Difference Stock Trading and BTC trading

[sakurro]

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

[1714183044]

1714183044

[1714183044]

1714183044

[1714183044]

1714183044

[1714183044]

1714183044

[mk4]

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.

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

Completely depends on what kind of trading you're doing.

[Upgrade00]

...

• Stocks are used to measure equities. Ownership of it gives you a share in a business which has gone public, Bitcoin on the other hand functions as a currency with speculative value. There is no equity involved.

• Comparing Bitcoin and stocks directly, both are influenced by popular opinion, so the more attention and demand it gets, the more the price is likely to rise and vice versa. But they have fundamental differences as well.

• As mentioned by mk4, it depends on what you are trading and what type of trader you are; long or short term. Normally one would have to adapt to how cryptocurrency market works and how to correctly employ technical and fundamental analysis.

[bitgoldpanther1978]

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

In the first place, I am not an expert but here's my opinion. As an individual person especially if you enter here
in cryptocurrency you should know to yourself if you are a day trader or long term holder. You must also know
the coins you like to trade in the platform and make sure you check them all well, just like that only.

[minairia3]

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

Of course it can, the idea of trading on stocks or crypto has no difference when you are using technical analysis. Most likely you will used same indicator too. The thing is, there are more choices on crypto while stocks trading depend on you, if your country has many supported stocks but you can do global stock trading.

3. Cryptocurrency markets are open 24/7, stock markets are open like 8 hours a day in weekdays and non-holidays.

This is my concern about trading. On stocks there is a limited time for the day you can access the market usually business hours unlike crypto that has more time for us yo trade.

[tvplus006]

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

If you hold shares, you can expect to receive a portion of the profit that is proportional to the total number of securities. In addition, you can get a profit from changes in the exchange rate of shares. Holding bitcoin is somewhat similar to stocks. You can also earn passive income by placing it on a Deposit. And also get a profit from changes in its value on the exchange.

[Oilacris]

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

Both are unpredictable but when it comes to fundamentals then stock market is somewhat can really be anticipated unlike on crypto on which news can either had impact or just simply being ignored.

Volatility aspect then this is one of the difference.We cant compared them when it comes to intensity of volatility aspect this is why some of  forex/stocks traders did jump on crypto due to that kind of reason
but somehow when it comes to risk then crypto do have it more.

When you do have knowledge on stock trading then its an advantage since they are all just the same in talks of trading aspect.You do just able to tell the difference when it comes to volatility.

[Findingnemo]

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 but cryptos are highly volatile,so if someone who is an expert of stocks trading will really struggle here in cryptos.Technical analysis in the crypto trading is not much effective as in stocks. And while doing crypto trading we may not have enough data to find how the market cycle is going to be.

[ChiBitCTy]

They are completely different worlds.  There are hardly fundamentals when it comes to cryptocurrencies.  Fundamentals are different in the regular stock market because these stocks are back by real life companies that are producing goods or services of some kind.  They are not just simply some digital currency.  You could certainly be an expert on both if you've spent the time learning the two.

[barbara44]

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.

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.

[exstasie]

Cryptocurrencies are mostly traded based on hype cycles.

I wouldn't say that. Hype cycles might be a good narrative for explaining BTC's long term price trajectory, but these cycles take place over years. They aren't really useful for trading.

Like virtually every other market, BTC spends the vast majority of the time trading inside a range, so scalping and swing trading techniques are just as applicable to BTC as they are to stocks.

TA is exactly the same in both markets. Fundamental analysis is quite different, however.

[mk4]

Cryptocurrencies are mostly traded based on hype cycles.

I wouldn't say that. Hype cycles might be a good narrative for explaining BTC's long term price trajectory, but these cycles take place over years. They aren't really useful for trading.

Like virtually every other market, BTC spends the vast majority of the time trading inside a range, so scalping and swing trading techniques are just as applicable to BTC as they are to stocks.

TA is exactly the same in both markets. Fundamental analysis is quite different, however.

