Is Trading Bitcoin and Crypto Similar To Traditional Stocks?


The world of trading and investing is often thought to be one and the same no matter what kind of asset you have. Back in the day, trading stocks was the bread and butter of all high-level trading and everyone was looking to obtain them.

For the last decade or so however, it is the digital currencies that have taken the world by storm. Still though, in the 21st century, you can still have a career in stock trading as it will probably never go away considering the benefits for everyone in such a system.

So, we have stocks and we have cryptocurrencies. Which one should an average investor with some money on the side consider and support? Is it better to go old school and pick the stock market or would it be a better choice to back up the cryptos like Bitcoin and prepare for the future?

Well, the decision is completely up to you but we are here to help you with some crucial info. If you ever wondered whether or not trading Bitcoin and cryptos is similar to trading stocks, you will get the answer here. What is more, in case you wish to find out about additional aspects of this topic, make sure to check out

Legality and Regulations


First off, we have to discuss the legality issues and the existing regulations regarding cryptocurrency. With stocks, it is an established market and has been for decades. Trading of stock assets has not changed much over that time and there exist laws and legal systems that regulate it all around the world.

With digital currencies, however, things are much more different. A lot of countries still do not recognize it nor do they have the right kind or amount of the required infrastructure. Moreover, there are still certain bans on it and not everyone in the world has the same chance to get them and trade with them.

Governments and banking, as well as other centralized organizations that regulate traditional currencies are reluctant to fully recognize and incorporate them into the economy. There still needs to be a lot of change before cryptos overcome this stigma from the higher powers.

Ownership and Possession


Among the main and biggest differences between the two types of assets is the ownership you have over them as you trade them. Stocks are practically little pieces of a company who has taken it public. With cryptos, you do not own something like that since it is a digital asset and nothing physical in nature.

Furthermore, it is much easier to get the ownership of cryptos and have them to your name than it is to obtain stocks. The core of the difference is the fact that owning the crypto is actually owning it, but the owner does not actually have the stock. This can only happen if you have the paper stock and this takes time and effort.

Cryptos are easily purchasable and you can have a balance within minutes. Both faster and simpler, the process is more oriented towards mass consumption and average users. You are far more likely to meet somebody who owns Bitcoin and the rest of the virtual currencies than a stock market trader, which is all you need to know about the ownership experience and simplicity.

Risk and Volatility


Stock market crashes have happened more than a few times in history and it was always a huge deal for the entire world. No matter what causes it and what type of major event occurs that brings about the bankruptcy of companies, a lot of people suffer and it takes years for the world to recover.

True economic crises take place that people talk about for years to come. With digital currencies, things are a bit different. First of all, they are infamous for their incredible volatility and sudden spikes and drops in value. They happen seemingly randomly and it takes luck, speed, and readiness to react on time.

You do not want to miss these changes since both losing money and opportunity will be the outcome. Numerous people have lost thousands, millions even, overnight or in a few hours. Bitcoin is the most popular crypto but it is also the most volatile. This makes it a riskier option but also a more exciting and on-hands one. It largely depends what you want and how involved you want to be.

Modernity and What You Know


Last but not least, it would be good to touch upon what you as the average trader and investor know about investing. As discussed previously a bit, cryptos are much newer and the technology and impact around them is much more important for the future of the world. Stocks have been around for more than a century and things are largely the same today.

This makes the stocks a traditional and practically obsolete especially if you ask the younger investors and modern economy experts. People have been losing trust in traditional institutions and governments, especially large corporations and conglomerates because of their practices and greed. Over time, less and less people decide to buy their stocks which makes the companies lose value and struggle more than ever.

When this is combined with how easy it is to obtain something so modern, popular, and future-friendly as digital currencies, it is easy to see why so many young people never really think about investing in the stock market. The future is digital and information technologies are here to stay, so obviously new generations want to look ahead and not back.

Conclusion and Takeaways

No matter what you choose you can have a successful investing career. Both cryptos and stocks have their advantages and shortcomings that are different for the people out there. Things like these are subjective and it basically comes down to what kind of an investor you want to be and how active you plan to be.

Cryptos require much more involvement while stocks can be taken care of with a backseat type of approach at times. In the end, expanding and diversifying your portfolio is the best type of approach in any case so you can also consider investing in both.