Topic: What is the difference between cryptocurrencies and stockmarket? (Read 393 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.

Well, the Stock Market and Cryptocurrency market have similarities as well as differences. Both can earn profits and both have the risk of bankruptcy either way may happen depending on one's strategy. Though the stock market has lesser security compare to cryptocurrency but for hackers and robbers even you intend to protect your assets by placing a million armies around through strong securities it is still they will do everything to hack and rob. In businesses, it is a matter of strategy for you to survive with a mixture of luck.

Investing in crypto is like investing in precious metals. There are no earnings reports and no super detailed info you need to research. You're basically just guessing when you think the supply and demand will shift up or down. This still can involve plenty of research, like technical analysis or tracking the news, or tracking outside events that you think may play a role in changing the near term demand for bitcoin, but there's nothing to research in understanding how good the product is like there is when you have to research how a company is doing.

So while with stocks the research is about getting into the details of each company, as well as overall market structure and cycle and outside events that could affect it, with crypto its just about researching the second part - market structure/cycle and outside events that could affect it.

It is simpler in that way, but also a bit more opaque in that you are basically just guessing what you think near-term demand will be for the coin.

Also with stocks you might get a dividend payout which in the crypto world would be analogous to a staking reward.

Cryptocurrency is very similar to investing in precious metals like Gold, except that the crypto market is in its infancy, so therefore much smaller and more volatile and has many times more room to grow in the long term.

Well one is money, the other is something you buy with money. Isn't that simple enough difference that makes the worlds difference between each other? I know you guys love trading bitcoin and you love buying bitcoin low and selling bitcoin high whilst making more profit in fiat so you can be richer in fiat.

However you are forgetting one true thing that bitcoin was created as a currency itself, so we are talking about a currency that you can work and earn, or spend to buy something in return, just like dollars or any other fiat. Whereas stock market is something that you spend your fiat on but you can't buy anything, I doubt there is a single place on earth where you can walk in, buy a coffee and pay it with your stocks. So there is a vast difference with that just simple fact.

There are many factors that affects the price of the stock market like the market place, demand and supply, Dividends and also add the political climate in the area. Stock market is safer compare to cryptocurrency since the whole scheme is regulated.

Cryptocurrency market on the other hand is not that far to be similar with the stock market, there are also things that makes them similar. But the decentralization is what makes them apart, the volatility it contains is way more higher that risk is the topmost priority to consider before doing any move.

If there is one thing that these both market have in common, that is the price chart, you can always look for the data to predict the price in the future. The accuracy of your prediction is your logic.

It's probably easier to see if something in the stock market would grow compared to a cryptocurrency. Stocks grow because of the company backing them increasing in value, hence any improvement made by the company could easily see growth. This just requires research and possibly some insider information, but that's another problem. Crypto, on the other hand, is more on the speculation side (mainly BTC). Its value is highly volatile because of the fact that it is only a speculative market. There's also it's decentralized notion and usage of blockchain which makes it different from how stocks are. There's also the fact that stocks would most likely not scam you, unlike crypto which had so many scams in the past decade.

The worst thing is that most aren't even decentralized. Decentralization being one of the main advantages, simply thrown out the window. With most cryptocurrencies you're pretty much just sort of like funding crappy startups that are there to either scam you, or just simply going to end up failing.

According to trading and its technical analysis, I believe there is no big differences between cryptocurrencies and stock markets. You can make use of your experience and knowledge gained from one of these markets, into another market. Because, all the trading assets are obeying all the basics of technical and fundamental analysis which makes easier for us to  trade in any markets profitably.

Still, there should be some minor differences could observed between cryptocurrencies trading and stock trading. But if you go for studying, same kind of difference are there among stocks itself.

Before entering into cryptocurrency trading, I was the Forex trader. Still, I did not find any difficulties when entering into cryptocurrency trading but compared to what I have been doing in Forex trading, when I was new in crypto currency trading, I started with low capital so that I could manage risks until I gained experience in this cryptocurrencies space.

Ive just note some major difference. Actually there is not much difference since both are speculative commodity and still both posses risk. Manipulation on trading is quite more frequent on crypto but there are whales also on stock market that loves to shake the trade orders.

Stock Market: centralized and always affected by fundamentals monopolized idea. The good side, you are sure its legit and less prone to scam. IPO is much safer and companies listed are very well studied.

Cryptocurrency decentralized! Not control by most of the oligarch firms but still swarmed by whales and keep tabs the manipulation. Prone to scam especially the new altcoin launched on ICOs.

keywords being "well timed crypto" !

Read around the forums and on Reddit. Just after a few minutes you'd immediately realize that most people don't know crap about what they're buying.

I heavily disagree. You can simply buy an S&P500 index fund and in the long term there's a very good chance that you'll make a profit. In contrast to the cryptocurrency space whereas it's mostly a casino.

Stock market: A stock market, equity market or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock.

Cryptocurrencies: A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

Now that's the difference between the two of them, to cut the story. Me my self I understood crypto better to that of stock market. Trying to understand this two marketing system is quite not simple.

Main differences between stocks and crypto;

Crypto - Decentralized/ Anonymous / Irreversible Transaction / Volatile
Stocks/Forex/Indices - Centralized / Opposite on whats above. lol

I dont know what you mean by hard to understand and also each market do have its pros and cons but i cant really deny
the fact that when it comes to profitability then theres nothing can beat out crypto but well when it comes to risk
then its just normal for it to be way more due to volatility.

The above, and

-You can withdraw your crypto into cold storage away from control of third parties and governments, or transfer it to someone else, or purchase something with it.

-But if you do the above or trade on an overseas crypto exchange you have the risk of total loss from a mistake or a hacker.

-Crypto cannot suddenly dillute shares or reverse split. You have a guaranteed share structure.

-Far less news and more ability to apply pure technical analysis to trades.

-Generally more volatility in crypto plays. Crypto gives you the strength of a mid cap stock with the volatility of a penny stock. Most stocks you invest hoping to get 500% over 20 years. In a well timed crypto play you can hope to get that 500% over 20 weeks or even 20 days. (In some altcoins ive seen it in 20 hours)

-Somewhat more fraud in crypto. Lots of overseas encrypted fraud, shady exchanges, and little action from authorities to hold those accountable.

-Decentralized exchange markets you can attempt to arbitrage.

Bitocin is generally considered a speculative commodity, most stocks aren't.

When investing in stocks, you're investing in the dividends they can return you and you can see the profits the company makes and a lot of information on them.

With bitcoin it's quite a lot different, you can't say if we do better for profits than last year - you can just look at the price... But both have big problems... If the profit on a company turns negative, they can quickly collapse and become bankrupt - if bitcoin is made illegal, you might have to quickly rush to sell your stake...

According to me

Cryptocurrencies are easy to understand and also able to easy to invest in various crypto currency.

But


According to me stock market is hard.

But both has their merits and demerits.

But i want to know which are the best and why and how to proceed in each of those markets.

Thanks!