The meaning of investing has changed with the emerging market trends. While stock investing was all the craze a few years back, crypto investing has become the new normal in the current environment. However, both these forms of investing have become exceptionally prevalent in the present times. As both crypto and share markets have been observing a rapid inflow of investors, it is worthwhile to bring out the underlying differences between the two.
Before diving into the difference, let us understand why investors often place cryptos and stocks next to each other while forming their portfolios. A fundamental point of commonality lies in how traders interact in the crypto and share markets. Cryptocurrency exchanges function much in the same way as stock exchanges, allowing buyers and users’ interaction to occur in a digital environment. Meanwhile, retail trading platforms allow users to access some basic types of trading orders, including market order, limit order and stop-limit order.
While we have discussed the commonality between the two, let us discuss how these assets are different from each other.
The difference in ownership
The fundamental difference between both investments lies in the underlying item that is being purchased. Stocks represent a stake in a company, while cryptocurrencies are tokens considered as a store of value. Cryptocurrencies such as Bitcoin and Ethereum are not…