Sure, but that's with BTC specifically though(and maybe with ETH as it has decent liquidity). I was referring to the cryptocurrency markets in general; which consists of like 99.99¯% altcoins which are mostly hype and vaporware with little to no fundamentals.

[Kelvinid]

Market volatility makes them different from each other. And with the hypes rises in Bitcoin trading, people are jumping on it.
But could we expect that BTC trading will me more profitable than stock trading? It only depends on how you manage your trade.

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

Theres is no such huge difference, if you are good in stock trading, you can also be good in crypto trading, and you can also apply the strategies you have from stock trading. Only you need to manage it carefully as we know volatility makes it way different.

If you are not a high-risk takers, better to choose and stick to stock trading but if you are willing to face into a very challenging trading experience, well, BTC trading is good for you.

[TravelMug]

I would also like to point the obvious, bitcoin market is still fairly young and as a result, it's really hard to used technical analysis as there are no patterns to rely from the past. And that is why it is so volatile as compare to stocks. And lest we forgot, crypto market is unregulated and decentralised, transactions happen anytime of the day regardless where you are in the world.

[ashmodeus]

1.Of course they have.
   A. liquidity
   B. Legality/Validity
   C. The risk/Volatility
   D. Market Players and behavior

2.Mostly have a different way,which crypto is more wild than stock market,but lately Bitcoin seems tend to following how Stock market movement,hope BTC will get the own Way soon.

3. its same like can u knowing your girlfriend's sister attitude ? even if they are twins ? , give more time on crypto and u will know crypto well.

[abel1337]

There are many existing threads about this topic
Here's some:
https://bitcointalk.org/index.php?topic=2661484.0
https://bitcointalk.org/index.php?topic=2186703.0
https://bitcointalk.org/index.php?topic=3227383.0
https://bitcointalk.org/index.php?topic=2984594.0
https://bitcointalk.org/index.php?topic=2091215.0

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

This is very possible depending on you on how you will manage to learn both. There are traders that switch between those two and doing well at it. But if you're just a starter, It's better to just focus on one.

[The Sceptical Chymist]

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.

All of those are good points, though I would point out that not all stocks have the same level of liquidity.  Blue chip stocks and ones that are included in the major indexes have very high liquidity, whereas OTC stocks have so little liquidity that you'd be crazy to buy a big position in any of them--kind of like some of the more obscure altcoins that have very low trading volume.

Point #3 is one of the coolest things about crypto markets IMO.  I participate in the stock market (though I wouldn't call myself a trader), and I really wish it were open 24/7 like crypto exchanges are.  Doubt that's ever going to happen, though.

One difference I'd mention is the fees.  Some online stock brokerages offer commission-free trading, which is very cool.  None of the crypto exchanges I know of do that, plus you usually have to pay to withdraw your coins in addition to the network fee to send the coins to the exchange in the first place.  Those costs can add up over time.

And the biggest difference between trading stocks and crypto is that the latter is far more volatile and IMO much more risky.  That aside, if you put your faith in technical analysis, you can apply it to both stocks and crypto.

[el kaka22]

The fundamental difference is that when you are buying a stock you are buying into that company, so you believe that the company you picked will be doing better in the future so that it is shares would go up, if the company doesn't do well that means the stock price will not do well neither.

So, it is not a decision based on other people, it is a bit about people buying and selling because let's be honest even if company does well people could still sell and drop the price but that would not change too much in the company value. On contrary to that bitcoin is something that is valued depending on what people think it is valued, if enough people thinks it is $20k, the price would go up, if enough people thinks it is $5k it would go down, so it is all up to people to decide on that.

[exstasie]

I wouldn't say that. Hype cycles might be a good narrative for explaining BTC's long term price trajectory, but these cycles take place over years. They aren't really useful for trading.

Sure, but that's with BTC specifically though(and maybe with ETH as it has decent liquidity). I was referring to the cryptocurrency markets in general; which consists of like 99.99¯% altcoins which are mostly hype and vaporware with little to no fundamentals.

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.

[pawanjain]

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.