How Does Trading Cryptocurrency Differ from Stocks

Published On:

By Jaylin

Companies and organizations are always looking to diversify their investment portfolio. Sticking to the oldest saying, “do not put all eggs in one basket”, companies strive to create new investing horizons. The stock market has existed for 400 years and counting. People know it in and out, have always trusted the regulations, and look forward to new opportunities. 

Whereas, cryptocurrency is a baby and a loud one at that! For investment purposes, the stocks vs. crypto debate have been circulating the market for the last few years.

Below we will discuss the difference between stocks and cryptocurrency and where you should invest your money. 

What is Stock?

A portion of a company, usually called shares, sold to the investors is called stock. Companies sell their stocks for several reasons, such as expansion, to increase profits, or to hire more people. 

Stock prices and worth depend upon the organization’s performance, stature, political scenarios, and on the stock exchange. You should do thorough research before investing in stocks because that translates into a long-term investment. And one that cannot be rectified without suffering any losses. 

What Is Crypto?

Cryptocurrency is a digitally produced and stored currency. Crypto got traction around 2014. Cryptocurrency records are decentralized, meaning they are not governed by any centralized authority. 

Popular examples of cryptocurrency are Bitcoin, Ethereum, Tether, and several others. 

It uses cryptography for security, hence the title. You can also use a VPN to further enhance your digital security. With a single click, you can easily create a separate tunnel for your data safety. A VPN blankets your original IP and allows you to choose your desired IP and hide your activity. 

Chrome VPN add-on also provides you with an instant option to switch to VPN security and mine crypto easily. Set up VPN in as many as a few steps and enjoy bank-level safety across all your electronic devices. 

VPN extension is available to download for Chrome. Chrome browser extension provides you with 2500+ global servers to choose from. Moreover, with VPN apps, get rid of any snoopers, government agencies, or marketers following your digital footsteps.  

Is Crypto Trading The Same As Stock Trading?

The simple answer to this question is, no. Both are very different from one another, despite both having volatile nature. 

Let’s look at the key differences between stocks and cryptocurrency, below. 

Key Differences Between Trading Crypto And Stocks


As you know, stocks are government-backed and provide maximum support and security for both investors and traders. Stocks follow regulations and laws defined by SEC, which keeps a closer look at the stock exchange activity, and provides fair opportunities for everyone.

On the contrary, the anonymity of the miners, and cryptocurrency buyers makes it extremely risky for the investors. Your wealth is digitally stored somewhere, protected by a 16-character long password OR a USB. If you forget your password or misplace the USB, you can kiss goodbye to your fortune forever. 

Plus, the anonymity of the cryptocurrency industry poses a great threat. Because you don’t know if you are dealing with a hacker or a genuine buyer. 


We understand that stocks are volatile and have bankrupted many investors since their inception. They are largely regulated by political situations, markets, and investor behaviors. 

But the volatility of cryptocurrency is unprecedented. Bitcoin saw an insane surge when Elon Musk, the Tesla giant announced to have invested in it. The owners were happy and it was all la land. However, the surge proved to be short-lived and it went down after a few months. 

Moreover, cryptocurrency prices are based on the supply and demand chain. The prices soar when the demands are high. On the contrary, it spirals down if there is a higher supply. You can’t predict its trends because the data is too raw and ever-changing.


Stocks have physical proof of existence and are controlled by a central market in every country. For stocks, you open a brokerage account and present physical proofs, such as social security numbers, signatures, etc. The law protects and governs the transactions and there is less chance of theft or fraud. 

Whereas, crypto works on whole different levels. It operates in anonymity, nobody knows who sold it, and who was the buyer. There are no physical proofs or documents, no government regulations, and backing, hence, no security. 


Being new in the market, cryptocurrency has low exchanges as compared to stocks. Coinbase exchange was created in 2012, and Binance, the largest cryptocurrency from 2014, the exchange had a $50 million exchange in May 2021. 

Stocks have been around for 400+ years and the exchange is unparalleled. Nasdaq alone had 5 times of Binance exchange in May 2021. It is a huge difference, also because Nasdaq is a relatively smaller exchange. 

Is Trading Crypto Easier Than Stocks: 

Both options have their pros and cons, however, stocks become favorites just because they have existed for hundreds of years as compared to cryptocurrency. But, many businesses have started accepting payments in cryptocurrency. Also, you can exchange USD and AUD in Bitcoin now. 

Final Thoughts: 

The cryptocurrency landscape is full of potential risks. Moreover, the lack of education and regulations makes it a risky front for investments. Stocks and crypto both are exciting options to explore for investment. However, you’d need to tread these waters cautiously as the risks increase with heavy investments. 

About Jaylin

I'm a professional blogger, marketer, and entrepreneur. I'm Passionate for writing and focusing on the informative article about Fashion, Health, Beauty, Travel and many more.

Leave a Comment