An Interesting Comparison Of The Two Financial Worlds #002
Hello crypto friends,
I count it another privilege to come before you all today to continue our discussion from where we paused it.
I believe you are all enjoying your activities in the community and on steemit also.
Today, we shall be examining some comparison between traditional trading and crypto trading, please follow along as we embark on this journey.
- MARKET HOURS
Another major difference between traditional trading and crypto trading are their market hours.
The traditional trading have limited time in which they operate, these market such as stocks have a specified time in which they are open and can be traded.
Anyone trading outside the open hours of the traditional market will have to get their orders filled when the market has been reopened.
Crypto trading on the other hand don't have time limitations in which it can be traded.
The cryptomarket is always open and this implies that it can be traded at anytime of the day.
- TRADING PLATFORMS
Another key comparison between traditional trading and crypto trading is the platforms that facilitates its activities.
The traditional trading activities are usually facilitated through broker accounts that are made available by the Financial institutions.
Also trades can also take place physically and also electronically.
The crypto trading on the other hand are facilitated through cryptocurrency exchanges.
Cryptocurrency exchange is known to be a platform that allows it's users to manage, buy and sell their cryptocurrencies easily.
These exchanges may come in centralized form (that is being controlled by a central authority) or in a decentralized form ( free of the control of the central authority)
- ASSET OWNERSHIP/SECURITY:
Another comparison between traditional trading and crypto trading is the ownership of the assets being traded.
In the traditional trading system, you don't have a direct ownership on the stocks being traded but you can have authority over it, only through your brokerage account.
In crypto trading, you directly own whatever assets you are trading.
You have a direct ownership to the funds in the wallet because you will be handed the cryptographic keys to the wallet, which will inturn enable you to have direct access to the funds in it.
And with this, traders are 100% responsible over the safety of their asset.
CONCLUSION
The traditional trading system and the crypto trading system both posseses their unique characteristics and risk profiles.
It will be best if each trader makes his own research before investing into any of them
Thank you, friend!
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