Stock market vs cryptocurrencies. What are the main differences?

[vinbentrob]

Stock market trading and cryptocurrency market are different in many respect., stock market is centralized under the control of  a government or other entity,  whereas  cryptocurrency market is decentralized and does not need any supervision or regulations!   

[1714875071]

1714875071

[pandanaran]

I have never traded the stock market, but for trading cryptocurrency here where holders are the drivers of coin value changes, especially large holders, many say that the crypto market is a market that can be manipulated at any time by large holders (whales). For transactions fee you can see in coinmarketcap and choose a market for which the fee type is written with no fee.

[justspare]

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?

Well, stock market is for business' and if you are buying a stock you are buying the company at least a small share of it. Hence, when that company makes money your stock value goes up (most of the time at least) and when that business loses money than the stock loses value as well. Basically the stock is tied to a company directly.

However, bitcoin is not tied to anything other than what people put a value on it. Collectively we believe bitcoin should worth something and it does, we decide on the price of bitcoin and how much it should be, for all other crypto coins as well.

When a stock gets manipulated or done something to it so it worths less than what it should, people still flock to it insanely because it is still tied to a company and if it is making money and worths a lot than even if whales try to drop the price you still buy it knowing fully well that company is doing well so no reason to panic.

[joey alexander]

To begin with, even when the value is based on the idea of the currency or the stock, in the stock market you actually invest in the company, in the cryptocurrency market you invest in the technology or the currency, however you want to see it, but you never really get to own any part of the company, even if the business of the company affects the price of the currency.This also affects the total evaluation of the cryptocurrency market, there is none. No one really knows what the total market capitalization for cryptocurrencies is. The cryptocurrency market also acts ten times faster (I don't know how true this statement is, but it is my guess, as I've said before). This affects everything. Prices go up faster, prices go down faster, prices change at larger magnitudes.

[jatin729]

Stock market ---
1. It is centralised in nature and operate by central authority.
2. Risk is very very low for getting scammed by someone.
3. We are tax payer for capital gain from stock market.
4. Opening and closing timing for market

Cryptocurrency ---
1. Decentralised in nature no third party involved.
2. High risk involved, high chance of getting fraud by someone.
3. 24*7 working platform.
4. Not properly regulation comes for cypto trading.

[JostikSSS]

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?

In order to trade on the cryptocurrency exchange profitably, it is necessary to understand what its differences are from the usual securities markets and traditional currencies. Consider the main ones.

HIGH VOLATILITY
The volatility of cryptocurrencies is hundreds of times higher than that of securities and Fiat currencies. For example, during 2013, the bitcoin exchange rate increased by 5,500 %. Such dynamics during the year has never been observed in the stock market or conventional currencies.

As a rule, on the stock exchanges rates change smoothly and to get a tangible profit you need to trade for significant amounts. But in trading cryptocurrency it is possible with investments of only $ 5,000. earn in a few days, 30,000 to 40,000 dollars.

But the possibility of rapid growth also means high risks. Huge volatility can instantly destroy the entire Deposit. Success depends on the experience of the trader, his ability to quickly predict the movement of rates and to analyze the market.

On the exchanges of crypto-currencies, price changes are mainly due to the appearance in trade of large volumes belonging to large players or groups of individuals, so it is extremely important to have time to detect the beginning of changes and open the appropriate orders.

Another danger lies in the fact that some players deliberately stimulate a sharp price movement in order to attract the attention of other market participants, who, without understanding the situation, are quickly included in the trade and thus contribute to further strengthening of the movement.

Only by understanding the features of the cryptocurrency market and taking them into account in your trade, you can expect to receive high profits in transactions with digital currencies.

[tnabielec]

Whether this is a good thing or a bad thing, you be the judge.

The market is never closed, ever.

[Ems30]

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

Yeah ,is possible to make bitcoin growth the price if some nation are also involve to crytolanld ,,like you said Russia are also considering to accept inolved in the market,despite some of nation bitcoin will banned,so that take a lot of research is also key to plan carefully before decided to this path, because  you must also responsable to your future,.

[berrygood]

Stocks are centralized, the platforms you trade stocks are centralized, but crypto is about decentralization. But today most tokens are centralized and you trade them on dex 

[SubZer0]

I have known stock market for the long time 'cause I am a business student a we study and talk about it very often. I am about to graduate and i am planning to invest but I don't really know which is better. So I am hoping you guys could help me out, coz I know some of you have been investing for a long time. Don't hesitate to tell about your thoughts and investment experience.

[manggis97]

Stock market under regulation and the fluctuacion lower than crypto,  and others different is in crypto market normally all  Coins will bullish and bearish the same periode and stocks market is not,    in stock market has higher market  cap even popular stock like Apple has market cap more than $1 trillion alone. The price of crypto can be going down to zero,  but i dont see any stocks like that.

