The Differences between Stocks and Crypto that You Must Know

Nafa Lightyani

The Differences between Stocks and Crypto that You Must Know

Rancakmedia.com – For those of you who don't know the difference between stocks and crypto, you can easily get this information in the article that we have provided below.

Stocks and crypto are two types of investment that are often chosen by investors. Even though both can generate profits, there are fundamental differences between the two.

What are Shares

Shares are one of the investment instruments issued by public companies to obtain capital.

What are Shares

Shares indicate a person or company's ownership of the company that issued the shares.

As a share owner, a person has voting rights at the general meeting of shareholders and is entitled to share company profits in the form of dividends.

Shares can also be traded on the stock market. Stock prices are determined by factors such as company performance, economic situation, and market demand.

If the company's performance is good, the value of its shares will increase. Vice versa, if the company's performance is bad, the value of its shares will decrease.

Investing in shares carries high risk because their value can rise and fall quickly. However, if done carefully and wisely, investing in shares can provide quite large profits in the long term.

Therefore, it is important for investors to study information about the company issuing the shares before investing.

How to Buy and Sell Shares

How to buy and sell shares through the stock market consists of several stages, namely:

How to Buy Shares

Here's how to buy shares that you need to know:

How to Buy Shares

  • Opening a stock account at a securities company or stock broker, the process of opening this account requires documents such as KTP, NPWP, and other supporting documents.
  • Depositing funds into a stock account, after opening a stock account, you need to deposit funds into that account. These funds will be used to buy shares.
  • Choosing shares to buy, before buying shares, make sure to study the profile of the company that issued the shares, such as reports finance and company performance.
  • Placing a share purchase order, after selecting the shares to buy, you can enter a share purchase order through a securities company or stock broker. There are several types of orders, such as market orders and limit orders.
  • Waiting for the order to be processed and shares purchased, after the share purchase order is processed, the shares will be yours.

How to Sell Shares

To sell shares, the steps are almost the same as buying shares, namely:

  1. Log in to your stock account and select the shares you want to sell.
  2. Placing a share sale order, after selecting the shares to be sold, you can enter a share sale order through a securities company or stock broker.
  3. Waiting for the order to be processed and the shares to be sold, after the order to sell shares is processed, the shares will be sold and the proceeds from the sale will go into your shares account.

However, keep in mind that share prices can change at any time and the selling price may be lower or higher than the buying price. Therefore, it is very important to study the stock market and invest carefully.

Advantages and Disadvantages of Stock Investment

Stock investment has advantages and disadvantages that need to be considered before deciding to invest. The following is the complete explanation:

Stock Investment Benefits

Here are the advantages of stock investment, that is:

Stock Investment Benefits

  1. Potential for large profits: Shares have the potential for large profits in the long term because the value of shares can increase along with the performance of the company that issued the shares.
  2. Dividend payments: As a share owner, you are entitled to a share of company profits in the form of dividends.
  3. High liquidity: Shares can be traded on the stock market which has high liquidity making it easy to buy and sell shares.
  4. Portfolio diversification: Stock investments can be part of portfolio diversification, namely dividing investment risk into a variety of different investment instruments.

Stock Investment Losses

The following are the disadvantages of stock investment, namely:

  • Market risk: Stocks can rise and fall quickly because they are influenced by economic and political factors, as well as stock market conditions.
  • Business risk: The performance of the company issuing shares can affect the value of the shares, so that if the company experiences poor performance, the value of the shares will decrease.
  • No guarantee of profit: There is no guarantee that stock investments will provide profits, because the value of shares can change at any time.
  • Requires time and knowledge: Stock investing requires time and knowledge to study the stock market and choose the right stocks.

Therefore, before deciding to invest in shares, make sure to consider the advantages and disadvantages associated with this investment.

Always do research and analysis before investing and invest carefully.

What Is Crypto

Cryptocurrency or cryptocurrency is a digital currency created through secure and decentralized cryptographic technology.

Cryptocurrencies use blockchain technology to record and verify transactions.

Crypto security is based on complex encryption technology, making it very difficult to counterfeit or hack.

In addition, the decentralized system in cryptocurrency allows each user to verify transactions independently, without the need for third parties such as banks or other financial institutions.

What Is Crypto

Some examples of the most popular cryptocurrencies are Bitcoin, Ethereum, Litecoin, Ripple, and many more.

Cryptocurrencies can be used for various transactions, such as online payments, international money transfers, and investments.

However, investing in cryptocurrency carries high risks because its value is highly volatile and is not guaranteed by the government or official financial institutions.

Additionally, there are security risks associated with cryptocurrencies, such as losing access to digital wallets or fraud by scammers.

Cryptocurrency is a type of digital currency that is safe, decentralized and used in various transactions.

However, investing in cryptocurrencies should be done with caution due to the high risk.

How to Buy and Sell Cryptocurrency

To buy and sell cryptocurrency, the steps you need to take are as follows:

1. Open an Account on a Cryptocurrency Exchange

First, you need to open an account on a cryptocurrency exchange such as Binance, Coinbase, Indodax, and others.

To open an account, you usually need to register with email and verify your identity such as your KTP or SIM.

2. Make a deposit

Make a Deposit

Once the account is registered, deposit money into the exchange account using available payment methods such as bank transfer, credit card, or e-wallet.

3. Choose the Cryptocurrency you want to buy

Select the cryptocurrency you want to buy from the list available on the exchange.

4. Make a Purchase

After selecting cryptocurrency, enter the amount of money you want to invest. Then click buy and the transaction will be processed.

You will have cryptocurrency in your account once the transaction has been processed.

