Here is some major points which shows that major investors shows their interest in stock market rather than cryptocurrency –
- Less stability of low-value crypto coins can be a significant concern for crypto investors. When compared to the stock market, the latter is more stable than the crypto market. On the other side, the crypto market has seen many downfalls in low-value crypto coins, as many crypto investors claim to have observed price manipulation in these assets.
- There are no regulated authorities in the crypto market, whereas the stock market is regulated. The absence of regulation in the crypto market presents many disadvantages; for instance, without regulation, analyzing the value of coins becomes difficult as they lack historical data.
- In the crypto market, you cannot observe any past fundamentals of cryptocurrencies as it is still in its early stages. Instead, you have to rely on understanding and analyzing market trends or sentiments to make investment decisions. On the other hand, in the stock market, you can comprehensively understand the fundamentals of stocks, including the profit and loss of the company, balance sheet, year-on-year revenue, fluctuations in company performance, dividends, and other associated benefits.
- Cryptocurrency is highly volatile. For short-term investors, the crypto market can yield significant returns, as the return on investment is often higher compared to the stock market. This is especially true because short-term investors don’t need to hold onto cryptocurrency for an extended period.
- In the stock market, when you buy or hold stocks, it means you are acquiring ownership in the invested company. In contrast, cryptocurrencies operate differently. Firstly, it can be challenging to understand where you are investing, and analyzing small-value coins can be particularly difficult. Instead, you need to focus on understanding the recent performance or trends of the coins.
- Cryptocurrencies operate on a decentralized platform, meaning there are no regulations or rules governing them. This lack of regulation increases the risk of financial losses affecting your future plans. Therefore, it’s essential to exercise caution while investing in cryptocurrencies.
- One more compelling reason not to invest in crypto is the statement by the renowned investor Warren Buffett, who described cryptocurrencies as having no inherent value and not producing anything.
- In cryptocurrency, if any disputes arise, there are no authorities assigned to resolve them. Investors must handle disputes themselves, often blaming themselves for any losses. In comparison, the stock market operates with a centralized system, allowing for the resolution of disputes within a short time frame, sometimes within an hour or even a minute. This centralized system provides a significant advantage for investing in the stock market.
- The value of stocks is typically influenced by government actions or international and domestic news. However, with patience, the value of stocks can often be regained over time, especially if held for longer periods. On the other hand, the value of cryptocurrencies is solely dependent on international news, and analysis beyond that can be challenging.
- The usage or user base is also a compelling point against investing in cryptocurrencies. Compared to the vast ocean of stock investors, the number of cryptocurrency investors is relatively minimal.
- The trading fees in the stock market are considerably higher compared to cryptocurrencies, where investment fees are typically only 0.2%.
- The stock market was founded in approximately 1611, roughly 400 years ago, whereas the cryptocurrency market was established in 2009, just 15 years ago. Therefore, it’s fair to say that investing your trust in the stock market is a reasonable choice.
- The market capitalization of the Indian stock market is approximately 5 trillion, whereas cryptocurrencies have a market capitalization of 2 trillion.
- In the stock market, you have backup assets and cash flows, whereas in the crypto market, there are no such tangible assets.
- Nobody knows who the founder of cryptocurrencies (Satoshi Nakamoto) is. Three individuals have claimed ownership of cryptocurrencies: firstly, Nick Szabo; secondly, Craig Wright; and thirdly, Dorian Nakamoto. Isn’t it funny and surprising?
- You cannot invest hard-earned money in markets that rely solely on sentiment analysis.
In conclusion, while cryptocurrencies offer potential for high returns, they come with significant risks due to their volatility, lack of regulation, and speculative nature. Stock markets, on the other hand, provide a more stable and regulated environment, with established fundamentals and oversight, making them a preferred choice for many investors seeking long-term stability and security.