Aaron Villa
3 min readApr 28, 2021

Crypto or Stocks: Which one is a more intelligent choice?

Technology has redefined everything in our life including investing. Nowadays, you can make transactions online, and you can manage your wallet in real-time. The information is out there and easily accessible. That means your profits and losses are also updated quickly, making the margin of error smaller than ever.

Cryptocurrencies are now the new frontier of investments. People are talking about investing in blockchain technology and even adding cryptocurrencies into their portfolios all the time. There is a growing interest in buying and selling crypto, with more and more big corporates investing a bulk of their finances in Bitcoin.

But should you invest in stock or crypto? Which one is a better fit for you?

When dealing with different types of investments, each market behaves differently compared to another. So, it’s not a simple comparison. They may sell the same products but do so in vastly different means and to diverse audiences.

First, let’s talk about the similarities.

❖ Demand determines the prices. Both markets function the same way. What it means is that when someone pays more than the previous person, the price goes up. When no one is willing to pay a certain amount at a particular time, the price goes down.

❖ Their value depends on the idea behind them. Stocks are based on the business behind them, and a currency is based on the opinion people have about it. However, to some extent, the value of them both lies in the idea.

These markets have their differences as well. Let’s list some of them below.

➔ Ownership. One of the main differences between stocks and cryptocurrencies is possession. Crypto is much easier to own than traditional stock. When you buy shares in a company from the stock exchange, this grants you a piece of that company. The financial situation of the company also determines the value of your investment. On the other hand, the purchase of cryptocurrency does not necessarily represent the company’s partial ownership that issued it.

➔ Market volatility. It can be something good and bad, depending on the situation. It means high risks but a high return of investment too. The stock market is more stable, which means less risk and a longer wait for financial reward. By comparison, crypto exchanges experience higher highs and lower lows since the market is relatively new. This means you gain more money for less, in less time. However, unlike the stock market with connections with governments or other global institutions, cryptocurrency is totally insulated from political influences.

➔ Market reach. If you want to start trading in the stock market, you will have to wait for a while. The stock exchange is a mature market, meaning it has many regulations and rules that make the trading process time-consuming. You need to find yourself a broker, you need the approval to sell, and only during business hours. With cryptocurrency, anyone can sell at any time they want. It is more accessible to people of all social standings and allows for swift trade movements.

If you’d like to know more about this topic and how to make the best of your investments, contact us here. A1PHA Trading & Investing creates leaders in the cryptocurrency space! Follow us on instagram!

-Aaron Villa

Aaron Villa

Cryptocurrency Investor and Trader ➟ Founder/CEO at A1PHA Trading & Investing ⤑ www.instagram.com/a1phatradinga1phanews.com