Why the Cryptocurrency Market KILLS the Stock Market
Why Crypto markets are so much better than the Stock market
1) Crypto Markets are available anytime, anywhere
You just got done with a busy day and want to get home and trade/invest in stocks, but you find out that the markets have closed. What are you going to do, wait until the weekend? Stock market hours are extremely limited, 6 and a half hours a day in the US and closed on weekends. Similar times in markets across the globe. Cryptocurrency exchanges are open 24 hours a day, 7 days a week, even on holidays! Crypto is truly the market that never sleeps. Cryptocurrency opens so many doors for average traders and investors for just this reason. This is also why cryptocurrency moves so fast, a week in crypto is 168 hours versus the stock market's wimpy 32.5.
2) Manipulation (or lack there of)
Having experience in both the stock market and crypto, it has become evident that there is far less manipulation in the world of crypto. For example, stock market analysts. I can't even recall how many times I've been invested in a solid company that has been performing well only to be shot down because an analyst, with far less than 50% accuracy, downgraded my investment to 'SELL' for a -50% price target. Single entities should not be able to have such power over the markets, cryptocurrency is the answer. Don't even get me started on the penny stock pump and dumps. Although cryptocurrency has it's fair share of manipulation by large players, cryptocurrency by nature is far less centralized.
3) A new emerging market
The greatest minds in the stock market are the ones that are experienced. The cryptocurrency market being only a few years old, offers a level playing field for new investors to compete with lifelong stock market experts. If you get into the crypto market now, you are only a few years behind the most knowledgeable in the field. If you are getting into the stock market now, there are thousands of experienced players just waiting to take your money.
Less manipulation in the world of crypto? Really? If you could, I'd love to hear your explanation as to why because as I understand it, there's far more manipulation in crypto.
The are only a few exchanges that allow you to short cryptos (sell shares that you don't have), and currently none are available to the US. I should've added that in there. I want to also reiterate on the fact of the bullshit analysts that work for firms that can sway the price of good quality stocks.
Of course, I defintely agree on your point about BS analyst. I mean, they work for the same companies underwriting the stocks, so their recommendations should never be viewed in a vacuum. That said, the reason why I'd argue that there's more manipulation in crypto is because there are no fundamental valuation metrics to apply to crypto currencies, entire price movements are driven by sentiment. If a single well known figure, releases positive or negative sentiment whether this be through a single tweet or article, these opinions can shift the market +/- 20% each day. That is not healthy and not the kind of manipulation that's possible in the stock market. Also, pump and dumps are super easy to orchestrate in the crypto market, especially on coins with small market caps or exchanges with low volume. While pump and dumps do occur in the stock market, they are far more difficult to orchestrate and require much more capital.
You make a good argument and I agree that those kind of pumps (McAfee) exist, but nothing you said was factual. Even the biggest pumper McAfee, if you look at the coins he tweeted they are still up massively from where they were even after the dump. We can't even say that anything in crypto is a pump and dump yet because it is all speculation and everything is pumping anyways, whereas the stock market you have companies that have had negative millions in revenue for years. Also the US stock exchange market cap is 28 trillion and the cryptocurrency market cap is not even 3% of that at 800 billion, so there's no way crypto manipulation moves more dollars as the stock market does. Shorting (selling stocks you don't have) and margin trading (trading with money you don't have) is deceitful and manipulative.
Isn't it easier to manipulate a small cap cryptocurrency rather than a stock though?
Small cap stocks are a thing too. My point was that there is more manipulation in the stock market.
That's true, but in crypto you can go as low as a few million dollars. As I see it, there is market manipulation in both crypto and stocks, just done in slightly different ways.
Agreed.
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