What is the difference between crypto trading and traditional stock trading

[Baperom]

I think crypto trading involves digital assets like Bitcoin and Ethereum while traditional stock trading involves owning shares of companies listed on the stock exchange.

[1715443684]

1715443684

[God bless u]

I'm a newbie in trading. I read books by John Schwager, Alexander Elder, John Bollinger about technical analysis and psychology in trading and I began to doubt that all this was suitable for the modern cryptocurrency market. How is crypto trading similar to stock and Forex trading? What are its similarities and differences?
I would like to thank everyone in advance for their replies, I appreciate it!

There is too much difference in these both trading because in stock market there officially announced every thing and they have work accordingly week.working days and holidays while I'm crypto those things are never focus some time coins will highly pump or dump suddenly due to good or bad news.
If we see the crypto trading can make us richest in seconds.

[johnsaributua]

I don't really like to follow stocks because I don't like investment patterns that leave it to others (investment managers) with work patterns and of course people have days off service. Whereas in crypto you hold the whole thing by yourself and full access 1X24 hours and unlimited time. You will be free to supervise and when you can buy and sell your investment coins even instantly, it's starting to look different isn't it? xrypto fluctuations are very risky but if you can get profits faster and detect defeat well that is also the investment goal of some people. even including me.

Maybe stocks have been around for a long time in this world, unlike crypto which is still relatively new in decentralized global investment instruments. I prefer crypto because it is more transparent and the interest around me is mostly investing in cryptocurrencies. Crypto curency you can start buying at 1-5$, if you have that much research between two different instruments I assume you can read charts and have decent capital that is your defense in buying and selling assets.

Choose the one that suits your time, if possible choose both of them and experience the advantages and disadvantages of these assets better (research), before you choose one instrument that is focused on the day or time when you can be active in the instrument.

[el kaka22]

Biggest one is that crypto is not tied to anything and stocks are tied to companies. While there is no exact reason for crypto to go up or down aside from just people buying and selling, stocks have companies who make a profit or lose money.

So when you buy a stock, you are buying shares of that company, if the company is managed well and making profit then the stock should go up, even if it doesn't on short term due to some crash, it will eventually recover and do a lot better. Whereas if you buy a cryptocurrency, it is tied to nothing at all, as long as people buy more, then the price will go up, and if not then it will not go up. That is by far the biggest difference between these two things and makes up for all the confusion for newbies.

[Bushdark]

Maybe op should have put it in this way, What the difference between forex trading and crypto trading? This is okay for me.
Crypto market can be easily manipulated that's why we have been seeing different reactions and problems in the crypto market.
The market don't always follow market structure. It will be difficult for someone that had been trading in the forex market before and start trading cryptocurrency. Things are different here and there will be need for constant understanding of the market manipulation.

[BitPuzzle]

Major difference is that crypto is a 24/7 market while the stock market happening and closing times. Crypto also has no entry requirements, anyone can trade in it with any amount, not the same for the stock market.

There are so many similarities between them; techniques and skills can be applied to both with just slight tweaks.
If you want to trade in crypto, do your in-depth research on crypto trading.

Yes thats right. But some exchanges do put a minimum amount that you can trade

[beerlover]

Biggest one is that crypto is not tied to anything and stocks are tied to companies. While there is no exact reason for crypto to go up or down aside from just people buying and selling, stocks have companies who make a profit or lose money.

So when you buy a stock, you are buying shares of that company, if the company is managed well and making profit then the stock should go up, even if it doesn't on short term due to some crash, it will eventually recover and do a lot better. Whereas if you buy a cryptocurrency, it is tied to nothing at all, as long as people buy more, then the price will go up, and if not then it will not go up. That is by far the biggest difference between these two things and makes up for all the confusion for newbies.

That is definitely true, plus when it comes to profits, stocks do not have the type of return that crypto could have. Crypto could go twice or three times higher in a year, and that would not be really a first time, not really a shocker, nothing that would be unreal, and quite common.

However, if a stock goes three times higher in a single year? That would be a shocking thing, and happens very rarely to companies which are very tiny, so their marketcap is so tiny that when they go 3x, it doesn't really matter, you won't see Apple or Tesla going 3x higher, but you can see Bitcoin go 3x higher, and others can go even bigger than that. So all in all, I agree, crypto is far superior without a doubt, it makes it a lot more entertaining to be investing in here.

[South Park]

Maybe op should have put it in this way, What the difference between forex trading and crypto trading? This is okay for me.
Crypto market can be easily manipulated that's why we have been seeing different reactions and problems in the crypto market.
The market don't always follow market structure. It will be difficult for someone that had been trading in the forex market before and start trading cryptocurrency. Things are different here and there will be need for constant understanding of the market manipulation.

All markets are manipulated, it is just that the whales of the stock market are many times bigger than the whales you can find in this market, however with institutional investors becoming a predominant force on this market, this will change and the whales of this market will be just as powerful, so there is not really too much of a difference between the market of cryptocurrencies and another market, since any market regardless of its main underlying asset should follow the same principles that any other asset has to follow too.

[GreatArkansas]

I think crypto trading involves digital assets like Bitcoin and Ethereum while traditional stock trading involves owning shares of companies listed on the stock exchange.

Yeah but when you do trade stocks, you are also owning digitally, which is stored in a database telling you owned x amount of y stocks.
So if you do that in a centralized trading exchange in cryptocurrency, it's the same also, you are also trading digitally.

[beerlover]

I think crypto trading involves digital assets like Bitcoin and Ethereum while traditional stock trading involves owning shares of companies listed on the stock exchange.

Yeah but when you do trade stocks, you are also owning digitally, which is stored in a database telling you owned x amount of y stocks.
So if you do that in a centralized trading exchange in cryptocurrency, it's the same also, you are also trading digitally.

I mean the difference is that the money that is actually being sent there, you do own digitally but you can withdraw it to your pocket, how are you going to do that with the stock companies? For example, for a crypto exchange to let you trade, you need to send either money or crypto, so it goes in, but when you are talking about stocks, you just buy it digitally from the centralized government approved places, which means that, they are doing it for you, in crypto, you are doing against others.

There is no middleman with crypto exchanges, you may think that there is, but they just give you the meeting point. So when you want to withdraw crypto, to your wallet, you can, this is why you can't do that with stocks, what are they going to do, send you some papers that proves you have the stock? They won't.

[husencoe]

I think there is not much difference between cryptocurrency trading and forex.  Maybe there are some forex terms that can’t find on crypto such as Pip and Lot, which are about the number of decimals of the price, and in crypto it doesn't exist because maybe the crypto price already consists of decimals.  Another difference is that crypto is available 24/7, while forex is closed on weekends.  In my analysis, I think all forex methods can be applied to crypto.  Perhaps, to start trading crypto you must first get to know potential coins and find a famous and safety exchange.  Because in the crypto world there is more spam and scams than forex.  You can visit coinmarketcap.com to look at potential coins and exchanges or ask an expert. And also crypto world is so volatile, so get ready for cardiac exercise. Hope this help you.

[tvplus006]

I think crypto trading involves digital assets like Bitcoin and Ethereum while traditional stock trading involves owning shares of companies listed on the stock exchange.

Yes, and at the same time, the work of the stock exchange is legally regulated, unlike the cryptocurrency market. And as a result, we see high volatility of the cryptocurrency, as well as the presence of a large number of fraudulent projects.