When it comes to investing, there are a lot of choices to choose from. Where you will invest your depends on your goal. If your goal is to have material investments such as car and house then you can ask apply for loan for example. The risk of this is that when people are not that secured but they will already invest money on these. Hence, will result to negative credit. Because negative credit is inevitable, there are a lot personal tradelines wholesale here and there that people avail in order to properly monitor their credit and to be able to change their credit from negative to positive.
Aside from this material things, there are also people who likes investing where there money will grow such as stocks and cryptocurrency. However, since crypto is kind of new to the market these days, people get confused sometimes. They are always being compared to the stock market as if they are the same thing. While there are some similarities such as the prices are determined by demand. However, there are some differences between them and here are some differences:
1. Market Volatility
Cypto are volatile compared to the traditional stock market. It has not intrinsic or tangible value. The only cryptocurrency that could have somewhat of a tangible value would be Ethereum, since it is a block chain of a smart contract for other platforms.
2. 24/7 Market
Depending on the market, the value of coins changes over time. Since crypto are peer to peer because of the network, this simply means that they could be traded by any two individuals any time of the day.
3. Inconsistency of price
There is a slight mismatch of price when it comes to cryptocurrency exchange throughout from Poloniex to Okex because there is no centralized agents that ensures the limit orders to not be filled with the worst price in comparison to the best offers across all exchanges.
4. Upper Base and Revenue
For most of the coins, there is no such thing. In most cases, the price of the coins is strictly due to speculations. They are not legit companies with user base, revenue, or assets.
5. Vulnerable Assets
Investors themselves must store the coins themselves when trading crypto. These assets are really vulnerable because new traders are unsure on how to secure their storage. There are hackers that were able to stole 14% of supplies but they could still be recovered.
No matter the differences are, crypto and stocks are both great ways to make money,