What is the difference between Stocks and Bitcoins?

Estimated reading time: 3 Minutes

With the increasing popularity of the cryptocurrency market, many people are considering investing in digital assets but put aside a series of doubts and opt for traditional measures. But what is the difference between Bitcoin and stocks?

Bitcoin (BTC), the world’s largest cryptocurrency, is a digital asset, that is, electronic money that operates within a digital network. Bitcoin transactions are protected by cryptography. Despite this, like other cryptocurrencies, Bitcoin has high volatility and is therefore considered a high-risk investment.

Shares are securities that are part of the company’s share capital, traded on the stock exchange. Upon acquiring a share, the holder becomes a partner in the company.

Both are equity investments. But each has its own details.

Share Bitcoins X

Volatility is an important aspect that distinguishes cryptocurrencies from stocks. As mentioned earlier, Bitcoin has strong volatility because it is a decentralized currency. That is, no financial institution mediates the transactions.

Bitcoin has already reached an all-time high of $69,000. Currently, it is valued at around $20,000 USD. It is worth noting that Bitcoin is the largest cryptocurrency in the world.

On the other hand, the volatility of stocks is slightly lower and is directly affected by global economic factors. In these cases, there is a stock broker in the movements.

Another difference, less important, is the working hours. The exchanges are open during business hours, while the crypto world operates full time, every day of the week.

Since they are two different markets, the disparate bases are numerous.

In what investment?

For any investment, you need to know the goals, risks, and deadlines. Analysts are advised to diversify the portfolio so that investors can get greater security and not rely exclusively on one type of asset. In this sense, both stocks and cryptocurrencies can be good options depending on the criteria in place.

Both markets require dedication and an understanding of how they work. And both are affected by Economie worldwide. Therefore, it is necessary to pay attention to what is happening in the economic scenario.

Bitcoin, as a cryptocurrency, is a high-risk investment precisely because of its volatility. But it can bring good results to those who invest. Stocks, if they are from larger and more stable companies, can be safer and have a good return.

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