Are Bitcoins on The Stock Market?

For those of you who are absolutely new to the world of cryptocurrency trading must be having a few questions in your mind: how to start, how to store, how to conduct your trading activities. But even before those questions arise in your mind, some of you newbies are likely wondering, are Bitcoins on the stock market?

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If that is indeed the question on your mind, then worry not, because we are here to clear all your doubts regarding this. This is a common question for a lot of people who are just beginning to get the hang of crypto trading and how it works. So let us dive into the answer and put your queries to rest.

Bitcoin and The Stock Market

To answer your question at the very outset, no, Bitcoins are not on the stock market. Stock market is meant for exactly that: stocks- shares of one or more public companies. Buying stocks and shares on the stock market leads you to enjoying an equity stake in whichever company you have bought the shares of.

Now, equity in a company is basically an asset that generates revenue in the form of dividends. It can also lead you to earn profits if you manage to sell it off for a higher price than what you bought it for. On the other hand, Bitcoin is a cryptocurrency- or a form of digital money. It was designed as a store of value and a means of exchange.

Yet, Bitcoin is frequently treated like an asset. In fact, in many countries cryptocurrencies are even subject to capital gains tax, including the US.

For this reason, it is a common confusion that arises: if Bitcoin is a part of the stock market. Truth is, it is not so, at all. It is only a part of the crypto market, with cryptocurrency exchanges of its own to trade on.

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Differences Between Stock Market and Crypto Market

There are several differences between the stock market and the crypto market. Let’s have a look at some of the major ones:

1. Extent of Regulation

The stock market, being an older and more well-established market, is subject to far more intricate regulations than the crypto market. Companies, traders and brokers all have to play by a set of standard norms and rules to prevent malpractice.

The crypto market, on the other hand, has a lack of clear regulations in a very large number of countries.

Even in countries like the US, which does attempt to somewhat regulate how the crypto market is being run, the regulations are not all crystal clear.

2. Time frame of Trading

Trading sessions in the stock market are not 24*7 in nature. They occur only during specific windows of time and very rarely are you able to find a stock exchange that offers continuous 24*7 services.

The crypto market, however, sees fast price movements and hence remains open all the time, every single day, unless some exchange needs to go down for maintenance. The peer-to-peer nature of crypto transactions also necessitates it.

3. Volatility

The crypto market is much, much more volatile than the traditional stock market. Owing to a number of factors that drive Bitcoin’s price, the crypto prices keep moving. Stock markets also move, but less frequently or abruptly than crypto prices.

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