Cryptocurrency vs. Stocks: Key differences explained



Both the crypto and the stock markets are volatile and subject to external influences. However, there are also differences between them.

When we’re talking about cryptocurrency vs. stocks, there is a big difference in how they are traded. Cryptocurrency can be bought at a cryptocurrency exchange, whereas you can buy stocks at the stock exchange. Of course, there are differences in the exchanges and opening hours, as previously described. 

Normally, the crypto market is more volatile than the stock market. However, the stock market is also subject to volatility due to interest rate changes and uncertain situations like war, inflation rate and monetary policy changes. But, what about trading costs in cryptocurrency vs. stocks? 

Basically, transaction fees do not apply to the crypto market, as it is decentralized. However, you do pay a gas fee to reward the miners and validators who secure transactions on the network. 

On the stock market, transaction costs like brokerage fee apply, but you can often trade free of charge within certain platforms like eToro that do not charge any commission for trading stocks.



Source link

Comments are closed.