You know there are companies that aren't in the US right?
I don't see Scandinavia and a few other countries taking much of a fall.
The US have managed to try to push up the price if their stocks by taking out company loans to do buybacks (it's been one of the worst markets to invest in for a while tbh if you want a dividend). If you take a developed European stock, you can expect to. Earn back your initial investment in dividends within 10-25 years afaik. With stocks in the US it'd take about 500...
If you've researched a company well, it shouldn't go bankrupt while you own the stock (especially if it's high cap) so you still own the stock anyway) - they'll often drop slowly if they decline (in Eurasia). You're talking about retailers yoloing on Robin Hood that is completely different because they're often using 250x leverage (and I think that's an underexaggeration).
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It’s too early to come to a conclusion, since crypto has only existed in a little over a decade, some called it is in a stage of infancy, while the stock market seem to be much established, and the wipe out can be related to South Sea Company Bubble where Newton Isaac get wipe out on that one, for crypto there is too little information to gather a solid conclusion, many cryptos gone into graveyard, the same goes for stock market many blue chip indexes components get removed and replaced with new mega conglomerate. That might be an attempt to cherry picking, but there has to be some appeal that make crypto stand out, (crypto getting hacked and stolen definitely a solid argument) also considering crypto deflationary nature vs stock market inflationary nature, it’s difficult to compare stock market to crypto, one observation we can agree upon is bitcoin has died 379 times, while I don’t think any blue chip can afford to die a single time, that would be too dramatic. Despite dying 379 times bitcoin continue to shine, is it the reason bitcoin is immutable, resistance to getting wipe out unlike stock market?
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If your position gets liquidated when there is a decline, it is the time that your gonna be wipe out in market. But don't worry everything may goes back to its entire price since market has up and down. Risk management is what we should have in order to avoid such loss in trading. If our funds will be gone, then let us think that we have to know our risk management specially in trading cryptocurrency.
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The thing is everybody on stock market would feel the pain when wipeout took place, we may not have liquidated yet we would have seen value get a big cut, yup market may recover, but that’s very optimistic, I’m beginning to learn that stock market do not usually recover, blue chip come and go, all the blue chips from the last decades consists of the index components is all gone and replace with a newer and better candidate, yup even blue chip had a difficulty to recover once it’s getting wipe out.
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It's irrelevant if you trade crypto or stocks, you get liquidated when you trade with margin and the market goes in opposite direction. Stocks are even more safe than crypto in some scenarios,
for example if a company gets shut down, the holders of its stock are entitled to some compensation, while with crypto if a coin dies, holders are left with nothing. Plus the stock market is regulated so there's less manipulation.
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It’s difficult to tell whether they’re less manipulation, because the stock market isn’t opaque unlike crypto one can easily check on the transaction on the block chain, one has to be insider to get a clue of how is the stock market get manipulated, there is also a lot of stock derivatives which is unregulated, and less opaque. Yeah a dissolved company may compensate a portion of the asset back to stakeholders.
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Most traders don't use leverage and those who do usually use stop losses and take small leverages like 2-5. If you play on 50x or something like that you're not a trader but a gambler.
You could ask what if someone loses everything playing poker? Tough luck! You took a chance and lost it all, life goes on.
You have the same chance of loseing everything on the stock market as on the crypto market if you play with high leverage. There's no difference!
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It’s interesting one can get as much as 50x leverage, while it’s very discouraging to many people, strict stop loss is definitely crucial, and we have seen instances of multi cut loss orders get executed on crypto exchange that dump ethereum and wipe out gamblers, but that’s often executed on a fraction of milliseconds and many people do not aware of what’s happening, it’s too quickly we hardly know there is a wipe out going on, albeit on stock market, it take longer, sometime weeks to wipe out a lot of values, it’s also take very long time to even have recovery, in my opinion, the wipe out on crypto is much faster and painless process, it just happen and nobody have the time to think twice.
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i don't think you can even begin to compare the two because for example when you are trading altcoins you are not just subjected to the sudden drops of that coin, you are also subjected to all the manipulation and pump and dumps. on top of that you are also taking a bigger risk using centralized exchanges that can get hacked or just run away at any time. basically for any positive thing you can think of regarding altcoin market in comparison to stock market, there are 10 negative things.
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TBH crypto getting hacked and stolen is definitely one big flaw on bitcoin, it might be the one of method bitcoiner to get wipe out by simply a hack.
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I do believe we cannot wipe out either.
There are people who are good at stock markets and there are people who have their dibs on cryptocurrencies. At the same time if I would have to choose , I believe I would be on the side of cryptocurrencies for sure.
In this pandemic we have seen a massive dip in the stock market, the price is decreasing and at the same time people would have to wait for a year to make sure they don't loose much money.
But when it comes to cryptocurrencies like Bitcoins. They did tremendously well during the pandemic.
At the same time bitcoins have not shown a negative decline and therefore I do believe that, cryptocurrencies are a lot more important as compared to stock markets. Even in value, usage, etc...
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There is no doubt some traders move from trading stock market to trading crypto, yet the value traded is far smaller, it might mean many more traders are not aware and not interested in crypto trading. Yet nobody know why they decide to move to crypto, it might be just out of curiosity, so big fund are coming to bitcoin too, but why are them calling crypto “superior”? It’s difficult to come to a conclusion.
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