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The Main Differences Between Crypto & Stock Investing

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There’s a lot of differences between investing in cryptocurrency and investing in the stock market, but what are they? What benefits are there to trading crypto or stocks and what are the drawbacks? Let’s dive in.

Here are the benefits of cryptocurrency:

•             You can trade cryptocurrency 24/7 without time restrictions.

•             Typically, the fees are negligible or very small compared to trading on regular exchanges. For example, my bank charges $10.00 per trade.

•             There is no minimum purchase amount, nor do you have to have a certain amount of money to start trading as many exchanges require.

•             Many exchanges offer ways to earn free cryptocurrency or give you registration bonuses you typically cannot get with regular exchanges.

•             You could spend no money whatsoever, earn cryptocurrency, then trade what you’ve earned to generate a much greater profit. You can get started for free.

•             You can buy fractions of a cryptocurrency in all cases while only some stock exchanges offer this.

•             Cryptocurrency is highly liquid and can be used in day-to-day transactions instantly.

•             You can use them for various things like staking, lending, collectibles, DeFi, or possibly as a utility like ENS.

•             You can mine cryptocurrency and acquire it yourself.

•             You can start your own cryptocurrency or token. I have tried this.

•             Given you store your cryptocurrency off the exchange as you should, you should never be concerned with someone else restricting your access or from hackers stealing your funds.

•             Cryptocurrency itself is highly secure and accurate, everything is tracked with 100% accuracy and everything is verified for integrity while fiat is not and is much more closely tied to stocks.

•             You don’t have to pay holding fees like with a bank for fiat or for your stock trading account.

•             How you use the coins after is anonymous or can be made to be anonymous should you choose.

•             It’s very easy to transfer compared to withdrawing or depositing a stock and is much faster.

•             With decentralized exchanges, it is easily available to anyone regardless of their banking services or location.

•             Crypto transactions are made significantly faster than fiat making it very important for remittance payments and much more.

•             Price is reliant on the entire network, not the company, and more accurately the current CEO of the company. Instead, it depends on the community, adoption, usage, and network. You don’t have to worry about one crazy CEO. Tron is a good example of how Justin Sun is a bad leader, yet the coin and community around it are very separate from his actions.

•             You have all the responsibility and blame if something goes wrong on your end.

•             Withdrawn crypto is easily tradeable aka liquid

•             Withdrawn crypto isn’t fragile and isn’t easily lost.

•             Cryptocurrency sell-offs do not have drastic negative impacts on the economy

•             Many issues associated with a traditional stock are less likely if not unable affect cryptocurrency for example, if the product from the company wasn't being bought anymore, had a shipping issue, distribution issue, production issue, or say someone working there gets COVID and they shut it all down, you'll lose money.

•             Based on code, instead of trusting them, you can verify.

•             And possibly more?

 

Here are some of the drawbacks to cryptocurrency:

•             Cryptocurrency is volatile.

•             There is less accountability.

•             User error can be very costly. For example, if you mismanage your keys, your crypto is gone forever.

•             There is an underlying product/service/business behind every stock while only sometimes behind a cryptocurrency.

•             Your crypto isn’t guaranteed or insured if for example the exchange you trade on gets hacked and you left your crypto on the exchange.

•             The more decentralized you go, the less support you have.

•             There is a lot of uncertainty in the space.

•             There is very little regulation and many sketchy ICOs and projects that have exit scammed etc.

•             There may be a lot of regulation coming to crypto that will negatively impact the space.

•             Major players in finance are aiming to centralize cryptocurrency.

•             You have all the responsibility and blame if something goes wrong on your end.

•             There are very few trustworthy sources of authoritative information on cryptocurrency.

•             If you do lose withdrawn cryptocurrency, you cannot get it reissued.

•             Stocks have companies, products, employees, and an inherent value behind them that you are investing in.

•             Taxation is confusing, inconsistent, and changing frequently for cryptocurrency.

•             And possibly more?

 

Have I missed anything? Am I wrong on any of these? Do you prefer trading stocks or crypto? How diversified is your portfolio? Let us know your thoughts in the comments below and don’t forget to like and subscribe as well!

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Comments

Very nice and Informative article

$ 0.00
3 months ago

I'm way in more on crupto investing. But maybe in the long run if my portfolio gets into the moon. Will do the stocks.

