Crypto Versus Stocks, Who's Better...?
Crypto Versus Stocks, Who's Better...?
Greetings to all friends, how are you today?
Lately, many stock investors have moved to crypto for various reasons, generally but what I want to convey is that crypto and stocks are very different types of investment vehicles, even though stocks and crypto can be traded.
First we have to know what is the difference between crypto and stocks. The difference between stocks and crypto that we will first discuss from their respective goals
Crypto was created as a currency and it is hoped that one day it will be accepted by many people as a currency that can be made for various types of payments, cryptocurrency is a currency that was created to replace fiat currency, of course with much older technology, much faster and much cheaper transaction fees.
While stocks are different, stocks are created to obtain funds from the public and these funds are used to develop the company, in exchange the investor gets a small share of the shares of the company, where these shares can later be traded or received dividends.
The second is its use.
With crypto we can use it as a means of payment or it can also be used to finance projects or decentralized finance or it can even be a guarantee for us to get loans on certain platforms.
While shares cannot be used as a means of payment, because shares are not money, they cannot be used as collateral to obtain loans.
Third from market volatility.
Stocks have a fairly volatile market, the difference is that in crypto there is no limit to the extent to which coins are owned, whether they go up or down by thousands of percent or down by tens of percent, it's a common thing in the crypto world. Meanwhile, the stock price is limited by regulation.
Fourth of opening hours.
Crypto is open 24 hours non-stop
while stocks have opening and closing hours, there are breaks and holidays.
The fifth is the storage of assets. cryptocarensis are stored in exchanges while stocks are not, the shares are kept by the Central Securities Depository, so even if the securities company goes bankrupt, the shares are still safe because they are kept.
Seventh asset analysis.
Crypto and stock analysis are more or less the same, some are motorized and some are dealers, both can use technical analysis, both can use fundamental analysis. The difference is that crypto fundamental analysis depends on the technology of using the coin and the public trust to use the coin. While in stocks, it depends on the company's financial condition and its potential in the future.
Eighth of the team's activities and achievements.
This is what makes a pretty big difference for crypto assets and stocks.
We can trade Crypto, we can guarantee it, to get a loan we can deposit the term and get interest + get game capital when the coin price rises, then we can lend it or invest it to finance development projects or decentralized finance.
Then we can invest or we can plug, other conditions to get interest in the form of new coins that will be launched soon or we can also act as a liquidity provider which then we can share fees with the exchange, we can even use it to buy stocks that look high on the exchange, besides that we can also transfer to other parties.
While in different stocks, the only activity is trading and getting dividends, we cannot send shares to other people, nor can we make our husbands as assets that we guarantee.
Then the ninth from the publisher.
We see the difference between stocks and crypto from the issuer, anyone can issue crypto assets or tokens. While in stocks to make a company go public or that can be popular is not easy, not all companies can go public, There are many regulations that need to be obeyed by companies.
Tenth of security.
Crypto assets are stored in wallets on the exchange because they are on the internet network, so their security is questionable, even though the security of the exchange continues to be improved from year to year. Then there are many activities that we can do in crypto assets, such as staking, investing, depositing to finance certain projects and if there are hackers who attack the block center it is not guaranteed by the exchange because essence only acts as an intermediary.
Meanwhile, our assets are kept in a well-regulated, facilitated and supervised by the government. To date I have never heard of stolen stock, never heard of it. So for asset security, stocks are safer than crypto.
That's what crypto and stocks have, respectively each has its strengths and weaknesses, who is superior? Only you can judge it.