Suppose today you put your 10 lakh rupees in the stock market for one year and the same amount in the crypto market for one year.
Where will your money give you tremendous returns? You can guess and read this article completely without skipping because,
In this article, I will tell you some such differences in the stock market and crypto market, after knowing which you will not remain a bit confused in these two markets.
And at the same time, I will also tell you where you can get a tremendous return on your investment, so are you ready to know?
We will start the article with the difference between the stock market and crypto market;
First of all, we will know the difference between these two markets because many people are trapped in them,
and they think that the way the stock market works, the cryptocurrency market also works.
But it is not that there is a lot of difference between the two, today some of them will discuss the major difference. First comes our list indifference-
Table of Contents
Old Vs. New
The cryptocurrency was first recognized in America in 1983, but it got recognition when bitcoin was launched.
After the launch of bitcoin in 2009, there was a new turn in the crypto market, and people started knowing it.
If we talk about the stock market, then the stock market has been more than 200 years old,
due to which people have built trust in it for a long time; it is very different in the stock market and the crypto market.
Age is the first reason investors still have little faith in cryptocurrencies today as they have only recently become familiar with it and have seen the high volatility in it up close.
So this was the first difference between the cryptocurrency market and the stock market now. Let’s move on to our second difference,
The stock market is a 2ndery market, while the Crypto market is a Primary market.
The stock market is the secondary market while the cryptocurrency market is the primary market; What did it mean?
Let me say, “When you are investing in the stock market, you are investing in a company that is physically delivering some product or service to you.”
If we talk about Tata or ITC, then these companies strengthen their presence in the physical market before getting listed in the stock market.
Only after that, these companies are listed on the stock exchange.
And you may also use the product or service of companies listed in the stock market.
So here, a different type of bond is formed between you and the company, and trust is created.
While this is not the case in the cryptocurrency market because it is the primary market, you are investing here in direct currency; physically, you are not connected in any way in this market; only digitally can you be linked to this market.
The third biggest difference is regulation;
As you already know, the government fully regulates the stock market, and SEBI tracks every single market movement.
And any untoward incident also takes the responsibility of the incident.
If there is any fraud in the market, you can complain about it, and SEBI will take action on it according to your complaint.
While this is not the case in the crypto market, there is no regulator, and this entire market works on blockchain technology.
Although Blockchain technology is quite safe, from here, neither your data can be leaked, nor there are chances of fraud with you unless you do not make any mistake.
Still, if something like this happens to you, you cannot complain about it because there is no regulator in this market.
A group of supercomputers manages this entire technology.
Due to the absence of a regulator, people do not even understand how the cryptocurrency originated and can it ever end.
My analysis says that it will not end now because lakhs and crores of people have joined it. And with time, its uses and popularity seem to continue to grow. Now a new concept called NFT is also based on this.
Technical and Fundamental analysis
The stock market has a complete track record of the stock of any company.
When did the store go up, when did it go down, when did it give less return; Using all this data, you can conduct technical analysis and get an idea of what will happen in the future.
You cannot do this in the crypto market because there is no past track record of any currency there.
The most widely used cryptocurrency is bitcoin: if you try to track the history of bitcoin, you will not find a way to do any technical analysis because it has a lot of volatility.
If you look at the price chart of bitcoin, sometimes its price suddenly goes up very high and sometimes falls very short,
due to which you can not conduct any technical analysis here.
Talking about fundamentals, you can check the fundamentals of any company in the stock market.
In which you can see the balance sheet and other financial histories of the company.
While you cannot properly check the fundamentals of any Cryptocurrency, maybe you will get to see all these things in the coming few years.
As of now, there is no such thing called fundamentals in the crypto market, which is a drawback; For investors and the crypto market.
Exchange and non-exchange
The buying and selling in the stock market take place based on the exchange, whereas this does not happen in the crypto market.
In the stock market, if we talk about India, the NSE and BSE are the two main stock exchanges; although there are 5,
there are only two major ones where most of all investor traders buy and sell.
While there are unlimited exchanges in the crypto market, only those platforms are called exchanges.
So, whenever you plan to invest in the crypto market, first of all, try to find a good exchange to exchange.
Because maybe the exchange or platform you are investing in through the market only shows you that you have done so many bitcoins,
but in fact, you do not have any bitcoins in your account, so always keep safety in mind.
Lots of Taxes and Fees in Stock while in Crypto, it is quite less.
In whatever difference we have told you so far, the stock market has shown a stronger position than the crypto market,
but now we will see some such differences in which the crypto market is stronger than the stock market.
The first is Taxes and Fees: When you invest in the stock market, many types of fees and taxes are levied on your investment.
Whereas when you invest in Crypto, you only have to pay your exchange fee, which is very low compared to the stock market, and it is a + point for crypto investors.
Like the stock market, many brokers in the crypto market charge many types of hidden fees.
That is, you are not told about those fees directly. But when you start investing with them, you have to pay such fees which you have never heard of.
But when you invest through a good application, then your fee is very genuine.
Demat and Wallet: Another difference that makes Captomarket better than the stock market is the difference between Demat and Wallet.
When you want to start your investments in the stock market, you need a Demat account for which you have to contact a broker.
You can begin investing after the broker gets you all kinds of documentation, whereas you can start investing in Cryptos by simply KYC.
I hope you have understood the difference between the stock market and the crypto market.
Looking at these differences, you can guess that there is still less stability in the crypto market right now.
Financial risk is there in both places, and if you are in the market, you have to take the risk.
So now the question comes that after taking the risk, from where will you get more returns?
Where to get huge returns
So let have a look at the nifty50 chart and any cryptocurrency like bitcoin for the last year and try to guess.
As you can see, the 1-year data of Nifty 50 in the above chart for the last year.
On October 12, 2020, nifty50 was trading around ₹11930, and on today’s date, the price of nifty50 is trading around ₹17945.
Talking about the total growth, in 1 year, the development of Nifty Fifty Total ₹ 6015 has come.
Now let us have a look at the chart of bitcoin and see how much change has happened in bitcoin in the last year-
On October 11, 2020, the price of one bitcoin was close to 831035, which is currently around ₹ 42 lakh, i.e., around ₹ 34 lakh. There has been a growth in bitcoin in the last year.
Now suppose you had invested 10 lakh rupees in nifty 50 in October last year and invested 10 lakh rupees in your bitcoin;
So let’s see how much has become in your 10 lakh rupees in Nifty 50 and how much has become in bitcoin.
|Investment Type||One year Growth||Return in 1 year on the investment of 10lakh|
As you can see in the chart, Bitcoin had given eight times more return than Nifty 50 last year.
So on this basis, we can say that if there is not much negative news about the crypto market in the coming time, then the cryptomarket can give a good return in the future.
So this was our analysis; Whether you want to invest in the crypto market or not is your decision.