Cryptocurrency trading is a new market. While stock trading has been here for a long period. There is need to understand the concept and the building block that characteristics both before we can make any comparisons amidst both. The major similarity between them is that, they both have one goal, which is geared towards making profit. The sole aim of every trader or investor is to make profit. The reverse is sometimes experienced. In this post, I will like to explain the idea, challenges, similarities and differences between both.
What is crypto trading?
Cryprocurrency trading to me is an alternative of forex trading, the idea that crypto trading is built on is modelled after forex trading. I refer to it as “forex of cryptocurrencies”. Cryptocurrency basically run on the principles of demand and supply. Trading in cryptocurrencies is very profitable and can bring about the opposite, based on my personal experience in the crypto field, both as a researcher and investor. Trading in crypto provides an alternative to get involved in the crypto market without going through mining or bitcoin hyips which carries with it, lot of risk.
The ease of entry and exit is a very important factor when dealing with crypto trading. I can decide to join the system today and leave tomorrow unannounced due the ease attached to trading with it. The ease of trading is simply amazing, I can start trading bitcoin and earn money under an hour. I can decide to leave the system at any point in time without going through the stress of sign up form and access code.
What is stock trading?
Stock trading from my perspective is trading in equity securities. A person who trades in stock trading is referred to as a stock trader or equity trader. They are referred to as stock broker in some quarters. I will advise anyone going into stock trading to trade smartly. Every investor must learn to carry their brain and not heart into the market. Patience is a very important habit I will advise every stock trader to imbibe.
From personal research I noticed stock marketing investing is very paramount among investors. My one cent advice for any one going into stock marketing is to have a sharp vision and understand how the market works. Stock trading comes with a huge gain and investment can come crashing within seconds like the wall of Jericho if the market is not properly understood.
Challenges faced when trading with both.
The challenges that is paramount with both is uncertainty. I will personally advise anyone that is interested in both to try and follow trend line and be sure he or she have a perfect understanding of the market before delving into it. Investors must be a very good researcher and one that have a good eye for details. Stock trading is faced with more challenges, as traders must be well schooled in the trade, while crypto trading requires little technical-know-how.
Differences between stock trading and cryptocurrency trading
- Simplicity-it is easier to trade with cryptocurrency than stock exchange. Stock exchange requires a lot of technical expertise when compared to crypto trading.
- Decentralization- Crypto currency is a decentralized digital currency and the power of investing is in the hand of the investor, while stock exchange is not a decentralized platform.
- Privacy– There is more privacy involved in the crypto world compared to the stock trading. Anonymity is a prominent feature in crypto trading.