Stock market vs cryptocurrencies. What are the main differences?

[Revan90]

Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?

[BitMaxz]

Never tried to trade with stock market but i think the different of trading with cryptocurrency is the movement of the price was fast than in stock market this is just base what i saw or experience that is why they are more people are trading with cryptocurrency because of the fast movement of the price..
But the problem right now i heard that ICo and altcoin are ban in china that causes the price of bitcoin down..

You can try to trade with CEX,io or go to https://coinmarketcap.com/ and choose what altcoin you want to trade and click market you can see almost list of exchange site. .

[Revan90]

Never tried to trade with stock market but i think the different of trading with cryptocurrency is the movement of the price was fast than in stock market this is just base what i saw or experience that is why they are more people are trading with cryptocurrency because of the fast movement of the price..
But the problem right now i heard that ICo and altcoin are ban in china that causes the price of bitcoin down..

You can try to trade with CEX,io or go to https://coinmarketcap.com/ and choose what altcoin you want to trade and click market you can see almost list of exchange site. .

Thanks for the input Yeah it is true that stocks' price doesn't move as fast as cryptos. However, I used to trade small and middle sized companies' stocks, so it was very volotile at times. Also, I think that apart from bitcoin it is hard to actually predict the movement of the price trends of the coins. I mean it's not like we get actual information on the company financial state

I read an article some days ago that Russia was considering accepting cryptocurriences on thier market. Do you think that it was something that made the growth to almost 5000$ possible?

Also, I have never heard about ICOs. They seem like a great idea

[woas4]

As you said, the market works 24/7, every single day. Bittrex has 0,25% fees on both asks and bids, but its a nice trusted site with many coins offered in their exchange. Give it a try!

[Revan90]

As you said, the market works 24/7, every single day. Bittrex has 0,25% fees on both asks and bids, but its a nice trusted site with many coins offered in their exchange. Give it a try!

Thanks. Will check it out The transaction fee seems low, I have grown accustomed to something around 0,6% so it would be a nice change

[aardvark15]

Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?

Correct, there is not a market opening or closing, you're just placing orders any time of the day. Another big difference is these cryptocurrencies are extremely volatile because it's a new technology. They are also not the same as companies or businesses. They are more like a fiat currency exchange.

Also the exchanges are more risky that the stock market because they can close or go out of business at any time and can be hacked, so we are taking risks.

[Herbert2020]

stock market is regulated while crypto currencies market is not.
stock market is huge but the altcoin market is usually referred to as penny stocks because of its uselessness and it being small.
you can not manipulate stock market but manipulation is a part of altcoins market and to some extent it is even available in bitcoin market too.
you can use technical analysis and speculate stock market with more effectiveness than you can do it with crypto markets because of the above points.
stock market has a open and close time, it is off on weekends but crypto market is 24/7

[CoinCollector006]

There are several differences.

1. Crypto is much more volatile, the S&P annualized long term volatility is 15% whereas BTC is 100%+. A 20% to 30% move n crypto is nothing.

2. Crypto is more difficult to short, the shorting functionality is less mature than in teh stock market where you. Bitfinex is one o thefew  providers where you can do margin trading and shorting.

3. Crypto has less anchors for valuation unlike stocks which the valuation may be tethered on estimates of sales, earnings, EBITDA, book value, etc. Crypto has Metcalfe's law which says the network value is proportional to the square of the number of users.

4. Metrics are very different, crypto has development strength (e.g. # of github code commits), # of users, management/development team depth. Two factors they share in common are market cap and age of the business.

[glowing10]

Couple of reasons which differentiate them are

- Stock market is being controlled and regulate by an institution. Bitcoin is not government by any body.
- Stock market are less volatile and there are circuits in place if it jumps or fall above a certain %. In bitcoin there no circuit as only the buyer/seller needs to decide when to buy/sell.
- Earning wise bitcoin is the best as due to volatility the market rises and fall accordingly and so if you are on right side of the swing you can easily make lots of money and in stock market you will have to be little patience as only when the market and stock rise you will be able to make money.

[MiXxe]

Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?

A little bit difficult to answer your question. Furthermore i know that stocks has a downtime like you said and it is too different from cryptocurrency because you can trade all day long as much as you want, the only limit is your money and your skills even though i know you have some skills but in crypto reseaeching in a Altcoins is much needed before investing.

[dmamigo]

I find ease of use and simplicity to trade the difference between stock market and cryptocurrencies. In stock market you have to go through some formalities before you can start trading, where as in crypto its very easy and nearly hassle free. And basically stock market is regulated by government and Bitcoin is not.