5. Selling Cryptocurrency

To sell cryptocurrency, select the cryptocurrency you want to sell and enter the amount you want to sell. Then click sell and the transaction will be processed.

Money from selling cryptocurrency will enter your account after the transaction has been processed.

6. Withdraw Money from Exchange Account

If you want to withdraw money from an exchange account, make sure you have verified your identity.

Then select the available money withdrawal method such as bank transfer or e-wallet and enter the amount of money you want to withdraw.

Advantages and Disadvantages of Crypto Investments

Below are the advantages and disadvantages of crypto investment, as follows:

Benefits of Cryptocurrency Investment

The following are the advantages of cryptocurrency investment, namely:

Benefits of Cryptocurrency Investment

  • Potential for large profits – The value of cryptocurrencies can rise very quickly in a short period of time, providing large profit opportunities for investors.
  • Decentralized – The cryptocurrency system is not centralized in a financial institution or government, so it is not affected by political or economic policies.
  • Fast and easy transactions – Cryptocurrency transactions can be done in minutes and without geographical restrictions.
  • Advanced technology – The blockchain technology used in cryptocurrencies is highly advanced and secure, thereby reducing the risk of fraud and data security.

Cryptocurrency Investment Disadvantages

The following are the disadvantages of cryptocurrency investment, namely:

  • High risk – The value of cryptocurrency is highly volatile and difficult to predict, so there is a big risk of losing money if the value of cryptocurrency suddenly drops.
  • Not regulated by the government – ​​Because they are not regulated by the government, cryptocurrencies do not have the protections of bank deposits.
  • Fraud and scams – There are many cryptocurrency scams that can make investors lose their money.
  • Concerns about security – There are concerns about the security of cryptocurrencies, as they could be targets of hacker attacks and theft.

In conclusion, cryptocurrency investment has the potential for large profits, but also carries high risks.

Before investing in cryptocurrency, it is important to conduct research and analysis first, as well as consider the risks associated with this investment.

Difference Between Stocks and Crypto

Stocks and cryptocurrency (crypto) are two types of investment that are often discussed and used by investors.

Although both can generate significant profits, there are fundamental differences between the two.

Difference Between Stocks and Crypto

Here are some key differences between stocks and crypto:

1. The market that covers it

The first difference between stocks and crypto is the markets in which they can be traded.

Shares are traded on capital markets that operate in each country with different policies, while cryptocurrencies are traded on crypto markets that operate globally.

2. Operating Hours

A fairly obvious difference between stocks and crypto is market opening hours. The capital market which houses shares is usually only open on weekdays from 9.00 am to 15.00 pm, divided into two sessions, namely the initial session from 9.00 am to 11.30 am and the second session from 13.30 to 14.49 afternoon.

Meanwhile, cryptocurrency trading hours have no closing time restrictions, so the market is always open and investors can make transactions at any time without having to wait for market opening hours first.

3. Assets

The difference between stocks and crypto lies in their different forms. Shares are securities issued by a company and offered to the public as a form of ownership.

Meanwhile, crypto is a currency or digital asset that can only be accessed via the internet and uses cryptographic technology to maintain its security.

4. Brokers that provide services

To be able to enter the stock market and crypto market, you cannot do it alone. There are parties who act as intermediaries who connect you with each market.

Brokers Providing Services

To enter the stock market, you need to register first with a securities company. Meanwhile, to enter the crypto market, you have to register with a special crypto brokerage company.

5. Risks Acquired

Stock and cryptocurrency investment instruments have high risks because of the large profit opportunities.

However, between the two instruments, cryptocurrency has higher risks. This is caused by very high and rapid fluctuations in cryptocurrency values, and there is no regulatory body that controls cryptocurrency prices.

On the other hand, share transactions are regulated by the Indonesian Stock Exchange to prevent price movements that are too extreme.

Therefore, although there are still risks, the risks of investing in stocks tend to be more manageable than the risks of investing in cryptocurrencies.

In this case, the difference in investment risk between stocks and cryptocurrencies can be influenced by the existence of regulatory and price control bodies that control transactions in the stock market, while the cryptocurrency market is still under development and not yet regulated.

6. When was it founded

The capital market or stock market has been around for a long time. The world's first capital market emerged when the VOC offered securities to the public in 1611.

This concept was then followed by other capital markets that emerged at a later date.

Meanwhile the crypto market emerged with the emergence of the first transaction using Bitcoin in 2009.

7. Analysis Used

In general, fundamental analysis is used to evaluate stocks. In this analysis, the performance of the company is assessed and the true value of the shares is sought. On the other hand, technical analysis is usually used for cryptocurrencies.

Analysis Used

The two types of analysis have differences in the type of trading and investment carried out.

Stocks are more often invested over long time periods, while cryptocurrencies are more often traded over shorter time periods.

8. Shares Used

The transaction unit for shares is per share. You must buy a minimum of 1 lot, consisting of 100 shares.

Meanwhile, in cryptocurrency, you don't need to buy a whole coin or token. You can buy in the smallest units, according to the capital you have, even if the coin price reaches millions.

9. Permitting Body

The final difference between shares and crypto is the supervision of transactions by different institutions in Indonesia. The stock market is supervised by several parties such as the Indonesian Stock Exchange and OJK.

Meanwhile, to be able to transact smoothly, all coins and tokens on the crypto market must have permission from BAPPEBTI.

Conclusion

Shares are one of the investment instruments issued by public companies to obtain capital. Crypto or cryptocurrency is a digital currency created through secure and decentralized cryptographic technology.

That's the article about the differences between stocks and crypto that you must know, hopefully the information above can be useful and helpful for all of you.

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Nafa Lightyani

I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends.