4cryptor: What is the difference between trading stocks and cryptocurrency?

4cryptor.com experts explained why trading in digital assets does not stop for a minute, how their value is formed and what is associated with high volatility.

The operation of cryptocurrency exchanges without breaks and weekends gives wide freedom to the trader. If a trader is engaged in extracting profits from short-term speculation, he can plan his time regardless of location, time zone, or schedule, and at any time connect to the market to search for interesting transactions.

At the same time, it is important to understand what time the bulk of crypto traders in a particular region wake up and take into account that with the arrival of a large number of new players from a certain region, the price can move sharply in one direction or another. At the same time, the availability of the market 24 hours a day does not mean that it is necessary to monitor cryptocurrency quotes around the clock.

«If you monitor the crypto market around the clock, burnout will occur in a matter of weeks. It is necessary to develop a strategy and stick to it, avoiding any impulsive decisions», 4cryptor.com expert advice.


For the first time in human history, private investors have the opportunity to gain access to a new promising asset class, such as cryptocurrencies, before institutional investors.

Cryptocurrencies are the first market where there is virtually no institutional capital, and this, in turn, generates volatility.

“Volatility creates several factors: private investors have a higher rate of return on capital, the terms of capital placement are shorter, and the competence of participants is lower”, the leading 4cryptor.com expert.


Because of the low volatility in traditional markets, insurance of investment portfolios is practice, said Michael Ross-Johnson 4cryptor.com expert. He claims that this financial instrument is beneficial to both insurers and investors, as it helps to protect investments in case of force majeure. According to Ross-Johnson, this is not practiced in the cryptocurrency markets, as the movements can be so strong that insurers simply do not have enough funds to cover losses if the market begins into chaos.

The crypto market does not have a certain set value of the asset at a given time, since different quotes are present on the platforms, explained the CEO of the cryptocurrency p2p platform 4cryptor.com. He explains this by saying that the traditional stock or currency market is controlled by states and central banks, while crypto exchanges are not, since they are private companies and set the rules for trading on their own platforms.

«The price does not differ much, however, on domestic regional exchanges it can significantly exceed the global average due to the sharp deterioration of the economic situation in the region and the desire of people to protect their assets with bitcoin», 4cryptor.com expert.


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