Stock Market and Bitcoin

[brawdias]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

[maculeth]

just like any other trading. only here that makes bitcoin so different is its fluctuating price, so its price changes so fast and will never stabilize.

[cryptomoon1005]

The concept is the same... However, cryptois can be bought or sold 24 * 7 as opposed to stokes on the stock market

[Lorence.xD]

just like any other trading. only here that makes bitcoin so different is its fluctuating price, so its price changes so fast and will never stabilize.

Stock market and Bitcoin trading is almost similar to its other. We have investor on the said project, it is globally accepted in the trading market. People look into the phenomenal entry of crypto currency market as its posted on ICO somewhere in 2008 by Satoshi. Decentralized transaction on trading of Bitcoin with out the use FIAT or paper trail give more room for investor to transact business easy and effective. Once the issues on Banned,Scammer,Regulation are address we can see the better participation of global market on crypto currency,This is the alternative way of investment and the possible future safe and fast business transaction which is soon to be adopted globally.

[Hydrogen]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

Some basic principles of stock market trading apply to bitcoin and crypto currency trading. There are major differences between the two, however. Quarterly earnings reports, projected earnings, P/E ratio, dark pools and HFT high speed algorithmic trading, etcetera.

Gold, silver and precious metal trading could be a better fit for learning to trade crypto. Although it must be acknowledged that there are many aspects of bitcoin and crypto which are unique and can't be compared to precious metals, equities or commodities trading.

The best strategy for trading crypto could be long term buy and hold. Especially with crypto that is undervalued. Buying and holding crypto before the value of bitcoin increases almost guarantees profits of some type. The worst time to buy is before bitcoin declines as that tends to drag down the value of all other crypto with it. Bitcoin's price rising and falling could be one of the best and most difficult variables in timing trades.

[NeuroticFish]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

Imho, while the principles are the same, there's one big difference: crypto market is not regulated.
The result is that pump and dumps or other forms of market manipulation is still there and can burn you.

[patarfweefwee]

The similarities i guess that you play the game the same way. Since crypto currency trading is structured much more like stocks. There is also trends to look for, projections, and others to look into. But not like in stock, we have a specific value  not points for our exchanges.

[fiulpro]

I think there is nothing that can apply to Bitcoins other than the new that hovers Around ..
Bitcoins is not something that you need to predict because you can't .. its dependent on investors and the government actions this is what I think, others might think it's an entirely different issue.

But you should learn about the blockchain technology and stuff that is something thats important if you are into starting something with it.

[boboking]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

Imho, while the principles are the same, there's one big difference: crypto market is not regulated.
The result is that pump and dumps or other forms of market manipulation is still there and can burn you.

I agree, this is the only negative side of crypto currency market.

For the topic Yes there is a lot of similarities when trading stock market and trading Crypto currency but  Forex trading is actually more similar.

Technical analysis is the same but it may surprise you that only a few people who trade in crypto uses technical analysis.

I think you just need to study which coins are worth it to buy.

[Roukawa]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

The concept of FOREX trading is not differ from Crypto trading. In fact, these two both trading industry have similarities in using graphs, Technical Analysis and transaction. The only difference for me is that, bitcoin is more volatile than in FOREX. It's price rapidly can move up in just a couple of hours. I think also that crypto trading is more profitable than Stock Market.

[Nerman]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

The concept of FOREX trading is not differ from Crypto trading. In fact, these two both trading industry have similarities in using graphs, Technical Analysis and transaction. The only difference for me is that, bitcoin is more volatile than in FOREX. It's price rapidly can move up in just a couple of hours. I think also that crypto trading is more profitable than Stock Market.

Actually the Forex market  is volatile as well but the volatility of Bitcoin is really crazy. The OP seems he is familiar trading stocks and he can take advantage of Bitcoins volatility. Also because of the volatility in this market you can earn 10x more profit (possibly more) in the crypto currency market if you compare it in the stock market.

Now the pump and dumps issue. Stocks has been the market for a while and very big whales are already in this market for a while. With crypto I think whales are fewer in this market.

[grendel25]

There is a lot more volatility in crypto markets compared to stocks.  Also, for the most part and with some pretty minor exceptions... bitcoin markets are hardly regulated.  There are hundreds of tiny exchanges and any of them could disappear in an instant along with many coins.  But mainly, there are large exchanges that are used more frequently and are safer.

