Crypto trading over Stock market trading

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Avatar for bala41288
3 months ago

Many real-world traders have started focusing on doing crypto trading more than stock market trading. One of the biggest advantages that Crypto trading gives is that the market is available all the time and there are no official open hours for the market. But crypto trading also has lots of disadvantages too. The technical analysis people do for investing in a stock is a little different in the crypto world. People cannot implement the same logic and it may not work well.

In this article, I'm going to be comparing crypto market trading with stock market trading and going to be writing about the pros and cons. I suddenly got this thought when I was having such discussions with a few colleagues at work. They were asking me if I was doing stock market trading even now. I told them that I stopped doing that about 5 years back after I got busy in the crypto world.


Even in the crypto world, I'm not a good trader but at times whenever the opportunity is good I try my luck with trading inside the Hive ecosystem with some tokens or coins. I wouldn't call myself an expert in trading though. I used to do a lot of swing trades a year back but now it is getting hard to do such trades. I lost all my liquidity when the price was around 45 cents and I invested almost all my liquidity to Hive and the price of Hive has not recovered since then. Currently, the price was Hive is below 35 cents and I'm trying to do some short trades but it is not working well either.

24/7 market

Crypto markets are available 24/7 and there is no starting time and closing time. This gives good freedom for the traders. There are also other advantages and disadvantages. There is no minimum or maximum price set for a cryptocurrency. Any coin can literally go from 1$ to 100$ in a day and from 100 dollars to even 1 cent. The market is very volatile and some people even feel it is dangerous. This is not the case with the stock market.

The exchanges are very particular that the price of stock tanks up to a level where it cannot go below a level and also above a level within the same day. This makes the stock market a little bit safer compared to the crypto market. In the crypto market trading, the entire world is involved and people from multiple time zones are involved. There have been days when the pump would have happened when I was sleeping. When I wake up, I wake up to see the price very high and it would have been a missed opportunity.

These are some of the surprises that we can see in the crypto market. In the stock market, all the surprises happen only during market hours.


A bit of decentralization

Most of the cryptocurrencies that are traded on top are mostly decentralized and the exchanges only facilitate the trading of those cryptocurrencies. Otherwise, there are no big regulations or rules except for the ones that are available on the blockchain level. This gives a decent amount of decentralization to the coins.

There are so many exchanges across the world that can help in listing the coins and they can only facilitate trading and they don't have any control over the price of the coins. People do everything else on the chain. There are also some exchanges that facilitate trading on the chain itself and those are the ones that are not influenced by the exchanges. Some exchanges take control by restricting deposits and withdrawals but mostly trading on the chain is safe because nobody can restrict it.

In the stock market we cannot expect such decentralization and sometimes in the background there can even be events that happen in the backdoor and nobody knows about them. In the crypto markets, most of the events are transparent and if it is on the chain it is visible to everyone. Some exchanges do have control over the trading but they still depend on the chain.

If you like what I'm doing on Hive, you can vote me as a witness with the links below.

Vote@balazas aHive Witness
Vote@kanibotas aHive Engine Witness

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Avatar for bala41288
3 months ago