5 Differences between Stocks and Crypto, Must Know!

crypto open what time

There are differences between stocks and Crypto that Vicigers must know. Especially for Vicigers who want to get into the world of Crypto investment.

Although both are investment instruments, there are significant differences.

This time, VCGamers will discuss the differences between stocks and Crypto. Let's see the difference below!

Also Read: The difference between Forex and Crypto, See the Explanation!

Trading Time

The Difference between Stocks and Crypto Trading Time
Stock Trading Time. Source: Currency.com

The first difference is trading time or investment time. The stock market is only open from Monday to Friday.

The Crypto Market has operating hours for 24 hours full. So, Vicigers can see cryptocurrency prices changing from time to time every second.

For Vicigers who are used to trading stocks on the IDX or the Indonesian Stock Exchange, they must know that there are two sessions of the working day.

The first is 9 am to 11.30 pm WIB. After that, there is a second session from 13.30 to 14.50 WIB.

So, stock traders will invest or trade stocks only at that time.

Unlike stocks, the Crypto market is open 24 hours so it never takes a day off. However, trading Crypto also has to look at the hours or times that are busy with other people trading.

This is because price movements will also move more when there is an increase in transactions at a certain time.

Also Read: Characteristics of a Crypto Scam You Must Understand, So You Don't Lose!

Volatility

The Difference between Stocks and Crypto Volatility
Volatility illustration. Source: Ultra Tech India

Volatility is one of the differentiating factors between stocks and Crypto. For stock trading, there is a mechanism that limits volatility when the market gets out of control.

The mechanism is in the form of auto rejection up and down to trading halt which means a temporary stop trading.

Volatility for stock trading will be more awake if suddenly there is a drastic decline or increase in the stock market.

Meanwhile, Crypto assets do not have a volatility mechanism like stock trading. Crypto asset prices will move according to Supply and Demand.

This causes Crypto assets to fall or rise to the moon. 

Also Read: How to Learn Crypto To Start Trading, Read This!

Connections and Regulators

The Difference between Stocks and Crypto Regulations
Crypto Regulation illustration. Source: The Economic Times

The next difference is from the side of the connection and regulator. Connections in this context are connections between traders around the world.

For stocks, foreign traders must follow the rules in Indonesia such as creating a domestic securities account.

Trading Crypto does not require that, because the connection is unlimited and free worldwide.

This makes Crypto trading or transactions more from various countries around the world.

Even though it has a decentralized mission, Cryptocurrency trading still has to follow regulations in a country.

For example, Indonesia, which provides legal access to cryptocurrencies and authorizes them Bappebti.

Bappebti or the Commodity Futures Trading Regulatory Agency regulates Crypto assets circulating in Indonesia.

In contrast to crypto, stocks are financial instruments so there are OJK or the Financial Services Authority which regulates stock trading regulations.

Stock and Crypto Asset Types

The Difference between Stocks and Crypto Assets
Crypto Asset illustration. Source: Zipmex.com

The three Vicigers buy shares of a company, then these shares have a percentage of ownership of the company that Vicigers buys shares of.

How well a company performs will be a factor that determines the value of the shares Vicigers owns.

A company that publicly issues shares will raise capital so that it is able to develop the company's business.

Meanwhile, Crypto does not have ownership of a company or team that makes Crypto assets.

So, Vicigers owning Crypto assets such as tokens or coins does not necessarily mean that Vicigers own ownership of the project or team that issued the Crypto assets.

Stock and Crypto Trading Platform

The Difference between Stocks and Crypto Platforms
Stock Trading Platforms. Source: Admiral Markets

The available trading platforms are the difference between stocks and Crypto. A stock transaction Vicigers can do if the trader is a customer of a security.

Vicigers can do Crypto transactions through Crypto exchanges, which then Crypto assets can be stored through Crypto wallet applications.

Thus the discussion regarding the differences between stocks and Crypto. For gaming top up needs, come on VC market by VCGamers!

Crypto article by PINTU


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