Wipe out on crypto vs wipe out on stock market?

[Broly46]

What if a person get wipe out on crypto

Vs a person get wipe out on robin hood app?

Example: many get wipe out on ethereum flash crashes, and many get wipe out on Robin Hood trading the hottest stock of the century.

One can keep their crypto the other may get wipe out and force sell because of margin requirement.

I think crypto is superior because the latter person still can keep the crypto in their wallet, while the former person get wipe out and left with debt worth of a student loan.

Btw everybody only YOLO, because nobody can buy back his life and revive when they get wasted just like in GTA5, you die IRL that’s a permadeath, no revive, no buy back, no second life. Crypto or stock market? Choose wisely.

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[jackg]

If you're trading anything you shouldn't have to worry about being liquidated ever...

The only way you get liquidated is through not managing risk. Since when was margin equivelant to buying a stock?

If I buy a share in a company, I own the share (at least in the UK) this doesn't sound like an alien principle to me... And by that I mean: if I buy the physical share, I'm obviously the only one with that certificate 2 if I buy one online and the company goes bankrupt then the shares are still protected and mine providing no leverage was used.

[goaldigger]

That YOLO line should be more on a reality, because you also grow old (YAGO) so if you didn’t prepare for it, you might live a miserable old life.

We make mistakes and we correct it after that, you might got wiped out on every market but there’s no reason to give up because every market will always go up and down, its just a matter of time. Know where you are heading, you can also enjoy while taking that journey.

[Broly46]

If you're trading anything you shouldn't have to worry about being liquidated ever...

The only way you get liquidated is through not managing risk. Since when was margin equivelant to buying a stock?

If I buy a share in a company, I own the share (at least in the UK) this doesn't sound like an alien principle to me... And by that I mean: if I buy the physical share, I'm obviously the only one with that certificate 2 if I buy one online and the company goes bankrupt then the shares are still protected and mine providing no leverage was used.

That might be true when we look at the perspectives of one person, but when we are talking about a bunch of traders, one trader might be safe from liquidate but the other person do not follow the rules and get liquidated, it is where the magic happens, in crypto, some get their crypto out of exchange while some other get liquidated, in Robin Hood nobody is spared from getting liquidated, all of them get wipe out.

[Broly46]

That YOLO line should be more on a reality, because you also grow old (YAGO) so if you didn’t prepare for it, you might live a miserable old life.

We make mistakes and we correct it after that, you might got wiped out on every market but there’s no reason to give up because every market will always go up and down, its just a matter of time. Know where you are heading, you can also enjoy while taking that journey.

Yup grow old and die anyway, bitcoiner may die but bitcoin won’t die, if a shareholder die, his stock get removed too, yup deceased shareholder, rip bastard who trying to beat the market even death won’t be spared.

[The Sceptical Chymist]

Since when was margin equivelant to buying a stock?

Since never, and I have a feeling OP might not know that you don't have to use any sort of leverage when buying stocks (or crypto).  And if you don't buy either one on margin, you're never going to get completely wiped out unless what you bought goes to $0.00, which is unlikely unless you're screwing around with penny stocks or 1-satoshi wonder shitcoins on Yobit.

That might be true when we look at the perspectives of one person, but when we are talking about a bunch of traders, one trader might be safe from liquidate but the other person do not follow the rules and get liquidated, it is where the magic happens, in crypto, some get their crypto out of exchange while some other get liquidated, in Robin Hood nobody is spared from getting liquidated, all of them get wipe out.

Now I'm pretty sure you have no idea what you're talking about.  Nothing you wrote in the above post makes any sense to me whatsoever. 

Broly46.  Where do I remember that username from?  Did I have you tagged as a shitposter at one point before the merit system came along?

[Broly46]

Since when was margin equivelant to buying a stock?

Since never, and I have a feeling OP might not know that you don't have to use any sort of leverage when buying stocks (or crypto).  And if you don't buy either one on margin, you're never going to get completely wiped out unless what you bought goes to $0.00, which is unlikely unless you're screwing around with penny stocks or 1-satoshi wonder shitcoins on Yobit.

That might be true when we look at the perspectives of one person, but when we are talking about a bunch of traders, one trader might be safe from liquidate but the other person do not follow the rules and get liquidated, it is where the magic happens, in crypto, some get their crypto out of exchange while some other get liquidated, in Robin Hood nobody is spared from getting liquidated, all of them get wipe out.

Now I'm pretty sure you have no idea what you're talking about.  Nothing you wrote in the above post makes any sense to me whatsoever. 

Broly46.  Where do I remember that username from?  Did I have you tagged as a shitposter at one point before the merit system came along?

The market is having an ATH for a very long time, I think a wipe out would follow suit shortly, btw everyday people get liquidated on stock market, and not something very unusual, it’s slowly become a norm we got to know some random guy get wipe out on Robin Hood while shitposting on Twitter, priori to 2008, it would make the headlines when somebody get wipe out, by now anybody get wipe out no headlines for them, just another day another trader get wipe out, lol, that’s a entitlement to be shitposter I guess?

