Everyone interested in investing was given a golden opportunity with cryptocurrencies. Until a relatively short time ago, mostly those who wanted to use their money for profit went public. With Bitcoin, Ethereum and Co, the possibilities have now multiplied. In today’s video, We explain the differences between buying stocks and cryptocurrencies:
The process of investing in the stock exchange and buying cryptocurrencies is similar: all you have to do is register with one platform (exchange or broker, depending on whether it’s crypto or stocks), investigate which asset is more interesting, and acquire this; either directly or in the form of derivatives.
This, along with the fact that stocks and cryptos are both volatile assets that they want to make money off of, is at the heart of the similarities between the two. But the reality is that they are very different things. First of all, over time. Cryptocurrencies became popular in the middle of the last decade and now the general public is aware of their existence. The stock market, on the other hand, suffered catastrophic slumps a hundred years ago.
This has created a financial, legal, and academic ecosystem around the stock market that doesn’t exist in the cryptocurrency world. They are more regulated, diverse, and studied assets in every way. With crypto, it feels like it’s being improvised as many countries are banning or legalizing it, as if it were drugs rather than financial assets.
It is important to note that cryptocurrencies are not a hardcore exchange; it’s a much more volatile market, yes, but has its own rules that you need to knowr before you even think about investing a dime. And the best way to get started is to understand how it differs from other more common forms of investment.