Topic: What is the difference between crypto trading and traditional stock trading (Read 424 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.

       -    Literally, the difference is that bitcoin is more closely associated with blockchain technology, but stock trading is clearly associated with the classic trading method. Apart from what I've already stated, there is company ownership in stock trading, and the value of cryptocurrencies is determined by supply and demand, the future, and use cases.

And when it comes to market hours in stock trading, people usually do it during business hours, however in cryptocurrency, you can do it whenever you want, in short, 24/7. In terms of regulation, all stock trading is governed by the government. While the focus of cryptocurrency is mainly on manipulations, occasionally hacking, or regulations, they differ greatly per jurisdiction.

When it comes to trading based on technical analysis all markets are the same whether crypto, stock or forex .Crypto markets are just more volatile but it is always open for trading ,Forex market has more volatilities and closed during weekends while stock markets are very slow and are closed most of the time .You will also have to more funds to trade the stock market but when it comes to their charts all are the same and you can use the same skills and knowledge in trading all of them.

The most common difference is that crypto trading can be done at any time while stock trading has a closing time, this is a striking difference, in terms of almost the same analysis it can be applied to both crypto and stock trading, only crypto has more volatile charts, I personally prefer it. favor crypto trading over stocks

In Forex trading have closing time if i am not wrong it opens friday to sunday that means 5 days in a week, also it's activity is limited in the weekend. On the other hand crypto trading is open for 24/7, there are no closing time. I have no experienced in the stock trading market but i think many things are similar with crypto trading.

Many people thoughts that cryptocurrency trading and traditional stock market trading at the same thing it's true that the cripto trading and traditional stock market trading looks like Kindda same but there are also some major difference between them one main difference between them is legality cryptocurrency is not legal in all regions but you will see about stock market trading it's more likely legal all over the world and one more thing is cryptocurrency can be fully decentralize you will not find this on stock market trading.

Because the crypto market is volatile, sometimes things don't go as expected, but Bitcoin traders who have done long-term market analysis understand the reality of this book. I know a trader who trades Bitcoin and his analysis seems successful to me, because he was able to correctly identify the last two bottoms as well. But he was a forex trader before he got into bitcoin trading, he is getting great results by using his forex market experience in the crypto market.

A trader has to do a lot of hard work to be successful, there are no short cuts and those who find short cuts get out of the market quickly. If you can do good technical analysis of the market then you will get good results in any market. So, to be a good trader, you need to acquire enough knowledge about the technical, fundamental and psychological conditions of the market, so that you can stay in the market for a long time.

Can you tell us why exactly you are doubting that the principles described on those books do not apply to the market of cryptocurrencies? I do not remember ever reading a trading book from Schwager, but I have read books from Elder and Bollinger and they are quite good, so in my opinion anyone that were to follow their advice to the letter and grew as a trader with them will do well in any market, so do not give up just yet as you seem to be on the right track.

When it comes into their differences then the main thing on which this is the most recognizable at all which is "VOLATILITY" on which this is the main difference on which we could really be able to notice
comparing to stocks from crypto and this is where some traders do really get interested when it comes to profitability just because they could really be able to do it when they do get engaged with
crypto trading. It is really just that there are people who cant really be able to bare up with the risks on what volatility could bring but we know that this is something rewarding
if you do really just know on what you would gonna do into this market.

Also just like been said by other members that 24/7 market for crypto market, there's no such thing about closing and opening market just like on stocks or Forex.
This is why it would really be just that depending into your own preference if we do speak about dealing up on crypto or stocks.
It would really be just that depending into your own preference and interest since not all could be able to bare up the risks.

It is clear that crypto has high volatility compared to shares, and therefore crypto price movements are faster and can be more profitable compared to shares. 100% profit can be obtained in a day and vice versa. Crypto grows with rapid fluctuations and must be prepared for anything that could happen.

Yes, they have their own unique features and factors and that's why it's easier to distinguish the differences and similarities of them. Mostly, if you're in both markets.

Yeah, there's a faster movement in crypto and that's why that capital of yours can grow significantly if you're lucky within a week or two.

But it's a quick phasing that you have to be aware of the risk that you're having as well. I'm into crypto obviously but, maybe in the nearest future, I'll get back to stocks.

In simple terms, both are the same, and knowledge about trading can be used in both trades. Only for crypto, you have to know about market conditions before opening a position because this is quite important and crypto trading is quite full of speculation, while stock trading will be safer because the regulations are certain, it's different in crypto especially if you trade in altcoins which are full of fraud so if you don't first find out more about the coin it will only lead you to losses., and in stock trading you trade stock of companies whose existence is clear while crypto is all only available online which could be a fake.

its pretty similar honestly, the mechanism and all, but there's always something that make both instrument distinguishable, to be honest, if i were to suddenly trade stock then it'd be no problem for me since its simple thing as simple if compared with cryptocurrency but there's just some difference in terms used like lots, and so on.
but i would argue that in term of profit making cryptocurrency showing to be a better option here, there's reason why the market capital is always growing and growing.
therefore why i would prefer to invest in cryptocurrency than stocks.

