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STOCK MARKET VS CRYPTOCURRENCY MARKET


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: 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.

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





[ NOTE : Investment is subject to market risk. This platform does not provide any trading signals or trading directions. ]

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