I am here with the subject of Exchange or Cryptocurrency or Forex , which is one of the most curious subjects of those who want to invest . Many people are attracted to emerging markets. However, those who do not do enough research can not find the answer to the question of whether the stock market or bitcoin will earn more.
In this article , I have included details that will satisfy the curiosity of those who are wondering whether stocks, crypto money or forex are more advantageous. I aimed to create a guide for investors who are stuck in the stock market or coin dilemma.
Recently, I have been frequently exposed to the question of whether Bitcoin or the stock market will earn more. I wanted to answer all questions from my own circle and readers who follow my site through a single channel.
I explained by giving examples whether crypto or stock market is more suitable for people who get bored with traditional investment tools such as gold or foreign currency and want to turn to different investments . If you are torn between cryptocurrencies or the stock market , be sure to read the entire article.
In addition to all the issues I mentioned above , I will also talk about whether it is forex or crypto , which is worth investing in. Thus, we will touch on the pros and cons of all markets, the differences and similarities between them.
Now, let’s briefly talk about the Stock Exchange, Bitcoin and Forex markets, and then let’s take a closer look at the details of the stock market or crypto money question.
What is Forex?
Forex is the world’s largest foreign exchange market. With a daily trading volume of 7 trillion dollars, it has a huge size compared to all other markets. This means that the liquidity of the forex market is high.
Since Forex is the largest market in the world and the most trading volume, spread rates are also low. Spread; It is the difference between the prices you pay when buying or selling a financial asset. The market with the lowest spread rates, also known as the scissors range; It is Forex.
There are some features that make the Forex market special. These; leveraged trading, bidirectional investment, financial product diversity and low spread rates.
Leveraged trading ; It offers investors the opportunity to enter larger positions with their existing collateral. Leverage is one of the biggest reasons why traders prefer forex. With this feature, the number of those who say forex to the question of whether it is the stock market or forex is increasing.
Forex is also a 24-hour market. For this reason, investors do not need to wait for any session time to trade and they can instantly evaluate investment opportunities.
Stock market, Bitcoin or Forex?
Stock markets are places that bring together investors who want to buy or sell. The stock market is also defined as a marketplace where securities, commodities, derivatives and other financial instruments are bought and sold.
The main function of exchanges is to ensure fair and regular trading and effective formation of price information for any security traded on that exchange. Exchanges provide companies, individual investors and other participants a platform where they can buy and sell investment instruments such as stocks, bonds and bills.
Worldwide stock exchanges are available in most countries. Today, when the stock market is mentioned, the first thing that comes to mind is Borsa Istanbul (BIST). BIST, formerly known as Istanbul Stock Exchange, is the stock exchange where stocks are traded in our country.
Among the prominent stock exchanges in the world are New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE) and Tokyo Stock Exchange (TSE).
Stocks of publicly traded companies are generally bought and sold on the Stock Exchange. There are a total of 500 stocks traded on the BIST stock markets. If an investor buys these shares, he becomes a partner in that company at the rate of his share. As the value of companies increases, their stocks also appreciate. Investors can also earn profits in proportion to their stocks.
Investors who are researching the stock market or bitcoin turn to cryptocurrencies such as Bitcoin when they think that stock investment is not suitable for them. The way to get cryptocurrencies is to open an account from the crypto money exchanges that provide them. For investors who ask if Bitcoin is a stock market, it is necessary to make this distinction well.
Cryptocurrencies such as Ethereum, Ripple, Dogecoin, especially Bitcoin, are among the most preferred investment tools recently. If you want to invest with these cryptocurrencies, you can try the Gate.io exchange where I also have an account .
Forex market is the largest financial market in the world. It is the market with the highest liquidity thanks to its daily trading volume of approximately 6 trillion dollars. In addition, transactions can be made 24 hours a day, 5 days a week. With the leverage it provides , it is possible to trade with more than the amount invested.
Investors should also look at the spread rates while wondering whether it is Forex or crypto. Spread is the range of trading spreads. The Forex market is the market with the lowest spread rates with the high liquidity it provides. In addition, when looking at Forex, stock market or crypto money, it should be noted that the Forex market covers all investment instruments.
There is a serious debate about whether Forex or Bitcoin pays more. While some investors argue that Forex is more advantageous, some investors prefer Bitcoin. However, at this point, it should be taken into account that the risk ratio is higher due to the high volatility of cryptocurrencies.
Stock Market or Cryptocurrency?
One of the best ways to generate income over time is to invest. Finding the right investment may not be as easy as it seems. All investments involve a certain risk. Some have higher risk, while others have lower risk.
Investors who are shy about the stock market may turn to alternative investments such as Bitcoin. However, when evaluating Cryptocurrencies, it becomes important to consider your overall portfolio goals and risk tolerance.
If you are going to ask whether the stock market or cryptocurrency is more risky, of course, cryptocurrencies are more risky due to volatility. However, we can say that cryptocurrencies are more advantageous at the point of earning. Therefore, by looking at your risk-reward ratio, you can decide whether it is the stock market or crypto money.
Although cryptocurrencies are extremely volatile, the stock market, that is, stocks, also gets its share from the activity in the markets. Especially in the Covid-19 epidemic, serious decreases were seen in global stock markets. In such events that affect all markets, the importance of investors’ trading in the right place has been revealed once again.
