Investing in stocks with crypto?

[o48o]

waiting just about a decade i guess we will have this stuff in crypto.  if i have to invest in Coinbase stock or Tesla right now, i would likely be doing it by selling my crypto and signup to brokers like the regular stock investor would do.

tokenization is the digitization of property rights, and if it is difficult for you to obtain property rights, digitizing them will certainly not make it easier.
In my opinion, it adds an additional layer of complexity and it is easier to invest directly using traditional methods, and these companies do not buy shares, but rather track their value and give you profits if they are achieved.

Binance tried to do the same thing^[1] when Tesla shares were a hot topic, but it ended quickly.

[1] https://coinmarketcap.com/academy/article/binance-launches-tokenized-stocks-tesla-is-the-first-to-be-listed

It's kinda frustrating when people think synthetics (or tokenized stocks) are some sort of legit stocks. Tech that would be suitable for issuing and trading securities like stocks in blockchain, as permissionless crypto tokens isn't available yet. It would need build in KYC among other features that none of the chains so far doesn't have, and those features would be extremely difficult to implement with L2, while L1 would stay without ZK tech.

Transferring these rights without KYC would be against AML laws, and it needs privacy to prevent market manipulation like front running with higher fees.

[Belarge]

I think many do not want to have that problem of navigating around different systems and different regulations. Crypto and stocks operate in two very different ways hence it’s so difficult to make transactions seamlessly. The closest we have are tokenized stocks. Maybe someday in the future we’d be able to connect these two worlds without any issues but for now we are stuck with tokenized stocks.

Stocks are quite different from the actualized crypto and investing in stocks with crypto is totally unacceptable and out of line. Our world don't end here, rather its becoming more larger and modernized for the wellbeing of crypto traders. We channel our energy towards the market and we expects the very best to become the end results. Stocks is quite different from crypto and we choose to anticipate in crypto related activities inother to prevail in our profiting days.

[oktana]

This is interesting to think about but I’m thinking of why one would have to follow this route. Also, if this feature existed, and you want to sell your stocks, what do you expect to receive cryptocurrency or fiat? While I think it’s an interesting feature considering that cryptocurrency is money, it can be complex or confusing to implement such a system.

[batang_bitcoin]

If I had crypto, I wouldn't sell it for fiat to buy some stocks. That will already serve as my stocks and that's why the crypto market is way better than the stocks.
Looking at the charts of the most stocks, there have been best performing over all of the period of time. But many of them didn't move a lot and if they have moved around 5% their holders are already happy on it.
Crypto has just set my expectation better and farther than it.

[senyorito123]

Is there a way to invest directly in stocks with crypto? I'm talking about depositing BTC or any altcoin in a broker/exchange and use the funds to buy a stock of your choice. With crypto getting popular each day, it would be disappointing if we didn't have such a feature. It's likely stocks will be tokenized on the Blockchain the future.

If you know of any broker/service/exchange that allows this, please let me know. Thanks.

With my own perspective about this, you need to let your crypto converted into fiat first before buying stocks asset.
For now I have no experience yet on stocks, but according to my friend who's still active on stocks they're using cash to buy for it.
At binance and Kucoin we can sell our crypto to with fiat currency and will be deposited to our banking account.
But, always bare in mind that stock market is also worst compared with crypto, much better giving it a try instead of diverting all of your money towards this type of asset ownership.

[Abiky]

It's kinda frustrating when people think synthetics (or tokenized stocks) are some sort of legit stocks. Tech that would be suitable for issuing and trading securities like stocks in blockchain, as permissionless crypto tokens isn't available yet. It would need build in KYC among other features that none of the chains so far doesn't have, and those features would be extremely difficult to implement with L2, while L1 would stay without ZK tech.

Transferring these rights without KYC would be against AML laws, and it needs privacy to prevent market manipulation like front running with higher fees.

If regulatory-compliant stablecoins are a thing these days, then having tokenized stocks should be a no-brainer. Many of the stablecoins have a "blacklist" feature which allows the issuer to restrict certain holders from moving their funds to another address. A similar mechanism could be implemented on tokenized stocks. To be able to purchase them, you'd need to provide your identity to the exchange/broker. Transfers between accounts will not be permitted. There isn't a regulatory framework for this yet. But with interest/demand, anything's possible.

I'm frustrated because there aren't any options to invest in stocks with crypto. Perhaps, it's too early to ask for something like this? With "Wall Street" showing interest in crypto/Blockchain tech, it's possible we'll be able to do such a thing in the future. Just you wait and see.

[Mate2237]

The first time when I traded I first deposited to the trading account through bitcoin and in the site you can't use bitcoin to trade so I have to convert it to dollar before I started my trade. Then use bitcoin to buy stocks was the initial aim of Satoshi but that feature in bitcoin is not working. But everyone is interested in the investment function of it and other cryptocurrencies are following the footsteps of bitcoin so they are also not to that side of the projects.

Really as the Op said if that feature was working then cryptocurrency would have been the number one currency in the world and inflation would have come down very well but we have to answer this question, what about the increasing transaction fee?

[altecbit]

Currently, some platforms like eToro and Robinhood allow you to trade stocks and crypto, but they don’t let you directly use crypto to buy stocks. Instead, you have to sell your crypto first and then use the fiat currency to purchase stocks.

