Since the appearance of the cryptocurrency industry and bitcoin, it has been on a steady rise. The rise in its is popularity graph is unaffected which has attracted many investors. great shift of investors from the stock market to The News Spy trading App recently. That is why it has become essential for us to understand the key points of differences and similarities between the two.
Similarities Between Bitcoin and Stock Trading:
Most of the traders in both the domains these days rely on mobile applications or software with user-friendly and interactive user interfaces, which makes their trading experience easy and simple. Most of the trading software in both Bitcoin and Stock trading use similar layouts, trading options, book order, ledger and chart analyses. Big players in both industries are heavily investing in digital assets to improve their online presence to gain more clients. Some of the features are discussed below in detail:
- Market Order: A market order assures displaying all the buy and sell orders that one has placed. It also shows a consolidated chart of the ongoing selling and buying of the particular stock or bitcoin.
- Limit Order: A limit order is anupper or lower limit set by the user after analysingtheir risk appetite. Then, they feed the upper or lower limit at which they try to buy or sell the order.
- Stop-Loss: Stop-loss is a feature that enables a user to feed in the figures at which if the bar touches, it will automatically sell or buy the order as per the instruction. It safeguards a client from excessive loss case their prediction goes wrong.
- Chart analysis: Chart analysis is the heart of any trading activity. Trading without studying it’s chart is like driving a car without visuals.
- Indicators: Indicators are bars or numbers that indicate the market’s probability either going up or down. It takes in the study the data of months and, in some cases years of trades and predicts an outcome at every step of the market. In the stock market, some of the most prominent indicators are VWPA, MACD and Moving Average are the most used indicators in Bitcoin trading.
Dissimilarities Between Bitcoin and Stock Trading:
We have discussed several similarities among the two. However, there are a lot of dissimilarities between Stock and Bitcoin trading which we’ll discuss below.
- Natureof Asset: Bitcoins are digital, tradeable currencies whereasstocksarethe transactions of stocks of a particular company.
- Timing and Access to the market: When it comes to the stock market it usually operates between 9:30 in the morning to 4:30 in the evening worldwide. It may vary in some countries, but this is the usual time in most countries. Some countries have a lunch break in between, and some do not.
When it comes to Bitcoin Trading, the market stays open 24×7.
- Issuance Limit: In a stock market, a company may issue new shares as per the guidelines and rules of the regulatory authority, which is subjected to it is own regulations and policies and it is performance. In Bitcoin Trading, new coins can be issued, but they have to adhere to the policies of Blockchain and the rule of the land.
- Trading Pairs: In a Stock market stock can be bought only by using fiat currencies whereas, in Bitcoin Trading, one is allowed to trade in pairs. If you own an altcoin and want to purchase BTC, you are required to exchange the altcoin to one of the pairs like ETH and then using that, you may buy a Bitcoin.
- Volatility: The Volatility in the Bitcoin market is way too high than the Stock Market.
- Ownership: A Buyer in Bitcoin trading does not get the ownership but a part of the cryptocurrency whose price is subjective to market movement. In Stock Trading, a buyer gets the ownership by owning the stocks according to the number of shares they hold.
No one can exactly predict what the future holds for both the markets or who will take over the other. However, as a responsible investor,you must know the basics of both the markets and choose a trustworthy and reliable platform for trading. It is that trustworthy and secure platform that everyone’s talking about. So, always do your research and then trade responsibly.