And about volatility as mentioned by many, I found even some particular stock in stock market sometimes being volatile. But yes I get huge options in stock market considered to available crypto coins.

[amacar2]

Yes you are right that there is no any authority interfering crypto market but govenment of few country specially china can still influence the market like yesterday a ban of ico in china cause huge panic on the market which might not be same in forex trading.

When you are into crypto trading you will actually own those crypto but in forex what you will trade there is mostly digital assets which is not under your full control.

Margin trading on crypto is quite rare and don't have leverag of over 2.5x while in forex you can get more than10x leverage.

[erikalui]

Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?

Very few websites like poloneix offer low trading fees but mostly the big exchange websites have a trading fee of 0.0015 to 0.002 BTC. The market is run by pumps and dumps unlike the stock market which does have fluctuations but not this huge and regular ones. There are bots that you can use for trading but it's better you start manually trading on sites and get an experience and unlike stock markets that have a stable rate for all company shares, crypto currency prices are different among all websites. You can check coinmarketcap.com to get a fair idea of which crypto currency is traded on which website and the corresponding price (like BTC, eTH and so on).

[w5pn73]

Volatility and growth rate are the most important differences I think, they make up for a better ROI.
A stock trader for example would be very happy with +10% in a day, while a cryptotrader sees things like this on  a daily basis.

[alyssa85]

There are several differences.

1. Crypto is much more volatile, the S&P annualized long term volatility is 15% whereas BTC is 100%+. A 20% to 30% move n crypto is nothing.

2. Crypto is more difficult to short, the shorting functionality is less mature than in teh stock market where you. Bitfinex is one o thefew  providers where you can do margin trading and shorting.

3. Crypto has less anchors for valuation unlike stocks which the valuation may be tethered on estimates of sales, earnings, EBITDA, book value, etc. Crypto has Metcalfe's law which says the network value is proportional to the square of the number of users.

4. Metrics are very different, crypto has development strength (e.g. # of github code commits), # of users, management/development team depth. Two factors they share in common are market cap and age of the business.

This.

Also, because cryptocurrency trading is unregulated you see practices that got outlawed in the stock market back in the 1930's - insider trading, pumper-dumper groups, fake news designed to panic people, even people DDOSing exchanges to take them off line at crucial moments and make investors panic.

[Oo ako to]

I have never tried stocks but for me cryptocurrency makes pumps dramatically. This thing attracts more people to become a crypto trader like me.

[audaciousbeing]

The major difference I see very relevant is that no one can just sit at the back of computers or even phones and trade stocks without having a particular certification to engage in such. Over here one needs to have been a member of one stock brokers association to be able to trade and without that, you cant unlike crypto where what it will costs me is to just open an account on a website and boom I put a run for my money whether I am knowledgeable or not, is another discussion.

[Carlsen]

One difference is that there are many stocks where you get a dividend each year.
Another difference is that the crypto market in general is much more volatile than the stock market.
And then I must say that it is easier to get information on stocks. Each company must publish numbers every few months.
The earning options in trading and in simple holding as well are much higher with crypto currencies.

[w5pn73]

One difference is that there are many stocks where you get a dividend each year.
Another difference is that the crypto market in general is much more volatile than the stock market.
And then I must say that it is easier to get information on stocks. Each company must publish numbers every few months.
The earning options in trading and in simple holding as well are much higher with crypto currencies.

Dividends are so minimal in the stock market, compared to the growth some crypto's can experience in a few days.
Sometimes I hear someone talking about his 5% yearly div, and in my mind I just lol.

Btw, there are enough coins/tokens that provide a "dividend" as well.

[no0dlepunk]

Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?

I had been trading stocks for the last decade and then decided to go full time in bitcoins. In the country where I am currently at, I had noticed that stock market crashes whenever the elections are coming (2007 and 2016), especially when the newly elected leader is making some goofy decisions (such as switching allies from America to China, vice versa). I want to give you an example where the government directly affects the price of a stock; in 2014 I have bought a few thousand shares of a nickel-mining company but unfortunately the government declares a nationwide ban for mining, therefore, that stock went down 50% and I have no choice but to cut-loss and move on. I also have a few shares of Casino stocks but 2 years ago, the government went rocky with the Chinese so that particular stock did not perform very well. I am still holding that stock though.

Now, with bitcoins and cryptocurrencies, the government doesn't have direct influence to it's price. You may also say that the community decides about the fate of it. Another great thing about cryptocurrency is it is not regulated by SEC. it is tax-free in my country too.