Stocks are more volatile than crypto?

[JimaGod]

Stocks are more volatile than crypto? I don't concord with this term because I've been in crypto for almost a decade and I know the corners of the space and how it's been seen or appeared to be one of the space we shouldn't relent on because projects like Bitcoin and other altcoins will pump and dump heavily without having the interference of government. Crypto doesn't need the aides of the country's resources to pump or dump, however it's movement is been controlled by the hugh buy in order and also sell out order, that's what causes the crash in the market.

Again, don't get twisted, individual stocks can pump heavily and become unstable but when we're talking about stocks as a class assets, we know they don't come close to crypto in general. So tell me, what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

[ZeroVinsonN]

If we are averaging the whole thing out the no, crypto is more volatile than stocks but on an individual level the vary, some stocks can be very volatile.
Also while bitcoin might be an exception, there are crypto currencies that can be influenced by governments and others factors, you don't necessarily pump or dump only due to a huge buy or sell order, if you have noticed, the wars happening around the world and the oil crisis is affected a lot of crypto, some have more or less lost all value and we are likely to see more like that going forward, stocks are affected too.

[Joy_learns_crypto]

I don't think you should be generalizing it, there are various types of Stocks and various types of Crypto, volatility of most market results from news, policies, strategy, economy.
There are some crypto that nothing much is happening around it and the are less likely to be volatile, in most cases such crypto have a very low price that do not move in any direction more often, there are stocks in Vogue and in the news that earns volatility at the time.
What I want you to know is that you can't generalize volatility between Crypto and stocks.

[PostQuantumBTC]

Again, don't get twisted, individual stocks can pump heavily and become unstable but when we're talking about stocks as a class assets, we know they don't come close to crypto in general. So tell me, what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

It is possible you want to say that many stocks are volatile than bitcoin, you are correct with that if that is what you wanted to say.

But if you said stock is more volatile than crypto, that is absolutely not true at all.

I have not seen any asset class that are more volatile than cryptocurrencies. Cryptocurrencies are full of coins that are very volatile. You can see a coin that will increase 100 time and fall back in just a weeks or few days in cryptocurrencies. There is also big manipulation that is going on in many cryptocurrencies with wash trading and insider trading.

[Tongley]

Crypto is definitely more volatile than stocks. If Bitcoin is compared to stocks, then I will definitely move towards Bitcoin. Because Bitcoin has the potential to be much more profitable than stocks in the future and will give me financial freedom and our wealth will remain with us. Bitcoin's security is the strongest in the world so I don't have to worry about Bitcoin's security.

But if I consider stocks, I can see that it is not very volatile like crypto but, many times it is seen that companies do a lot of fraud and many times there is a lot of loss in business and everyone faces losses. I don't like all this, that's why I always like Bitcoin.

[The Founding Titan]

I don't think it's very smart to compare the two, at least not like this, volatility is practically the driving force for crypto, it's not the same for stocks, most major stocks have very low volatility to the point where a dump can draw alot of attention from people trying to figure out what's wrong, sometimes an initial dump can lead to it all going down since people can see everything out of fear, some crypto are similar but not all of them.

[Hypnotizer]

Stocks are more volatile than crypto? I don't concord with this term because I've been in crypto for almost a decade and I know the corners of the space and how it's been seen or appeared to be one of the space we shouldn't relent on because projects like Bitcoin and other altcoins will pump and dump heavily without having the interference of government. Crypto doesn't need the aides of the country's resources to pump or dump, however it's movement is been controlled by the hugh buy in order and also sell out order, that's what causes the crash in the market.

Again, don't get twisted, individual stocks can pump heavily and become unstable but when we're talking about stocks as a class assets, we know they don't come close to crypto in general. So tell me, what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

If you’re considering both as class assets rather than individually then “Crypto” is more volatile than Stocks and that’s the fact. But increased volatility means increase in expected returns/profits and sometimes new crypto projects pump very fast upon launch much more than new stocks IPO’s before dumping and becoming extra volatile or never recovering again. So if we’re to consider “risks” then Crypto investment is way more riskier and the profits are way more higher rewarding.

I don’t get the reason for this discussion though, maybe you elaborate more but if it’s just a debate on which is more volatile considering both as Class assets, then what you said is the fact.

[pooya87]

Well if we are talking about "pump and dump" style of volatility, then nothing can compete with the altcoin market. It is THE pump and dump market after all! Take a look at the tables below. It shows top pumped and top dumped shitcoins of today. That is not something that can be found in stock market (ie. 500% to sometimes even 3000% pump in matter of hours or conversely 80%-90% dump).


But being a "pump and dump" market (ie. manipulated) is not the only reason for volatility. The smaller size of these markets is also a major reason that makes them so volatile. If you look at the tables I shared above one more time, you can see that some of these markets are really small ($150k volume). That makes it so easy to manipulate
There is one other market that is somewhat similar to this and that's the Penny Stocks market. It is like stocks market but only low and insignificant "penny stocks" are listed there. They can be pretty volatile sometimes. That too is a small market.

[hmbdofficial]

I think the important point is to separate individual stock from stock as an asset class. Individual stock can certainly be more volatile, especially around earnings or major news. But when we talk about a broad stock market, diversification reduces the impact of movement in individual companies. Crypto, especially alt coins based on history has experienced much larger price swings and deeper downwards.

I also agree that large buy and sell orders can move crypto prices, especially in market with very low liquidity. But it’s worth knowing that it’s not simply the size of orders that causes the volatility, available liquidity at different  price levels can also cause volatility. I mean a large order can move a thin market much more than the same order will move a highly liquid market. So based on historical price behaviour I would say crypto is generally more volatile than stock as an asset class, even though some individual stock can be more volatile than bitcoin and some other cryptocurrencies.