If you want to know the similarities between trading in crypto and trading in shares and forex along with the similarities or differences. I think you only need to read a few things that are outside of these books because if a book has been published a long time ago and circulated to the wider community, of course there are things that are not included or included in it because times are very different now. So try reading all the contents of the book and start exploring the internet to look for the similarities and similarities that crypto, stock and forex trading has. Because basically every trade is aimed at seeking more profits with less capital.

Yeah, no debate.

If you've been in the other markets and you have already knowledge about the moves and how to read the charts, going in one and the other are totally the same and applicable.

That means that it's easier for you to adopt when you've been in the other markets and that's going to make things easier for you.

Trading stock seems complicated (but not too complicated that no one can learn easily) because I first started trading crypto which is 24/7 market without terms like "in the money", "lots", etc.
So crypto is easier that stock and there are no many requirements to register account and start to trade.
crypto is more volatile than stocks, forex, commodity. so it is more riskier and we get more opportunity to make profit. also trading psychology is similar on every market because same people and bots are trading and following the TA breakouts and retests, etc.

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In stock we need to do fundamental analysis of companies and in crypto we need to do onchain analysis.

Well, OP is just asking what's the difference of the two.
Because both are considered as trading so for me, the only difference is the market. We all know cryptocurrency market is extremely volatile compared to other assets like stocks and the 24/7 also

So for me, nothing more difference besides the volatility and availability to trade. For me, you can apply both of your knowledge in any of the assets trading. I know someone who trading both stocks and crypto at the same time.

I am not going to dwell on them like that or deeply but it will be a brief explanation to them with their different. Your question has a partial answer to the question because as the name implies, cryptocurrency trading is the same trading method with the traditional forex trading and the different is that cryptocurrency uses cryptocurrency as digital currency to trade they are not using national currency to trade while traditional forex trading uses dollar or the country's currency to trade. There advantages and disadvantages in the both trading. But that should be an another day explanation.

Main difference?

1. Volatility
2. Regulation
3. Decentralized vs Centralized
4. Fundamental effects

Speaking about application of TA?
It would really be just the same on which traders on this market are definitely been making use of TA because news cant really be something that they could really be able to rely with.
Not all the time that fundamentals would really be leading or mainly be affecting this market on which it would really be just that a normal approach that people or traders
would really be commonly making use of these indicators.

The thing i do like on crypto market is that the possibility on earning huge profits once you do able to make yourself do make good trading decisions or calls.
Unlike on stocks or forex which movement is really that too slow. I do even believe that there are lots or tons of forex/stocks traders
did really consider out on touching crypto space because of this main difference.

In the crypto market, there are a lot of meme coins and shitcoins. I think it's the same with the stocks, the underrated stocks that don't get that much attention to traders.

Holding is also in the stocks.

Like if you're the type of investor that don't want to be active at all, blue chip stocks are you go-to buy. And that's the same with what we have here, Bitcoin.

The difference is the market itself, the volatility and the risk but in terms of the approach and strategy it can be the same since same indicators are being used when you are going to trade. In terms of the market time, crypto is 24/7 while the stock market works only during the weekdays and there are options in crypto that are more advance compare to stocks, especially in our local market where futures are still not available.

Both are trading and in trading there must always be analysis but they aren't totally the same. Not just in crypto but also in stocks, we need to be careful if we want to get the best results. In crypto, we have the main coin BTC which drives the market. In stocks there must also be the same as this. Next we have is trend. I think stocks have this as well. Dump and bear are actually the same.

We need to wait for the coin to dump further before we buy because it will now have a less chance to dump. Considering the type of coin is also important because not all coins who can dump huge can recover but it can be a sign of their death. A good trader will also know a good entry but many of us think trading is harder than investing.

What is going on in crypto trading is investors trying to speculate on the price of Bitcoin, meaning the end result is a way to get more Bitcoin, while in stock trading the goal is to create funding and additional financial value for the company or entity with the aim of reaching more liquidity.
The differences are very numerous, the simplest of which is that in stock trading there are protective measures against manipulation or high risks, so that profit or loss is fixed, while in crypto trading, you are trading in high-volatility assets, and there is no fixation of your profit or loss unless you place the appropriate order at the time, if you are not present. The altcoin price may have lost 70% of its value.

Since stocks and Bitcoin are completely underdeveloped, investing in both is good for those who want diversification.

I guess the way you would do technical analysis is the same but the fundamental is different, with crypto you need to take care of analysing the coin itself, see if there's any event thats gonna be coming up and something like that, also the price of coins in general are dictated by the movement of bitcoin, something that many doesn't seem to realize but kinda obvious if someone is trying to observe the market.
overall I think the reason that i think trading crypto is a lot more easier is that trend that usually a cryptocurrency is having, if its bullish you can be waiting for series of dumps, buy it, then just wait it out the price will definitely recovery for sure, but if its bearish, its like catching falling knives, sometime the market continues to dump, even more easier if you are investor not a trader then you can definitely know when to make an entry.

