Stocks and bitcoins are different forms of investment and both can bring good results. Check out!
Estimated reading time: 3 minutes
With the cryptocurrency market increasingly known, many people think about investing in digital assets but put aside a series of doubts and opt for traditional actions. But what is the difference between Bitcoins and Stocks?
Bitcoin (BTC), the largest cryptocurrency in the world, is a digital asset, that is, it is electronic money that operates within a digital network. Bitcoin transactions are protected by cryptography. Despite this, like other cryptocurrencies, Bitcoin has high volatility and is therefore considered a high-risk investment.
Stocks are securities that represent part of the capital of a company, being traded on the stock exchange. Upon acquiring a share, the holder becomes a partner in the company.
Both are equity investments. But each with its specifics.
Bitcoins X Shares
Volatility is an important aspect that differentiates cryptocurrencies from equities. As stated earlier, Bitcoin has strong fluctuations because it is a decentralized currency. That is, no financial institution intermediates the transactions.
Bitcoin has already hit $69,000 at its all-time high. Currently, its value is in the region of US$ 20 thousand. It is worth mentioning that BTC is the largest cryptocurrency in the world.
The volatility of shares is slightly lower and is directly influenced by global economic factors. In these cases, there is the intermediary of the stock exchanges in the movements.
Another difference, less relevant, is the opening hours. The stock exchanges are open during business hours, while the crypto world is full-time, every day of the week.
Because they are different markets, the rules that differ are numerous.
In which to invest?
For any investment you need to know the objectives, risks and deadlines. Diversifying a portfolio is the most recommended by analysts so that investors can have greater security and not depend exclusively on a single type of asset. In this sense, both stocks and cryptocurrencies can be good options depending on the established criteria.
Both markets require dedication and understanding of how they work. And both are influenced by the global economy. Therefore, it is necessary to be attentive to what happens in the economic scenario.
Bitcoin, as a cryptocurrency, is considered a high-risk investment precisely because of its volatility. But, it can bring good results for those who invest. Stocks, if they are from larger and more stable companies, can be safer and have a good return.
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