Wondering whether to invest in the stock market or in the up-and-coming cryptocurrency market?
The first step to answering this is by gaining enough knowledge to make an informed decision. Here’s a side by side comparison of crypto vs stock.
Similarities Between Stock Market and the Cryptocurrency Market
Tools are Similar
Stock and crypto trading charts and tools are pretty much the same thing. For those who aim to do some technical analysis, they can just put in the stock or the cryptocurrency in question and it will have the same results.
Bitcoin revolution website is one of the premier tools you should have when starting out trading Bitcoin. It helps make things easier and gives you a higher chance to succeed.
Fiat Currency is Your Point of Entry
Both stocks and cryptocurrencies can be bought using traditional money. Accessibility is high on both fronts since all you need is to find an exchange or broker where you can trade your money for Bitcoin or Apple stock, for example. All you need is to find a reputable exchange website.
Strategies and Investment Methods
Name any kind of strategy used in the stock market and chances are that you can apply it to the cryptocurrency market. People have been using methods such as day trading, technical analysis and swing trading and enjoy a degree of success.
Buying stock or cryptocurrency and holding it for a long time is also a viable strategy. That said, if you’re familiar with stock or are thinking of making the move from stock to cryptocurrency then you’ll feel right at home.
Market Product
The ‘product’, in this case are the techniques to inflate gains and derivatives. Structurally speaking, both assets are similar and you can easily trade Bitcoin and crypto tokens, options and futures to stock and vice versa. Trades can also be leveraged on Bitfinex and Binance, among other platforms.
Differences Between Stock Market and the Cryptocurrency Market
Volatility
Cryptocurrencies are the opposite of stocks in terms of volatility. If blue ribbon stocks are super stable and can hold its value steadily up, then cryptocurrencies such as Bitcoin tend to fluctuate wildly.
Volatility can be a good thing for crypto and bad for stocks. Day traders will usually want greater volatility so they can make a profit quickly.
Age
Stocks have been around for a century while cryptocurrencies and digital assets have only been around for a decade or so. Market value and volume is definitely higher for stock, but cryptocurrency is slowly but surely catching up.
Regulation
Because Bitcoin is decentralized by nature, there’s virtually no regulation holding the market. It exists in the online network, and there’s no single entity that controls it. Transactions are anonymous and the absence of a middleman means payment processing time and speed are top-notch.
The stock market is regulated because it has been around for a while. Governments and regulators have been able to implement rules surrounding the market. This lends to its stability and steady economy, something that cryptocurrencies have yet to experience.
