Crypto vs Stocks

[jasonjm]

People have often compared crypto to stocks since owning a coin, represents your "share" of the decentralized blockchain network. Exchanges act as brokers in a similar fashion to traditional stocks. While stocks are fiercely regulated, crypto is the "wild west". Cryptocurrencies are extremely volatile, while stocks are much more stable. Despite crypto/Blockchain tech's popularity, stocks are still preferred by mainstream investors and traders alike.

Which asset types do you think are better: crypto or stocks? Is crypto getting closer to becoming regulated just like stocks? What do you think will happen if institutional investors come into play? Will stocks transition themselves to the Blockchain? Or is it still too early to tell? Your input will be greatly appreciated. Thank you.

Although there are similarities between crypto and stock as you mentioned but I think one major difference is the ROI. You see in crypto ROI is huge compared to stock but on the other hand risk involved in stock investment is not high compared to crypto. Block chain technology is something to think about.

[2double0]

Although there are similarities between crypto and stock as you mentioned but I think one major difference is the ROI. You see in crypto ROI is huge compared to stock but on the other hand risk involved in stock investment is not high compared to crypto. Block chain technology is something to think about.

I will not say crypto is like stocks, but penny stocks. I have seen so many penny stocks rising too much and then falling hard and the same happens with crypto where lots of coins get vanished and cannot be seen anywhere once investors take out their profits. I was always reluctant with doing penny stocks, but don't know what dragged me into loving crypto.

[jerry0]

I heard 7% as yearly gain is very good for stocks.  What about for crypto then? 

[dataispower]

Risk factors involved in the two are very wide I'd go with cryptocurrencies anyday because that's what I understand, learnt and can trade. Crypto has the ability to return profit on investment with 100% within a short period of time unlike Stocks that require large some of capital and time to yield such results.

[imstillthebest]

Although there are similarities between crypto and stock as you mentioned but I think one major difference is the ROI. You see in crypto ROI is huge compared to stock but on the other hand risk involved in stock investment is not high compared to crypto. Block chain technology is something to think about.

I will not say crypto is like stocks, but penny stocks. I have seen so many penny stocks rising too much and then falling hard and the same happens with crypto where lots of coins get vanished and cannot be seen anywhere once investors take out their profits. I was always reluctant with doing penny stocks, but don't know what dragged me into loving crypto.

they can be the same in a sense that you can invest but crypto has another function  .
are penny stock currencies ?  they are still stock but they are more closer to crypto because of volatility and both are currencies .
if you love crypto , you might also like penny stocks  . think of it as diversifying

[Snappycoco]

They are likely related. Same functionality but different technology. I believe crypto is quite superior in terms of technology and functionality. Crypto has this advantage in terms of usability i.e. Staking, lending and other stuffs like that, meanwhile in stocks they have this dividends. In terms of profit, crypto's volatility is enormous compare to stocks. It could go up to 1000x in days and price could go to minimal in just a matter of days.

[fulcare]

True but if you want to balance your portfolio, for example part of it as bringing you profits through sheer growth and part of it as relatively stable income in the form of stocks of a well situated dividend paying company, the question is whether you can get around stocks altogether. Sure you can but it may not lead to the perfect asset allocation that gives you risk exposure and upside potential plus a stable income stream.

Nah. I am not really a fan of stocks. Crypto is honest. Stock market is a casino. I'd rather buy more crypto with my crypto gains and have even more potential gains. But that's just me. Stock are in a bubble anyway and crypto is hanging just fine. It is also fairly easy to avoid taxes with crypto. That's not the case when you invest in stocks and I am not really a fan of paying taxes.

Well, I like crypto more than stocks as well, but let's be honest and admit that crypto can be a casino as well. It depends a bit on what you buy, but even if you buy Bitcoin or Ethereum, it is a lot about timing unless you put the coins into your cold wallet and are in it for the very long game.

If you buy other stuff it can very well be casinos-like, too.

Can you elaborate on the tax aspect you mentioned? You can also have decent strategies with stocks.

[Princejebs]

Crypto will remain my wild option anytime everyday 7 days a week and 12 month a year. 
Nothing will replace crypto except for gambling site and fraud that promise stupid return and empty promises.
Stock on the other hand is not an option, the return aren't something to write home about except when you engage in marginsl trading which gains and profit may not be worthwhile like trade on spot with crypto.
Stock shares are also been manipulated by some groups sometimes but since they are highly regulated, such individuals get prosecuted for such actions.

