stock market

You already know about the stock market. The stock market is a market where we can go and buy stocks of a company and sell them. To buy stocks, you have to go to the stock market. You have to go to the vegetable market to buy vegetables. There is a market for everything. Similarly, as you said, there is a market for stocks, and there is also a crypto market.

Cryptocurrencies

You have seen Bitcoin, Ethereum, Dogecoin, and Ripple, there are a lot of coins. When these are coins, if you want to buy them, then it will also have a marketplace. Before understanding the marketplace, you will also have to understand that when you go to the stock market, how do you buy? You know that there is an exchange in the stock market. You have heard about NSE. 

You have heard about BSE, the National Stock Exchange, Bombay Stock Exchange. Through exchanges, what can you do? You can buy or sell stocks. This is an exchange for you. It is a medium. Similarly, there are also crypto exchanges. If you download an application of a company, for example, you download the application of CoinDCXGo, then what happens? It is an exchange for you, where you can buy or sell a cryptocurrency. When you buy a stock, where is it stored? It is stored in your Demat account. As you have opened your Demat account, and on that, your stocks are seen there, your portfolio is seen. Similarly, for cryptocurrencies, you also need a wallet. 

The exchange there, this exchange provides you with a wallet. You have downloaded the application of CoinDCXGo, There you can invest in any cryptocurrency and where will it be saved? In the same wallet. Here you also get a crypto wallet. When you understand this concept you have a crypto market, crypto exchange and crypto wallet.

Comparing Stocks with Crypto

You must be thinking that the stock market is very stable, no one can easily manipulate it. But in the cryptocurrency market, many coins are being manipulated. Sometimes they increase their price, sometimes they decrease their price. It is true, but it also happens in the stock market. In the small-cap companies, when big players come, I say big bulls come, so big bulls do exactly this. Or you can say operators, they can take a stock very high and can also bring it down. 

It happens in both places. But what is the similarity between both places is that it cannot happen so quickly with big companies. The operators who come, generally target small-cap companies. Because if they put money here, then they can bring that movement in the stock in the actual share market. In cryptocurrencies, because the market size is very small if there is a big coin like Bitcoin, then it cannot be manipulated as easily as it can be in a small coin. 

When we talk about the stock market, to invest in blue chip companies, so if you are investing in very small coins in crypto, then check if you are gambling. When you see that the movement is very high, then the movement can come down. If the volume is less in small coins, then it is easy to manipulate it. And in big coins, like in blue chips, in blue chip companies, you will not get manipulation so quickly. Accordingly, the big coins in crypto do not get it quickly.

The Stock Market is Regulated

SEBI is sitting for you in the stock market. In crypto, it is completely non-regulated. People say that it is not regulated. When crypto was born, it was born on the basis that it would not be regulated. If it is regulated, then what is the difference between it and the rest of the currencies we use. The biggest thing about cryptocurrencies is that it is non-regulated, and there are disadvantages to them. If your fund is not secure, then you cannot tell anyone.

Investing in Stocks and Cryptocurrency

Then definitely you can take a long-term vision. Now why can you take this, because you check the fundamentals of the company. You do fundamental analysis. When you do fundamental analysis, you see how was the past performance of the company. You have records, when we talk about crypto, there are no records. There is no cryptocurrency market. How will you check the fundamentals, how will you know the track record. 

There is no cryptocurrency market. Many coins have just come in front of you. If you do not have records, then here you can long-term investment in stocks. You can think long-term only in cryptocurrencies and big coins. If you can get gains in the short term, then you can trade and invest in the short term and make a profit. That could be better, but invest only as much money in crypto as you are ready to lose because the market is very volatile. The stock market is far more stable because there is a lot of money in the stock market and cryptocurrency is very volatile. Money and profit can be very high and very fast.