Topic: What is the difference between cryptocurrencies and stockmarket? (Read 372 times)

If you consider that it is easier to make profits with crypto investments then you are someone who heard that bitcoin is free money or give profits all the time but if you do intensive research you can find how many people lost their assets when doing crypto investment.Crypto investments are profitable but you have to buy and sell them at right time so basically you need to be patience to make profits.

Simply said, stocks are mostly investments you can see if they would return something based on judging something. Basically something that can be controlled as long as your paying attention Crypto, on the other hand, is more like gambling. You choose crypto, pray that it drops onto the jackpot slot, and that should basically be it.
If we're solely talking about the ROI for the last 10 years, then yea BTC was a good investment. But it isn't necessarily an investment that I would take at the time back then. It was volatile, way too volatile after all. It isn't an investment you could expect a good return just by reading it's white paper, unlike stocks where you can as you have and others said, understand it's underlying processes and determine whether it would actually profit or not. BTC is a speculative asset much so that it wouldn't be a stretch to call it a "gamble" of sorts once you start investing. Ofc, we can't say that right now since we've pretty much seen it's performance in the last decade, but who could've said so in the past right?

Other than the fact that cryptocurrency is not centralized while stock market is centralized is that stock market gives away dividends to its share holder, it varies from company though, there are quarter and annual, the great take away from this is you are generating a profit while you are holding your stocks unlike crypto. Stock market is not that safe from scams, in fact the stock market has the most skilled scammers, there is a thing called insider trading, where a stockholder could artificially manipulate the prices and they also have an unfair advantage because they can decide whether to sell or buy based on the firsthand information, unlike cryptocurrency these red flags can't be seen by a simple trader because these trades happen like normal trade.

From the peoples greed perspective there is really nothing different at all. Normally people go into stock market (way before bitcoin ever existed) so they could get rich, there was millions of people who lost money to stock brokers all because they wanted to make as much money as possible could.

If you watched wolf of wall street you will realize that the first started was they sold people the blue chip stocks that were all known companies, after that they sold them penny stocks who was basically not companies who are legally getting that money at all and brokers got 50% of all that money. That is literally the thing going on with bitcoin, everyone buys and sells bitcoin, ethereum, and now there are many people who are interested in ICO's as well which are basically penny stocks.

I believe that you can very easily characterize the stock market and the cryptocurrency market, while determining their significant difference, from the point of view of a not too experienced trader. with even minimal knowledge and minimum start-up capital, you can practice cryptocurrency trading on any cryptocurrency exchange. You can buy a certain cryptocurrency for 10 or 20 dollars, and already with a day trade get a small profit. But if you learn to trade yourself in the stock market, you will need very large funds. Although even if you hire a broker to trade stocks, then you can not do without a lot of start-up capital.

Crypto market might have a lot more freedom but it also has "a lot of freedom" as well. I know that we all love liberty here and I think that is why we are in a decentralized world but do not forget that in the regular world of stocks the market is screwed for the rich who will basically do whatever they want to do without getting in any trouble, they even do insider trading and rarely ever get in trouble.

In crypto its a bit different, rich people could buy bitcoin in billions and they could potentially increase the price, or they could sell all those billions of dollars worth of bitcoin and drop the price as well. So, there is really not that many difference on the fact that rich people will be getting richer no matter what type of freedom we would have in crypto.

The difference between a stock market and cryptocurrency is a centralized stock market while cryptocurrency is decentralized.
Stock market is safer, because the product is officially registered and also legally. While cryptocurrency is more prone to scams,
because many crypto coins are scams. In addition, the cryptocurrency market is often manipulated by whales. With these differences
the stock market is indeed better than cryptocurrency. But cryptocurrency is easier to generate profits, because the price is volatile.

Based on what I saw and experienced in crypto trading or bitcoin, this virtual currency became a commodity at the moment, compared to stock market, although, I never try yet in the stock market. The only thing I knew about it was in the stock market you face in real-world according
to the people who stay on it.

I don't know if you have a prior experience with stocks to say that it is very hard. Do you know that stocks has this kind of safety net - those companies that issue the stock itself, so it is "less risky" as compare to crypto, wherein a loss of 50% will be huge for anyone. And if you think of selling, then obviously you have lost a lot of money already. And crypto market is very volatile as I have said, a lot of movement daily, monthly, so that alone makes crypto high risk. Take for example Warren Buffett, he doesn't like bitcoin so much, why? because he doesn't want to lose money.

Volatility is the first thing when it comes to the differences of these two markets. For the stock market, there will be a specific company and be recognized by the government, but for the crypto market, it is only a company operating underground and uncertain. Of course, if you have a lot of investment capital, you should choose a safer market because crypto is not an easy place to make a profit because the risk can be very high compared to other markets.

