What’s the difference between cryptocurrency and stocks

When you are searching for the differences between stock and crypto I am guessing you are willing to know which one is more profitable. So let me give you a brief explanation on what’s the difference between cryptocurrency and stocks.

To know and understand the difference between the stock market and the cryptocurrency market I would like to bring some historical background of both. Don’t get bored, trust me, this is also important.

What is Stock Exchange or Stock Market?

What is Stock Exchange or Stock Market?

A stock market is a physical or digital place where Investors buy or sell shares of a company. The value of the shares may go up or down based on many other key factors like political Incidents, the Company’s profit or loss, any kind of incident that affects the market, etc. 

The stock exchange was first introduced in 1611 by the Dutch East India Company in Amsterdam. Dutch East India Company then was the only publicly-traded company. 

So the calculator says, the stock exchange system will be 411 years old in 2022. 

In Asia, the stock market first came into practice in 1875 with the Bombay Stock Exchange (BSE). Bombay Stock Exchange is the oldest stock exchange in Asia. National Stock Exchange (NSE) was established in 1992.

What is Cryptocurrency?

how does cryptocurrency work

In short, Cryptocurrency is a digital currency. Actually, it is a group of some codes which has some value now. 

The cryptocurrency was first introduced in 2009 with the name Bitcoin. It is believed that the creator of Bitcoin cryptocurrency is Satoshi Nakamoto. Satoshi Nakamoto is the pseudonym of the developer who invented the crypto codes. The real name is still unknown.

I have already written another article on “how does cryptocurrency works”. In that article, you can learn about all the below-mentioned topics,

  • What is Cryptocurrency
  • How does cryptocurrency work
  • Advantages of cryptocurrencies
  • Disadvantages of cryptocurrencies
  • How does crypto mining work
  • What is Blockchain
  • How does blockchain work
  • What is Staking Crypto
  • Advantages of staking crypto
  • Disadvantages of staking crypto.
  • How does staking crypto work
  • What is crypto wallet
  • How does Crypto Wallet work

So let’s back to the point. From the historical background of both the exchanges, you can easily understand which one is more reliable for now. But we can not judge based only on history. 

So let’s find out what’s the difference between cryptocurrency and stocks based on other major factors.

What’s the difference between cryptocurrency and stocks:


The main difference between crypto and stocks is the value of both. Stocks are sold by publicly traded companies. If you own a stock that means you own a share of that particular company which is real also. The value of each stock depends on that company’s profit, loss, good incidents, bad incidents, etc. 

On the other hand, the value of any cryptocurrency goes up or down depending on the hype that can be created manually. 

Suppose one of the top businessmen in the world shares good feedback or comments on any cryptocurrency, the value of that digital currency will go up. Even a single tweet can manipulate. You know what I am referring to, right?

Fundamentals and Past record:

For the stock exchange you need to follow the news, the balance sheet of a company you are willing to buy shares for, profit and losses of that company, past records of the stocks, more and more. A pro-investor always follows that. 

That means there are a lot of fundamentals and past records available in the market. Also, each available data is the same in any stock exchange platform for a particular stock. 

But, Cryptocurrency has no past records. Zero fundamentals available for bitcoin, etherium, ship, etc. 

It’s not related to any companies profit and loss, there is no balance sheet at all. All you need to know is the current hype that is running on the market.


When you buy or sell a stock of a company that means you are buying or selling a part of the ownership of that company. No matter how small it is, as a buyer or seller, you are listed.

But when you are investing in cryptocurrency you are actually buying a valuable code. A value is added to your crypto wallet which you can use further or hold. 


Volatility is there for both Stocks and Cryptocurrency. Both of them can go up and down. 

For stocks we have data, we have past records. Also, the company shares their performance data, how they have been doing. So an investor can use this kind of data to sometimes predict how a stock will perform. 

But in Cryptocurrency, you can see drastic changes in a few mins. Nothing is predictable. That is why it makes you more money. Also, it can make you poorer too. It’s a high-frequency race and changes are more often and more impactful too.

If you are judging on Volatility then the stock exchange is way safer than cryptocurrencies and many experienced investors also believe that. But we can always expect a better tomorrow.


We all know that the stock exchange or stock market has a governance body. In India, there are 8 stock exchange platforms and BSE and NSE are top amongst them. IN the USA there are SEC, NYSE, and others. 

The government has detailed information about each stock exchange. So the Stock exchange is centralized.

But Cryptocurrency is decentralized and this is the main key feature of Cryptocurrencies. This is one of the main reasons for getting this much fame in 2009. 

No one can track your data. Government can not monitor anything.