A few services, like Abra and Bitpanda, offer the option to invest in stocks using crypto. However, these are not available everywhere and may have limitations based on your location.

Personally, I've found it helpful to use Free AI Stock Picks to get insights and recommendations on which stocks to invest in. This tool has given me valuable tips, helping me make more informed decisions.

[jrrsparkles]

This is how I got my first stocks using cryptocurrency, there are some brokers who did but the fees were extremely crazy high, I am using FTX Exchange(now gone) (less fee) for tokenized stocks.
I also tried currency.com before and now they have rebranded to Dzengi.com, the transaction fees here are just crazy high. I am also looking for an alternative.

The high network fees on popular Blockchain networks is what "kills" everything. L2 networks bring hope, but they're still experimental and under active development. Until Blockchains solve scaling issues, don't expect stocks to be traded directly across blockchain networks anytime soon.

Still, brokers can accept crypto deposits and convert it to Fiat for stock investing. "Where there's a will, there's a way". I think nothing like this has been implemented yet due to fear from government regulations. Especially in the US with the SEC's aggressiveness towards the crypto/Blockchain industry. Maybe someday our dreams will come true? Only time will tell.

Lack of regulations and frameworks might be stopping this from happening but over the time this will be highly possible or atleast wit CBDC cause it's not different from fiat system which needs bank account too so that might be the first step if this has to happen.

Alternative is to build a platform that work as brokerage and accept cryptos as well as fiat as for of payments but we have to wait to find how things will turn up in the future.

[Abiky]

Lack of regulations and frameworks might be stopping this from happening but over the time this will be highly possible or atleast wit CBDC cause it's not different from fiat system which needs bank account too so that might be the first step if this has to happen.

Alternative is to build a platform that work as brokerage and accept cryptos as well as fiat as for of payments but we have to wait to find how things will turn up in the future.

"If there's a will, there's a way". With BlackRock showing interest in RWAs (Real World Assets), anything's possible. It's likely stocks will transition to a blockchain network for the convenience of institutional investment companies. After all, Blockchain provides many benefits that can't be ignored.

CBDCs will make it much easier to trade crypto and stocks with Blockchain tech. Regulations may be "bleak", but that's bound to change in the future. Assuming governments remain friendly to crypto/Blockchain tech, it won't be long enough before we're be able to use our hard-earned crypto to buy/sell stocks. I'm very optimistic about this one.

[leeboy]

Really want to see some tokens that will follow stock price that will be able to buy without kyc. I don't want it to be a real stocks but just something that follow the price is enough

[Abiky]

Really want to see some tokens that will follow stock price that will be able to buy without kyc. I don't want it to be a real stocks but just something that follow the price is enough

Buying tokenized stocks without KYC? Good luck with that. Governments (particularly the US government) simply won't allow this to happen. If you see a stock listed on a public blockchain network, it's most definitely a scam.

I think it's too early to talk about this. Especially when crypto regulations are unclear. Hopefully, we'll be able to trade stocks and crypto with ease in the future. Anything's possible, right?

[Godday]

This is interesting to think about but I’m thinking of why one would have to follow this route. Also, if this feature existed, and you want to sell your stocks, what do you expect to receive cryptocurrency or fiat? While I think it’s an interesting feature considering that cryptocurrency is money, it can be complex or confusing to implement such a system.

I agree with you. Maybe this idea sounds revolutionary but buying shares with crypto will only create a lot of problems. There will be many regulations and laws that will have to be created. I personally prefer to invest in stocks and crypto using fiat currency. I will move the value of my money to fiat if I want to make transactions in either of the two assets.

[peter0425]

If I had crypto, I wouldn't sell it for fiat to buy some stocks. That will already serve as my stocks and that's why the crypto market is way better than the stocks.
Looking at the charts of the most stocks, there have been best performing over all of the period of time. But many of them didn't move a lot and if they have moved around 5% their holders are already happy on it.
Crypto has just set my expectation better and farther than it.

Personally I think crypto is what’s in nowadays. Stocks is now considered the more traditional and outdated option between the two.

If I had extra money to invest in, I’d rather invest it in crypto than in stocks. People usually say that since stocks is more stable than crypto then it’ll be a much better investment option. But I like the fact that crypto is decentralized and therefore cannot be controlled by anything or anyone unlike companies.

It still depends on the investor but I believe there’s more profit in crypto than in stocks.

[oktana]

This is interesting to think about but I’m thinking of why one would have to follow this route. Also, if this feature existed, and you want to sell your stocks, what do you expect to receive cryptocurrency or fiat? While I think it’s an interesting feature considering that cryptocurrency is money, it can be complex or confusing to implement such a system.

I agree with you. Maybe this idea sounds revolutionary but buying shares with crypto will only create a lot of problems. There will be many regulations and laws that will have to be created. I personally prefer to invest in stocks and crypto using fiat currency. I will move the value of my money to fiat if I want to make transactions in either of the two assets.

Right. Asides from being confusing? I don’t see how it would be designed and not be a stressful process. I also think it will be best if you know exactly how much you have before investing it. Unless the idea is strictly for USDT which provides a USD pegged value or other fiat pegged coins, you may not know in-depth details on the trade. I’d say it’s more like using your SHIB to directly buy Bitcoin.