[Cryptomultiplier]

On a contrary, I think crypto currencies is more volatile than stocks with an exception to Bitcoin and Etherum that perform better with less volatility as compared to other altcoins with higher price fluctuations.
Even if we think that crypto currency is maturing, it still remains far more volatile than stocks indexes, although tiny risky stocks like penny stocks or those of struggling companies can be just as wild and unpredictable.

[Asiska02]

Again, don't get twisted, individual stocks can pump heavily and become unstable but when we're talking about stocks as a class assets, we know they don't come close to crypto in general. So tell me, what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

The nature of volatility in the crypto market in general cannot be seen in stocks. They are very different from one another and you can’t compare them when it comes to this feature. With the presence of so many volatile altcoins, it even makes crypto more volatile and difficult to actually compare definite to stock.  When it is not generalized, we may see other crypto assets such as Bitcoin, Ethereum and Solana not facing much volatility as compared to other low market cap cryptocurrencies. The way some crypto assets pump and dump, if such is seen in some stocked, that will be the end for them and may never get to come back up again.

[Oyoyoma_yu]

When we talk about volatility, cryptocurrency is far more volatile than stock, and this is the reason why we have some investors who don't like investing their money in crypto, but prefer investing in stock where they feel the risk of loosing their money is mini. In cryptocurrencies is possible you can loose all your money so to bear market or volatility, your fund can go down as far as 80%-90% or even more, and in most cases do to the nature of some altcoins you may not even recover your fund again even on the long run. However in term of reward cryptocurrency is more rewarding than the best stock you can think. For instance, the profit that Bitcoin has giving to investors, no stock has ever produced such profit, and till date Bitcoin remains more profitable than any other digital asset including stocks.

[CryptopreneurBrainboss]

So tell me, what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

There's a reason why this market is tagged the most volatile among all markets and that's because it is, so stocks can't be more volatile than crypto. When it says crypto now it isn't just taking about Bitcoin or your top 10  high market caps but the while market in general including those presale projects that don't even get listed on CoinMarketCap yeti.

The height of volatility in crypto can make you a millionaire in one second and turn you broke in the next. There aren't the level of pump and dump going on in this market as any other market and that's because of lack of regulations but that's the price we pay for decentralization.

Stocks are volatile too especially the penny stocks so it isn't like they're risk free, Dangote that's causing all these recent stock buzz around has some companies that their stocks aren't doing well and you can see some banks lose their investors money instead of making them rich as they expected. All markets are volatile and that's what makes them interesting to invest into or trade.

[Gozie51]

Again, don't get twisted, individual stocks can pump heavily and become unstable but when we're talking about stocks as a class assets, we know they don't come close to crypto in general. So tell me, what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

Generally, stocks are regulated and it is more like the shares an individual has with running the company as a partner. Whatever the company do, it must be under the laws of the government through the agency overseeing the companies. So they can't sell stocks that they don't have the status on, for example plc or ltd. Therefore, they are regulated and controlled which reduces its volatility. But, cryptocurrency is not that regulated especially bitcoin. So you can decide to hodl or dump your hodling at any point. This creates spontaneous reaction in the market like panic, FOMO etc , it makes the market more volatile as direction of price is not always stable. Before the stock of a company will rise, you would see certain signs and signals from either decisions taken by the shareholders but just one whale can cause the market to have another directional move.

[Webutxo]

I don't think it's very smart to compare the two, at least not like this, volatility is practically the driving force for crypto, it's not the same for stocks, most major stocks have very low volatility to the point where a dump can draw alot of attention from people trying to figure out what's wrong, sometimes an initial dump can lead to it all going down since people can see everything out of fear, some crypto are similar but not all of them.

If you think Volatility is made for crypto then you have no idea how the stock market moves. Maybe you spend some days in stock market and do some observations, you will see that the bad performing assets are hidden in stock, they only talk good about about the good performing assets. There are some assets with worse performance but because stock is not like crypto you can launch IPO the way you like, there is reduction in number of stocks that pop up.

You are seeing stocks having low volatility because of liquidity. The kind of attention stocks do have, if crypto is having it and people want to invest in crypto, the coins will not be doing worse. Take a look at Bitcoin for example, it used to be very volatile way back until recently it doesn't crash, it's too big with liquidity to some extent for people to play around with the price.

[Byebyebtc]

what's your take on this topic, do you think stocks are volatile than crypto or crypto are volatile than stocks?

I day trade, and these things are what I see on a daily basis.

Crypto to me is more volatile than that of stocks. I might not be accurate about a full day range on Bitcoin and stock like apple (I trade on the two) but one thing I know for sure is that a days rage (number of pips covers) on Bitcoin on a daily basis is whey higher than that of apple, I speak this way because I trade the both of them, and they are good representation of stocks and crypto.

[Mr_Brilliant$]

First there's no one that is better than the other. People can be good at stocks and not trading crypto. It all depends on the individual on what he was actually exposed to. Secondly, stocks has types same as Cryptocurrency. So which one are you referring to. There surely have differences.

[Agbamoni]

I know more about how the stock market work more than the crypto space. The concept of having more volatility depends on the project. Some of the crypto projects I participated in were highly volatile. In a day, it created a new ATH and ATL.  It's wrong to judge the crypto market based on how that one crypto performed. Same goes for the stock market. A project will be volatile if the people in charge of the project are influencing the market or if investors are buying heavily in the market. The market may tend to change.