[jackg]

Since when was margin equivelant to buying a stock?

Since never, and I have a feeling OP might not know that you don't have to use any sort of leverage when buying stocks (or crypto).  And if you don't buy either one on margin, you're never going to get completely wiped out unless what you bought goes to $0.00, which is unlikely unless you're screwing around with penny stocks or 1-satoshi wonder shitcoins on Yobit.

That might be true when we look at the perspectives of one person, but when we are talking about a bunch of traders, one trader might be safe from liquidate but the other person do not follow the rules and get liquidated, it is where the magic happens, in crypto, some get their crypto out of exchange while some other get liquidated, in Robin Hood nobody is spared from getting liquidated, all of them get wipe out.

Now I'm pretty sure you have no idea what you're talking about.  Nothing you wrote in the above post makes any sense to me whatsoever. 

Broly46.  Where do I remember that username from?  Did I have you tagged as a shitposter at one point before the merit system came along?

The market is having an ATH for a very long time, I think a wipe out would follow suit shortly, btw everyday people get liquidated on stock market, and not something very unusual, it’s slowly become a norm we got to know some random guy get wipe out on Robin Hood while shitposting on Twitter, priori to 2008, it would make the headlines when somebody get wipe out, by now anybody get wipe out no headlines for them, just another day another trader get wipe out, lol, that’s a entitlement to be shitposter I guess?

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).

[Nellayar]

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.

[hatshepsut93]

I think crypto is superior because the latter person still can keep the crypto in their wallet, while the former person get wipe out and left with debt worth of a student loan.

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.

[pixie85]

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!

[BrewMaster]

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.

[fiulpro]

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...

[lumeire]

I think crypto is superior because the latter person still can keep the crypto in their wallet, while the former person get wipe out and left with debt worth of a student loan.

Crypto is definitely superior than trading stocks where you loose everything that you had once the market goes south. But i always sell whatever i had in a coin if it goes into a dump phase to cut my losses, so I guess others would also be doing the same.

This only holds true if a person is actually buying the coins, but if the person is doing margin trading on an exchange then the same would happen as if trading stocks that he will loose his entire balance that he put in that trade if the market goes south.

[MOB]

This last year has shown that stocks and crypto are dancing to the same tune. Risk on/risk off is the only trade on wall street, and wall street has made it the only trade in crypto-land too. Stocks and crypto are highly correlated now a crash in stocks is going to be another crash in crypto.

If you don't use leverage then you'll never be wiped out, but that could be one hell of haircut.

[exstasie]

What if a person get wipe out on crypto

Vs a person get wipe out on robin hood app?

Example: many get wipe out on ethereum flash crashes, and many get wipe out on Robin Hood trading the hottest stock of the century.

One can keep their crypto the other may get wipe out and force sell because of margin requirement.

I think crypto is superior because the latter person still can keep the crypto in their wallet, while the former person get wipe out and left with debt worth of a student loan.

What you're talking about has nothing to do with cryptocurrency. It has to do with trading with leverage.

If you trade stocks without leverage, you can't be "wiped out" in the sense of a margin call. The same goes for BTC or ETH.

If you trade stocks with leverage, you can be margin called. If you trade cryptocurrency with leverage, you can be margin called too. Just ask the guys trading on Bitmex with 50-100x leverage.

[Mauser]

I think crypto is superior because the latter person still can keep the crypto in their wallet, while the former person get wipe out and left with debt worth of a student loan.

Btw everybody only YOLO, because nobody can buy back his life and revive when they get wasted just like in GTA5, you die IRL that’s a permadeath, no revive, no buy back, no second life. Crypto or stock market? Choose wisely.

A wipe out in crpyto or stock market is brutal either way. If I had to choose I would probably prefer a wipe out on the stock market. Because even if you lose a lot of money on your stocks, you still own a part of that company, maybe the value is very low but they can still pay some dividends and you are getting passive income for a few years until the price levels recover. As for a wipeout in the crypto world there is more risks involved in my opinion. The problem with losing a lot of value in an alt coin is that afterwards the coin might be just not active anymore. If people stop trading in a particular coin than there is almost no chance for price levels to recover again.

[Broly46]

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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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[sunsilk]

We get to see this type of comparison. We can live with both markets and it's up to the investor if he'll get to be riding both of these markets and be profitable for both. The principle of trading is in there but it's just more volatile for the crypto market.

Stories were there about people getting rekt and wiped out with their crypto assets/portfolio but it's their fault. Most of those that I've read were invested to the wrong cryptocurrencies. They've only invested when there's an hype and never take time researching which side of these coins should be invested and must be avoided.

Regardless of being wiped out for any of those markets, it's not the end. There's always the beginning and the application of a bad experience in trading and investing turning it into a lesson.

[Lorence.xD]

If you know what you are doing with stock market, you will not lose that much money. The only scenario that this could happen is that when the bear run, you panic sell netting negative profits which leads to buying at a more pricier sotkc and doing a cyclic abuse of panic selling. I do not think that we should compare the two, they have inherent and unique traits that is beneficial that we do not see because we tend to focus on which one is better.