Bitcoin Forum

How exchanges/brokers/traders of non-crypto "stocks" have not invaded crypto platforms yet?

Crypto usually generates better profit (and better chances) than most stocks.

How people who live from stock-trading (e.g.: companies) have not invaded crypto yet?

(If we look at communities' sizes, their size is much-much larger)

Thought the aliens have already invaded our planet by your headline :)
If you observe minutely, we are already being invaded. Cannot you see governments deciding to start their own cryptocurrency and trying for utilizing the crypto technology in mainstream finance ?

crypto are not stocks. that's the first and most important reason. crypto is 100% speculation. there ain't no fundamentals. you can't compare that to putting money into a blue chip stock.

on top of that there's the lack of education and skepticism, however even if an experienced stock trader did learn everything they need to know they still wouldn't be very interested. it's too different and too young.

Bitcoin is in a legal gray area. Taxes are not exactly defined for Bitcoin and a lot of people who "trade" stocks nowadays either just buy and wait or they're running bots which do it all for them. They have algorithms, technical analysis they can perform which is more often than not very, very accurate, and there is a lot less volatility which can make or break a trader.

Bitcoin, to them, is something that has massive returns, at the cost of not being able to accurately determine when anything happens and mostly relying on dumb luck to get a good return on market movements, now anyways.

Three things to help answer your question.

#1 Penny stock price volatility. Compare penny stock volatility to crypto coin volatility. Penny stock volatility is much higher this typically makes it a more attractive option to day traders. (Short term trading)

#2 Examples of people investing in dividend re-investment plan(DRIP) stocks earning them enough over the long term to retire early. There are documented cases of this happening. (Long term buy and hold)

#3 HFT(high frequency trading) / dark pools and the substantial advantages they can offer over crypto trading. (The best platform for algorithmic trading, offering many built in advantages over crypto bot trading)

To break it down, penny stocks offer higher volatility than crypto. There are documented cases of long term buy and hold, dividend re-investment plans(DRIP) being extremely successful over the long term. HFT trading offers many significant advantages to bot trading. The long term growth of crypto is probably the most attractive thing about it. There probably aren't a lot of advantages to the trading aspect of it unless you own an exchange, are a whale that can afford to pump & dump or invest in some pre-minded altcoin.

Based on what I can understand from the tidbits of information I have read over my life, the traders within the stock market are comfortable where they are and they don't want to move to something that becomes unpredictable, like Bitcoin. While they do see the big pumps within the market, there is also a fairly high chance of the market stagnating for a period of time. The pumps are relatively unpredictable, so it's not like they can use the same patterns or techniques that they get from their forex market experience.

I have a buddy who trades and he said this exact thing. The volatility of BTC at this time is dangerous.

There are some individual traders who have ventured into crypto trading.
Companies are usually more cautious - the risk/ volatility associated with crypto is very high.

We could be invaded right about now, or maybe they know what a scam this bitcoin is and they're staying away, please spread the words about bitcoin being the biggest scam ever, if they asked where is your proof just leave the scene slowly :D if enough people all together start FUD about bitcoin then I guess it will lower the price just for couple of days guys, after I successfully bought a few more coins then we could get back to telling the truth.
Which is in fact we have been invaded and they are currently violating us financially, I have a few sell orders for $4000 so either they really want my coins and they will have to pay $4000 for them or some loser will sell them lower than me.

I personally know some ex-stock traders who adventured into crypto and now they are thinking about leaving "traditional" trading for crypto. The reason that caught their attention was the higher profit over the same long period and the excitement of crypto's "wildness". But they are individuals and have stable jobs next to trading. I guess, it is different than building a company on the same thing.

I don't know man cancer rules the world so maybe that contributes to it

Not sure if they aren't. 100Billion surely doesn't come from jack and jill...

They haven't invaded crypto yet because crypto is a significantly worse investment than most of the stuff that wall st big money invests in. There are opportunities out there with just as much potential upside, and significantly less risk. Crypto is very, very risky. Just because it has gone up recently doesn't mean that it is a reliable investment.

Furthermore, bitcoin has high transaction fees that would not be friendly to people trying to trade tens or hundreds of millions, or even more, at a time. Percentage based fees for transactions of that size would be completely unacceptable.

simply because the quoted above is not true at all!

you are just looking at a short period if profitability in altcoins and think everything is good and easy. but let the falls begin and then when you were left thinking what the hell happened to my money, you can understand what i mean.

and it is not all about profitability. it is also about predictability too. when a market is manipulated and sometimes heavily manipulated it is not possible to predict it.

What makes you think that stock traders have not invested in bitcoin and other currencies,why do you think that all the alt coins had a huge rally in the past few months and where does the money comes from,there are many big time traders and investors in this sector and so is the reason all the coins are having a rally because these investors might not have the technical ability to understand what the real potential of a coin but they keep on investing in it for a better return.

Crypto trading is often compared to gambling. Yes, luck is a heavy factor in crypto trading, but how other trading forms do not have this high luck factor? And how have we no solution that could help in predictions? Crypto investors may be very successful with their investments. I do not think, it was all luck. Because you can read the news, stay in touch with the developers, participate in community debates... That should help you predict the volatility, shouldn't it?