Unlike 10 years ago, the term trading is now familiar to the general public, especially on the stock exchange, for buying and selling shares. And now with the emergence of a new asset class, namely crypto assets like Bitcoin, the public is increasingly fond of and close to it.
Ease of access for trading is a supporting factor for the development of this method. Not a few people can make large amounts of money by trading.
Now there are many sites that you can visit that can trade stocks or crypto assets at the same time. You can get stock and crypto education and guidance in opening an account for making transactions.
Now all trading can be controlled via a smartphone or personal laptop. You don't need to go to a securities branch office because everything is completely online nowadays.
For those of you who are not familiar with trading, you should understand the intricacies. This is it!
What Is Trading?
Basically, trading is the activity of exchanging goods, services, and currencies, even assets. In ancient times, trading was also known as bartering, when people were not familiar with the concept of money as a standard transaction.
Now trading is better known as the activity of selling and buying investment instruments that can be controlled easily.
Over time, trading stocks and crypto assets began to dominate the market. This is inseparable from the ease of access, which allows anyone to start trading with minimal capital.
Trading is also in great demand because it can provide benefits in a short period of time, in contrast to a longer investment.
However, a trader must actively trade in order to make a profit.
The profit percentage is greatly influenced by the skill of a trader. Traders should even be able to analyze the time when to open a trade and close it.
Please note, trading becomes a high-risk trading activity. Careless trading can throw your money into chaos.
There are two types of trading that are now popular with the public, namely trading in stocks and crypto-assets. So what is the difference between trading stocks and crypto assets?
The difference in trading Crypto and Stocks
There are several aspects that form the basis of the differences between the two types of trading. For how to get a profit, both are similar, namely by buying at a low price and selling at a higher price.
What Is Traded?
In stock trading, of course, what is traded is in the form of shares of companies on the stock exchange. Meanwhile, crypto asset trading trades crypto assets/cryptocurrencies/cryptocurrencies of various types ranging from Bitcoin, Ether, and many more.
Traders are also free to trade with more than one asset. Provided that you have sufficient capital and understand the risks of the activities it carries out.
Trading Hours
The difference between these two types of trading is clearly visible in the trading hours. Stock trading can only be done at 6 hours x 5 working days.
This little time should be used by traders to make trades according to the analysis being carried out.
Meanwhile, crypto asset trading can be done every day, 24 hours, 7 days a week, 365 days, without any time limit.
Traders can trade in the morning or evening, even on weekends.
Security
Both stock trading and crypto assets have guaranteed security. However, this security is guaranteed by different parties.
For the security of stock trading guaranteed by the securities company, the stock exchange. Meanwhile, the security of crypto assets depends on the exchange used, because most of them are held by private companies.
However, in a number of countries, they have certain licenses by the government, to ensure the safety of customer funds.
But there is no need to worry about security when trading, as long as you choose the right place.
Crypto asset trading in Indonesia, for example, is regulated and supervised by the Commodity Futures Trading Supervisory Agency (Bappebti), which is under the Ministry of Trade.
Order Execution Tempo
It takes time to execute orders when trading stocks. The length depends on the queue that is still valid. Unlike trading crypto assets, execution is processed instantly. This is what makes many people choose crypto asset trading because it is much faster.
Purchases Moved To Another Broker
In stock trading, if you want to transfer purchases to another broker, you can do it after T + 3 for a fee. Meanwhile, crypto asset trading can be done easily without conditions and fees, although some require KYC (Know Your Customer) requirements, in the form of personal identification data, including user photos.
Registration Process
The stock trading registration process is more complicated and takes a long time. Traders cannot trade immediately after registering.
Unlike trading crypto assets, after registering a new account, you can make a deposit. Meanwhile, to start buying and selling, you usually have to go through the KYC stage, except in peer-to-peer or decentralized exchange crypto-asset exchanges.
That is the difference between stock trading and crypto asset trading that needs to be understood. Both have the same risks, but the level depends on the abilities of a trader.
The risk of loss can be reduced by analyzing it first before making a decision.
It's part of our study about trading, economics is our subject when our teacher profoundly teaches his knowledge about the basic concept of trading including with currency