Thinking About Cryptocurrency vs Stock Market ? Let’s Break it Down Simply. Both cryptocurrency and stocks are ways to invest, but they affect how they work and what you might get.
WHAT IS CRYPTOCURRENCY?
First, we all have to understand what cryptocurrency is. Cryptocurrency is generally known as crypto. It is a form of currency that exists digitally or virtually. With the help of developed technology, the transaction of crypto throughout the world is very much easy and secure. Cryptocurrency is not under any regulating authority or it is not controlled by the center. It is maintained on a decentralized network. As a decentralized network, it provides high security to transactions and storage. It is a very new medium of exchange and with the passage of time, it gets more and more popular. There are several types of cryptocurrency among them the most famous one is Bitcoin. Some other popular cryptocurrencies are Peer coin, Cardon, Ethereum, Litecoin, and many more. The concept and cryptocurrency itself have attracted a huge population. The person who uses cryptocurrency must have a password of 16 characters.
➡️WHAT IS THE STOCK MARKET?
Nowadays starting from Children’s to older one very one is very much well know about Stock Market. The stock market is growing like mushrooms throughout the country.
A stock market is a place where shares of publicly listed companies are traded. In simple words, we can say that shares of different companies are sold in the stock market. It is a place where both the buyers and sellers meet to exchange equity of the shares of public corporations. For example, when stock shares or securities are sold in the primary market later on they are traded on the secondary market. The secondary market plays an important role, here one Investor buys the share from other investors at a market price, and this price is both accepted by the buyer and seller. The shock market is controlled by Regulating Authority. In India, both the primary and secondary market is governed by the SECURITY AND EXCHANGE BOARD OF INDIA (SEBI). The best example of the Stock Market which is very popular throughout the world is The New York Stock Exchange(NYSE) on wall street.
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➡️ADVANTAGES AND DISADVANTAGES OF INVESTING IN CRYPTOCURRENCY AND THE STOCK MARKET.
➡️Advantages of investing in cryptocurrency
⏺With the increase in demand the value of crypto increases which might maintain the market and prevent inflation
⏺ Every currency is governed by the government. But the transaction of the cryptocurrency is stored by the developers on their hardware, which means it is free from central control also.
⏺The most important feature of cryptocurrency is, the mode of transaction is cost-free. We can send money across borders.
⏺ It is a digital form of currency but with high security and privacy. To provide more security the developer uses Pseudonyms that are unconnected to any user account.
⏺ Funds can be easily transferred whether International or domestic.
➡️Disadvantages of cryptocurrency.
⏺ The privacy and security of cryptocurrency are very much high, so it is difficult for the government to trace any user. Bitcoin has been used as a mode of payment during illegal work. It is also used by some people to convert their illegal money to legal.
⏺If any user loses the private key of their wallet, then they can not get back to their wallet back.
⏺ There is no refund or cancelation of money in cryptocurrency.
⏺ As it exists digitally, the chance of crime increases.
⏺We know that cryptocurrencies are highly decentralized but in reality, the ownership is highly concentrated.
➡️ADVANTAGES OF THE STOCK MARKET.
⏺Investing in the stock market can help to earn more within a short period of time as compared to other investments.
⏺The time you buy the stock of a public company it gives you proportionate control over the stakes of that company. The ownership grants you many rights along with the voting rights of the company.
⏺Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) play important roles in the Indian stock market. The stock market is high liquidity. It means one can easily buy the share from the Stock Market.
⏺The stock market always provides a wide range of choices like Shares, Mutual, and Funds.
⏺Stock market is more secure and has higher returns in a shorter period of time. If a person has good knowledge about the stock market then he/ she can earn money in a short time.
➡️Disadvantages of Stock Market.
⏺The risk in the stock market is very much high. Investors have a high risk of losing their money if they are unable to generate the level of profit they want.
⏺The market risk is very high. A prime Illustration of increased market risk is stock market crashes.
⏺Due to inadequate knowledge about the stock market and share Investors face lots of problems.
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