How is crypto different from the stock market?

If 2020 is for COVID, 2021 is for finance. After the pandemic hit the entire world economy, people started to search for alternate sources of income, as many lost their jobs. Many turn to the stock market and cryptocurrency for investment. Even though the world economy has fallen hugely due to the pandemic, the stock market and crypto market are experiencing an All-Time High (ATH). The government has been printing money for stimulus packages and people have been investing the money into stock and crypto, hoping for a great return.

As many look into the stock and crypto market as investment vehicles, let’s try to understand the differences and see why the crypto market is the future of investment.

How is crypto different from the stock market?

In crypto, you are investing in networks and concepts while in the stock market you are investing in specific companies

When you buy stocks or bonds, you are investing in that particular company, hoping that the price of the stock will go up in the future. Your investment will only grow if the company grows. Examples of stocks in India’s BSE and NSE markets are Reliance, Axis Bank, SBI, L&T, etc. By holding the stocks of a company, you have the voting right for the company’s decision-making. On the other hand, when you buy cryptos, you are investing in networks and concepts. For example, when you buy bitcoin, you are investing in bitcoin networks and the monetary concept of bitcoin. There is no one company or set of people responsible for your investment results, as cryptocurrencies are decentralized and controlled by no companies or governments.

You own some percentage of shares in stock, in crypto you hold speculative assets like gold

When you buy stock or bonds of the company, you officially own some percentage of ownership of the company. When you buy shares of Reliance, you also own some percentage of Reliance. If the company makes profits, you also share that profit, and if the company makes losses, you bear the losses. In the case of crypto, you are buying some speculative assets like gold. For example, you buy bitcoin expecting that the prices will rise in the future.

Investing in crypto involves high-risk high reward, stock investment is less risky

Both the stock market and crypto function on the simple economic theory of supply and demand. Since the start of 2021, DOGE, a meme coin created for fun, has given a return of more than 16,000 per cent gain by earlier May, yet some 70 per cent by mid-July. As you can see, crypto is unpredictable and anything can happen in crypto. While in the stock market, to gain more than 1000 per cent, you might have to wait for 10 years. One thing to understand here is that the crypto market is traded from all over the world at all the time. All of a sudden the prices can be at an All-Time High and might also lose all of it in the next hours. The stock market is less volatile and less risky as there are lesser factors influencing the stock price. Sometimes, what can be made in the stock market in 10 years, you be made in crypto in just 10 months(or weeks)!

Cryptocurrency like bitcoin is decentralized and distributed while stock markets like BSE are centralized

One of the important aspects as to why cryptocurrency like bitcoin is disruptive to the traditional monetary system is because it is decentralized and distributed, unlike the stock market which is centralized and concentrated mostly to one country. Bitcoin and most cryptocurrencies are not controlled by any corporation or government because their networks are spread across the world, where anybody with an internet connection can access them. Stock markets like BSE or NSE are centralized bodies facilitating trade mostly for the citizens of the country and not for the whole world.

Crypto can be traded peer-to-peer without intermediaries, stock can only be traded with license brokers

You can buy crypto peer-to-peer without needing any intermediaries. In India, due to government compliance, it is recommended to buy crypto through an exchange like Unocoin: India’s first bitcoin and crypto exchange. After completing your KYC verification, you can buy major trading coins like bitcoin, ethereum, litecoin, and many more. In the stock market, you can only buy company shares from license brokers.

Crypto Market runs 24*7 for 365 days, stock markets are open only from Monday-Friday

Since cryptocurrencies are decentralized, they keep running 24*7 for 365 days with no holidays or week offs. While on the stock market, it is open only from Monday till Friday from 9:30–4 PM and is off on government holidays. This makes crypto much more active and volatile.

No matter which you choose as your investment vehicle, crypto appears to be the future

The world is moving ahead. Information is getting distributed and education is now open source. Our monetary system is heading towards decentralization. Our modern days’ banking has become inefficient and our monetary policies only favour certain sections of the business class. Crypto is an answer to our modern days’ financial banking problem. From an investment perspective, you can choose any investment vehicle, but many say that choosing crypto today is like buying gold in the 17th century.

Unocoin is India’s first and the most secure bitcoin trading app. This exchange app was founded in 2013. You can buy and sell bitcoin instantly using the Instant Buy and Sell feature. Not just this, you can also buy ETH and Sell ETH in no time. With more than eighty-seven coins listed on this best cryptocurrency exchange in India, you can also accept bitcoin from your friends from any location. You can also know which cryptocurrency works best for you with the price ticker and notifications. The most popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), USDT (Tether), BNB, Ripple (XRP), Cardano (ADA), Solana (SOL), Binance USD (BUSD), Dogecoin (DOGE), Polkadot (DOT) and other popular altcoins can be traded on the go. The new Android and iOS applications make Unocoin the best cryptocurrency app. With the unique feature of the Systematic Buying Plan, you can buy and sell bitcoin and Ether periodically. What more? You can start your crypto journey using SBP for as little as INR 10. With another exciting feature called Crypto Basket, you can diversify your crypto portfolio based on market capitalisation (Market Cap) or Volume. These two excellent features make Unocoin the best cryptocurrency platform.

Love Crypto Coins. Love Unocoin.

Please find the list of authentic Unocoin accounts for all your queries below:

Disclaimer:

Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).

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