An interesting article for you :
How to Earn money in Stock Market or Crypto Market:
What is Stock markets :
Stock markets are markets where trading of stocks takes place. Stocks have tangible value and represents your fractional ownership in a company. Companies issue shares in public to collect capital to expand their business, and in turn give you small fractional ownership of that company. This helps company to increase capital and grow a business and it is also beneficial for share holder, as the investor will also earns profit as the company grows.
What is Crypto markets :
Cryptocurrencies are digital assets that use cryptography, an encryption technique, for security like blockchain. In crypto markets, buying and selling of crypto coins like bitcoin, ethereum, ripple and 1000s more crypto currencies takes place. Unlike traditional currency, they are not issued by any central authority and most of them are completely decentralized. Their prices are completely depended on demand and supply.
Currently, Binance is the biggest exchange where people from all over world trade crypto currencies.
What is difference between Stock markets and Crypto market:
- Stock markets are centralized and governed by some authority and regulated while crypto market is decentralized and not regulated by anyone.
- Stock markets are less volatile than crypto market, hence in stock market prices increase and decrease slowly compared to crypto market.
- Crypto markets are highly volatile, which can give huge profits and can give huge losses as well.
- It is easier to start crypto trading than stock trading, as you don’t need much documents to start it.
- Stock markets can only be traded when markets are open which are generally 8hours per day, while crypto currency markets are open 24×7.
How you can start Earning in stocks or crypto markets.
For stock markets there are many online stock broker sites like zerodha, where people buy and sale stocks from stock exchanges. You need to have a bank account, demat account and trading account. You need to register with all your legal documents.
For Crypto exchanges, you don’t need much documentations. Just signup a new account on binance, bitfinex or localbitcoin.com. Buy some coins with your money then sell them on that exchange.
What should you know before investing in stock exchanges or crypto exchanges.
Both of them have many things in common. Here I am mentioning some ke points to remember before investing in both of them.
Learn the Basics.
Learn basics of Stocks and Crypto charts.
You need to understand basics of charts, candlesticks, and general patterns of charts. There are many free courses available on udemy or check youtube.
Join groups related to Stocks and crypto.
It is very important to remain updated with market news. It’s best to join facebook groups, youtube channels, telegram groups to get updates of your assets. Keep checking websites or blogs related to stocks and crypto news.
Invest what you can afford to lose.
Investment in stock markets as well as crypto markets are risky because they depends on the market’s demand and supply with traders sentiments. Many people make lots of money by investing in them, but many of them also lose lots of money in it. So don’t invest with the money which you are too afraid to lose. Like don’t take LOAN for investing in them because it will have very bad consequences.
Diversify your portfolio.
By diversifying a portfolio across different asset classes, same aplies with crypto coins. This can help you earn good amount of returns while minimizing risk. The level of diversification can vary from investor to investor. For beginners, Don’t diversify too much, as it will be harder to keep track of all the assets.
Invest with a disciplined approach.
Invest systematically with patience, don’t trade with emotions, because thats the most common point where traders in stocks and cryptos lose most.
Trade with calculated risks(because there will always be some risks.) Risk management and fund management are very important in investing in these markets.