Difference Stock Trading and BTC trading

[mk4]

How does that make hype cycles a driving force in trading? There are plenty of penny stocks out there with zero fundamental value. That doesn't mean hype cycles are driving their day-to-day price action. Very few technologies (let alone thousands of altcoins) have actually traveled through an identifiable hype cycle. https://en.wikipedia.org/wiki/Hype_cycle#Criticisms

Every long once in a while you have a new technology trigger like DeFi, but after the initial hype, all altcoin niches completely revert to a standard correlation to BTC. They spend years and years and years simply reacting to and following the BTCUSD market.

Thus I would say altcoins trade mostly based on their correlation to BTC. As for BTC, hype cycles might be a good explanation for its valuation in a long term sense (the jury is out) but they have nothing to do with trading, which is a short term endeavor.

Never said that hype cycles was the only factor that drive's their price action, hence why I said "Cryptocurrencies(in general) are mostly traded based on hype cycles." Because their companies or "developer teams" hyping them up with whatever cheesy marketing tactic or misleading partnership that they could manufacture is a huge factor in their price spikes.

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[Harriti]

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

any financial market has similarities but is different in nature. We can learn the same about indicators and they can apply to both but the volatility is always different. There is a rule that when participating in any game, you must understand the rules there, otherwise you will be eliminated. There are many traders in securities and forex participating in the crypto market who are losing a lot due to the high volatility of bitcoin. Each market has its own characteristics and we must recognize it if we do not want to lose money.

[ReiMomo]

All have been mentioned earlier replies but I have something to add in here. First thing first here, crypto trading isn't to give any legal entitlement to the owner. Because since crypto is unregulated, legal rights weren't there. Not unlike stock market, traders have fully regulated they they pay their taxes.

There are too many factors to consider it's differences, I only state those basic pieces of information and also others are already mentioned above. Or for further information, I leave here a link that has a good article that worth it to read.

[ScamViruS]

Hi all,
Is there any fundamental difference between stock trading and Bitcoin trading?
Do both markets behave in the same fundamental way or are there any significant differences in crypto?
Could you be an expert about stock trading and then do wwll on cryptos as well?
Best,
Sakurro

Stocks are much less volatile, while cryptocurrencies market are much more volatile. The stock market is much more mature than the crypto market. Since the stock market is a very mature market and there is a huge amount of liquidity, technical analysis is very effective in this market. On the other hand, the crypto market has not yet matured resulting in extreme volatility and much less liquidity in the crypto market. As a result, it is not possible to go too far by following the technical analysis.

[Sanugarid]

If you're trading, the difference isn't much and if you have been trading stocks and you're an expert in it you will definitely understand how to trade cryptocurrency easily. When it comes to general differences and similarities, there are a few things that differentiates them all, but these differences have nothing to do with the strategies that are being used.

I agree jumping from stock to crypto is easy especially when you are already aware of what stock trading is all about there have been some data that says people in stock trading are trying to trade on cryptocurrencies. I just don't know if the terms used in both of these are completely the same? or likely to be the same?

Don't know that much of stocks tho but I see the point of futility of the differences compare to the strats.

The number one difference is that cryptocurrency trading is easy to start compared to stock where you are required to have a particular amount of money before you will be able to start trading. In cryptocurrency trading, it doesn't have any limit, you can trade no matter the amount you have in your account. Apart from that, sessions are another difference, unlike cryptocurrency that can be traded any day and time, stocks have limited sessions.

Without having a background in trading, a simple videos on the internet can teach you on how to trade cryptocurrencies. I even started from zero knowledge, then gradually I started trying on my own, it isn't that hard as I thought of it.

Stocks have limited session in trading? I didn't know this, is this what a centralized asset look like?

[milewilda]

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

Stocks  are less volatile
Stocks/Forex does have much more trading volume or liquidity
Stocks market is regulated

Common differences between the two and when you do trade up on stocks for a while then you will surely feel the difference
when you do tend to switch up to crypto and also i do agree into those previous points that this market is really highly
reactive to hype and fuds.

[TheGreatPython]

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

There are many similarities between the stock market and the crypto market. Both can be termed as assets. Trading in both is very similar except the fact that the crypto market is highly volatile when compared to the stock market. Moreover, the prices of the stocks depends on how well the company is performing and how much profit its making.

