Hey everyone. I am quite new to the crypto market and I was wondering if I could get some guidelines about trading. I have been trading for quite a long time on the stock market and had moderate success. What are the main differences between trading crypocurrencies and stocks. From what I understand there is no downtaime in which the market is operating and also there is no supervising entity, that could interfere in the process of trading. Are there any other factors to be taken into consideration? Also, could anyone recommend a trading service with low transaction fees?
Well, stock market is for business' and if you are buying a stock you are buying the company at least a small share of it. Hence, when that company makes money your stock value goes up (most of the time at least) and when that business loses money than the stock loses value as well. Basically the stock is tied to a company directly.
However, bitcoin is not tied to anything other than what people put a value on it. Collectively we believe bitcoin should worth something and it does, we decide on the price of bitcoin and how much it should be, for all other crypto coins as well.
When a stock gets manipulated or done something to it so it worths less than what it should, people still flock to it insanely because it is still tied to a company and if it is making money and worths a lot than even if whales try to drop the price you still buy it knowing fully well that company is doing well so no reason to panic.