What is the difference between crypto trading and traditional stock trading

[shisotsu]

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!

[Upgrade00]

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.

[Oshosondy]

I can see my friends that are crypto traders talking about pips and lots. The way we calculate in crypto trading is not like that and straight forward. We do not make use of pips and lots to calculate.

In crypto trading, no closing, it is 24/7. But forex closes during weekend.

In technical analyses, they are all similar.

If you want to learn about crypto trading, make sure you trade with the amount of money that you can afford to lose because it is risky and highly volatile are cryptocurrencies.

Trade coins like bitcoin and not shit coins.

In crypto trading, there are two markets and they are: spot market which uses the spot or real price if cryptocurrencies, while the second one is derivative trading which are if different types like the future, perpetual and option. There is another type which is margin trading that uses the spot price.

If you want to learn about trading, most trading sites that I know have trading guides that you can search for on their exchange and they are in articles and videos.

[cakravothy]

If you analyze in trading using candle sticks, the system is the same, there is no difference. but price movements are not based on candle sticks, whether forex stocks or anything else. price movements are moved by bandarmology, in this case the rich barons who move prices up high or down and crash. and in btc there is a halving every 4 years which will greatly affect prices.

[Assface16678]

I think it is already mentioned here but crypto currency or crypto trading can be done 24/7, while in forex and stock there is a closing or closing of the market where in there will be a no movement in the market, and crypto trading is a trade wherein you are trading crypto currencies a volatile currencies where you can find a lot of opportunities because of its volatility, while in forex trading you are trading fiat currencies and you can trade buy or sell meaning you can earn if the currency will go up and down meaning there is 2 option to earn in this type of trading but the thing is forex trading is too risky as the movement of the currency can be affected depending on result of the news. In stock trading, you are simply trading the stocks of different companies, wherein you will buy a portion of their stocks, and if the business blooms, so will your stocks.

In my years of experience, I have traded these three types of trading, but I can say that I'm more into crypto trading because of many reasons. Forex is too stressful for me, while the stock market is very long-term trading. YSs crypto is also long-term, especially in bitcoin, but it will take too long; it depends on the market.

[jossiel]

There are more similarities than differences. All of the techniques can also be done to each other, I just don't know with forex because if crypto volatile, forex is more of a fast pace of it.

What I have noticed with crypto and stocks is that, the phase and movement on stocks are so slow compared to crypto. And I guess that's why everyone loves to get involved in crypto for being volatile and having some such risks but a very rewarding market.

[EarnOnVictor]

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!

Let me say I am an old school in the trading field that didn't bother to advance in learning so I do not know those names you are talking about, but by their fruit and good works with tract records, you should be able to smartly know them. Mind you, it is not about the theoretical part or teaching and even the peripheral practical alone, but good proof that shows that they are what they claim they are is good for learning so that you will be sure that the source at which you are getting your information is to be trusted. Besides, there are always similarities in every apsect of the financial market without huge reservation, you analyse the markets the same way and trade them the same way depending on the availability on the trading platform you use.

I have experience in trading the FX market, Energy market, Stocks market, Precious metals, Cryptocurrency and many more, and I use the same understanding of the fundamental training I have to trade all of them without exception. Only that I individually study the defined and prevailing market conditions differently. The way you engage the individual asset in terms of risks is not the same, so one has to know how the broker/exchange defines the assets' trading risk to trade them appropriately. The volatile and how the asset behaves matter os much. Also, you will have to learn the individual platform you are using, this makes trading different assets look different too, but in reality, they are not actually different. Lately, you check out for individual news that can affect the asset you are trading differently because what would affect the crypto market so much might not have any effect on the energy market.

[sheenshane]

Most have similarities, from speculations, and management risk, and the tools they use in trading are almost the same (TA and FA).
But IMO, the only difference is the time zone in trading.

Crypto trading, it's a nonstop trading operation because it operates 24/7, so providing continuous trading opportunities.
If we compare it to traditional stock trading, there are specific operating hours during business days based on the exchange and country.
Also in forex trading, it operates 24 hours a day during the business week, reflecting different time zones.

So it means, there are a lot of traders on crypto even though we're in different time zones.

[logfiles]

Most of the principles considered in both crypto and stock trading are similar except for a few different terminologies used when trading stock, such as lots and pips. You won't see such when using traditional crypto exchanges

1. In crypto, you deal directly with a crypto exchange, minimum requirements favor even retail traders. For stocks, you have to use brokers, some of which have very high minimum requirements that don't favor retail traders
2. Crypto markets are always open 24 hours, 7 days a week if you use a crypto exchange.
3. Fundamental analysis isn't much used in crypto markets yet, unlike in stock markets.

[poodle63]

I guess the way you would do technical analysis is the same but the fundamental is different, with crypto you need to take care of analysing the coin itself, see if there's any event thats gonna be coming up and something like that, also the price of coins in general are dictated by the movement of bitcoin, something that many doesn't seem to realize but kinda obvious if someone is trying to observe the market.
overall I think the reason that i think trading crypto is a lot more easier is that trend that usually a cryptocurrency is having, if its bullish you can be waiting for series of dumps, buy it, then just wait it out the price will definitely recovery for sure, but if its bearish, its like catching falling knives, sometime the market continues to dump, even more easier if you are investor not a trader then you can definitely know when to make an entry.

[Yamane_Keto]

What is going on in crypto trading is investors trying to speculate on the price of Bitcoin, meaning the end result is a way to get more Bitcoin, while in stock trading the goal is to create funding and additional financial value for the company or entity with the aim of reaching more liquidity.
The differences are very numerous, the simplest of which is that in stock trading there are protective measures against manipulation or high risks, so that profit or loss is fixed, while in crypto trading, you are trading in high-volatility assets, and there is no fixation of your profit or loss unless you place the appropriate order at the time, if you are not present. The altcoin price may have lost 70% of its value.

