DIFFERENCE BETWEEN INVESTING IN STOCKS, FOREX TRADING, CRYPTO
These 3 are very similar, but they also have a lot of differences
A thread... 👇🏽
These 3 are very similar, but they also have a lot of differences
A thread... 👇🏽
You can call these asset classes cousins/siblings
A perfect example to describe this is to study the Cat Family
In there you have Lion, Leopard, Tiger, Cheetah - they all belong to the same family
But while these animals are similar, they are also different...
A perfect example to describe this is to study the Cat Family
In there you have Lion, Leopard, Tiger, Cheetah - they all belong to the same family
But while these animals are similar, they are also different...
So it's the same with these assets
Stocks, Forex and Crypto all belong to the same family - FINANCIAL MARKETS
But they have a lot of differences despite their similarities
Let's look at them...
Stocks, Forex and Crypto all belong to the same family - FINANCIAL MARKETS
But they have a lot of differences despite their similarities
Let's look at them...
* STOCKS: This has to do with shares/equity ownership of companies
Company shares traded on the stock market affects the economy of any country
If anything NEGATIVE happens to Apple, Microsoft, Google, the entire economy of US is in trouble...
Company shares traded on the stock market affects the economy of any country
If anything NEGATIVE happens to Apple, Microsoft, Google, the entire economy of US is in trouble...
That's why each time the stock market crashes, the economy always suffers and when it booms, the economy does well
That's how powerful & important the stock market is
And that's why if you want to look at the health of a country's economy, you tend to look at the stock market
That's how powerful & important the stock market is
And that's why if you want to look at the health of a country's economy, you tend to look at the stock market
* FOREX: ForEx means Foreign Exchange. This has to do with exchange of currencies of foreign countries
Because the whole world doesn't use 1 single currency, there would ALWAYS be need for currency trading...
Because the whole world doesn't use 1 single currency, there would ALWAYS be need for currency trading...
There would always be a demand for a particular currency over another, which is where trade comes in
ForEx just like Stocks is really important to the economy. Currency strength affects how businesses are done and how trade/commerce is carried out...
ForEx just like Stocks is really important to the economy. Currency strength affects how businesses are done and how trade/commerce is carried out...
The strength of a country's currency reflects in the strength of the country's economy
Finally...
* CRYPTO: Cryptocurrency has to do with digital currency such as Bitcoin, Ethereum
This is the youngest of all 3 financial markets...
Finally...
* CRYPTO: Cryptocurrency has to do with digital currency such as Bitcoin, Ethereum
This is the youngest of all 3 financial markets...
Despite many global companies adopting this asset, there's still a lot of debate on the sustainability and importance of this asset
And that's why it arguably is the most volatile and most controversial of all 3 financial markets...
And that's why it arguably is the most volatile and most controversial of all 3 financial markets...
Crypto can go from 100 to 0 and the global economy won't be affected
Also, it can go from 0 to 100 and nothing still happens
One thing that binds all 3 financial markets together is DEMAND AND SUPPLY...
Also, it can go from 0 to 100 and nothing still happens
One thing that binds all 3 financial markets together is DEMAND AND SUPPLY...
You can trade shares of companies based on demand and supply
You can trade currency pairs based on demand & supply
You can trade crypto based on demand & supply
That's why when you are analysing the charts, it's the same chart pattern you see across all 3 assets
Finally...
You can trade currency pairs based on demand & supply
You can trade crypto based on demand & supply
That's why when you are analysing the charts, it's the same chart pattern you see across all 3 assets
Finally...
Almost the same principles work, but there would definitely be some differences in interpretation based on the peculiarities of each markets.
So, there you have it
Difference between STOCKS, FOREX TRADING AND CRYPTO
Did you learn something new/different?
So, there you have it
Difference between STOCKS, FOREX TRADING AND CRYPTO
Did you learn something new/different?
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