[Kira_lapa]

The volatility of the crypto currency is hundreds of times higher than that of securities and fiat currencies. As a rule, on stock exchanges of securities, the exchange rate changes smoothly and significant amounts must be traded to obtain tangible profits. But in the trade of crypto currency it is quite possible with investments of only 5,000 rubles. earn a few days 30 000-40 000 rubles.

[BitHodler]

Stock market under regulation

I have seen more people point that out, but essentially it doesn't mean much on its own, especially when it comes to preventing scams. There is plenty enough illicit activity within the stock market even with these regulations.

Stock market scams are less obvious because they're meant to run for a couple of years, and that while crypto related scams aim to scoop up people's money in a very short period of time.

In most cases you can right away spot a crypto scam because of how it's set up. Try spot obvious scams within the stock market. You'll only find out that you have invested in a scam when it is too late.

[Madara_Uchiha]

In fact, digital currency rates depend on individual groups of players pursuing different goals and capable of dramatically increasing trading volumes. At the same time, many traders successfully use separate elements of technical analysis to predict the movement of rates when trading crypto-currencies.

[Ms.Anna]

At crypto-exchange exchanges, price changes occur mainly due to the appearance of large volumes belonging to large players or groups of persons in trade, so it is extremely important to have time to discover the beginning of the changes and open the corresponding orders.

[jakezyrus]

In fact, digital currency rates depend on individual groups of players pursuing different goals and capable of dramatically increasing trading volumes. At the same time, many traders successfully use separate elements of technical analysis to predict the movement of rates when trading crypto-currencies.

I think it can also happen on stock market .  if big players or whales will buy more stocks , the price of stock can also increase . same as when they sell a lot of stocks , the price can also decrease just like what we have on the market of cryptos .

But in cryptos , the value of a coin can go high in a verry un-usual state and i think that is the main difference between stock market and cryptocurrency market .

[rickadone]

Stock market under regulation and the fluctuacion lower than crypto,  and others different is in crypto market normally all  Coins will bullish and bearish the same periode and stocks market is not,    in stock market has higher market  cap even popular stock like Apple has market cap more than $1 trillion alone. The price of crypto can be going down to zero,  but i dont see any stocks like that.

Then you really have not seen penny stocks. That is for another day though! However, it is a good point stating that stock market has a higher market cap and since it is regulated, there are some manipulations that would be very hard to see in the market unless you want to go to jail as the manipulator which makes it less of a volatile market than crypto but does not mean it does not have its own volatility based on fundamental view of the particular stock.

They still operate in about the same way and it is the same strategy you will use to trade in some stocks and hit good profit, is also the same strategy you will use in cryptocurrency to make good profit.

[Harlot]

The volatility of the crypto currency is hundreds of times higher than that of securities and fiat currencies. As a rule, on stock exchanges of securities, the exchange rate changes smoothly and significant amounts must be traded to obtain tangible profits. But in the trade of crypto currency it is quite possible with investments of only 5,000 rubles. earn a few days 30 000-40 000 rubles.

This is not true, there is no such thing as a rule in the stock exchange where the companies' stocks needs to run smoothly it will always depend on the performance of each individual company that is why some stocks of companies fly faster or fall down faster as it reflects on the company's performance. There is also no minimum amount of investment for you to earn in the stock market, you may double or even triple your money in cryptocurrencies but you can also do that with a few hidden gems in the stock market.

[rumexx]

There are differences between the stock market and cryptocurrencies. The cryptocurrencies are centralized which means that they are not control being controlled by anybody or corporate bodies but only by the market sentiments. cryptocurrencies can not be used as a security only to be used for P2P transaction. While Stock market is centralized and being controlled by the SEC. Stocks are underwriters securities which can be used for surety in case of other financial dealings of the person holding the stock.

[Vangar]

I am going to try not to spam with you with text but rather show you a website that you can check out https://www.cryptocointrade.com. Its all about trading coins, including trading platforms, fees, regulations, strategies, apps, charts, bots, and much more.
On the side of your question, we can easily summarize differences in bullet points:
- stocks are a lot less volatile than coins
- stocks are regulated heavily by governments, cryptos are not
- stocks represent individual businesses or groups of them, cryptos represent ideas and solutions
- stock market is centralized, cryptocurrencies are not (mostly)
- stocks represent the value of a company and assets it has, cryptos are determined by the market trends and have almost no physical assets to speak of

There are few more, but these should be efficient so you would know what you're dealing with
Read articles on the website I provided to get a better idea of how and what to trade and keep learning from other sites as well!
Happy trading!