Most of the principles considered in both crypto and stock trading are similar except for a few different terminologies used when trading stock, such as lots and pips. You won't see such when using traditional crypto exchanges

1. In crypto, you deal directly with a crypto exchange, minimum requirements favor even retail traders. For stocks, you have to use brokers, some of which have very high minimum requirements that don't favor retail traders
2. Crypto markets are always open 24 hours, 7 days a week if you use a crypto exchange.
3. Fundamental analysis isn't much used in crypto markets yet, unlike in stock markets.

Most have similarities, from speculations, and management risk, and the tools they use in trading are almost the same (TA and FA).
But IMO, the only difference is the time zone in trading.

Crypto trading, it's a nonstop trading operation because it operates 24/7, so providing continuous trading opportunities.
If we compare it to traditional stock trading, there are specific operating hours during business days based on the exchange and country.
Also in forex trading, it operates 24 hours a day during the business week, reflecting different time zones.

So it means, there are a lot of traders on crypto even though we're in different time zones.

Let me say I am an old school in the trading field that didn't bother to advance in learning so I do not know those names you are talking about, but by their fruit and good works with tract records, you should be able to smartly know them. Mind you, it is not about the theoretical part or teaching and even the peripheral practical alone, but good proof that shows that they are what they claim they are is good for learning so that you will be sure that the source at which you are getting your information is to be trusted. Besides, there are always similarities in every apsect of the financial market without huge reservation, you analyse the markets the same way and trade them the same way depending on the availability on the trading platform you use.

I have experience in trading the FX market, Energy market, Stocks market, Precious metals, Cryptocurrency and many more, and I use the same understanding of the fundamental training I have to trade all of them without exception. Only that I individually study the defined and prevailing market conditions differently. The way you engage the individual asset in terms of risks is not the same, so one has to know how the broker/exchange defines the assets' trading risk to trade them appropriately. The volatile and how the asset behaves matter os much. Also, you will have to learn the individual platform you are using, this makes trading different assets look different too, but in reality, they are not actually different. Lately, you check out for individual news that can affect the asset you are trading differently because what would affect the crypto market so much might not have any effect on the energy market.

There are more similarities than differences. All of the techniques can also be done to each other, I just don't know with forex because if crypto volatile, forex is more of a fast pace of it.

What I have noticed with crypto and stocks is that, the phase and movement on stocks are so slow compared to crypto. And I guess that's why everyone loves to get involved in crypto for being volatile and having some such risks but a very rewarding market.

I think it is already mentioned here but crypto currency or crypto trading can be done 24/7, while in forex and stock there is a closing or closing of the market where in there will be a no movement in the market, and crypto trading is a trade wherein you are trading crypto currencies a volatile currencies where you can find a lot of opportunities because of its volatility, while in forex trading you are trading fiat currencies and you can trade buy or sell meaning you can earn if the currency will go up and down meaning there is 2 option to earn in this type of trading but the thing is forex trading is too risky as the movement of the currency can be affected depending on result of the news. In stock trading, you are simply trading the stocks of different companies, wherein you will buy a portion of their stocks, and if the business blooms, so will your stocks.

In my years of experience, I have traded these three types of trading, but I can say that I'm more into crypto trading because of many reasons. Forex is too stressful for me, while the stock market is very long-term trading. YSs crypto is also long-term, especially in bitcoin, but it will take too long; it depends on the market.

If you analyze in trading using candle sticks, the system is the same, there is no difference. but price movements are not based on candle sticks, whether forex stocks or anything else. price movements are moved by bandarmology, in this case the rich barons who move prices up high or down and crash. and in btc there is a halving every 4 years which will greatly affect prices.

I can see my friends that are crypto traders talking about pips and lots. The way we calculate in crypto trading is not like that and straight forward. We do not make use of pips and lots to calculate.

In crypto trading, no closing, it is 24/7. But forex closes during weekend.

In technical analyses, they are all similar.

If you want to learn about crypto trading, make sure you trade with the amount of money that you can afford to lose because it is risky and highly volatile are cryptocurrencies.

Trade coins like bitcoin and not shit coins.

In crypto trading, there are two markets and they are: spot market which uses the spot or real price if cryptocurrencies, while the second one is derivative trading which are if different types like the future, perpetual and option. There is another type which is margin trading that uses the spot price.

If you want to learn about trading, most trading sites that I know have trading guides that you can search for on their exchange and they are in articles and videos.

Major difference is that crypto is a 24/7 market while the stock market happening and closing times. Crypto also has no entry requirements, anyone can trade in it with any amount, not the same for the stock market.

There are so many similarities between them; techniques and skills can be applied to both with just slight tweaks.

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If you want to trade in crypto, do your in-depth research on crypto trading.

I'm a newbie in trading. I read books by John Schwager, Alexander Elder, John Bollinger about technical analysis and psychology in trading and I began to doubt that all this was suitable for the modern cryptocurrency market. How is crypto trading similar to stock and Forex trading? What are its similarities and differences?
I would like to thank everyone in advance for their replies, I appreciate it!