Cryptocurrency vs Stocks: As a Smart investment

[IceLincoln]

Cryptocurrency is quite a volatile commodity but where did it all start from? With Stocks. Stocks were the first volatile commodity, they’re the backbone of our global economy and they’re like having a slice of cake owned by a company, buy a stock and you might get to vote at meetings, pocket some dividends, claim a share of assets. Bitcoin was born after the economic shake down that affected the stock market. It doesn’t need banks or governments and it doesn’t give you a piece of a company, it’s a digital Gold running on blockchain.

    FACTORS THAT SET THEM APART
1. Volatility & Risks: Stock Prices depends on the mood of many factors; A Company’s financial health, political shake ups, the overall economy, current mood of the market. During crisis or global shakedown stock prices can take a nosedive but they can gradually bounce back as the company grows back.
Cryptocurrency is unpredictable and that’s how it got the rep for being wildly volatile. Crypto prices are super sensitive to news about exchange hacks, tweets from influencers, shifts in mood of investors, regulations big deals, etc… it’s all about supply and demand.
The higher the potential reward the bigger the risk of loosing it all. Companies issuing stocks must abide by government rules and must be transparent they’re like kids playing in a playground with parents(government) watching  ready to come in in any case of trouble while cryptocurrency are like rebellious teenagers at a park but don’t forget with great freedom comes great responsibility, you’re on your own in any case of trouble.

2. Profitability and Dividends: Stocks are like regular payouts that companies give to their shareholders like a bonus for owning their stock. While BTC if Price goes up you’re richer if it goes down you lose. In the stock world you need a personal money manager (Broker) while the crypto world you’re your own manager.  Stocks are stored in banks and financial bodies while cryptocurrencies are stored in wallets, we have the Cold (not connected to the internet) and hot (always connected to internet)

3. Accessibility for Investors: The stock market is not easily accessible it’s like an exclusive club, you often need a fat wallet to get through the door, some brokers might offer a fractional share but still not a solution for everyone. Stocks keep bank hours and trade only at certain times.
Cryptocurrency is more like a public park anyone can walk into even if you’ve only got pocket change, and it’s open 247, 365 days of the year no matter where you are.

4. Short Term & Long Term Prospects; If you’re all about the slow and steady growth, I think stocks might be your jam, they’re like fine wine gets better with time.
Cryptocurrency is like the unpredictable child who no one knows the future, they offer opportunities from quick flip trading to long term investing thanks to their rollercoaster nature, crypto prices can skyrocket or plummet in a blink.
 What’s your flavour ? The time tested stability of stocks or the wild potential of crypto.
Both are good investments, my take is you  do both, you can start crypto with your small money and use the profits you get to buy shares to increase your investments and wealth.
What’s your take on this?….

[ImThour]

If you look at the average return of top 3 assets in Crypto and on the other hand, average return of an index fund or even top 3 stocks, you will get to know that Crypto always made better returns. There's no question to that. What comes into perspective is that if you are willing to entertain the risk which you have lesser on stocks and kinda more with Crypto as it's more volatile, you have mentioned it as well. I will always stick with Crypto, until and unless my Portfolio is above a million$.

[Ambatman]

Well you said Cryptocurrency and not Bitcoin, but I have this tiny little feeling that you branding Bitcoin as such so would have to clarify something's.

1. There are quite lots of S&P 500 stocks that are more volatile than Bitcoin more than 50 as at 2023 but the funny thing is Bitcoin volatility is screwed towards the positive. Don't forget Tech stocks are quite volatile.

2. Tesla and Amazon don't pay dividends,  they are based on price movement So?

3. well nothing much here except it's getting less true with platforms like eToro

4. Bitcoin itself is one that should be described like fine wine and gets better with time.
Your view is quite biased, like Cryptocurrency and other parts in life
Stocks are also risky and could plummet like so called Cryptocurrency.
I'm not stating Bitcoin is God and above all, I'm just trying to correct some misinformation.

Crypto prices are super sensitive to news about exchange hacks, tweets from influencers, shifts in mood of investors, regulations big deals,

What do you think happened to Microsoft share during Azure outage?

[RockBell]

There is too much politics when it comes to stocks, even though it is a multi-billionaire establishment, and there is still a lot of manipulation going on when it comes to stock market participation. The country's economy depends on stocks for proper economic engagement, so we don't have a choice at this time. Volatility and Risk: Every business has some level of risk. Nevertheless, if you don't ignore this as a factor, you can even become discouraged from investing. To succeed, you must ignore volatility and risk, and stocks have ways of rewarding their investors, including bonuses that are a part of their overall business plan. and Bitcoin has a lot of privileges bitcoin is different from stocks in its mode of operation and venture in any will have to be based on how knowledgeable you are about them.

