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Is Crypto More Profitable Than Stocks – 2024 Guide

by Tracy Finke

Ever since crypto became a big deal and since we got an opportunity to trade it instead of just collecting these currencies, there has been an ongoing battle of whether crypto is better and more profitable than trading stocks.

By now you all know about both of these. You know the basics and essentials of the crypto and stock markets. You probably know enough that you, yourself, have embarked on a try to trade these and make some profits.

Stock trading has been with us for so long and at some point, we all became aware that we can trade stocks by ourselves and that we do not need experts to do it for us. Some became successful, others who weren’t willing to learn, adapt and evolve probably lost money on stocks. Stock markets had crashed; people lost their money that way also. Professional stock traders made mistakes as well, it is all part of the trading market lottery.

When it comes to crypto, it is a newer concept but the trading part is similar to stock trading, it is only done on a different platform. Crypto is probably more lucrative in some moments but it is hard for new traders because of the crypto market volatility. More on that through the rest of the article, until then try and familiarize yourself with NFTCode as a new form of trading and making money.

When you are trying to find an argument on which of these two is better you have to go with a few factual things. This will help you determine which you like best, and it will help us find a justification on which of these two is better or profitable.

Trading time

Source: investopedia.com

When you are talking about the stock market you need to know one thing – the traditional stock market is time limit. The traditional stock market is closed in the evening which can be a limiting factor to those that try and enjoy entire day trading sessions. You have a fixed time frame in which you can do your trading and that is it, in off-hours world stock market is closed.

Forex market made a little advance when it comes to this and they allow you to trade from Sunday afternoon to Friday afternoon. This is your trading time window and within that, you can trade all you want. When it comes to crypto trading the market for that took all this and made it a step further where they opened their doors to you 24/7. This means that you can do all your crypto trading every day in a week, 365 days a month and no one can stop you.


Source: forbes.com

Now when we told you that you can trade crypto 24/7, we made one case that is in favor of this type of making money, but let’s talk about something more serious now. Volatility is something that you have to consider especially if you are a new trader that is still learning and trying to get the hang of things.

Jumping into crypto instantly in a market that fluctuates several times a day, and when we say fluctuates, we mean it is moving up and down all over the place, it seems that you have to have more luck than skill or knowledge to get out of this with profits.

On the other hand stock market is a bit soother, and when we say a bit we mean that volatility is virtually non-existent when you compare it directly with the volatility of the crypto market. Here you have to analyze, read, inform, watch out for the big moves around the world and predict the movement of certain assets.

Based on all of that you can do your trading and expect something. The big difference here is that in stock you can predict something where you can expect a profit or a loss. In a volatile market such as crypto, predictions are tough and often do not go the way you need them to go.


Source: blog.tiomarkets.com

Now when you mention risk, there is risk involved in everything every day. If you want a safe investment try putting your money in the bank, but we also have to warn you even that is not without its risks. The bank may go bankrupt and you lose it. When we mention risks you need to know that the volatility of the market does not increase the risk of investment there.

The volatility of the market means that there is a risk of you making a wrong move there. The stock market is considered to be a less risky thing, but again that is up to you, your competence as a trader and your knowledge. If you have a good strategy, if you can manage your losses, if you utilize a stop-loss option, risks are minimal in both volatile and non-volatile markets.


Source: finchannel.com

Now, this is the question to rule them all – which is more profitable? To be perfectly honest both stocks and crypto can be profitable at any given moment. It is all up to you and how long are you willing to wait for those profits. If you are a stock trader you can, for instance, see a profit of 70% on one trade that you have been waiting for a few days or months, while someone on the crypto market can have 3000% profit in the same period or even shorter than that.

It is all about your preference, you’re willing to risk, your affinity to volatile markets. If you can handle pressure, constant ups and downs, if you can to some extent predict the movements of cryptocurrencies then that market is probably more profitable in the shorter time frame. It also comes with a huge risk of losses.

If you are one of those patient traders that know how to read movements, that can predict changes based on what is happening around the world, if you are not discouraged by waiting a few months to see profits of 20, 40 and even 50% on one trade than stocks are probably for you.

Sit down with your thoughts and see what you are aiming for. If you want to risk a bit more and get profits bigger and faster choose the crypto market. If you want to take it easy, if you don’t rush everything and if time is not the crucial thing then stocks are for you, as a place where you can make a stable profit but over a longer period.