There are several advantages and disadvantages to Bitcoin and altcoin trading over stocks trading. Anything? Let us see below.
Lately, many companies have taken the floor on the Indonesian stock exchange or commonly known as the Indonesia Stock Exchange (IDX). However, the news of the fantastic increase in Bitcoin and altcoin prices may be more exciting.
Many stock traders are turning to Bitcoin or crypto trading. Because there are some similarities between the two. Both buy when it’s low and sell when the price has gone up.
However, there are some differences between Bitcoin and stocks. Here, we will discuss the advantages in terms of Bitcoin trading.
Here are 7 advantages of Bitcoin trading over stock trading:
Stock trading in Indonesia has provisions for Upper Auto Reject (ARA) and Lower Auto Reject (ARB). Thus, the decline and increase in stocks cannot be more than 20% in a day.
Meanwhile, Bitcoin and altcoin trading can go up and down by hundreds of percent in a day. So crypto traders can get much more attractive profits as long as they choose the right crypto asset to buy.
In contrast to stocks, the movement is relatively slow.
You need to know, nowadays many traders are turning to Bitcoin and altcoins because of the falling stock prices during the pandemic. Meanwhile, during the COVID-19 outbreak, the price of Bitcoin and altcoins increased hundreds to thousands of percent in a year.
This is one of the real advantages of today. You can compare which stocks and from which countries are more fantastic than the rising price of Bitcoin?
The answer is none. In fact, stocks in several countries have not yet recovered due to the pandemic.
Why so? Because shares depend on the policies of the listed company (issuer), it depends directly on the policies of the country, currency and others. Whereas Bitcoin and altcoins only depend on demand and supply.
This condition is of course beneficial for Bitcoin and altcoins that benefit because they do not depend directly on government policies. Usually, global crises like this also increase the price of Bitcoin and altcoins. Because people turn their money into crypto assets.
Why do Bitcoin and altcoin prices fluctuate so high? Because the market activity occurs for 24 hours and is interrelated throughout the world.
For example, if you buy any amount of Bitcoin, your transaction will be recorded and counted directly to international markets around the world.
That is the reason why the fluctuation is overvalued.
However, you can also take advantage of this by trading wherever and whenever you want. Unlike the stock trading hours which are only office hours, Monday-Friday from 09.00-17.00 WIB.
In addition, stock transactions are limited to one country only.
Shares are a form of ownership sheet. You cannot exchange it as currency. In fact, it’s quite difficult if you want to give your shares to someone else.
The next advantage of Bitcoin is that it can be used as a means of exchange even across countries with enough Bitcoin and altcoins. Simpler and more free of cost.
Bitcoin is believed to be a technology or a brilliant invention that occurred today after the internet. The technology is constantly evolving and adopting blockchain technology.
Innitial Coin Offering (ICO), decentralized finance (DeFi) and non-fungible token (NFT) are some of the blockchain technologies that have developed recently. Not to mention the leveraged trading method, which you can do on the Tokenomy platform.
In contrast to stocks that are just waiting for the issuer to perform better. So that the share price will increase.
If you are a stock trader, dividend distribution is the most fun thing. After the company makes a profit, then you get dividends as a bonus. This is because you hold the shares of the issuer.
Meanwhile, in Bitcoin and altcoin there are also air drops. It is a free coin and token sharing program. However, there is no need to wait for the developer to profit, you can get airdrops from blockchain developers around the world with promotional programs and others.
In fact, there are many platforms that share them for free. Without having to wait for the platform to benefit.
Because Bitcoin can be transacted with the smallest fraction up to 0.00000001 BTC. Bitcoin buying and selling transactions can be started from just 10 thousand on Indodax.
Meanwhile, the minimum share transaction is 100 lots.
Of course, the price of Rp.10,000 is much cheaper and it can make anyone you want to try it anytime and anywhere. Meanwhile, the lowest deposit price in a stock security is IDR 100,000.
This content is not abusive and demeaning to any party and is only educational about the advantages of Bitcoin and altcoin trading compared to stock trading.