What is the difference between cryptocurrencies and stockmarket?

[hamaravijay]

According to me

Cryptocurrencies are easy to understand and also able to easy to invest in various crypto currency.

But


According to me stock market is hard.

But both has their merits and demerits.

But i want to know which are the best and why and how to proceed in each of those markets.

Thanks!

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[jackg]

Bitocin is generally considered a speculative commodity, most stocks aren't.

When investing in stocks, you're investing in the dividends they can return you and you can see the profits the company makes and a lot of information on them.

With bitcoin it's quite a lot different, you can't say if we do better for profits than last year - you can just look at the price... But both have big problems... If the profit on a company turns negative, they can quickly collapse and become bankrupt - if bitcoin is made illegal, you might have to quickly rush to sell your stake...

[grood]

The above, and

-You can withdraw your crypto into cold storage away from control of third parties and governments, or transfer it to someone else, or purchase something with it.

-But if you do the above or trade on an overseas crypto exchange you have the risk of total loss from a mistake or a hacker.

-Crypto cannot suddenly dillute shares or reverse split. You have a guaranteed share structure.

-Far less news and more ability to apply pure technical analysis to trades.

-Generally more volatility in crypto plays. Crypto gives you the strength of a mid cap stock with the volatility of a penny stock. Most stocks you invest hoping to get 500% over 20 years. In a well timed crypto play you can hope to get that 500% over 20 weeks or even 20 days. (In some altcoins ive seen it in 20 hours)

-Somewhat more fraud in crypto. Lots of overseas encrypted fraud, shady exchanges, and little action from authorities to hold those accountable.

-Decentralized exchange markets you can attempt to arbitrage.

[milewilda]

Main differences between stocks and crypto;

Crypto - Decentralized/ Anonymous / Irreversible Transaction / Volatile
Stocks/Forex/Indices - Centralized / Opposite on whats above. lol

I dont know what you mean by hard to understand and also each market do have its pros and cons but i cant really deny
the fact that when it comes to profitability then theres nothing can beat out crypto but well when it comes to risk
then its just normal for it to be way more due to volatility.

[Mrengage]

Stock market: A stock market, equity market or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock.

Cryptocurrencies: A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

Now that's the difference between the two of them, to cut the story. Me my self I understood crypto better to that of stock market. Trying to understand this two marketing system is quite not simple.

[mk4]

Cryptocurrencies are easy to understand and also able to easy to invest in various crypto currency.

Read around the forums and on Reddit. Just after a few minutes you'd immediately realize that most people don't know crap about what they're buying.

According to me stock market is hard.

I heavily disagree. You can simply buy an S&P500 index fund and in the long term there's a very good chance that you'll make a profit. In contrast to the cryptocurrency space whereas it's mostly a casino.

[globalgaurav]

Crypto gives you the strength of a mid cap stock with the volatility of a penny stock. Most stocks you invest hoping to get 500% over 20 years. In a well timed crypto play you can hope to get that 500% over 20 weeks or even 20 days. (In some altcoins ive seen it in 20 hours)

keywords being "well timed crypto" !

[cryptoaddictchie]

Ive just note some major difference. Actually there is not much difference since both are speculative commodity and still both posses risk. Manipulation on trading is quite more frequent on crypto but there are whales also on stock market that loves to shake the trade orders.

Stock Market: centralized and always affected by fundamentals monopolized idea. The good side, you are sure its legit and less prone to scam. IPO is much safer and companies listed are very well studied.

Cryptocurrency decentralized! Not control by most of the oligarch firms but still swarmed by whales and keep tabs the manipulation. Prone to scam especially the new altcoin launched on ICOs.

[coinfinger]

According to trading and its technical analysis, I believe there is no big differences between cryptocurrencies and stock markets. You can make use of your experience and knowledge gained from one of these markets, into another market. Because, all the trading assets are obeying all the basics of technical and fundamental analysis which makes easier for us to  trade in any markets profitably.

Still, there should be some minor differences could observed between cryptocurrencies trading and stock trading. But if you go for studying, same kind of difference are there among stocks itself.

Before entering into cryptocurrency trading, I was the Forex trader. Still, I did not find any difficulties when entering into cryptocurrency trading but compared to what I have been doing in Forex trading, when I was new in crypto currency trading, I started with low capital so that I could manage risks until I gained experience in this cryptocurrencies space.

[mk4]

Cryptocurrency decentralized! Not control by most of the oligarch firms but still swarmed by whales and keep tabs the manipulation. Prone to scam especially the new altcoin launched on ICOs.

The worst thing is that most aren't even decentralized. Decentralization being one of the main advantages, simply thrown out the window. With most cryptocurrencies you're pretty much just sort of like funding crappy startups that are there to either scam you, or just simply going to end up failing.

[Wexnident]

It's probably easier to see if something in the stock market would grow compared to a cryptocurrency. Stocks grow because of the company backing them increasing in value, hence any improvement made by the company could easily see growth. This just requires research and possibly some insider information, but that's another problem. Crypto, on the other hand, is more on the speculation side (mainly BTC). Its value is highly volatile because of the fact that it is only a speculative market. There's also it's decentralized notion and usage of blockchain which makes it different from how stocks are. There's also the fact that stocks would most likely not scam you, unlike crypto which had so many scams in the past decade.