And a huge dynamic to consider is how much all coin values are --still-- tied to the value of bitcoin.  This is due to the overall liquidity of bitcoin to fiat and the lesser liquidity of other coins.  That is, if you have altcoin-X and want fiat you usually have to convert to bitcoin first although there are more options today than there were in the past.  Ethereum is one alternative option.  However, market confidence still follows bitcoin value.

[Direwolve735]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

Imho, while the principles are the same, there's one big difference: crypto market is not regulated.
The result is that pump and dumps or other forms of market manipulation is still there and can burn you.

I agree that this is what crucially distinguishes crypto-currencies and stock markets. And non-regulation causes many risks. If the "bubble" of bitcoin bursts, the stock market will collapse after it. And vice versa: if a recession starts in the market, investors will panic and will sell bitcoin. Last year, money followed the indicators. As soon as there was a jump in volatility, there was a great demand for liquidity. I believe that as soon as the crypto-currency markets become more regulated, some risks will go down.

[airdagon]

as far as I know right now, buying and selling using bitcoin equals buying and selling stocks because they can both benefit from the difference between the selling price and the purchase price.
Price movements that occur in stock one of them will be greatly influenced by the results of the company's performance. For example, such as an increase or decrease in profits and sales, dividends or news can also be large that will affect the company. in the bitcoin world for the price of its unit will only be affected by the same thing, namely the increase and decrease in demand and press circulating widely in the community. you can still remember when there was a case that happened because of bad news about the fatal mistake in the management process of Mt. Gox, consequently bitcoin prices even dropped. in my opinion from the conclusion of all this is not said different, even almost 99% the same.

[NeuroticFish]

And non-regulation causes many risks. If the "bubble" of bitcoin bursts, the stock market will collapse after it. And vice versa: if a recession starts in the market, investors will panic and will sell bitcoin. Last year, money followed the indicators. As soon as there was a jump in volatility, there was a great demand for liquidity. I believe that as soon as the crypto-currency markets become more regulated, some risks will go down.

And another important thing is that while the stock market doesn't really change more than - let's say 10% - and 10% means A LOT, a 10% change in crypto markets is not really a big deal and it happens pretty often.

[VitKoyn]

The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

Although there are some similarities between the principle of Bitcoin/cryptocurrency market and stock market because the price are both depends on the supply and demand, there are still a lot of things that makes them different like, in cryptocurrency market prices move faster than stock market so this makes cryptocurrency more riskier but can give more profit to investors/traders. Another things is the manipulation, cryptocurrencies are still on its early age and there are lots of coin that is coming up that has low trading volume which can easily be manipulated by big investors and the market is global, in stock market this is very minimal to happen because it is regulated by the government of a specific country where it is operating.

[diva.man]

Unlike stocks and foreign exchange transactions, encryption currency against any government regulation, it can be all-weather traded at any time in the whole world, is not like the stock and foreign exchange in the time of the day to deal so the digital currency is more unstable. The price of digital money depends mainly on demand and supply!

[magneto]

I agree with Hydrogen. Precious metals speculation/trading would probably be a better comparison to draw for crypto trading. Stocks in the real economy depend on business decisions, earning reports, stuff like that. Bitcoin doesn't give out dividends. That's why precious metals is a better comparison, in my opinion.

Some analysis tools can definitely be transferred from stocks to crypto trading, as well as indices.

Crypto is entirely unique, however, and you definitely need to do some research before you invest anything into it. But honestly, if you're inexperienced, but you stand for the concepts BTC is based on, your best bet is most likely to hold for the long term. It cancels out all the short term noise, and since BTC is a store of value and hedge against inflation, if adoption rates climb which is very likely, BTC will continue to go up in the long run.

[squog]

For me, it looks much the same. Both crypto currencies and stock markets deal with different companies that changes prices depending in the market and government movements and natural disasters. Only thing it you're actually dealing with a more simple creature in crypto currencies. Since crypto is decentralized and is not owned and controlled by governments or or big companies. 

[Clifmeister]

I've tried applying all the chart patterns that I have learned on Bitcoin and end up being on the wrong side of the trade most of the time. Bitcoin is just too volatile to anticipate its next move. I think it's good for mid to long term trading, for those who really like Bitcoin.