[Coroline]

Both of them have their own advantages and disadvantages, so comparing them is a bit hard. Stocks will be more suitable for those who are new to investment and prefer stable investment with lower risk, meanwhile crypto is more volatile and risky, thus promising a higher profit as well. It's all up to the person, what kind of investment they want to have. However, i guess stocks are safer, and crypto will be harder to be regulated globally, maybe government can ban or make it illegal, but they can't control or stop crypto as a whole. It's hard to do so.

I think that comparing crypto vs stocks is like comparing apples vs oranges. They're completely different things. Stocks are much more stable than crypto in part because they're widely regulated by mainstream governments. In crypto, it's the wild west (even if centralized exchanges themselves are regulated). This explains why crypto is highly-volatile in price. You can end up being rich or poor in an instant with crypto.

What makes crypto entirely different from stocks is that crypto is not tied to a company or single entity. Crypto is decentralized, free from government and third-party interference. In case governments decide to crackdown centralized exchanges, people will still be able to access crypto directly by connecting to the Blockchain. P2P and decentralized exchanges will be the norm if this happens. You cannot do this with stocks since they're utterly centralized. Ultimately, investors will decide which type of asset to use to secure their capital depending on their needs. I'd go for crypto anytime since the chances of profiting from it are much higher than it's the case with stocks. More and more investors are joining the game so it should only be a matter of time before the stock market adopts Blockchain tech for its own benefit. Just my opinion

It's different, obviously something that has a high profit also has a high risk. If on the stock market, if a product experiences a spike of more than 100% in an instant, it will definitely be monitored by the government and will be frozen, in contrast to decentralized cryptocurrencies that are so free and no one is watching, there will be any price spikes even 500%, it's normal.

[mindrust]

Can you elaborate on the tax aspect you mentioned? You can also have decent strategies with stocks.

It is not rocket science mate.

If you can find a way to get your crypto off-grid (not from an exchange), nobody will know that you have any crypto. If nobody knows, there will be no taxes Same with gold.

This is impossible with stocks. (there are other ways for stocks but too cumbersome)

[boyptc]

Crypto will remain my wild option anytime everyday 7 days a week and 12 month a year. 
Nothing will replace crypto except for gambling site and fraud that promise stupid return and empty promises.
Stock on the other hand is not an option, the return aren't something to write home about except when you engage in marginsl trading which gains and profit may not be worthwhile like trade on spot with crypto.
Stock shares are also been manipulated by some groups sometimes but since they are highly regulated, such individuals get prosecuted for such actions.

Stock is also a good option if you're just wanting to be with those traditional investors that sits with you on the annual meeting of those companies you invest in.

You need higher capital for you to see that volatility works for you on the stock but in crypto, the volatility is its main course whether you'll hold a lot or keep on accumulating.

[Hamphser]

I heard 7% as yearly gain is very good for stocks.  What about for crypto then? 

You heard it right and even on forex trading gains where 5-10% gain would already be considered as a good stuff but basing off with the volatility then its quite understandable because trying to compared off with the intensity of price movement then its no brainer on how crypto is really an interesting thing.

One of the reasons on why i had jumped into this market due to volatility on where you can earn more than you would in stocks and forex
compare if you do stick your ass to crypto.

Even though risk is really higher but would really be worth for you to engage on but well there are still traders or investors whom do love on sticking with
traditional things.

[ven7net]

People have often compared crypto to stocks since owning a coin, represents your "share" of the decentralized blockchain network. Exchanges act as brokers in a similar fashion to traditional stocks. While stocks are fiercely regulated, crypto is the "wild west". Cryptocurrencies are extremely volatile, while stocks are much more stable. Despite crypto/Blockchain tech's popularity, stocks are still preferred by mainstream investors and traders alike.

Which asset types do you think are better: crypto or stocks? Is crypto getting closer to becoming regulated just like stocks? What do you think will happen if institutional investors come into play? Will stocks transition themselves to the Blockchain? Or is it still too early to tell? Your input will be greatly appreciated. Thank you.