[Twentyonepaylots]

Stock Market: centralized and always affected by fundamentals monopolized idea. The good side, you are sure its legit and less prone to scam. IPO is much safer and companies listed are very well studied.

There are many factors that affects the price of the stock market like the market place, demand and supply, Dividends and also add the political climate in the area. Stock market is safer compare to cryptocurrency since the whole scheme is regulated.

Cryptocurrency decentralized! Not control by most of the oligarch firms but still swarmed by whales and keep tabs the manipulation. Prone to scam especially the new altcoin launched on ICOs.

Cryptocurrency market on the other hand is not that far to be similar with the stock market, there are also things that makes them similar. But the decentralization is what makes them apart, the volatility it contains is way more higher that risk is the topmost priority to consider before doing any move.

If there is one thing that these both market have in common, that is the price chart, you can always look for the data to predict the price in the future. The accuracy of your prediction is your logic.

[jostorres]

Well one is money, the other is something you buy with money. Isn't that simple enough difference that makes the worlds difference between each other? I know you guys love trading bitcoin and you love buying bitcoin low and selling bitcoin high whilst making more profit in fiat so you can be richer in fiat.

However you are forgetting one true thing that bitcoin was created as a currency itself, so we are talking about a currency that you can work and earn, or spend to buy something in return, just like dollars or any other fiat. Whereas stock market is something that you spend your fiat on but you can't buy anything, I doubt there is a single place on earth where you can walk in, buy a coffee and pay it with your stocks. So there is a vast difference with that just simple fact.

[thecodebear]

Investing in crypto is like investing in precious metals. There are no earnings reports and no super detailed info you need to research. You're basically just guessing when you think the supply and demand will shift up or down. This still can involve plenty of research, like technical analysis or tracking the news, or tracking outside events that you think may play a role in changing the near term demand for bitcoin, but there's nothing to research in understanding how good the product is like there is when you have to research how a company is doing.

So while with stocks the research is about getting into the details of each company, as well as overall market structure and cycle and outside events that could affect it, with crypto its just about researching the second part - market structure/cycle and outside events that could affect it.

It is simpler in that way, but also a bit more opaque in that you are basically just guessing what you think near-term demand will be for the coin.

Also with stocks you might get a dividend payout which in the crypto world would be analogous to a staking reward.

Cryptocurrency is very similar to investing in precious metals like Gold, except that the crypto market is in its infancy, so therefore much smaller and more volatile and has many times more room to grow in the long term.

[Ryker1]

Well, the Stock Market and Cryptocurrency market have similarities as well as differences. Both can earn profits and both have the risk of bankruptcy either way may happen depending on one's strategy. Though the stock market has lesser security compare to cryptocurrency but for hackers and robbers even you intend to protect your assets by placing a million armies around through strong securities it is still they will do everything to hack and rob. In businesses, it is a matter of strategy for you to survive with a mixture of luck.

[Gozie51]

The cryptocurrency and stock are not the same in my eyes. Volatility is not controlled. Stock is better in investment , you can buy through agents as brokers but you are at your own risk to your own research on cryptocurrency.

[bearexin]

The cryptocurrency and stock are not the same in my eyes. Volatility is not controlled. Stock is better in investment , you can buy through agents as brokers but you are at your own risk to your own research on cryptocurrency.

Stock is better? Are you sure? May I know specifically on what stocks you are talking about? I am not seeing any stock which provided good returns like how bitcoin has performed in last 10 years. Bitcoin may remain high volatile still it is good for better ROI if you opt for holding it for years.

Stocks may not fluctuate like how crypto markets are usually doing which may be the reason that you are preferring stocks markets at the same time only highly fluctuating markets are opening doors to make money with. I guess crypto is good for both active traders and long term holders as both must be making good returns for their investments into cryptos.

[thesmallgod]

Cryptocurrency are group of digital currencies that are created by individuals which can serve the similar purpose a fiat currency can serve. Stock market generally refer to a market in which stocks in form of regulated assets are being traded. We also have markets for cryptocurrencies where crypto are being traded

[Spaffin]

since the difference in the age of the stock market and the cryptocurrency market is very large, the stock market over a long history has already established laws and rules that work like clockwork.  at the same time, the cryptocurrency market, in spite of its youth, becomes more regulated and improved over the years and at some points it becomes similar to the stock market, especially if you take into account the beginning of futures and options trading.  but nevertheless, many strategies that are already crap in the stock market are simply unacceptable for cryptocurrency trading.  In addition, you need to take into account that the huge advantage of the cryptocurrency market over the stock market is the ability to receive large and fast incomes due to the volatility of cryptocurrencies.
In addition, it seems to me that the most important difference between the stock and cryptocurrency markets is accessibility.  Today, quite a lot of cryptocurrency exchanges do not even require the provision of passport data from the user, and everyone can try their hand at this business completely being anonymous.  at the same time, the stock market needs to have accreditation. as well as the stock market, much more start-up capital is required than for the cryptocurrency market.

[cassavachips]

Cryptocurrency and stocks are much different, the risk of cryptocurrency is greater. Stocks are safer than cryptocurrency. But right now I still like cryptocurrency than stocks even though stocks are better.