Between Bitcoin, Stock and Forex, Which is the Best?
Bitcoin, stocks and forex – Many people think that trading transactions in the world of bitcoin are the same as those that occur in stocks or forex. However, is that true?
Stock vs. Bitcoin
The Indonesia Stock Exchange gives an understanding of stocks, namely securities that will be traded and traded in the capital market where people who act as shareholders will get the opportunity to be able to get dividends and capital gains or profits that will be obtained when selling shares at a higher price than the price buy it.
This capital gain income will usually make people think that buying and selling using bitcoin is the same as buying and selling shares because they can both benefit from the difference between the selling price and the purchase price.
Price movements that occur in stocks, one of which will be greatly influenced by the results of the company’s performance. For example, such as an increase or decrease in profits and sales, dividends or it could also be big news that will affect the company.
In the world of bitcoin, the unit price will only be affected by the same thing, namely an increase and decrease in demand and press that is widely circulated in the community. There were cases that occurred due to bad news regarding the fatal error in the management process of Mt. Gox, as a result the price of bitcoin actually dropped.
Forex vs. Bitcoin
Forex or an abbreviation of foreign exchange is a type of transaction that sells currency from a particular country in another country’s currency, the purpose of this activity is to be able to get profit from the difference in currency.
Equations of stocks and bitcoin can also be found in forex. Where the traders take advantage of the moment when buying foreign currency when the price is still cheap then resell at a high price.
Price movements that occur from these three things can be influenced by supply and demand, and also the public can predict where the direction of price movements using the method of technical analysis through charts and price patterns in the past. Or it could be with fundamental analysis that looks at the intrinsic value or situation and condition of the company. The use of any analysis method cannot predict 100% precisely because stock prices, forex and bitcoin can change.
For example, when the WTC 9/11 rate occurred when the USD fell because each person estimated that the event would really affect the weakening of the USD value. So that the incident also resulted in many market players then selling USD and finally the USD rate dropped dramatically.
With an average daily volume of US $ 2 trillion, the forex market can be 46 times greater than all the combinations of the stock market so that the forex market is called the most liquid market. But when compared with forex, the bitcoin market is still classified into a small market so the price tends to change very easily or 5 to 7 times more volatile when there are parties who buy or sell it in large quantities.
- Bitcoin, stocks and forex, which is the best?
Forex, stocks and also bitcoin have their own advantages and disadvantages. You can choose which trading tools best suit your needs. It is important to remember that the trading process using bitcoin will tend to be a lot of risk because prices will be more volatile when compared to the other 2 markets. But the potential possessed by Bitcoin is still greater when compared to 2 other markets.
Bitcoin or BTC is more similar to stocks compared to forex in terms of assets. But in contrast to stocks or forex, investors who plunge into the world of bitcoin must be very dependent on brokers. So you don’t need to be afraid of someone who can take away the money you have, as long as you can quickly pull bitcoin in a personal wallet.
In addition to investment needs, you can also use crypto currencies as a process of sending money in a short time with lower transaction costs, it can also be used as the most powerful hoarding tool and modern payment instruments that are considered more efficient.
There are already a lot of trade exchanges where we can make the process of buying and selling bitcoins at the desired price, traders will usually start buying bitcoin on the market at low prices then sell on trade exchanges in other countries that have higher bitcoin demand than the market where they originally bought it.
In some bitcoin markets will usually have a price that has been determined. Let’s say you buy bitcoin on the European Bitstamp market for $ 350 / bitcoin then you want to sell it again at a higher price. When you check the price, an hour later at Bitstamp the price actually drops to $ 349 / bitcoin. At the same time in market A (Indonesia), the price of bitcoin still reaches the price of 4.5 million or $ 364 / bitcoin because demand for bitcoin traders in market A will be higher when compared to foreign markets.
It is important to remember that the crypto currency was originally created not as a tool to make investments but for new payment methods in the financial world that will utilize decentralized technology to avoid human error that is often the cause of problems. For example, inflation, corruption, or brokers who run away from clients’ money.
But then bitcoin is used as an investment tool because of its more volatile price conditions. So that many people are starting to think that the price of bitcoin in the future will actually increase, but this is only limited to thinking and predictions. No one can guess what the price of bitcoin will be in the future, whether it can jump to $ 500,000 / bitcon or even return to $ 1 / bitcoin. Investing in Bitcoin requires a level of understanding of risk that is truly mature but also very tempting.