Market ! Market !
Market !
I know the blog title sounds like a
wrestle match between Stock Market and
Cryptocurrency Market. Both the markets are highly adored by Market
Makers, Traders, Enthusiasts, Users, etc. So, it’s important to understand both
the markets properly before judging and criticizing anyone.
In today’s blog everything which is
essential related to the topic will be explained in details. This isn’t a
competitive match but a comparative session.
Only thing I need from my audience is
their opinion for both of these markets.
Let’s not waste time and start with
our topic. 😊
When I say ‘TRADING’, what is the
first thing that comes in your mind?
INVESTMENT,
RIGHT?
It’s a common thing which everybody
thinks first. Next, you’ll think Where? And How? To get started. In real world
there are several types of markets where peoples invest and earn most out of
it. Since, we are discussing today on Stock Market and Cryptocurrency market so
we’ll categories them on basis of their characteristics and properties.
[ NOTE:
To avoid repetition, I’ve Abbreviated
STOCK
MARKET = SM & CRYPTOCURRENCY MARKET = CM ]
INVESTMENT
The important factor is investment for
any type of platform.
In case of SM, the investment is done
in a company. We buy shares of a company listed in exchange and later sells it
for profit. The investment we did here is on company shares.
Whereas,
In case of CM, the investment is placed
on cryptocurrencies. These are coins which are listed on exchanges and works on
Blockchain Technology. To know more about it, simply click it!
REGULATION
SM is a government backed exchange
which is totally centralized and works under several factors following rules
and guidelines.
But,
CM runs on a decentralized and
anonymous platform. All the data and records are on open source software
system. It is more transparent and no government or central authorities have
right to interfere/alter it.
VOLATILITY
Volatility in simple terms means
something which is moving rapidly creating a disturbance in the system and
affecting the steadiness.
SM, as compared to CM is less volatile
whereas CM is considered as the most volatile market ever.
MONEY
In India, we use “INDIAN CURRENCY”
(INR).
So, the SM runs totally on INR. There
is no option for conversion through Foreign Exchanges. That is nothing but FIAT
MONEY.
In case of CM, it works totally on
Digital Currencies i.e. CRYPTOCURRENCIES. The deposit and withdrawal are placed
through Blockchain and Exchanges that support these digital coins. These
currencies are converted to Fiat Currencies through Exchanges.
SCAM/ FRAUD
In today’s world scams and frauds are
like a part of the ecosystem. Take any financial institution, the risk of fraud
and scams are always upon it.
In SM, the number scams happened are
limited. Since, the regulations have turned stronger the chances of getting
scammed has been decreased a lot.
In CM, there are uncountable cases of
account scams and fraudulent activities. Even hacking and phishing activities
been recorded. In most cases, people have lost their Private Key which
disallowed them to access their account. This isn’t fraud but a loss.
As per my opinion, anything that is on
digital or electronic platform possesses the highest risk or threat of being
scammed/ hacked.
LISTING OF A
NEWBIE
Here, listing is termed as launching
of new token or share.
In terms of SM, whenever a company is
about to get listed, an INITIAL PUBLIC OFFERING (IPO) is opened for all. This
IPO is nothing but shares of a new company. People buy it at first glance to
make profit later.
Similarly, in terms of CM, whenever a
coin is about to get listed, an INITIAL COIN OFFERING (ICO) is released for
all. These are new coins/tokens of a software company.
DURATION
Investment in SM for long term serves
good returns. The amount which is kept for holding will turn into assets.
Normally in bank, around 6-8% of returns are received annually but in SM
it’s about 14-16% annually.
In case of CM, long term investments
are not predictable. It all depends on Market. If the market rises with a boost
then automatically your investment gets DOUBLED.
Yes, you heard it right.
The returns here are unpredictable.
So, 0-100% or more than that can be earned at one night also.
HIGH RISK, HIGH
PROFIT –
The market motto.
TIME LIMIT
Trading timing in both the Markets are
different.
In SM, there are certain timings
allotted for trading. After the time is over, the market is closed and again
starts the next day.
But,
In CM, there is no limitations. The
trading platforms are opened for 24x7. You can trade Anytime, Anywhere, Anyhow.
MARKET REACH
Market reach depends on how nationally
or internationally the roots of exchange is spread.
In terms of SM, it’s market reach is
less while the market reach of CMs are widely spread. That’s because of it’s
properties like Anonymity, Decentralized, Easy Conversion, Fluidity, Market
Cap, Fast Process, etc.
TRADING FEES
This sounds bitter, but it’s true.
Every trading platform, whether it is SM or CM, takes a small fee to execute
trades properly.
In case of SM,
A
full-service broker charges a brokerage between 0.03% – 0.60%
of the transaction volume while trading in stocks. On the other hand,
the discount brokers charge a flat fee (fixed rate of 2p or 10p per
trade) on Equity.
In case
of CM,
People
say that the industry average for taker fees at centralized crypto-to-crypto exchanges
is 0.25%. The corresponding industry average for maker fees is
slightly lower as some exchanges offer discounts to makers, approximately 0.20%.
Finally!
We have completed few important differences
between Stock Market and Cryptocurrency Market.
But WAIT !
There are many Similarities too.
Do
You Know?😃
Come on, Let’s explore that also. I
know you all are very enthusiast learners. So, I’ll provide you with the best I
can have.
SOME COMMON STRINGS
AMONG BOTH MARKETS
·
TRADING: Both platforms provide trading facilities.
·
TECHNICAL
ANALYSIS: Technical Analysis plays a vital
role in both the markets. Without TA, proper positioning of quantities won’t take
place. Market research is very important before trading.
·
CANDLESTICKS: A candlestick is a type of
price chart used in technical analysis that displays the high, low, open, and
closing prices of a security for a specific period. Both markets have
it.
·
PRE-REQUISITE
KNOWLEDGE: As I always say, without knowledge
you can’t become a successful trader. Similarly, investing in any platform
requires some pre-requisite knowledge.
·
RISK FACTOR: Whether it’s Stock Market or Cryptocurrency
Market, both the platforms have risk factor. You never know when the market
falls down suddenly creating a difference. But still, people trade and take
risk.
“WITH
GREAT RISK, COMES GREAT REWARD.”
As per my point of view, both markets have some Ups and Downs. To trade here every person should know about both the Markets in details. Investment is the secondary thing. First thing is KNOWLEDGE and SELF CONFIDENCE.
In my opinion, both markets are equal if you have equal knowledge concerning it. The real winner is a person who has gained both kind of knowledge and knows how to earn Profit from any platform.
In my opinion, both markets are equal if you have equal knowledge concerning it. The real winner is a person who has gained both kind of knowledge and knows how to earn Profit from any platform.
That means the winner is within YOU.
There are still many more topics and
factors related to Stock and Cryptocurrency Market. In this blog, I covered
almost everything which was necessary. I hope you’ll like the blog and spread
the love by sharing it. 😊
To know more about key topics, simply
click it
>>CRYPTOCURRENCY<<
>>BLOCKCHAIN<<
[ NOTE : Investment is subject to market risk. This platform does not provide any trading signals or trading directions. ]
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