July 14, 2020

Stock Markets Versus Cryptocurrencies: Which One Should You Invest In

You will find that most of the marketers who have stepped in the Cryptocurrency trade market have no idea about any financial instrument before. However, you will find some of the knowledgeable people I stocks using the same tactics used in stock to trade in the cryptocurrency trade. They think that by doing so they are doing the right thing.

Before start investing in the trade market, you need to have a clear idea of what you are dealing with. You should know the nature of the market before throwing in your money. If not, you might as well be throwing your money in the flowing river.

Cryptocurrency is a volatile entity whose price keeps on changing at any given point of the tie. So, it becomes very difficult to predicts its market. However, if you are well versed in reading the charts and demographics, you might find some consistency in its price change. This can certainly help you to predict outcomes closer than usual.

In this article, we will highlight the fact that makes the Cryptocurrency market and stock market light-years apart.


Let’s start with the price evaluation. In the case of the cryptocurrencies, there is only one way to make money out of the cryptocurrencies. By selling them at higher prices. For instance, you have bought a cryptocurrency that is worth $10 and suddenly you find a buyer who is willing to pay $20 for the same cryptocurrency. You will sell all your Crypto assets right.

But in case of share, there are several ways to earn from them. You can earn by PE ration, Net asset value per share, or by discounted cash flow.

Ownerships and voting Rights

When it comes down to owning rights, Cryptocurrencies are an entity that gives their owner a full owning right. But with the shares, you do not enjoy the same facility. In the case of share, if you are owning 1% of a company’s share, that means you are only owning that 1% of the company.

When both of the scenarios are compared, then the right of ownership is strong with Cryptocurrency. Even if you have only a fraction f the total coin in the cryptocurrency, you are label to vote foe that percentage. But with the shares, with the 1% (as mentioned above), you will not be considered an important member of the meeting.


We all know that, in the share market, every year the shareholders are given dividends. That means the shareholders are offered a certain amount of profit to each shareholder of the company. But there is no such thing in the case of cryptocurrencies. However, in the cryptocurrency, there is a term called fork where the cryptocurrencies split into different cryptocurrencies. You can consider them as dividends.

Insider Trading

Another huge difference between shares and Cryptocurrencies is that shares are heavily regulated. This regulation follows certain rules and regulations and with all the shares and is circulated to the shareholders.

For instance, there is a rule that forbids people to trade share with price-sensitive information. As this might influence the share price of their companies. But in the case of Cryptocurrency, you can certainly use all the information at your disposal to influence the price of the cryptocurrencies.

Trading hours

When you are comparing the share market and Cryptocurrency market, then how can you forget the trading hours. It is very important to keep the trading hour in the minds, as the trade market has a tendency to perform in a certain way in a certain time. This is happening due to the same trading hours of mass traders.

In the case of the shares, the trading is close at the weekend and closes at 5 PM during the weekends. But for Cryptocurrencies, you can trade 24×7 on bitcoin evolution.


If we see the above analysis then we can say that investments made in the cryptocurrencies are riskier than that of the shares. Where on the other hand, shares are one of the most stable assets that you can invest in. Even the price evaluation is highly volatile in the case of Cryptocurrencies.

With that being said, we cannot neglect the fact that Cryptocurrencies is one of the assets that had more millionaire than any other asset in the past decade. So, it is up to you, what kind of risk you want to take with your capital investment. The choice is yours.

About the author 

Imran Uddin

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