The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

In recent years, with the rise of Bitcoin, more and more investors have turned their attention to this field. Some early investors made enough money through speculation, while others fell into the abyss. So, if compared with traditional stocks, what is the difference between Bitcoin and traditional stocks? Let's take a look today~

PART 1 Conceptual differences

Stocks are ownership certificates issued by joint-stock companies. It is a kind of securities issued by joint-stock companies, which raise funds to each shareholder as an ownership certificate and receive dividends.

Bitcoin is a virtual currency. It does not rely on a specific monetary institution to issue, but is calculated based on a specific algorithm. Its total amount is limited, fixed at 21 million, and no one can change it.

Based on this concept, we can see that stocks are a security, while Bitcoin is a currency. If you want to buy goods, you must first convert your stocks into cash, but you can buy them directly with Bitcoin.

PART 2 Differences in holding value

By holding stocks, we not only own the value of the stocks themselves, but also:

 Company decision-making power;

 Profit distribution rights;

 Pre-issued stock options;

 Right to distribute assets;

For example, if you own 51% of the company's shares, and the company has been running well this year and has made a profit of 10 billion yuan, then 51% of it belongs to you.

For another example, you have recently been very fond of watching live broadcasts and found that the live broadcast industry is very profitable. So you will meet with other shareholders to discuss the company's transformation. Although the company's current main business is not in the live broadcast industry, and your company's transformation proposal has been unanimously opposed by other shareholders, because you have 51% of the decision-making power, the company can still transform, which is the so-called absolute controlling right.

The difference is that by holding Bitcoin, we hold currency.

PART 3 Differences in trading mechanisms

As a relatively mature trading market, the stock market has various restrictions. Although these restrictions limit our trading freedom to a certain extent, it can also be regarded as a protective measure to protect our interests.

The emerging Bitcoin market does not contain too many restrictions, but because it is too free, the risk will also increase.

In terms of trading time limit, Bitcoin uses the T + 0 mechanism, while stocks use the T + 1 mechanism.

Under these two mechanisms, perhaps the T + 1 mechanism is more suitable for retail investors. Because under the T + 0 mechanism, investors can sell after buying on the same day, the possibility of speculation is greatly increased, and it is easy to make the market more unstable. Retail investors are prone to losses due to less access to information.

However, in the T + 1 system, the reason why people are more likely to collapse is that if the price suddenly drops after buying stocks, but due to the limitations of the trading mechanism, it realizes that the situation is not good, so it is impossible to sell stocks immediately, and people can only silently shed tears and wait for the opening of the next day.

In addition, there are certain limits on the rise and fall of the stock market. If a stock rises or falls by more than 10% in a day, the stock price has reached the peak of daily rise and fall, and the Bitcoin trading market has no such restrictions.

For example, you have 1 million yuan and want to invest. If you choose stocks, even if the stock market is good, your daily profit will not exceed 100,000 yuan.

If you buy Bitcoin for 1 million yuan the next day, and the price of Bitcoin is high, it is possible that the profit in one day can reach 1 million yuan, or even higher.

However, when you wake up on the third day, if Bitcoin has a serious security vulnerability due to a hacker attack, the value will plummet, and your current 2 million yuan may only be reduced to 100 yuan, and you can only use 100 yuan to order two pizzas for delivery.

PART 4 Differences between risks and challenges

The higher the risk, the greater the opportunity. All investments are inseparable from risks and opportunities.

As a security, the value of stocks represents people's confidence in the company. As a virtual currency, the value of Bitcoin represents people's confidence in the currency.

Although the value of both reflects people's confidence in them, the value of stocks is better measured because listed companies as physical companies show their own value through their operating conditions.

Bitcoin is a virtual currency, and there is no measurable object for its true value. It can be vividly seen that people gather together to blow bubbles, and no one knows when the bubble will burst, or even whether it will be destroyed.

But on the other hand, although Bitcoin is very risky, its potential opportunities are also very large. What can it achieve in the end? No one dares to make a prediction.

In short, stocks and Bitcoin look similar, but in fact there are many differences. But as investments, they have one thing in common: risks and rewards always accompany each other. The stock market is very risky, and Bitcoin is even riskier. As an emerging currency, the future of Bitcoin is full of unknowns, to
the moon or to the hell, no one can accurately predict, only time can tell us!