Somehow I was offered to start investing in stocks, but after I learned the whole process, it seemed to me more complicated than investing in cryptocurrencies. I believe that this is one of the important factors that influences the choice between investing in stocks or cryptocurrencies, in favor of cryptocurrencies. As for institutional investors, they are more likely to also choose investments in cryptocurrencies, since there will be all the clear advantages for better earnings. However, it should be noted that now there is a struggle between digital specialists and bankers, the outcome of which is still difficult to predict.

[worldofcoins]

Looking at OP,

I'd say Cryptocurrencies are volatile because not every mainstream financial institution such as banks supports its transaction with fiat, @least most of them.

It's natural for people to avoid doing transactions to such crypto when the banks are blocking their accounts for doing so, which is happening in most of the countries right now,
And it's natural for people to ask why so many are nations doing the same thing?

Another thing, Cryptos are much more volatile compared to stocks, Excluding penny stocks.

[ILuckyGuyI]

These two have always been discussed and it will continue like that also. To me, I can't say that one of them is the best. Because both of them have pros and cons. Cryptos are volatile for example and not everyone would be willing to invest into them.

[Koro-Sensei]

In all seriousness, I believe crypto is quite comparable with stocks but with much advance technology. In crypto trading, you could have much more profit in just a small amount of time as well as reverse. However, in stocks, it is believe historically that it's price goes upward but in a long run. Market volatility in crypto is also one of the vital aspect when it comes to comparing the two.

for price movements crypto is indeed faster and more efficient. but regarding regulation and security, surely the people who want it will prefer stocks. Moreover, many stocks that have companies or legal entities that are recognized by the government. With this official license, many people are more likely to choose stocks that are considered less risky than crypto.
one word that best represents crypto in my opinion: freedom.

Freedom to choose due to unregulated market unlike stocks. That makes stocks more agreeable eye catchy to old investors. Yes I agree that crypto is riskier but the more risk you have, the more gain it'll probably have.

[Sternbinder]

I personally see it this way. There are different national stock markets to invest and all of them differ by the risks associated with the economic stability of the countries where they are held. The most stable and secure stock market is American one. FIrst of all, it is strictly regulated by the government and the overall performance of American economy is solid. So, you can invest in the US stock market in order to be more or less safe from scam and immidiate default of the whole economy. Along with American market, there are some others which are less secure, for example Russian stock market. Russia is a developing country which has already suffered from default that it is why its Fitch rating is BBB. What does it mean? It means that investing in any companies from Russia is much riskier than investing in American ones. But, the more risks you have, the more potential benefit you get. If we look at the average divident yield of Russian companies and compare it to American ones, we will be surpeised by the fact that the average divident yield in Russia is about 8-10% while in the USA it is only about 2-3%. Which leads us to the conclusion that it is more perky to invest in not quite stable but benefitial Russian economy.
The same thing with cryptocurrency. There are lots of risks of being scammed and high volatility of the market, but if you know what you do, you will perform much better than you would in stock market. On the contrary, if you don't want to learn, you'll fail in crypto market and in stock market. Higher risks presuppose higher yields.

[jaysabi]

For stock investing I haven't learned or bought stocks, so for now cryptocurrency investing for me is still superior to stock investing, since bitcoin and altcoin prices have gone up like crazy, many stock investors have started to switch to investing in the cryptocurrency.

Pretty much agreed with this. Stocks are for boomers. Crypto has the real gains. The world is not what it used to be anymore. The time has changed. Stocks gain how much at best? %7? These are rookie numbers. Dogecoin went up by like what? 10000%? Now that's what I am talking about. That's how you make money. Now defi is also a thing, the whole stocks market will probably operate on ETH anyway. Why resist the tech? Those stubborn boomers have to die because they are going nuts on crypto lately. We won't have a crypto based economy any time soon unless the retarded boomers disappear.

Wow, you've got some pretty skewed views about investing. Thinking that crypto can only go up is pure folly. Expecting crypto to always return like the few exceptions that break the mold is even worse.  These returns aren't typical, and crypto isn't really investing because the valuations are based on nothing but group think.  Because the values are arbitrary, you're just gambling.  Also, stocks average 10% annual compound returns, but there are always stocks that fly far higher.  Berkshire has returned more than 390,000% since 1976.  There are periods in 2020 where certain tech stocks have blown bitcoin out of the water over the same period, especially with bitcoin's current pullback.  Saying that stocks are for boomers is just admitting how much you don't know about the financial system or how it actually works, and it's attitudes like this that cause actual investors not to take the crypto world seriously.  They're not wrong to have the perception that crypto is mostly a bunch of unsophisticates who got lucky.

