Crypto vs. stocks is an old and always engaging debate since they both have some compelling points. Let’s start by defining both and then slowly move on to defining the differences. Finally, our conclusion to this topic will let you know the scope of crypto as well as stocks. You’re in the right place if you want to learn the difference between stocks and crypto, and which is better for you.
Stocks are ownership stakes in a publicly traded corporation. You get a percentage stake in the company for every share of stock you buy. A corporation’s ownership is proportional to the number of shares it has issued. If you purchase 50 shares of XYZ Corp. stock, for example, you will own 1% of the company, even if the business only releases 50% of its ownership in the form of stock.
A cryptocurrency is a digital asset that exists solely on the internet. This means it doesn’t have a physical component and only exists as entries in an online ledger that tracks ownership. There are thousands of different cryptocurrencies in circulation at the time of writing. Some, such as the well-known Bitcoin, are designed solely as currencies. Others, such as Ethereum, are classified as “utility tokens.”
In terms of Exchanges
For more than two centuries, stock exchanges have existed in various forms, most notably on Wall Street in New York City. Exchanges for cryptocurrencies, on the other hand, are relatively new. Binance, the largest, was founded in 2017. Another major player, Coinbase, was founded in 2012.