I think crypto trading involves digital assets like Bitcoin and Ethereum while traditional stock trading involves owning shares of companies listed on the stock exchange.
Yeah but when you do trade stocks, you are also owning digitally, which is stored in a database telling you owned x amount of y stocks.
So if you do that in a centralized trading exchange in cryptocurrency, it's the same also, you are also trading digitally.
I mean the difference is that the money that is actually being sent there, you do own digitally but you can withdraw it to your pocket, how are you going to do that with the stock companies? For example, for a crypto exchange to let you trade, you need to send either money or crypto, so it goes in, but when you are talking about stocks, you just buy it digitally from the centralized government approved places, which means that, they are doing it for you, in crypto, you are doing against others.
There is no middleman with crypto exchanges, you may think that there is, but they just give you the meeting point. So when you want to withdraw crypto, to your wallet, you can, this is why you can't do that with stocks, what are they going to do, send you some papers that proves you have the stock? They won't.