It is now known by everyone that both cryptocurrencies and the stock market can be volatile over time. So, for whom does the stock market or crypto option become more meaningful? Let’s take a closer look at what you need to know about it.
What is the Difference Between Stock Exchange and Cryptocurrency?
If you are new to cryptocurrencies but experienced with stocks, knowing the difference between Bitcoin and the stock market will help you decide where you want to invest.
Stock market and cryptocurrency are both types of investment. It is up to you to choose either or even both. However, there are a few important differences between them.
When faced with a question such as stock or crypto , the pros and cons of both should be evaluated together. Both have advantages over each other. Here’s what you need to know to figure out which one is right for you.
- Stocks are investment instruments that have existed for many years. For this reason, the stock of a company with a solid structure will not easily upset you in the long run.
- Cryptocurrencies, on the other hand, have only been in our lives for a little over a decade. Bitcoin entered our lives in 2009 and we see that cryptocurrencies are still in the development process.
- When you buy a stock in the stock market, you become a partner of the company. You invest your money in a company that you think may be more valuable in the future.
- Cryptocurrency investment is made by buying a certain currency and using it as a payment method or to increase its value.
- Stocks show ups and downs in the short term and volatility is not very high. In the long run, the trend may be upwards depending on the company.
- Cryptocurrencies can show very high ups and downs in the short term. In the long term, (Ex: Bitcoin) has always shown an upward trend.
- Cryptocurrencies are decentralized and exchanges are not regulated, while stocks are strictly regulated.
- The difference between the stock market and Bitcoin is most obviously that the stock market has an institutional structure. Cryptocurrencies have not yet been accepted at the desired level.
Stock Exchange, Cryptocurrency or Forex? More Advantageous?
Let me first state that there is no single answer to this question. Because there is no common answer that will be right for every investor. For this reason, it is necessary to consider investor types when looking at whether shares or crypto are more advantageous.
Let’s talk about the advantages of both investment vehicles so that we can see which crypto or stock is more attractive. Then you can decide more easily whether stocks or bitcoins are for you.
Advantages of the Stock Exchange
When you buy stocks of companies traded on the stock exchange, you become a partner. In line with the shares you own, you are now a shareholder of that company to a certain extent. You even have the right to vote at the general assembly.
In addition, the companies that make a profit can distribute it to the partners with the decision of the general assembly. This is also called a dividend. You can get your share of this profit share in proportion to the shares you own.
As the value of the company increases, the stocks also appreciate. In this way, you can profit from both dividend income and share value increase.
Among the companies listed on the Stock Exchange, there are those with a certain background and large capital. They are also the largest companies in the country. Different companies from every sector can satisfy investors in terms of reliability.
Companies that have survived the economic crisis and do not upset their investors in difficult times are relieving their investors in this regard in the coming years. For this reason, those who think about long-term investment prefer stock market stocks.
Dividend retirement also comes to the fore in long-term investments. Those who are considering buying stocks for 15-20 years or even longer can become dividend retirees with their annual dividend income in the coming years, without the need to work anymore. In this regard, it is important to choose companies that pay dividends and are thought to survive for a long time.
Since the basic logic of the stock market is to become a shareholder in company shares, it is the preference of those who are considering long-term investments. Mobility in the stock market is lower than forex and cryptocurrencies. In the current situation, the daily ±10% rule is applied. This also reduces the risk. However, the rate of return is also limited.
If long-term investment is not for me, if you say that you want to earn higher rates in the short term and want to continue my transactions with active markets, the stock market may not be for you.
Bitcoin emerged as the first cryptocurrency. The biggest advantage is that it has a high return potential. In addition, being the most liquid cryptocurrency makes it easy to buy and sell.
It is possible to buy and sell Bitcoin on all crypto exchanges. For this reason, it can be separated from other investment instruments in terms of access. It can also be used as a payment method.
With Bitcoin, you can send to anyone in any country in the world. All you have to do is start the transfer process from your own wallet to the other person’s wallet. Moreover, this process is extremely secure and low-cost.
The number of people who prefer Bitcoin as an investment is increasing day by day. Therefore, demand is rising. Due to the limited supply, the expectation of price increase is increasing. Bitcoin investors are also discovering altcoins. In this way, the market volume is increasing gradually.
Another advantage is that Bitcoin trading can be done 24 hours a day, 7 days a week. The stock market is closed in the evening and on weekends. But since Bitcoin and other cryptocurrencies are decentralized, it is obvious to trade on cryptocurrency exchanges every hour of every day.
As a matter of fact, if we add the advantages of both markets, we can almost get the advantages of Forex. It is among the advantages of the forex market that it is the most liquid market in the world, offers foreign exchange types, commodities, stocks, indices, cryptocurrencies, and is open 24 hours a day, 5 days a week.
Also, the forex market has a leverage feature. Thanks to this feature, investors who start with low investment amounts can perform their transactions with higher volumes at rates such as 1:100, 1:200, 1:300.
Another feature that distinguishes the Forex market from the others is the ability to make two-way transactions. It is possible to profit from the rise or fall of an investment instrument. However, if you bought a stock in the stock market, you would only make a profit while rising. But you can also profit from the declines in the Forex market.
If you still have the question of stock market or crypto money , I can easily say that the forex market is one step ahead due to these advantages.