Crypto market the new stock market

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Image made using canva

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Introduction

Hello everyone and how are we all doing this fine week, hope we are all good and welcome to another on my blog.

Today on my blog I would be talking about the crypto market in relation to the stock market and how they two have developed over the last decade.

Stock market.

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Around the early 19th century when companies decided there was need to put source for income from the public rather than through bank loans and money from relations, this lead to what is known as the stock market.

The stock market is a market whereby companies sell bits of ownership of Thier company to the public's for an agreed sum.

In today's stock market they exist thousands of companies in the market selling stocks in order to generate capital.

Virtually all companies we know have stocks which can be bought in the market for different prices.

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Crypto market

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Since the advance of crypto tokens they have been an increasing number of tokens in circulation, each day many tokens are being created to serve different purposes and this has created what we know as the crypto market.

This has led to the creation of various platforms called exchanges where this tokens are bought and sold by the public.

The collective name for this market is known as the crypto market and it is the sumtotal of all the crypto tokens in existence.

As at writing this post the crypto market is worth an estimate $1.2 trillion.

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Similarity

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When we take a closer look at both the crypto market and the stock market we notice Alot of similarities and some are as follows

Method of sales

Both the crypto market and the stock Market are open to the public, what this means is that members of the public are encouraged to invest Thier capital in any of the desired market to earn profit.

Volatile

Due to the forces of demand and supply both the crypto and stock market are very volatile, at any given point of the day they is always babsligjt increment or decreament to Thier prices.

Market capitalisation

Both the crypto market and the stock market have Thier market caps in trillions of dollars this is Soo because they have Alot of people both the private individuals and governments investing in them.

Technical analysis

They way in which both crypto and stock prices move can be studied technically, this could be done through the use of technical indicators such as moving average or more simple method such as price action.

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Difference

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Though the stock market and the crypto market may have many similarities they vary in multidties of ways.

Ownership

They are various restrictions to the ownership of stocks in the sense the before one can own stocks he or she must provide a lot of information and state his country of origin, often times countries like America prohibit people from other countries freely buying stocks.

But with crypto you can buy crypto tokens irrespective of your county.

Taxation

The issue of taxation is peculiar to only stocks, this is so as those who deal in stocks are required to pay a percentage of Thier profit to the government in form of taxation.

To a very large extent proceeded from dealing in crypto are taxed by government s.

Volatility

Though both form of asset are highly volatile when we take a closer look we notice that the crypto market is more volatile than the stock market.

Take what we saw in the recent Luna crash for example we saw the price of Luna crash from 119 to 0.0000 something this.

Such crashes though they occur in the stick market, they are very rare.

Illegal.

In various countries such as Nigeria it is still considered illegal to deal in crypto currencies as the government has declared that this is the assets of criminals.

It is so sad to hear this but yes this is true in my country Nigeria crypto is frowned out and everyone trading it could be tagged as a suspect by the government.

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What's is the way forward for crypto and stocks.

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Without a doubt the future of the world is in crypto, in just the 15 years since it's inception in 2009 we have seen the crypto market capitalisation grow to as much as $3 trillion in late 2021 this just tells us the share magnitude to which the public is heavily reliant on crypto.

In the previous years we have seen Soo many countries take legalise crypto and even accept it as a method of exchange just as el Salvador has done very soon many other countries will follow through.

Countries like kazganistan increase in Bitcoin mining and contributing > 10% to the total hash rate in the system.

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Conclusion

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Yes crypto is a force to reckon with, but we must not forget that experience is the best teacher and hence we must be carefully when dealing in the crypto market.

We must not enter the crypto market with our site set on making it big the very first day or week but slow and steady. We would get there.