Comparison of Stocks vs Crypto, Which is Profitable?

Investing has now become one of the most important needs and lifestyles. By investing, you can generate additional income from various assets. Two of the most trending investments right now, stocks vs crypto. Which one is more profitable?

Investing also makes it easier to maintain asset valuation values from inflation. One of them is investing in stocks vs crypto. 

Among the various types of investment, cryptocurrencies is one of the most interesting options at the moment. Besides being a big name Bitcoins, the upside potential is one reason why cryptocurrencies are another investment opportunity beyond stocks, gold, and real estate.

Get to Know Stocks Vs Crypto

For those of you who are still confused about choosing the best, VCGamers has provided several comparisons below.

Get to Know Stocks

Share is a document that can show that a person or company owns the company.

Therefore, the more shares owned by investors, the higher the ownership of the company. In return, shareholders are entitled to receive dividends in the form of dividends per period and capital gains.

To invest in stocks, you must register on a platform registered with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX). After registration, you can access all information related to the capital market through an application that is prepared according to the platform of your choice.

However, we often hear that the issuer's share price is quoted per share. However, to start trading stocks, you must buy a minimum of 100 shares or 1 lot. 

Get to know Crypto

Crypto assets that are usually used to make virtual transactions or invest on the Internet. The most popular cryptocurrencies include Bitcoin, Ethereum and Litecoin.

This is slightly different from stocks, which can benefit from capital gains and dividends. Crypto asset owners can benefit from transaction revenue as well as income from projects implemented using this digital currency.

If you want to start investing in cryptocurrencies, you can use the many digital platforms available. In Indonesia itself, crypto asset platforms are registered at Commodity Futures Trading Regulatory Authority (CoFTRA).

Comparison of Crypto and Stock Investments

To help you better understand the stock vs crypto comparison, here is a brief comparison showing the differences between cryptocurrencies and stocks and the pros and cons of both. 

Asset Type

When you buy shares of a company on the stock market, the shares you own are basically your percentage of ownership of the company. The company's performance will determine the value of the shares. Public companies can issue shares at any time to raise the necessary funds to grow their business.

Unlike stocks, when you buy cryptocurrency, be it coins or tokens, the assets you own do not necessarily represent partial ownership of the company or project that issued them. 

Also read: List of the Best Crypto Games, Many Play!

Volatility

Volatility is the biggest differentiator between stocks and cryptocurrencies. Stocks, especially in Indonesia, have a volatility limit mechanism when the market is out of control.

Automatic rejection of the highest and lowest prices until trading stops. This means that volatility is easier to manage when there are sharp dips or rises.

Unlike stocks, crypto assets do not have this volatility control. Therefore, cryptocurrency prices will move based on supply and demand.

This is what drastically increases or decreases crypto assets. Cryptocurrencies have a decentralized mission, but they still have to follow the rules to operate in the country. 

Indonesia itself has legalized digital currency as a commodity rather than a means of payment. Therefore, cryptocurrencies are regulated by Commodity Futures Trading Regulatory Authority (CoFTRA).

Also read: How to Play Crypto for Beginners, Note This!

Meanwhile, stocks included in financial products are regulated by the Financial Supervisory Agency (OJK). So, that's the difference between stocks vs crypto that can be used for trading and investing now.