You sound a lot like a no-coiner mate.

Crypto is the best thing that has ever happened to the investment world. Nobody has any time to do all those researches, examining ratios, debts and such crap. Just buy bitcoin and it only goes up. Why can't it go up only? BTC has been going only up since its inception.

Don't believe me? Just see the BTC/USD chart.

Berkshire lol. Bitcoin returned 9999999999% since 2008.

Not a no-coiner, just someone who has investments across all assets classes (including crypto) and understands hype when he sees it.  Crypto is not the best thing that's ever happened to the investment world.  That's pure hype.  Just because you don't understand the stock market means it's a bad investment.  Lol, you provided the perfect example of why someone shouldn't take your arguments seriously when you cited 2008 (a time when nobody was invested in bitcoin) as the starting point of your comparison.  Why not just go full hack and cite the infinite return bitcoin has had since it the white paper, since it was technically started at 0?  OMG everyone in bitcoin has made infinite money!!!  The fact that you have to try so hard to validate your belief isn't a good look.

How is me citing Bitcoin of 2008 any different than you citing Berkshire of 1976? You say nobody knew bitcoin in 2008. How many people that live today knew Berkshire in 1976? Not many I suppose. Bitcoin is not a hype. It is a life changing asset that is built upon blockchain technology. While your inner no-coiner is leaking, Cathie Wood (Warren Buffett of the future) and ARKK (Berkshire of the future) are buying BTC with her both hands. Have fun staying poor.

Well for one, Bitcoin was released in 2008 and nobody knew what it was.  Berkshire has been a public company since 1839, and Buffet had been getting involved around 1964, so yeah, by 1976 a lot more people would have had the ability to know what it was than bitcoin in 2008.  And lol, your inability to recognize hype while hyping is funny. "Bitcoin is life changing asset..."  That's the epitome of hype.  You maximalists get your panties in a bunch any time someone doesn't parrot the same bullshit back to you. You're so fragile that people having different views is a mortal threat to your own belief system, that's why you react so negatively when you come across it and say something stupid like  "MuSt Be a nO cOiNeR!"  This is obviously going to be hard for you to comprehend, but people can own bitcoin and also not be maximalists who live in a fantasy world where bitcoin is the greatest thing that ever happened and will solve all the problems in the world.

[sapnu]

People have often compared crypto to stocks since owning a coin, represents your "share" of the decentralized blockchain network. Exchanges act as brokers in a similar fashion to traditional stocks. While stocks are fiercely regulated, crypto is the "wild west". Cryptocurrencies are extremely volatile, while stocks are much more stable. Despite crypto/Blockchain tech's popularity, stocks are still preferred by mainstream investors and traders alike.

Which asset types do you think are better: crypto or stocks? Is crypto getting closer to becoming regulated just like stocks? What do you think will happen if institutional investors come into play? Will stocks transition themselves to the Blockchain? Or is it still too early to tell? Your input will be greatly appreciated. Thank you.

In my opinion, I think both can do better, it just depends on the time. If crypto are getting flourished at the moment, for sure you will side with it but if stocks are getting higher prices and in demand, it is expected that you would say it is better than crypto. Stocks are deemed legal unlike crypto but sooner or later, we might see it being freely regulatef all over the world too. The real question is not whether what's best between the two, the real question is how well do you manage your crypto investments or stocks. It would rely on your strategies and will depend on how wise you are with it.

[barbara44]

In my opinion, I think both can do better, it just depends on the time. If crypto are getting flourished at the moment, for sure you will side with it but if stocks are getting higher prices and in demand, it is expected that you would say it is better than crypto. Stocks are deemed legal unlike crypto but sooner or later, we might see it being freely regulatef all over the world too. The real question is not whether what's best between the two, the real question is how well do you manage your crypto investments or stocks. It would rely on your strategies and will depend on how wise you are with it.

I don't think demand can determine which one suits you. I mean some people are naturally good at sharp actions and will always benefit from the ever-fluctuating crypto market while some people are not so sharp but they have the ability to stock with one thing and proceed slowly which tends to suit the stocks market.

If you think you can play around with the fluctuations then go for crypto trading, if you feel like the fluctuations are playing with you and your trades are closing out in a negative balance, don't do it.