The Difference Between Trading Cryptocurrencies and Stocks
Trading is known as the activity of buying and selling investment instruments that can be easily controlled.
Trading is also of interest to many people because it can provide profits in the short term, in contrast to longer investments. However, a trader must actively trade to make a profit. However, it should be noted that trading is a high-risk trading activity.
There are two types of trading that are now popular with the public, namely trading stocks and crypto assets.
In fact, for how to get a profit, both are similar, namely by buying at a low price and selling at a higher price and both also have the same risk, but the level does depend on the ability of a trader’s analysis before making a decision.
So what exactly is the difference between trading stocks and crypto assets?
1. What is Traded.
In stock trading, of course, what is traded in the form of shares from companies on the stock exchange. While crypto asset trading is trading crypto assets or digital currencies of very diverse types ranging from Bitcoin, Ethereum, and many more.
2. Trading Hours
Stock trading can only be done 6 hours x 5 working days. This little time should be used by traders to trade according to the analysis carried out. On the other hand, trading crypto assets can be done every day, for 24 hours, 7 days a week, 365 days a year, without any time limit. So, Traders can trade in the morning or evening, even on weekends.
3. Security
Both stock trading and crypto assets have guaranteed security. However, this security is guaranteed by different parties. The security of stock trading is guaranteed by the securities company, namely the stock exchange.
Meanwhile, the security of crypto assets depends on the exchange used.
However, there is no need to worry about security when trading, as long as you choose the right place or exchange platform.
Crypto asset trading in Indonesia, for example, is regulated and supervised by the Commodity Futures Trading Regulatory Agency (CoFTRA), which is under the auspices of the Ministry of Trade.
4. Order Execution Tempo
It takes time to execute orders when trading stocks. The duration depends on the queue that is still valid. Meanwhile, trading crypto assets, executions carried out will be processed instantly. This is what makes many people choose to trade crypto assets, because it is much faster.
5. Purchase Moved To Another Broker
In stock trading, if you want to move your purchase to another broker, you can do it after T+3 or short for Trade date plus 3 days (trading days plus 3 days) with a certain fee. While trading crypto assets, it can be done easily without conditions and fees, but some require KYC (Know Your Customer) requirements, in the form of personal identity data, including user photos.
6. Registration Process
The stock trading registration process is more complicated and takes a long time. Traders cannot trade immediately after registering, maybe 3 days later they can only trade.
Unlike trading crypto assets, after registering a new account, you can make a deposit. Meanwhile, to start buying and selling, you still have to pass the KYC stage, except on peer-to-peer crypto asset exchanges or decentralized exchanges.
