A comparative study between Bitcoins and Stock Market

A comparative study between Bitcoins and Stock Market

Stock market:

Stock Market is nothing but buying and selling of company shares to attain a good return on investment. It is one of the best investment opportunity plans for a longer period of time.  This share trading is generally traded in the country where it is registered but global traders can participate in trading through brokers.  The stock exchange plays a platform of share trading where buying and selling of shares through this stock exchange.

Bitcoin Trading:

Bitcoin trading is well supported by the various trading platform which enables peer to peer transactions.  Bitcoin loophole is one of the automated trading robots which is either operated automatically doing trade on behalf of the investors or can be operated manually.

Similarities:

  • The investors remain the same for both the markets since the investors seek which will better option to earn an optimum return with their investment.
  • The opinion regarding both the market remains the same among the public because both have certain risk involved in their respective markets.

Differences:

  • Profit- loss margins: Profit-loss margins are one of the important factor need to consider while comparing these markets. The stock market trader needs to go for a long wait to get a fair profit whereas this is not so in the case of trending bitcoin trading. Even though the stock trader waits for a long, they are facing less risk.  Bitcoin traders are facing high risk because of the volatile nature of transactions.
  • Reach of the markets: The cryptocurrencies have reached the widespread people across the world, but not so in case of Stock markets. Generally, the stock markets are operated within the country even though the global trader can access stock markets but only through the brokers, they can enter into a stock trade.  The cryptocurrencies are backed by blockchain technology which helps the traders to access the market without the intervention of third-party.
  • The risk involved in trading: The Bitcoin trading involves more risk as it is following a decentralized platform for trading which makes anyone can enter the market easily and access. No specific regulatory bodies for these cryptocurrencies trading whereas this is not in the case of stock markets which are regulated and followed properly.
  • Supply facilities: Certain countries have allowed the bitcoin trading as legal but within the specified limit. But the traders can access the market trends 24/7 is an added advantage. Though there are no limits in the transactions of stocks, the trader cannot access 24/7 because the stock exchange company works from 10 am to 4 pm only.
  • Trading options: Trading options are done more easily in crypto markets with minimum transaction cost whereas the stock market trading is not so easy to enter. The stock market involves brokerage charges, taxes, transaction charges for your investment.

Conclusion: 

Both the markets have certain advantages and disadvantages need to consider before making an investment on them. When crypto markets are regulated properly, it will reach great heights in the future trading.  On the contrary, this stock market increased the growth of many businesses serving as a vital support for these business organizations over a longer period of time.  Before investing in any market, the traders need to get a full report on these markets to analyze which one is liable to yield a profit.