$ 0.00
3 months ago

Still learning with all these crypto stuff but I love how you can earn for free and then trade what you've earned from mining.

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3 months ago

Brother, could you please tell me how can I get tipped from random rewarder or get activity bonus? I don't why more than a week I couldn't get any tips from random rewarder and got frustrated.

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3 months ago

Another great post about Crypto and Stock Investing

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3 months ago

nice article mate!

$ 0.00
3 months ago

Is very nice

$ 0.00
3 months ago

U are perfect my boos

$ 0.00
3 months ago

Major players in finance are aiming to centralize cryptocurrency

$ 0.00
3 months ago

is there any chance of losing money while investing in the stock market

$ 0.00
3 months ago

You can lose money on any investment

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3 months ago

This project Is very helpful

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3 months ago

• Typically, the fees are negligible or very small compared to trading on regular exchanges. For example, my bank charges $10.00 per trade.

I have never tried purchasing stock before although I do have a dormant stock exchange account registered in my country some time back.

I do agree the simplicity of buy and sell in trading for crypto being a techie person such as myself, while it can be very confusing for n00bs and newbies.

As for Justin Sun, imagine if the nodes are all controlled by him, even though it "looks like it is decentralised", then, THAT'S another story all together.

(We almost witnessed that before, right?)

$ 0.00
3 months ago

I think investing should start with crypto first. Then you have to start stock investing. Stock is a big unit in terms of investing. But in the first case it is best to start with crypto for less than the purchasing power of this unit.

$ 0.00
3 months ago

It depends, there are many small stocks you can buy

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3 months ago

Yes, right sir.

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3 months ago

Cryptocurrency is highly liquid ...

Hehe, but the ones you're really after (the new ones, seeking a price increase) are not highly liquid 😂.

Very diversified portfolio, in crypto. But mainly holding BTC + BCH

$ 0.00
3 months ago

অনেকে ইনফরমেটিভ একটা আর্টিকেল

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3 months ago

very informative article, can I translate this article in my own language?

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3 months ago

I just want to ask about the stock market, how long will it take to get a profit from your investment?

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3 months ago

Interesting and informative article

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3 months ago

Wonderful

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3 months ago

great article useful thank you for sharing

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3 months ago

Very nice article... carry on

$ 0.00
3 months ago

Am new into crypto currency but I used to get many thanks ideas in this platform of read cash

$ 0.00
3 months ago

Cryptos are new and may not be well regulated. Aren't stocks are just a share of company that result in sharing company profit? Then question is how crypto generates profit? From issuing more coins?

What would be difference btw. Ripple stock, if exists, and XRP as long term investment?

Are there staking option where earning can be off-set with increase of the coins on the market? How does this work with taxes? And would coins be a long term investments? I heard transaction on bitcoin costs around 10 USD. Can it be 100 usd in a year or so? Or who can guarantee transaction costs?

Would I own crypto if access to website is blocked. Of course, no one can block individual, although it may be also possible on blockchain ...

Great if you address done of these in your next videos!!! Thank you

$ 0.00
3 months ago

That's only for dividend stocks. Growth stocks are the same as most cryptocurrencies, you are speculating. There are many cryptocurrencies you can lend, stake, and earn dividends from too so they both cover these two options: growth assets and income-generating assets. Bitcoin transactions aren't that expensive. They don't issue more coins for profit.

You will likely be subject to tax when you sell for capital gains or whatever the laws are in your country.

You should hold crypto on a wallet not on a website so that you fully control it.

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3 months ago

Hmm, if stock company pays no dividends, profit should be reflected in stock price. No really difference to me. Companies will get profit from selling cars, data, advertisements etc... How blockchain (BTC, Tezos,any other) generates profit? And how this impacts coin price? Thank you!

$ 0.00
3 months ago

Useful article. Thanks you so much.

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3 months ago

Very informative article for us

$ 0.00
3 months ago

aww interesting to know your article dear ,keep it up

$ 0.00
3 months ago

the ability to diversify in such small numbers is why I am in crypto instead of stocks as a primary. As an Early Millenial, I have less ability to buy into single big stocks or real estate as an intro to investments, so I started here <3

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3 months ago