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PROFILEQUESTION
Cryptocurrency or Stock Market?
As we as a whole know, securities exchange had been there for quite a while now and then again, cryptographic money is a quick rising pattern with regards to the universe of exchange and business. Some may want to put resources into crypto as a result of exceptional yields however some will in any case run with securities exchange and take no chances. As you would see it, what will be the best alternative to contribute your cash on?
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I have chosen to invest in crypto because this market is younger and the ease of entry is lower. If you want to invest in ICOs, you still can. Whereas if you want to invest in IPOs via the stock market, you have to have a certain net worth and investing experience to invest in them before they hit the market. The stock market is technically "safer" with more established companies but many of them are well established and likely won't be innovating too much. I prefer to be in the younger, more innovative space myself but everyone needs to make their own decisions based on their own research. 

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Cryptocurrencies are extreme high-risk instruments you should't invest more in that you can afford to lose in total. The stock market is safer but the yields have historically been much lower. The answer to your question depends on how you want to weigh risk in your portfolio.

Right now, I'd stay out of both crypto and stocks. Why? I'd want to wait for both of them to bottom out. Many smaller cap blockchain projects will die in the near future. The stock market has only recently begun stumbling. Cash is king right now. I suggest you study market cycles and discuss your ideas with qualified professionals. Your re-entry into the markets is probably best done in stages, i.e. by dollar cost averaging. Picking the absolute bottom is very difficult. After careful research, formulate a plan that takes the most likely bullish and bearish scenarios into account and stick to it. Do not give in to your emotions. 

When it comes to crypto projects, those most likely to survive this winter are those that can cut costs to a level where they can continue operating at near zero token prices. The cost of running a full Steem node must come down drastically. That's what Steemit Inc is trying to do by migrating from Chainbase to RocksDB. That will cut down on the RAM requirements of running the chain. As I'm writing this, there are 10 Steem RPC (full) nodes up. See: https://geo.steem.pl/. For Steem to survive, running an RPC node (a full node) must be made cheaper. At this stage, I regard it as a given that image hosting paid for by Steemit Inc will be a thing of the past soon if there is no trend reversal in prices soon. Images posted directly to Steem are not on the blockchain. They are hosted by Amazon Web Services (AWS) and paid for by Steemit Inc. Their quality was downgraded a couple of days ago to save bandwidth. Steemit Inc has to pay for every time someone downloads an image from Steemit. To alleviate the high cost, I recommend that everyone host their images themselves or have them hosted somewhere else. IPFS (Interplanetary File System) is a good free decentralized option, albeit a little slow one. It goes without saying that you should keep copies of all your images our sound files.

That fact that operational costs will be critical for survival means that those cryptocurrencies that are mined (Proof-of-Work) must be able to adjust the mining difficulty fast enough as the prices plummet for mining to remain profitable. When the cost of mining one coin exceeds the price of the coin, miners will have to quit. That means less hashing power, which will be detected by the network, meaning that the mining difficulty will be adjusted downwards making mining profitable again. For this to work, the difficulty adjustment algorithm must be able to adjust quickly enough. I would advise everyone to steer clear of those cryptocurrencies in which the difficulty adjustment is too inflexible to adequately respond to price action without a hard fork. 

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If you are resourceful and if you understand a particular market then it is always better to diversify your portfolio. But the key is always that you must know proper money management, you must understand the technical aspect of a particular market and then apply your trading skill in a particular market.

In any market nothing is permanent, all are relative and the one which you see today as the most strongest and reliable may not be that strongest after some time. So the wise thing always is to have a probabilistic approach to entry and exit so that you remain profitable most of the time. Cryptocurrency and stock market trading are two completely different domain and the same principle to decide on a particular investment will not be wise. Therefore always make your due diligence and do enough research to remain always on the comfortable horizon, be it loss or profit, if you are aware of a situation then you are most likely to make profit most of the time. I am not saying one is good against the other, I am just trying to say that everything is relative. For example, the same December month 2017 was all crowded with crypto investment because it was profitable at that time and many people made huge return out of their investment but the same market in December 2018 is completely different and you are looking for other alternatives to make a return out of your investment.

Therefore it is always better and wise to diversify your capital so that if something fails, then the other can feed you some return out of your investment. So be it cryptocurrency or stock market or forex market........diversification of capital, proper money management, risk assessment and understanding technical aspect of a market are key.

Thank you and have a great day.

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Why would you choose one from the two when you can have both of them in control? It's just a matter of correct decision making and risk taking. Stocks are for long term while cryptos are for both short-term and long-term. You can use the same methods youve been using from stocks trading to crypto trading or vice versa. Stocks are very low at risk and loss but also very low at profit while cryptos are highly volatile creating a major turn around on a market in an instant. Stocks are surely more secure than cryptos but cryptocurrency poses big aid to technology than stocks so you can say cryptos could be for long-term assets. These are just simply contrasts and comparisons of the two different financial industry and there could be more that only you can conclude. Start venturing now!

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There is one more to hold. Savings account. Well, at the moment, due to the trump and xi trade tariff war. Dow Jones index hasn't really seen a bottom. Only when a bottom is seen and the price is stabilized then stock is a good and safer bet. All companies on either Nasdaq or even Nyse are low and are worth the investment but then on the other side, there is still this volatility in the stock prices.

However, the good side, you can short the stock by betting it to go lower rather than for it to go up. If it does stabilize I am sure the stock market would have a great chance of jumping to new highs. Keep cash first and wait patiently stalking the prey and waiting for the prey. Stock platforms like etoro are good for these things. Well this is one I use. It's a good time to just keep your cash and wait. Hold position until its safe. Read more first.

