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Trading Stocks Vs. Trading Crypto

There are few differences when considering investment in trading stocks vs. trading crypto. Stocks have been around for a long time while cryptos had a start in 2009, with the introduction of Bitcoin. Now, however, Bitcoin and altcoins are gaining momentum in both overall market value and popularity.


There are few differences when considering investment in trading stocks vs. trading crypto. Stocks have been around for a long time while cryptos had a start in 2009, with the introduction of Bitcoin. Now, however, Bitcoin and altcoins are gaining momentum in both overall market value and popularity.
 

Stocks Represent Companies and Crypto Concepts

One of the facts that traders should consider is that stocks represent companies and crypto concepts. Bitcoin investment is quite different from, say, Coca Cola stock investment. Stocks represent companies, their subsidiaries, debts, and revenues. Thus, trading stocks involves a detailed financial report analysis and what the market says about the industry overall.

 

Bitcoin trading, on the other hand, is purely market speculation. Most crypto projects provide a concept of efficient money transfer. However, there are neither internal reports nor assets to look at. Rather, market trends, supply, and developers’ plans are what impact the cryptocurrency’s value. Most digital coins do not have assets or investment funds backing them up. They rely purely on market acceptance and the number of traders (as well as their funding power).

 

Volatility Difference

Stocks, with some exceptions, are traditionally stable in terms of their value. Rare are those that can grow 100% in price overnight. Bitcoin and altcoins can and did multiple times since the dawn of digital coins in 2009. Even now, it is possible to catch changes as big as 30% within an hour for Bitcoin.

 

Volatility is high for cryptocurrencies, which is essentially due to market trends. Miners, traders, and other participants are the ones that create waves of activities. Since there is no central figure to enforce stability, market moves freely.

Although traders love to see high volatility, risks are high as much as opportunities. If the investor’s guess on future trend is wrong, he or she can make large losses.

 

Trading Stocks Vs. Trading Crypto: Regulation

Right now, it is hard to enter the stocks’ market if you do not possess a large amount of capital. Instead, most would opt for mid-level brokerages that carry large fees and might have issues with lucidity. At the crypto market, there are much less regulative policies in place. Central Banks and other financial institutions are not as involved with cryptos as they are with conventional markets.

 
 

Bitcoin binary options and other trading contracts are thus quite popular. Cryptocurrency is not regulated nor owned by a single entity. Market participants all have their share of ownership, making this market as free as it can possibly be. Thus, anyone, no matter the capital level, can enter, trade, and earn profits.

 

Conculsion

If you are looking into places where to make an investment, Bitcoin Binary Option is a good way to start. Granted, it is a quite risky business but with correct technical (TA) and fundamental (FA) analysis, one can make a good profit.

Platforms like Astro Options offer a unique opportunity to try your hand with cryptos, instead of stocks and commodity trading.

 

Astro Options, to the moon 🚀

 
 
 

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