Post
Topic
Board Economics
Re: Stock Market and Bitcoin
by
Nila soru
on 19/07/2018, 09:44:32 UTC
The concepts from stock market are applicable for trading Bitcoin ? Or I have to study crypto market specifically? 

The concept of trading in both market are the same. The exchange is based on law of supply and demand. The differences are mainly on the platform, stock market is based on the actual company while on the other are based on cryptocurrency. Some says that crypto are more volatile compare to stock market but I would say that they are both volatile and market movement are fluctuating. They are also driven by market emotion.
Here is a relation between stock market with other cryptocurrencies and the Bitcoin, we see that with sudden changes in the market of Bitcoin affect the other cryptocurrencies including the stock market which go together with Bitcoin but this is the perception of some experts. Experts say that these similarities will change with the passage of time but it is true that these are having similarities.
Bitcoin is also an investment like stock market. You will have to observe both to be successful trader in the future. There is just a little bit difference in bitcoin and stock market and that is stock market is run by the government and bitcoin is decentralized and the government has nothing to do with it. Bitcoin is more risky than stock exchange.