Since stocks and Bitcoin are completely underdeveloped, investing in both is good for those who want diversification.

[jaberwock]

I guess the way you would do technical analysis is the same but the fundamental is different, with crypto you need to take care of analysing the coin itself, see if there's any event thats gonna be coming up and something like that, also the price of coins in general are dictated by the movement of bitcoin, something that many doesn't seem to realize but kinda obvious if someone is trying to observe the market.
overall I think the reason that i think trading crypto is a lot more easier is that trend that usually a cryptocurrency is having, if its bullish you can be waiting for series of dumps, buy it, then just wait it out the price will definitely recovery for sure, but if its bearish, its like catching falling knives, sometime the market continues to dump, even more easier if you are investor not a trader then you can definitely know when to make an entry.

Both are trading and in trading there must always be analysis but they aren't totally the same. Not just in crypto but also in stocks, we need to be careful if we want to get the best results. In crypto, we have the main coin BTC which drives the market. In stocks there must also be the same as this. Next we have is trend. I think stocks have this as well. Dump and bear are actually the same.

We need to wait for the coin to dump further before we buy because it will now have a less chance to dump. Considering the type of coin is also important because not all coins who can dump huge can recover but it can be a sign of their death. A good trader will also know a good entry but many of us think trading is harder than investing.

[Johnyz]

The difference is the market itself, the volatility and the risk but in terms of the approach and strategy it can be the same since same indicators are being used when you are going to trade. In terms of the market time, crypto is 24/7 while the stock market works only during the weekdays and there are options in crypto that are more advance compare to stocks, especially in our local market where futures are still not available.

[boyptc]

In the crypto market, there are a lot of meme coins and shitcoins. I think it's the same with the stocks, the underrated stocks that don't get that much attention to traders.

Holding is also in the stocks.

Like if you're the type of investor that don't want to be active at all, blue chip stocks are you go-to buy. And that's the same with what we have here, Bitcoin.

[milewilda]

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!

Main difference?

1. Volatility
2. Regulation
3. Decentralized vs Centralized
4. Fundamental effects

Speaking about application of TA?
It would really be just the same on which traders on this market are definitely been making use of TA because news cant really be something that they could really be able to rely with.
Not all the time that fundamentals would really be leading or mainly be affecting this market on which it would really be just that a normal approach that people or traders
would really be commonly making use of these indicators.

The thing i do like on crypto market is that the possibility on earning huge profits once you do able to make yourself do make good trading decisions or calls.
Unlike on stocks or forex which movement is really that too slow. I do even believe that there are lots or tons of forex/stocks traders
did really consider out on touching crypto space because of this main difference.

[Mate2237]

I am not going to dwell on them like that or deeply but it will be a brief explanation to them with their different. Your question has a partial answer to the question because as the name implies, cryptocurrency trading is the same trading method with the traditional forex trading and the different is that cryptocurrency uses cryptocurrency as digital currency to trade they are not using national currency to trade while traditional forex trading uses dollar or the country's currency to trade. There advantages and disadvantages in the both trading. But that should be an another day explanation.

[GreatArkansas]

In the crypto market, there are a lot of meme coins and shitcoins. I think it's the same with the stocks, the underrated stocks that don't get that much attention to traders.

Holding is also in the stocks.

Like if you're the type of investor that don't want to be active at all, blue chip stocks are you go-to buy. And that's the same with what we have here, Bitcoin.

Well, OP is just asking what's the difference of the two.
Because both are considered as trading so for me, the only difference is the market. We all know cryptocurrency market is extremely volatile compared to other assets like stocks and the 24/7 also

So for me, nothing more difference besides the volatility and availability to trade. For me, you can apply both of your knowledge in any of the assets trading. I know someone who trading both stocks and crypto at the same time.

[cafter]

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!

Trading stock seems complicated (but not too complicated that no one can learn easily) because I first started trading crypto which is 24/7 market without terms like "in the money", "lots", etc.
So crypto is easier that stock and there are no many requirements to register account and start to trade.
crypto is more volatile than stocks, forex, commodity. so it is more riskier and we get more opportunity to make profit. also trading psychology is similar on every market because same people and bots are trading and following the TA breakouts and retests, etc.In stock we need to do fundamental analysis of companies and in crypto we need to do onchain analysis.

[boyptc]

In the crypto market, there are a lot of meme coins and shitcoins. I think it's the same with the stocks, the underrated stocks that don't get that much attention to traders.

Holding is also in the stocks.

Like if you're the type of investor that don't want to be active at all, blue chip stocks are you go-to buy. And that's the same with what we have here, Bitcoin.

Well, OP is just asking what's the difference of the two.
Because both are considered as trading so for me, the only difference is the market. We all know cryptocurrency market is extremely volatile compared to other assets like stocks and the 24/7 also

So for me, nothing more difference besides the volatility and availability to trade. For me, you can apply both of your knowledge in any of the assets trading. I know someone who trading both stocks and crypto at the same time.

Yeah, no debate.

If you've been in the other markets and you have already knowledge about the moves and how to read the charts, going in one and the other are totally the same and applicable.

That means that it's easier for you to adopt when you've been in the other markets and that's going to make things easier for you.

[G_Besar]

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!

If you want to know the similarities between trading in crypto and trading in shares and forex along with the similarities or differences. I think you only need to read a few things that are outside of these books because if a book has been published a long time ago and circulated to the wider community, of course there are things that are not included or included in it because times are very different now. So try reading all the contents of the book and start exploring the internet to look for the similarities and similarities that crypto, stock and forex trading has. Because basically every trade is aimed at seeking more profits with less capital.