Whereas in cryptos it is more like how many people are investing their money into the project which drives the price up. But, if we look at them side by side, basically both work on the mechanism of demand and supply. The stocks are limited and so are the crypto coins so greater the demand and lower the supply, greater is the market value.

[bearexin]

1. Stocks has far more liquidity than bitcoin and cryptocurrencies hence the cryptocurrency markets are highly more volatile.
2. Cryptocurrencies are mostly traded based on hype cycles.
3. Cryptocurrency markets are open 24/7, stock markets are open like 8 hours a day in weekdays and non-holidays.

Cryptocurrencies in many countries now have the same liquidity as the stock. Although in most of the countries, liquidity is still a problem for crypto holders.

Hype or speculative are not just new due to cryptocurrencies. Stocks and commodities are also facing such hype based rallies and panic based fall down markets. Even some of the company stocks in the market are based upon the hype and faking mechanism.

Forex markets are available all 24 hours and all days a week but may not have enough volume. Due to non-regulated (decentralization) nature, we are having crypto exchanges serving all the times. Moreover exchanges are independent entities whereas stocks are having different structure.

Whether you trade stocks or crypto assets, research is necessary evil in every aspect. Learn, research, carry out background check and then invest.

[MCobian]

Both stock trading and Bitcoin trading have advantages and disadvantages, so it depends on us more suitable trading stocks or Bitcoin.
But I prefer Bitcoin trading because the price is volatile, in contrast to trading stocks because of more liquidity. For me the price of Bitcoin
is volatile, it's easier to make profits. Therefore even though the risk of Bitcoin trading is greater, I consider Bitcoin to be more profitable.

[GreatArkansas]

If you're trading, the difference isn't much and if you have been trading stocks and you're an expert in it you will definitely understand how to trade cryptocurrency easily. When it comes to general differences and similarities, there are a few things that differentiates them all, but these differences have nothing to do with the strategies that are being used.

There is exteremely huge difference for Bitcoin and stocks.
I know some trader who are started to trade stocks but when they entered in cryptocurrency or Bitcoin, they have much low winning rate compare to their trading in stocks.
That's why I can say that trading with Bitcoin and stocks got some differences, maybe there are some part that got similarities.
So, if you are pro and owning in trading stocks, and when you trade Bitcoin/cryptocurrency, you will still do the same with stocks?

[KnightElite]

There are many differences between stock trading and crypto trading. For instance, Stock market has fixed timings whereas crypto trading is available 24 x 7 x 365.
Stocks have more liquidity and are less volatile whereas crypto has less liquidity than stocks but are highly volatile.
Cryptocurrencies can be bought in decimals for example you can 0.0001 bitcoin too whereas for a particular stock you must buy at least 1 whole share.

Stocks have more fundamentals than crypto where in fundamental analysis is more likely usable than technicals, trading stocks and cryptocurrencies have a lot of differences. We can trade cryptocurrencies 24/7 but in stocks there are only specific market hours in order for us to trade it. Stocks also can only trade weekdays and the stock market are close whenever there is holiday and also every weekends.  When it comes to technicals, there are no differences because both of them are volatile but stocks are more news driven where it can affect the price when there is certain disclosure while cryptocurrencies are not news driven.

[michellee]

Could you be an expert about stock trading and then do wwll on cryptos as well?

Yes, but you must have high stock trading and crypto skills so you can trade both without any problem. But stock trading and crypto trading are different, and the lesson will not be the same as the crypto market is online 24/7 without stop. Stock trading will be more difficult to learn, as there are many indicators that you need to learn. The crypto market will be big than the stock as many project releases every month on the market, so people will have more chances to profit in the crypto market.

[teosanru]

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

Answering your question of fundamental difference there is a complete fundamental difference when it comes to stocks and crypto. Both just can't be measured on the same base. First and foremost reason for this is that the companies always strive to increase wealth to shareholders therefore trying to stabilize and increase stock price by getting good results. While in cryptocurrency developers are least worried about it after listing. Even if they take some measures to stabilize price these methods never are organic and ethical.

