Cryptocurrency vs. Stock Market: Why Choose Crypto

Cryptocurrency vs. Stock Market: Why Choose Crypto

The practice of trade is as old as history itself. Then 400 years ago, the concept of stock exchanges emerged – a relatively new phenomenon.

Stock exchanges are essentially the marketplaces where you can buy and sell stocks, currencies, and commodities. Today, stock exchanges are well entrenched in almost every country around the globe.

Fast forward to the 21 st century: the beginning of the era of crypto exchanges!

Crypto exchanges enable you to buy and sell cryptocurrencies with the goal of making profitable returns.

While crypto and stock exchanges both facilitate trade, they differ in how assets are traded and themarket volatility. 

So we have produced this article in order to lay down the differences between cryptocurrency and stock market exchanges. We will also explain why you should invest in cryptocurrency instead of the stock market. 

Let’s unveil.

The Difference Between Cryptocurrency and Stock Market Exchanges
The Assets Traded: 

You can call it the primary difference between the two exchanges; the types of assets traded are totally different. While stock exchanges deal in company shares, crypto exchanges trade digital currencies.

When you trade in a stock exchange, you have the equity of that particular company. If the company performs well, your share value rises and vice versa.

In the case of crypto trading, you do not have ownership of any company. This means the value of cryptocurrencies is subjective. Also, the number of crypto tokens or coins is limited. If the demand grows, the prices soar. This makes it an excellent investment.

Carl Runefelt is a global crypto leader and investor. He emphasizes trading crypto for higher gains. Inone of his interviews, he said, Bitcoin is a new form of money. I would say Bitcoin is the best form of money that humans have ever seen before. It’s the scarcest asset in the universe. It’s the only asset that has a finite supply where the supply can never be diluted, and this can only take place in the digital world.

The Market Maturity:

Stock exchanges have been there for quite a long time. Therefore, they are more stable and mature as compared to crypto exchanges. Governments step in to provide transparency and solid backing to stock exchanges.

Since the volume and diversity of trade in stock exchanges are huge, bigger investors dominate the market at the expense of smaller ones. In some way, stock exchanges favor the big fishes with lower commissions and fees on trading.

Cryptocurrency exchanges have recently started, so they enjoy freedom from political maneuvering and regulations.

Carl Runefelt adds, “Bitcoin is going up year over year, and in times of uncertainty, we’ve seen that people increasingly turn to Bitcoin as a form of money and store of value because Bitcoin is the only money in the world that has no political attachment. Your bank money can get frozen, or your gold can get confiscated, but with Bitcoin, you can literally cross a border with your private keys in your head, and you can travel the world with millions of dollars literally stuck in your brain.

The Volatility Factor:

The range of volatility keeps investors up all night. It has the potential to dimmish your wealth or can make you a multi-millionaire overnight.

Normally, stock exchange investors prefer low volatility so they can invest their money in the long run. But this is not the case with crypto exchanges.

Since the crypto exchanges are relatively new, the volatility is high. Reckless trading can cost you your fortune in a matter of hours. At the same time, you can reap tremendous returns in a short time span
with a bullish strategy.

Carl Runefelt recommends, “If you want to make money through crypto, the easiest way is to buy at a low price and sell when it is high. Also, you can intelligently take advantage of massive volatility and volume.”

The Time it Takes to Start:

Stock exchanges have been around longer than crypto exchanges. Given the time, vigorous regulations and myriad rules are in place now. If you want to try your luck in stock exchanges, get ready to wait a while.

You have to go through a lengthy process; find yourself a broker, and get approval to start trading. Also, you can only trade during business hours. With crypto, the case is different.

You can do crypto trading at any time of the day and any day of the week. Irrespective of social standings, anyone can do crypto trading.

Regulations and Fees:

This is one of the pronounced differences between stock and crypto exchanges. Stock exchanges are fraught with fees and associated costs.

You have to pay a commission to the broker, your bank will charge you some fee, and your profits will be heavily taxed.

With crypto trading, there are fewer costs. Blockchain technology charges a minuscule fee. Crypto exchanges, too, set a significantly lower fee.

Cryptocurrency Trading is the Future

As blockchain technology progresses with lightning speed, crypto trading will become a new norm. A time is inevitable when investments in stock exchanges will become outdated.

Investors are making billions with crypto trading in a matter of days. What’s keeping you undecisive now?

Invest today; the future is all crypto!