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Stark Difference Between Crypto
Exchanges And Stock Exchanges
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Since pre-historic ages,
trading had been a
common phenomenon
between two groups,
communities and
individuals. We all had
been reading about it
since our school days.
Trading dates back during
the early stages when it
was known as the ‘barter
system’. You all must
have read this in your
history textbooks.
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● But besides this, there is one more new phenomenon, which has gained
much attention in terms of trading is crypto exchanges. Both these new
terms share a common feature, and that is ‘trade’. Still, there is a difference
between these two trading phenomena. So come let us explore the
difference between crypto exchanges and stock exchanges in this blog.
● The wave of Bitcoin has been the pivotal factor in generating interest among
the people to buy cryptocurrency in India. Indeed, it faced criticism for its
misuse for carrying illegal trading practices. But when people experienced its
use in trading on various crypto exchanges, it overshadowed all those critics.
However, today our main focus is on knowing the difference between crypto
exchanges and stock exchanges, so let us stick to it
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Trading Of Assets
● This point is enough to tell you about the difference between crypto
exchanges and stock exchanges. When it comes to stock exchanges, it deals
with trading in shares and company stocks, whereas, cryptocurrency
exchanges as the name suggests, deals in
● cryptocurrencies or currencies which are in digital form.
● When trading of shares takes place on stock markets, it means equal rights
in a company. So when shares are purchased through a stock exchange, it
indicates your part ownership in that company. On the other side, when any
crypto tokens or coins are purchased, it does not mean you share partial
ownership with a company that issued the cryptocurrency.
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Stock Exchanges Are Much Mature Than Crypto
Exchanges
● While exploring the difference between crypto exchanges and stock
exchanges, there is one factor that clearly states the advantage of a stock
exchange over cryptocurrency exchange.
● This factor is maturity. In comparison to crypto exchanges, stock exchanges
are much experienced and mature form of trading. Here you can observe
the backing of government behind it.
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● Not only this, but stock exchanges also fare better in trade diversity and high
volumes. Because of this, some traders get ample opportunities in having
control over trading circles. When it comes to crypto exchanges, it is still
considered to be a newbie concept.
● It is free from regulation and intervention of central authorities like
government. If you take a glimpse into its brief history, you will find the big
difference in trading of cryptocurrencies which is much lesser in comparison
to stock exchanges.
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Factor Of Volatility
● Another big factor, that clearly states the difference between crypto
exchanges and stock exchanges is volatility. In contrary to former exchange,
a factor of volatility is low in the stock exchange.
● It is because low volatility represents stability in the market and is less
vulnerable to big traders which are often denoted as big fish. But in the case
of cryptocurrency, it is not so. Whale traders often make it a target with
their trade movements.
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Conclusion
While exploring distinctions between the two exchanges, we found that
stock exchanges are much mature than the crypto exchanges. But there
are rules in the stock exchanges that determine safety for investors and
traders. And with rules, there are also fees. The traversing costs linked
with stock exchange is very costly. Charging fees or commission by
brokers is expected here. Besides this, charges are also levied by banks
on making payments. Crypto exchanges on the other side are free from
regulation and incur minimal costs. That is why people find the easiest
way to buy cryptocurrency.
Sources
https://www.cryptoknowmics.com/news/easiest-way-to-buycryptocurrency
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Market & price analysis
Crypto discussion forum
ICO listing and rating
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Features
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Crypto gaming platform
ICO Launchpad
Blockchain tutorials and courses
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