Why I choose to invest in crypto rather than stocks.

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Crypto has brought a lot of investment opportunities that we seem to forget that there is a form of financial investment that was there before it - the stock market. Ever since crypto arrived more than a decade ago, it has taken center stage and investors have flocked to this new opportunity to grow wealth. Now the stock market in my area has taken a back sit - if its not completely dead.

I remember my father invested a lot in the stock many years ago. Some company share certificates are still in the old drawer. Sadly, most of the companies have gone under and no one hears about them any longer. Why have I choosen a different path when it comes to investments? Before I give reasons why I decided to invest in crypto instead of stock, here are some challenges I have noticed with the stock markets.

Stocks market investment - the problem

I have noticed some challenges with stock investment and I decide to put my future wealth growth in crypto. Consider the following reasons:

• Stocks market are centralized: The stock market is usually governed by some central bodies and they make all the rules and tend to exact some control in the trades. Many countries have their own stock market regulating body. In the US, there is the Securities and Exchange Commission SEC. In my country Nigeria, we have the Nigeria Stock Exchange NSE. These bodies make rules and determine who can enter the market.

With the centralized nature of the stocks market, it is all too easy to have it influenced by the key players such as the regulating body and a few big time investors. It is easy to manipulate prices or leak insider trading information which might favor a particular group or institution in the market. Leaving powers of control in the hands of a few individuals is a great recipe for influencing the market.

• Big entry barrier: The stock market is not open to everyone. Both issuing of shares and participating in trading on the floor of the exchange requires adhering to strict rules and prohibitive requirements. Many investors will never meet up to the trading requirements. And some new firms and companies will not qualify to be listed in the exchange market.

At the end of the day, the stock market is not open to all. It is highly restricted with rules of entry made to favor a few rich corporations. The common man on the street will never make it. Basically, the rich companies with years of existence in the stock market will simply grow richer, while smaller and newer entrants would not even make it into the stock market. Finally, stock markets are usually restricted by location. So investors do not have that free liberty to participate easily if the stock market is not very close to where their business operate.

• Regulatory uncertainties: The stock market is controlled by a body that made rules. The rules are said to protect investments from scam and bad actors. But just as we have seen, these rules can change from time to time, making it difficult for investors to maintain their status in the exchange market.

The crypto market regulators can make new laws and implement them without giving much time for the participants to adapt. Some laws might involve huge financial obligations that might put some traders, investors or companies out of the market. Unsteady regulatory landscape is a big problem with the stock market.

The above are some reasons I do not want to have anything to do with the stock market. I have decided to stick with the crypto market and it has been so far, so good.

Why invest in the crypto market?

Here are some reasons I decide to stick with the crypto market.

• Decentralization: The crypto market is not one that could be manipulated easily because it is built on blockchain technology. Blockchains are hosted on distributed systems. There is no regulatory and no central point of control. The crypto market cannot easily be manipulated because that would involve a coordinated group and a high volume of investment.

Being a decentralized platform, crypto is completely tamper proof. The price of cryptocurrencies in the market are determined purely by demand and supply. Because the blockchain will continue to operate no matter what happens to any of the nodes, I choose to invest in the crypto market.

• Participation: The crypto market has zero requirements to become a participate. Just create your crypto wallet and you are good to go. Its entry requirement is next to none. As a result, everyone with a mobile device and internet connection can buy a coin and trade in the crypto market. Little wonder that crypto is a bank to the unbanked. Its a place that everyone can start trading from day one.

So basically, the crypto market is for everyone. It is for newbies, as well as experts. It is for big companies with huge capital and for individuals with just $100 bill in their pocket. No matter who you are or where you live, the crypto market will welcome you. Stocks market are limited by location, crypto markets are global.

• Trading time: Unlike the stock market that has a fixed time for the exchange to open and close, the crypto market operates round-the-clock. It is a market that never closes, remaining open for buyers and sellers to do business. The crypto market there allows trading to happen anytime, any day, including weekends and holidays.

• Size of portfolio: The stock market usually approve a few stocks from companies that are already established. The size of portfolio is not much. The crypto market is one that has more than 2000 cryptocurrencies available for trading. More pairs and cryptos continue to be added and made available for trading.

While the stock market forces traders to choose from a narrow portfolios of company stock, the crypto market gives all the opportunity to trade on cryptos they choose.

Finally

The crypto market has lots of opportunities for everyone to participate and trade coins of choice 24/7. The stock market is centralized and insider trading is popular. The crypto market is decentralized and welcomes all no matter the size of their assets.

You can see why I choose to invest in the crypto market and shun the stock market. This is my choice and I hope it makes sense to you.

Posted Using LeoFinance Alpha