[Davidvictorson]

I'll be biased and pick crypto. Because unlike stock that looked far to achieve and incomprehensible, crypto was easy to learn, understand and pick up. Stock looked liked it discriminated against some certain age groups, career, educational qualifications, income range but crypto didn't. Any one anywhere irrespective of their background, education and other qualifications can get in and become something with crypto with feeling "discriminated" against. And because we're are young and can afford to take the risks involved in crypto went straight in.

[Stepstowealth]

3. Accessibility for Investors: The stock market is not easily accessible it’s like an exclusive club, you often need a fat wallet to get through the door, some brokers might offer a fractional share but still not a solution for everyone. Stocks keep bank hours and trade only at certain times.
Cryptocurrency is more like a public park anyone can walk into even if you’ve only got pocket change, and it’s open 247, 365 days of the year no matter where you are.

It is this particular opportunity that bitcoin presents that made me attracted to it, I always share my story on this forum about how I was really worried about how I was going to get wealthy or rich because I knew within myself that I did not have the capital to invest in stock or any other other traditional form of investment because they all required you to have a fat purse before starting. What I say often is that cryptocurrency particularly investing in Bitcoin presented to me an opportunity that is very invaluable because I did not have to wait to have a fat purse before I could invest in it rather from the little I have I can give myself a better hope for the future. This reason makes cryptocurrency a smarter investment for me.

[PrivacyG]

What’s your flavour ? The time tested stability of stocks or the wild potential of crypto.
Both are good investments, my take is you  do both, you can start crypto with your small money and use the profits you get to buy shares to increase your investments and wealth.
What’s your take on this?….

My take on this is that it is a pretty bad mind set unless you are ready to lose a lot.  Even trading Stocks means being ready to lose a lot, let alone starting with Cryptocurrencies.  This is a Market that puts the same pressure on you that a Global Crisis would but way more often.  Particularly if the Cryptocurrencies you are trading are Shit Coins.  And it is not fun.  Unless you already know how to play the game and which levers to pull at the right time.  Which is VERY hard to do.

A beginner putting a few Dollars in a Shit Coin and watching it grow to a few hundred Dollars in days or even hours will be emotionally pressured and manipulated into believing that it is a great idea to put a few hundred Dollars more in now, because it will surely become worth a lot.  We have all been there.  'Only if I put all my life savings back then, but why not do it now?'

The opposite is just as true.  Put a few hundred Dollars in a Shit Coin and watch it burst like a bubble to a few dozen Dollars.  You will regret it and be manipulated emotionally into believing this is the time to get out while you still can.  And then Fear, Uncertainty and Doubts catch up and you will go back to the stage above, now regretting even more that you got out at the worst time.

Starting with Cryptocurrencies and with little Money is going to bring you about zero Profits most likely as a beginner.  You have to lose, lose, lose until you start finally winning.  And even that is only if you learn the patterns through experience, stress, time waste et cetera.

Safe Investments are much better for beginners in my opinion.  Dollar Cost Average your Bitcoin if you will, but do not look first to purchase Stocks using the profits from your Bitcoin Investments.  Bitcoin proved to all of us that it is an amazing Asset over the long term any way.  So why sell it?  Just stack it up and watch its value grow significantly.

[IceLincoln]

My take on this is that it is a pretty bad mind set unless you are ready to lose a lot.  Even trading Stocks means being ready to lose a lot, let alone starting with Cryptocurrencies.  This is a Market that puts the same pressure on you that a Global Crisis would but way more often.  Particularly if the Cryptocurrencies you are trading are Shit Coins.  And it is not fun.  Unless you already know how to play the game and which levers to pull at the right time.  Which is VERY hard to do.

A beginner putting a few Dollars in a Shit Coin and watching it grow to a few hundred Dollars in days or even hours will be emotionally pressured and manipulated into believing that it is a great idea to put a few hundred Dollars more in now, because it will surely become worth a lot.  We have all been there.  'Only if I put all my life savings back then, but why not do it now?'

The opposite is just as true.  Put a few hundred Dollars in a Shit Coin and watch it burst like a bubble to a few dozen Dollars.  You will regret it and be manipulated emotionally into believing this is the time to get out while you still can.  And then Fear, Uncertainty and Doubts catch up and you will go back to the stage above, now regretting even more that you got out at the worst time.

Starting with Cryptocurrencies and with little Money is going to bring you about zero Profits most likely as a beginner.  You have to lose, lose, lose until you start finally winning.  And even that is only if you learn the patterns through experience, stress, time waste et cetera.

