Merits of Stock and Cryptocurrency Trading

Joseph Young | August 7, 2017 | 5:09 am
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Merits of Stock and Cryptocurrency Trading

Joseph Young | August 7, 2017 | 5:09 am

Cryptocurrency and stock trading are fundamentally different from one another. In conventional stock trading, investors create a diverse portfolio of equity in certain companies, trading stakes in public corporations. In cryptocurrency trading, however, investors and traders prefer to invest in cryptocurrencies such as Bitcoin and Ethereum as long-term investments.

Leading cryptocurrencies and crypto-assets including Bitcoin and Ethereum are still at their early stages in development. The entire cryptocurrency market, which is valued at over $110 billion, is still dependent on a large group of speculative investors that have invested in crypto currencies to expose themselves to the new asset class and to learn more about cryptocurrencies in general.

The vast majority of investors in Bitcoin perceive the digital currency as a long-term investment, safe haven asset, digital gold and a currency. Many traders utilize Bitcoin as both a digital currency to transact on online marketplaces, offline merchants with Bitcoin visa debit cards, and as a peer to peer payment method to send money efficiently, with low transaction fees and no mediators.

Hence, apart from a small group of traders that attempt to test the short-term trends of leading cryptocurrencies such as Bitcoin and Ethereum through technical analysis and publicly available market information, the majority of investors in Bitcoin and Ethereum are long-term investors and traders.

The stock market is significantly different from the cryptocurrency exchange market in the sense that most try to utilize high-performance trading platforms to day-trade and profit off movements within a short period of time. More to that, to be able to trade public stocks, investors either are required to become accredited investors or invest through stock brokers. In the cryptocurrency market, anyone can invest in cryptocurrencies without boundaries.

For instance, through ShapeShift, any trader can purchase a wide range of cryptocurrencies using Bitcoin. The initial purchase of Bitcoin can be facilitated through Bitcoin exchanges by bank transfers, over-the-counter deposits and in some countries including South Korea, Japan, Hong Kong and the Philippines, bank ATMs, convenience stores, and subways.

There exist distinctive merits in both stock and cryptocurrency trading. Both markets are highly liquid and offer innovative trading platforms such as eToro, a trusted social trading platforms utilized by millions of active users, that enable investors and traders to invest in stocks and cryptocurrencies without having to undergo a strict accreditation process.

More importantly, on the eToro platform, through its social trading platform, users, investors, and traders can copy the portfolio of successful traders through the CopyFund and benefit from the success of top investors.

Both stock and cryptocurrency markets offer opportunities for investors and traders to drive high profits with limited resources and capital. It will be beneficial for traders to operate on a platform such as eToro that offer both stock and cryptocurrency trading platforms so that alternative trading methods can be tested in both markets.


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NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

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