Why Invest in Cryptocurrency than in Stock Market?

Cryptocurrency has been the talk of the town for the last few years. But many still look at the topic with caution and try to understand of what they are and how to deal with them.

Nowadays, stock exchanges provide vast marketplaces for the buying and selling of currencies and commodities across the world.

Cryptocurrency vs. Stock Market

A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers. It is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. This decentralized structure allows them to exist outside the control of governments and central authorities.

A stock market, equity market or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms. Investment in the stock market is most often done via stockbrokerage and electronic trading platforms.

Cryptocurrency exchanges and stock exchanges share much in common -- the key factor being that they facilitate trade. However the two also have some stark differences.

IN STOCK MARKET:

• A stock exchange trades in company stocks or shares. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation.

• What shareholders actually own are shares issued by the corporation; and the corporation owns the assets held by a firm.

• Issuance of stock is linked to the maximum amount of shares a company can issue to its shareholders. This is usually made up of the total of outstanding treasury stock and shares, as well as shares the company has regained ownership of.

• There is no one right of passage that makes a stock mature. Some bond and preferred stock maturities are short-term (a year or less), others are intermediate-term (usually two to 10 years) and many are long-term (a period of 10 to 30 years or more). Bonds with maturities of less than 10 years are typically called notes.

• Stock exchanges have grown to be heavily regulated marketplaces. There are rules in place to protect traders and investors; to help keep the playing field fair. In addition to rules there are also fees, and the costs associated with traversing the stock exchange are relatively high. Brokers charge a fee or commission. Banks will charge you to make payments. Gains are taxed.

• You'll need to find yourself a broker and -- once you've sorted that detail, you'll need approval to buy and sell. Furthermore, trading is restricted to business hours. As you can start to see, access to the stock market is controlled.

• Given its connections with governments and corporations all across the globe, the stock exchange is frequently impacted by geopolitical events.

• Many investment opportunities (for example, real estate) have an extremely high entry threshold – you cannot just invest 100 bucks; you need a much more significant sum at your disposal to even get started.

• The process is long and have lots of requirements.

IN CRYPTOCURRENCY:

• Cryptocurrency exchange trades in cryptocurrencies (digital currencies).

• The purchase of cryptocurrency ownership is dependent on the cryptocurrency being traded. Individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.

• In the crypto space, issuance refers to the generation of new cryptocurrency tokens or coins and this process can occur in a variety of different ways, according to the parameters specified by the creators of the project.

• The volume and diversity of cryptocurrencies being traded is also far less than that of stock exchanges.

• Trading on cryptocurrency exchanges incurs relatively fewer costs. The costs associated with transacting on the blockchain are miniscule, consisting only of any mining fees. Exchanges themselves thus incur lower costs when buying and selling cryptocurrencies than do brokers for stock exchanges.

• Cryptocurrency exchanges currently experience great volatility. The market is new, meaning that its highs and lows are very pronounced.

• You do not have to deal with any institutions, sign papers, visit banks or get a broker.

• You simply create an account, get a wallet, and track all your assets with no effort at all.

BOTTOMLINE:

Trading in cryptocurrency and stock market are both risky, you just need to know the strategies to avoid lost profit.

Cryptocurrencies offer you a level of independence impossible with other means. Everyone can earn digital currencies - young students, employed and unemployed. And in investing in cryptocurrency, there are no long processes, no many requirements, no need for a broker, all you need to do is to create a wallet and start earning cryptocurrencies. Aside from that, there is no huge capital in crypto market, we can even earn free crypto through claiming from different faucets.

When you keep your money in a bank, you are at the mercy of other people and organizations. At any moment, your access to the money that is rightfully yours can be limited or closed by the bank outside of governmental structures. The bank can be robbed or go bankrupt.

With cryptocurrencies, your money is yours only and stays yours forever. You do not rely on financial institutions for holding or transferring it. You do not have to pay their exorbitant fees. In the long run, it can become the basis of a truly open and decentralized economy. By investing now, you can be at the forefront of it all.

Above all, you should always remember, invest at your own risk and which you can afford to loose.

Let's hear the opinion of these crypto enthusiasts: @MarcDeMesel @RogerVer @scottcbusiness

Related Article:

Understanding BitcoinCash and It's Mass Adoption

Sources:

https://www.investopedia.com/terms/c/cryptocurrency

https://www.investopedia.com/terms/s/stock.asp

https://en.m.wikipedia.org/wiki/Stock_market

https://academy.binance.com/glossary/issuance

https://www.upcounsel.com/issuance-of-stock

https://finance.zacks.com/stocks-become-mature-7100.html

https://investinganswers.com/dictionary/m/maturity

https://www.google.com/amp/s/www.digitalistmag.com/digital-economy/2019/12/04/6-reasons-to-invest-trade-in-cryptocurrency-in-2020-06201759/amp/

https://www.cointree.com/learn/cryptocurrency-exchange/cryptocurrency-exchange-vs-stock-exchange

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