Stock Market VS Cryptocurrency Market

Stock Market VS Cryptocurrency Market


Stock Market

The stock market is the very first portfolio that comes to our mind when we think of investments. Yes, this is a type of market which involves buying and selling of securities (most commonly the shares). Stock exchanges have been in existence for centuries. This is one of the pivotal markets for the economy as the traders are trillions in number facilitating maximum economic growth. The Stock exchange is the institution facilitating the issue and sale of securities. It represents the marketplace for trading the securities. The prices of securities are listed in the stock exchange enabling the traders to buy and sell the securities based on the value. Apart from the buyers and sellers, there are many players associated with the stock market. They include stock brokers, portfolio managers, investment bankers etc.

Stocks are traded either physically or electronically, technically called as “dematerialized form”.  The Price of the share is generally determined by the Company’s performance. However, the price may also vary based on the future growth or product of the company. The buyers and sellers trade the shares that are traded earlier by a different investor. Buyers and sellers in this market are permitted to buy/sell at the pre-determined price during the set period.

Cryptocurrency Market

Cryptocurrency markets are the markets for trading the digital assets using strong cryptography to secure the transaction, verify the assets and control the cryptocurrency units. This is something unique and works differently from the stock market. This market is currently trending at 25 million approximate users. There is no physical form of exchange of assets or securities in this market. Cryptocurrencies are used to buy and sell goods or services. This is a completely decentralized market; there is no regulatory body to overview the activities of this market. They work on the concept of a peer-to-peer transaction. Meaning, the transactions are completely between the parties involved i.e. buyers and sellers without any intermediaries. Bitcoin is one of the famous cryptocurrency currently traded in the market.

One must possess cryptocurrencies to trade in this market. They are easily available in exchange for our currencies. The transactions are recorded in a public ledger called block-chain once verified by the miners. The transactions once verified and made available in block-chain cannot be altered or reversed. The invention of applications/automated system such as trading robots, the trading software helps investors to efficiently trade in this market. Refer to this trading software if you would like to enjoy outstanding investment results.

There is an alarming growth of users in this market because it is highly lucrative with less risk/fraud. In addition, they are also highly cost-effective as investors need not spend amount for transaction fee or brokerage charges.