Secondly coming to trading there are a few differences:
1. The 8 hour stock market vs 24 hour cryptocurrency market is a big difference. It's because in 8 hour you would get a lot of volatility together while same isn't the case with 24 hour markets. Moreover gap ups and gap downs are also I would say a limitation of stocks
2. FUD in cryptos is much higher than in stocks. Stocks being more regulated experience less FUD therefore lesser volatility so your stop losses won't hit pretty often
3. No doubt stocks can be manipulated too but cryptocurrency are more prone to manipulation by big traders.

[SacriFries11]

Fundamental analysis is a major way to trade in stock market while crypto trading is more in technical analysis and because of volatility of crypto trading in small period of time many traders are failed to accomplish what supposed to be they want to earn.
The possibility of permanent loss of money are found in these two but unlike stock trading you can determine or clarify the situation why you did your money loss or maybe the hackers get your money since its regulated by SEC while crypto trading have no such guarantee that you can be able to get back your loss money.

[South Park]

Hi all,

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Best,

Sakurro

There are some differences, the main one is that stocks tend to move inside a range for a very long time and they do not trend very well, as such a system that takes small profits on each trade seems the most effective, bitcoin moves in a way more similar to other commodities like gold, silver, coffee, corn and beans, as such there are times in which the market does not move at all but then it begins to go up very rapidly, so your best option is to have a system that stays in the market for the majority of the trend and tries to get as much profit as it can from it.

[tbterryboy]

Stocks have more liquidity and are less volatile whereas crypto has less liquidity than stocks but are highly volatile.
Cryptocurrencies can be bought in decimals for example you can 0.0001 bitcoin too whereas for a particular stock you must buy at least 1 whole share.

That basically is the most significant factor a lot of people use it for their advantage while a lot of traders feel under pressure because with high volatility comes higher risk and you must have some solid backup to cope with the loss in case the price goes down and even harder for leverage traders. There are times when you would need higher risk-appetite or you will have to sell your bitcoins in loss as some investors/traders sold their coins in March when the price dropped like a sack of cards.

But at the same time, high volatility means you can easily use it for your advantage too and get bigger profits.

[BlackFor3st]

Is there any fundamental difference between stock trading and Bitcoin trading?

Do both markets behave in the same fundamental way or are there any significant differences in crypto?

Could you be an expert about stock trading and then do wwll on cryptos as well?

Stock market has a high liquidity and in case of the cryptocurrency it depends on the coin. Also, the cryptocurrency is very volatile that can doom or boost your investment in just a short time. If you are good in trading stocks therefore you can do good in trading cryptocurrency since they are using the same fundamentals and techniques.

[Yamifoud]

Stock market has a high liquidity and in case of the cryptocurrency it depends on the coin. Also, the cryptocurrency is very volatile that can doom or boost your investment in just a short time. If you are good in trading stocks therefore you can do good in trading cryptocurrency since they are using the same fundamentals and techniques.

I'm not sure how this be good and efficient because crypto trading is having a big difference in the stock market trading. The volatility in crypto will outplay those trading fundamentals and strategies that we use in stock trading and yeah, it finds not really effective as it was.
They are all pertaining to such risk but can't deny that BTC trading involves high-risk than stock trading. With that matter, those low risk-takers will never choose crypto trading rather than stick with the stock market.
Anyway, no matter what kind of trading you use but the result will ultimately depends on you and how you manage it. It is not the case that you choose hig-risk trading but it how you make an adjustment to its shift.

[Harlot]

I think the biggest difference between the two is with stock trading you can overlap both technical and fundamental analysis when trading where in crypto trading only TA is present. What I mean about an overlap is you can used both analysis to make your price prediction more accurate as fundamental analysis is something good to be used if you are betting on a financially good performing stock. Crypto on the other hand only has TA and also news that can trigger FOMO and FUD which makes it harder for you to rely only on its chart.

[RealMalatesta]

Liquidity is not really all that troubling because considering in the stock world we are talking about a lot of stocks, there are some like bitcoin and there are some that is more volatile than bitcoin and there are more stable ones than bitcoin. Of course you are not going to see a lot of stocks that goes down 20% and up 50% in a month, but bitcoin can do it however that doesn't mean those stocks do not exists.

You have to think bitcoin like an individual stock and not the whole stock market, if you do that there is absolutely nothing that resembles it, but if you take it like an individual stock, you can find ones that are resembling each other and that is what matters when you are trying to compare it to something, if you don't do that you can't compare it to anything.