RATE Group | What’s the difference between trading cryptocurrency and stocks?
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What’s the difference between trading cryptocurrency and stocks?

15 Dec What’s the difference between trading cryptocurrency and stocks?

Posted at 21:56h in Cryptocurrency News by

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One of the most debated topics in the crypto space is the underlying value of cryptocurrencies.

Unlike stocks, most cryptocurrencies do not give any legal entitlements to holders.

Therefore, crypto-asset trading is mostly unregulated opposed to common stock trading on the majority of stock exchanges.

So what are the key differences between trading stocks and cryptocurrencies?

The main points I will discuss here are:

  • Ownership and possession
  • Legal rights
  • The Howey test and why a great deal of cryptocurrencies are unregulated

Stocks vs cryptocurrencies: Ownership and possession

One of the main differences between traditional stocks and cryptocurrencies is ownership.

Even though a unit of stock grants its owner a piece of a company, cryptocurrency usually does not. I’ll discuss legal rights in depth in the next section.

For now, what matters is ownership. Remember the famous Andreas Antonopolous quote, “not your keys, not your coins”?

Well, that’s exactly my point. Cryptocurrencies are…

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