In cryptocurrency, your data is highly secured with Cryptography. Your transactions are added as a block with the blockchain. You have your own encrypted details. Even hacking your data is also too hard. 

This is one of the major differences between Cryptocurrency and stocks. 

Operational Hours:

For the Stock exchange, there is a fixed time. In India, it’s 9.15 AM to 3.30 PM, Saturday and Sunday markets are closed. Also on national holidays, regional occasions markets stay closed. This time may vary in other countries. But in other countries, times are fixed too.

The cryptocurrency market is open 24*7. You can trade for cryptocurrencies anytime in a day, even on the weekends. There are no fixed timings.

Risk Factors:

Stock exchange, cryptocurrencies, mutual funds everywhere risk your uninvited guest. But as you know, we are here for comparison.

Yes, there are risks in stock exchanges but if someone follows all the data, the charts, the records he or she can reduce the chances of loss. Yes, in stock exchange risks are dependable on many other things you can bypass or you at least get a chance to calculate. 

Stocks also go up or down but you can not see that much drastic change except for any huge incident. Drastic changes can only be seen for small-cap company stocks.

But Cryptocurrency doesn’t play by any rules. You can see 100% up and down within a min. So Yes Cryptocurrency is riskier than the stock exchange. But here I personally want to add a line,

“ Risk hey to Ishq hey”. Sorry to add a Bollywood dialogue but it’s a true one. Let me explain.

Though there are higher risks in Cryptocurrencies, you can’t deny that there are more profits in Cryptocurrency too. The ups and downs are huge but also those ups make you hugely rich. 

A risk factor is the true negativity of cryptocurrency but it also has a big positive side too.


We just talked about risk factors and something was listening to us very quietly with a deadly smile. Welcome to the scam factors, the bad boys of both exchange markets.

In Stock exchange, Big investors or you can say Big Bulls can actually manipulate the market but generally for the small-cap companies only. Big and old reputed company’s shares can not be manipulated so easily. 

On the other hand, scams also happen in Cryptocurrencies too. 

There are some groups who buy 70-80% of tokens on any digital currency and make a high market value by marketing that coin, creating hype for that coin. When the coin becomes popular and the value goes up, that group of people starts selling their tokens gradually. Sometimes they sell most of the tokens randomly and that makes a fall.

This type of scan is called “Pump and Dump” in the Cryptocurrency market.

Just like stock exchanges, this type of scam is done for new coins generally. Popular coins like Bitcoins or Etheriums are not so affected by this type of scam.


In cryptocurrency, there is a term called Crypto mining. Those who do not know about this, read my another article on Crypto mining. I will also give short info about it.

Crypto mining is a procedure in which highly configured systems solve highly difficult calculations and the system solves it first, getting some coins as a reward. This is another method of earning Cryptocurrencies.

But in the stock exchange, there is nothing like stock mining. 


Though my article is slightly bent towards stock exchange Current market depicts a whole different story. Millions and Billions of money are earned in both the stock exchange and Crypto exchange and people are going crazy about it. 

Both exchanges are risky, vulnerable, and still can make you rich. To learn more and more before jumping into any one of these. Knowledge and practice make you perfect day by day.

I hope I could explain today’s topic on “what’s the difference between cryptocurrency and stocks”. Please share your valuable feedback with us and also share this post in your social circle. 

FAQs Related to this Article:

What is better crypto or stocks?

It depends on the factors I just explained above. In my opinion, Stocks are better for long-term trading. But if you want to earn a lot more in a short time then Crypto trading can help you. 

Other than the earning factor, Stock Exchange is more stable in comparison to CryptoCurrency.

Is crypto same as stocks?

No, not at all. Cryptocurrency, Crypto mining, Crypto wallets are totally different in comparison to the stock exchange, share market, stock market. 

In the Stock exchange, you buy or sell part of the ownership of a company.

In Crypto exchange, you buy some blocks or blocks of codes that now have value in currency.

And Crypto mining is a whole different thing.

Is cryptocurrency riskier than stocks?

Both are Risky but due to huge volatility, the crypto exchange comes behind in comparison to the stock exchange. But again, the risk factor works in both places. I personally suggest learning and understanding both the markets may help. 

Top 10 cryptocurrencies in 2021?
  1. Bitcoin (BTC)
  2. Etherium (ETH)
  3. Binance Coin (BNB)
  4. Tether (USDT)
  5. Cardano (ADA)
  6. Solana (SOL)
  7. XRP (XRP)
  8. Polkadot (DOT)
  9. Shiba inu (SHIB)
  10. Dogecoin (Doge)

So that’s all for this article. Sources used to gather knowledge is mentioned below.

Vocal Media

Yahoo Finance

Times of India

The motley fool

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