Safe Investments are much better for beginners in my opinion.  Dollar Cost Average your Bitcoin if you will, but do not look first to purchase Stocks using the profits from your Bitcoin Investments.  Bitcoin proved to all of us that it is an amazing Asset over the long term any way.  So why sell it?  Just stack it up and watch its value grow significantly.

I guess my point on the matter wasn’t properly understood by you, starting small with your small money in comparison to the amount you need to buy a stock, the money to start a crypto investment is lesser compared to that of stocks. Once you’ve made enough money I was suggesting you can then use a percentage of your profit to buy any stock of your choosing.
It’s as simple as that, with that you let your money work for you (that’s why I suggested buying stocks)

[pooya87]

First you need to make the distinction between bitcoin and altcoins clear. When you say "cryptocurrency" it covers both bitcoin and altcoins but that is not the same market at all. Bitcoin is a real currency with real utility in the real world and with real adoption and real potential. Altcoins are none of that. Majority of them aren't even currencies nor do they have any potential. There is also countless useless tokens that are categorized as cryptocurrencies!

When you want to talk about them versus stocks, you can talk about bitcoin versus stocks and then talk about altcoins versus pennystocks. That makes more sense in my opinion since like pennystocks the altcoins are also mostly fake and useless with extreme volatility, little profit and high "death rate"!

What’s your flavour ? The time tested stability of stocks or the wild potential of crypto.
Both are good investments, my take is you  do both, you can start crypto with your small money and use the profits you get to buy shares to increase your investments and wealth.
What’s your take on this?….

Both because there is no correlation between Bitcoin and Stocks, when you choose both at the same time you are diversifying. Although like any investment you must learn how these markets work, and learn about the risks before making any kind of investment.

[sunsilk]

FACTORS THAT SET THEM APART

All of those factors that you've mentioned aren't really setting them apart. Those are common for both stocks and crypto. But with this;

2. Profitability and Dividends: Stocks are like regular payouts that companies give to their shareholders like a bonus for owning their stock. While BTC if Price goes up you’re richer if it goes down you lose. In the stock world you need a personal money manager (Broker) while the crypto world you’re your own manager.  Stocks are stored in banks and financial bodies while cryptocurrencies are stored in wallets, we have the Cold (not connected to the internet) and hot (always connected to internet)

Bitcoin doesn't really give that dividends at all. If you happen to see those exchanges offering bitcoin deposits and they'd distribute interest or dividends as per their description, that's not how bitcoin works.

And if it's about the price of Bitcoin if it goes down, you're only going to totally lose if you sell. What you're seeing at that moment when the price drops is paper loss.

[Luzin]

3. Accessibility for Investors: The stock market is not easily accessible it’s like an exclusive club, you often need a fat wallet to get through the door, some brokers might offer a fractional share but still not a solution for everyone. Stocks keep bank hours and trade only at certain times.
Cryptocurrency is more like a public park anyone can walk into even if you’ve only got pocket change, and it’s open 247, 365 days of the year no matter where you are.

This is what makes me doubt entering Stocks. Even right now I say Crypto is better than stocks because of this issue. Access must be through party 2. The management of funds is limited, even I have to wait for confirmation with my own money and that I hate very much. It also opens up cheating opportunities for beginners.
The slight difference may be that stocks are known first, they have real products. Even though the fundamental techniques are almost similar, I already feel unsure to enter the stock. So for almost 9 years I only looked at stocks and kept learning crypto. So no for stocks and yes for crypto.

[reagansimms]

Even though crypto is much more volatile than stocks, you can still take the opportunity to profit from this volatility. When you choose stocks, it means you need to comply with third-party institutions and comply with their rules such as closing hours and all other regulations. While crypto, you can buy and sell it anytime from anywhere without any restrictions or regulations from third parties. You must understand the various markets and how stocks can be divided and managed, although its stability has been tested and supported by the performance of established companies, but the potential for high profits is lower and controlled by strict rules and regulations.

Now that support for crypto is starting to come from all directions as more institutions and even governments are adapting to it, this could very well accelerate the future growth of crypto. Crypto investors must be prepared to face various shocks that occur in the market, those who are ready to survive the ups and downs of market value and make it a long-term investment will get much greater profits than stocks.

[Text]

Starting small in crypto can indeed be a more accessible entry point due to the lower barrier of investment compared to stocks. It's a way to dip your toes in, learn the ropes, and potentially use profits to diversify into stocks, which offer more stability over the long term.

The emotional and financial rollercoaster that comes with crypto, especially with less stable coins, can lead to big losses if you're not careful. It’s easy to get caught up in the volatility, so a disciplined, cautious approach is key.

In my view, combining both strategies makes sense, starting small, understanding your risk tolerance, and gradually building toward more stable investments like stocks, all while keeping a long-term mindset. What really matters is how comfortable you are with the risk.