powerful, so there is not really too much of a difference between the market of cryptocurrencies and another market, since any market regardless of its main underlying asset should follow the same principles that any other asset has to follow too.

That is definitely true, plus when it comes to profits, stocks do not have the type of return that crypto could have. Crypto could go twice or three times higher in a year, and that would not be really a first time, not really a shocker, nothing that would be unreal, and quite common.

However, if a stock goes three times higher in a single year? That would be a shocking thing, and happens very rarely to companies which are very tiny, so their marketcap is so tiny that when they go 3x, it doesn't really matter, you won't see Apple or Tesla going 3x higher, but you can see Bitcoin go 3x higher, and others can go even bigger than that. So all in all, I agree, crypto is far superior without a doubt, it makes it a lot more entertaining to be investing in here.

Yes thats right. But some exchanges do put a minimum amount that you can trade

Maybe op should have put it in this way, What the difference between forex trading and crypto trading? This is okay for me.
Crypto market can be easily manipulated that's why we have been seeing different reactions and problems in the crypto market.
The market don't always follow market structure. It will be difficult for someone that had been trading in the forex market before and start trading cryptocurrency. Things are different here and there will be need for constant understanding of the market manipulation.

Biggest one is that crypto is not tied to anything and stocks are tied to companies. While there is no exact reason for crypto to go up or down aside from just people buying and selling, stocks have companies who make a profit or lose money.

So when you buy a stock, you are buying shares of that company, if the company is managed well and making profit then the stock should go up, even if it doesn't on short term due to some crash, it will eventually recover and do a lot better. Whereas if you buy a cryptocurrency, it is tied to nothing at all, as long as people buy more, then the price will go up, and if not then it will not go up. That is by far the biggest difference between these two things and makes up for all the confusion for newbies.

I don't really like to follow stocks because I don't like investment patterns that leave it to others (investment managers) with work patterns and of course people have days off service. Whereas in crypto you hold the whole thing by yourself and full access 1X24 hours and unlimited time. You will be free to supervise and when you can buy and sell your investment coins even instantly, it's starting to look different isn't it? xrypto fluctuations are very risky but if you can get profits faster and detect defeat well that is also the investment goal of some people. even including me.

Maybe stocks have been around for a long time in this world, unlike crypto which is still relatively new in decentralized global investment instruments. I prefer crypto because it is more transparent and the interest around me is mostly investing in cryptocurrencies. Crypto curency you can start buying at 1-5$, if you have that much research between two different instruments I assume you can read charts and have decent capital that is your defense in buying and selling assets.

Choose the one that suits your time, if possible choose both of them and experience the advantages and disadvantages of these assets better (research), before you choose one instrument that is focused on the day or time when you can be active in the instrument.

There is too much difference in these both trading because in stock market there officially announced every thing and they have work accordingly week.working days and holidays while I'm crypto those things are never focus some time coins will highly pump or dump suddenly due to good or bad news.
If we see the crypto trading can make us richest in seconds.

I think crypto trading involves digital assets like Bitcoin and Ethereum while traditional stock trading involves owning shares of companies listed on the stock exchange.

Traditional stock market or the forex have certain operating time. I mean it closes from certain time of the day to a fix time. Whereas the crypto market and exchanges are available anytime anyday without any problem. This is the major difference I would say. Moreover there are also some taker and maker fees if you buy and sell stocks in the traditional stock markets. These are the major differences that I can recall.

In general, what is known is that the crypto market is open 24 hours but stock trading has holidays,
Lately many people have switched to crypto trading, I don't know exactly what the most users are between crypto trading and stock trading, I will choose crypto trading to trade maybe because it is free at any time I can sell or buy

The same applies for memestocks. You can have massive swings and if you buy and sell at the right time, you can make a lot profit. I guess it depends on what kind of investment or trading you want to do. But in general crypto will be a lot more volatile than stocks even the ´better coins’ like BTC or ETH.

Apart from that, there is also a striking difference in spot trading where forex does not have spot trading and crypto has spot trading.

Apart from the problem of market operating times that you mentioned and spot trading, I think the mechanism is the same. When compared to the Forex/stock market with crypto futures trading, it is clearly the same and the only difference is in operating times. Crypto trade runs 24/7 hours - non-stop.

A key difference exists between traditional stock trading and crypto trading. In traditional trading, investors buy and sell ownership shares in publicly listed companies. Gets a share of the company earnings. Crypto, on the other hand, is the exchange of digital assets with different currencies, which is completely decentralized. There are no regulators in cryptocurrencies. But stock trading is heavily regulated by government authorities so that risk management is extremely low. But the risks are much higher, especially in crypto.

The volatility should not really be too much of a problem, as the only thing you need to do to deal with it is to reduce your position size, this way even if the volatility is higher your average win or loss can remain the same across all markets, however this is something that is seldom done by traders, and this is what causes them to be surprised by the volatility of this market and to suffer massive losses, especially if they dare to use leverage as well.

Expect the unexpected and this is something that you should really be that get wary of because if you are really that hoping that much or really have that kind of optimistic towards the market
then you could really be able to make yourself that able to experience on whats the real deal that wwe could really have into this market. Stocks or Forex? These has been those traditional markets
on where people do really make those involvement before crypto market did exist on which it would really be just that so normal that people would be skeptical on trying out crypto space.
Cant really be denied that when it comes to risks then crypto is much more higher due to movement but same goes into making money then this is something more better.

Thing here is that you do really know on how to make yourself that able to survive the harshness of this market so that you could really be able to make
yourself that be wary and be able to act accordingly.

As far as I understand crypto trading is good, stock trading is difficult because there are many rules to follow. Cryptocurrencies outperform stocks in terms of volatility crypto prices can fluctuate wildly on a daily basis often driven by speculative trading and investor sentiment rather than underlying business performance crypto is easy to analyze. Stocks are generally less volatile and tied to corporate earnings.