Just as the name goes, cryptocurrencies, they are digital form of money which one can hold in his possession or wallets while assuming every control over it. Also, just as the nature of the crypto market is, cryptocurrencies are highly volatile which demands one understands what he is venturing into before buying. A good number of cryptocurrencies are decentralized and can be used for anonymous transactions, in the same way, cryptocurrencies are not regulated.
In the case of stock market, they aren't like cryptocurrencies, in this case, you invest in what you believe in which have the tendency of giving profit, and unlike cryptocurrencies, stock market is not highly volatile. In addition, stock market is regulated and also centralized.
These are the differences that comes to mind.

On top of the main reason which is the volatility, it is worth to consider also that the cryptocurrencies is decentralized whose value relies on the law of demand and supply that is unlikely to happen in stock market since it is regulated by a central body that is connected to the government. These market are good in terms of investment, but If I were asked what is better it depends on what are you planning to do, short or long term because if you are targeting for a long term investment then most probably go with the stock market.

There is clearly a difference between:

In general what is encountered is market speed, if the stock market is a stock exchange.crypto trading does not know the time, meaning that it is not limited to trading at any time, meaning that it goes on and on 24 hours without stopping, which is called Crypto never sleeps.
Meanwhile the stock exchange or the stock tends to refer to bound trades which means it is determined by the opening time or closing it is determined by the time and period.

Therefore, these two elements have unique differences, of course they have their own risks in trading.

In another sense Crypto high and low exchange rates this does not depend on a certain time free whenever you want to trade.

If sahan could have an effect on the economy, politics, because it has its own office and is very time-dependent, as has happened so far the pandemic also has a big influence on the stock exchange trading.

Briefly, to talk about the main differences between the two markets, we can list them as follows;

Regulations: Crypto money markets are not regulated by any authority, but stock markets are regulated and controlled by both companies and governments.
Supply: In the cryptocurrency markets, the supply is often limited for many projects and never changes, but in the stock markets, companies are able to supply new shares.
Anonymous Transactions: You can trade anonymously up to a certain amount in the crypto money markets, but this is not possible in stock markets.
Volatility: Volatility is high in the cryptocurrency markets, but if there is serious volatility in the stock markets, the government can provide intervention.
Manipulations: There is no regulation for manipulation in the cryptocurrency markets, and therefore there can be a lot of manipulation, but this is not the case for stock markets.

These are the main differences that come to my mind, I made an effort to make them more understandable by explaining them all briefly.

Obviously, the most significant difference that traders should pay attention to is volatility. The forex market is much less volatile and does not provide the incredible opportunities that the crypto market provides.
Therefore, the crypto market is so attractive compared to the stock market. Most crave quick profits that are not possible in the stock market, while the crypto market creates the illusion of this.

Cryptocurrency and stocks are much different, the risk of cryptocurrency is greater. Stocks are safer than cryptocurrency. But right now I still like cryptocurrency than stocks even though stocks are better.

since the difference in the age of the stock market and the cryptocurrency market is very large, the stock market over a long history has already established laws and rules that work like clockwork.  at the same time, the cryptocurrency market, in spite of its youth, becomes more regulated and improved over the years and at some points it becomes similar to the stock market, especially if you take into account the beginning of futures and options trading.  but nevertheless, many strategies that are already crap in the stock market are simply unacceptable for cryptocurrency trading.  In addition, you need to take into account that the huge advantage of the cryptocurrency market over the stock market is the ability to receive large and fast incomes due to the volatility of cryptocurrencies.
In addition, it seems to me that the most important difference between the stock and cryptocurrency markets is accessibility.  Today, quite a lot of cryptocurrency exchanges do not even require the provision of passport data from the user, and everyone can try their hand at this business completely being anonymous.  at the same time, the stock market needs to have accreditation. as well as the stock market, much more start-up capital is required than for the cryptocurrency market.

Cryptocurrency are group of digital currencies that are created by individuals which can serve the similar purpose a fiat currency can serve. Stock market generally refer to a market in which stocks in form of regulated assets are being traded. We also have markets for cryptocurrencies where crypto are being traded

Stock is better? Are you sure? May I know specifically on what stocks you are talking about? I am not seeing any stock which provided good returns like how bitcoin has performed in last 10 years. Bitcoin may remain high volatile still it is good for better ROI if you opt for holding it for years.

Stocks may not fluctuate like how crypto markets are usually doing which may be the reason that you are preferring stocks markets at the same time only highly fluctuating markets are opening doors to make money with. I guess crypto is good for both active traders and long term holders as both must be making good returns for their investments into cryptos.

The cryptocurrency and stock are not the same in my eyes. Volatility is not controlled. Stock is better in investment , you can buy through agents as brokers but you are at your own risk to your own research on cryptocurrency.