Cryptos - Nasdaq just started with btc futures yesterday which is a good hedge again dropping prices. You can short btc. I tried that and made some profits. I am not sure if the stock market optimism and crypto optimism are correlate, it seems like the crypto drop is getting a steeper fall ever since the trade war started.

Nowadays, most stock platforms have crypto investment built into it. You won't be buying the real btc but the price of that btc which is the cfd. I am sure by next year due to lemmings theory of the hoards. Everyone would run towards btc.

Nevertheless, educate yourself first more. Even if your a veteran in this field there is still more to learn as learning is never an ending process. We could learn till we are old. I think if you are fearless, just invest in both. Split it in both. I am keeping most of the crypto savings in btc and many some other more stable cryptos and investing in my Steem power. I have been a stock investor for years and my portfolio hasn't really fully recovered offsetting the gains I made the year of 2018. Hope that the trump war ends soon. The Tariff man strikes again.

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2 Comments

Stocks are still a viable way for investing your wealth while cryptocurrency is a new form of investing that is backed by technology and good cause depending on which project are you investing to.

I would say that both of them are equally important for your portfolio since both of them still remain to us for the next years or decades. However, it will still depend on your goal for investing: will it be for the money or for the cause.?

The way I see it, most cryptocurrencies are backed by a principle that aims to solve real world issues. I personally aim in investing in something that will bring me fortune and someone that advocates for a positive change for the world where we live in.

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I prefer to diversify from both of them (cryptos and stocks) plus i will use Forex too as my trading instuments. 

Imagine if we only depend on cryptos this year, i am sure we will suffer big loss because bearish control of the market for the past 1 year.

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To choose in between the two I would rather go with Crypto than  Cryptocurrency than Stock Market. Because in crypto 

  • I get to get to decide what to do with my funds aka cryptos (Decentralization)
  • Any actions can be taken in any period of time. I do not have to rush to get to stock brokerage to deal with my funds. 
  • I will have freedom 
  • I am getting access to tons of information through internet and as the market of crypto is worldwide I have access to information at any point of the day or night.
  • The manipulation of Stock market is too much to handle. As stock brokerage houses and few people gets the benefit from it, rest almost looses money slowly (from my experience)

I have my own choice to get to dig about companies that I want to invest in and I can do my own research as most of the coins are out there in the open market and almost nothing is hidden out there to be not true. Just some own research is needed in order to grow in crypto space. 

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Some people think that the stock market and the cryptography market are two different perspectives with big differences, while others argue the opposite.

Compare these two markets!

Similarities:

First, the two markets work the same way. The price of both is defined by the demand, that is, how much people are willing to pay for a stock or a currency. This means that when someone pays more than the previous person, the price increases. When no one is willing to pay a certain amount at any given time and someone is willing to give up their property at a lower price, the price goes down.

Second, both can be evaluated according to the idea behind them. A stock is based on the business behind it and a motto on an idea, but the value of both is based to some extent on the idea.

Thirdly, both are so far valued in fiat money. It could change if the dream of crypto-currencies came true. But for the moment, the majority of investors value anything in the fiduciary currencies like USD, EUR, GBP.

If you are an investor from the stock market, there is no difficulty for you to adopt cryptocurrencies, it's simple!

Differences:

For starters, even when the value is based on the idea of ​​the currency or stock, on the stock market, you actually invest in the company, in the cryptocurrency market, you invest in technology or the currency, as you want it, but you never really get the right to own a part of the company, even if its activities affect the price of the currency.

This also affects the total valuation of the cryptocurrency market, there is none. Nobody really knows what is the total market capitalization of cryptocurrencies. The cryptocurrency market also acts almost ten times faster. It affects everything. Prices go up faster, prices fall faster, prices change at larger magnitudes.

Market manipulation does not really exist on the stock market, but it does exist in the cryptocurrency market. Is this a bad thing? It depends if you are caught between two or not. To a certain extent, this could be beneficial for wider adoption because it involves more people.

Finally, as new competitors can enter the cryptocurrency market so easily, old currencies die much faster than old companies disappear on the stock market. There is no reason for hundreds of crypto-currencies to exist, while there are reasons for hundreds of companies to exist.

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In case you are inventive and if you grasp an explicit market, it is for each situation better to grow your portfolio. Nevertheless, the key is constantly that you should know fitting money the board, you ought to grasp the particular piece of an explicit market and a while later apply your trading fitness in an explicit market.

In any market nothing is unending, all are relative and the one which you view today as the most grounded and strong may not be that most grounded after some time. So the clever thing constantly is to have a probabilistic method to manage area and exit so you remain productive as a rule. Cryptographic cash and securities trade trading are two absolutely exceptional territory and a comparable principle to settle on an explicit endeavor won't be savvy. Thusly constantly make your due consistent quality and do what's vital research to remain reliably on the pleasant horizon, be it disaster or advantage, if you think about a situation, you are well while in transit to make advantage as a general rule. I am not saying one is extraordinary against the other, I am just endeavoring to express that everything is relative. For example, a comparative December month 2017 was out and out swarmed with crypto adventure since it was advantageous around at that point and various people made enormous return out of their theory anyway a comparative market in December 2018 is absolutely special and you are scanning for various decisions to make an entry out of your hypothesis.

Thusly it is for each situation better and clever to extend your capital so that if something misses the mark, the other can support you some landing out of your theory. So be it cryptographic cash or securities trade or forex market. Diversification of capital, suitable money the administrators, danger assessment and understanding particular piece of a market are basic.

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