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Crypto vs Stock Market Which is Better and Why?

Crypto vs Stock Market Which is Better and Why?
Author: Rakshita Jain

If you are an investor or planning to invest, you must have considered the Stock and Crypto market. You may have also wondered which of these markets is better to invest in your hard-earned money. Not just you, but almost all investors ask this question to themselves or the internet at least once before starting their investment journey.

Crypto vs Stock is a long-going moot point in the investment world. While stocks are the long-established popular asset class, crypto, as a newcomer, has blown minds with its highest returns. That said, it becomes tricky to choose between them. Hence, we have prepared this comparison blog that will bring to light everything you need to know about the Crypto and Stock market.

Let's get started.

Crypto vs Stock Market


They represent fractional ownership in a business or a functioning company listed in the Stock market. A company's share price depends on its performance, news announcements, profit, and market reputation. 

Cryptocurrencies are virtual coins and tokens. They are powered by blockchain technology and use cryptography to secure data and transactions. Unlike the country-based Stock markets, the crypto market is global and tradable from anywhere.


There exists a regulatory authority to regulate the stock market in each country. For example, SEBI (Securities and Exchange Board of India) regulates the Indian Stock market. It actively monitors the capital flow in the Stock market and ensures everything stays under control. However, even though such authorities protect the interests of stock investors and maintain the market, having all the regulatory power of a single institution always boosts the risk of corruption and discrepancies.

The Crypto market is unregulated because it was created to be like that. Decentralization is the foundational stone of the Crypto market to eliminate the role of government in it. Moreover, since crypto is global, a single organization of any country can not control it. Those who understand the story behind cryptocurrencies take this unregulated nature of the Crypto market as a boon. However, that does NOT mean the crypto market is illegal or prohibited. Many countries like El Salvador and the Central African Republic have already started accepting Bitcoin as a legal tender. Many countries like India, the UK, the USA, and Germany have imposed taxes on crypto assets and profits. Also, there are talks about bringing a global framework for the Crypto space to prevent investors from Ponzi schemes.


The term "Volatility" refers to the extent of price fluctuations in an investment market. 

The stock market is moderately volatile. Since time, people have become habitual of its volatility and more educated and informed about various companies and their performances. It makes it possible for them to avoid fatal volatility. In general, Stock markets are less volatile than the Crypto market. However, stock market crashes have historically occurred whenever any financial crisis hits the countries. 

If the stock market is volatile, the Crypto market is highly volatile. Here, dramatic price swings take place at the drop of a hat. Terra LUNA crash is a fresh example. However, it is also true that this volatility is a strong factor that makes the crypto market attractive for investing and trading. If we look at this volatility for the long term, all cryptocurrencies have given significantly higher returns compared to any other investment class. Hence, it depends on how you take this volatility and how it fits into your short-term and long-term goals. If you follow the "glass half filled" perception for this volatility, crypto is a great option to make outsize gains with research and analysis.


Good profit is the most significant factor that matters in an investment. Stocks come with stability and can be the go-to option for building wealth steadily. If we talk about the highest returns that shares have given in 10 years, they go to a maximum hike of 4 digits which is quite good compared to safer investment options like bank FDs.

Crypto comes with higher risk and higher returns. Bitcoin alone has recorded a 6-digit hike in the past ten years, making it one of the best investments of the last decade. Crypto has a higher potential for extreme gains than the stock market if you are okay with the speculation involved. According to many experts, crypto can be the best investment you can ever make if you do it with proper research and analysis because it is still at its initial stage. 


The stock market requires a Demat account if you want to hold stocks and a trading account to sell the stocks. Also, most stock investments are performed via broker platforms which charge brokerage, SEBI charges, and transaction fees. All these tilts the stock market fee on the higher side. Stock profit is eligible for tax also, which differs for short-term capital gains (STCG) and long-term capital gains (LTCG).

When you buy cryptocurrency, you buy it through an exchange, hence involving no brokerage. However, the trading fee is still applicable. Recently, the Indian government has also imposed TDS on crypto-sell and crypto-to-crypto transactions. Just like stocks, crypto is also taxable in India. 

Some other factors to consider

  • The stock market has a fixed opening and closing time. Also, it does not open on weekends and some holidays. On the other hand, the crypto market opens 24x7, including on weekends. It does not close even for a second.

  • Even though many claim crypto to be backed by nothing, it is not true. Crypto is backed by promising and revolutionary blockchain technology.

  • Whereas trading in stock involves buying and selling through fiat currency, Trading pairs exist in the crypto market to create a smoother and faster trading experience.

  • It requires disclosure of personal information for verification while making a Demat account to buy shares. Though this practice makes the stock market regulated and safer, it also makes your personal information prone to breaches and cyber attacks. At the same time, you can do crypto trading on decentralized exchanges without disclosing your identity.

Which is better, Crypto or Stock Market?

As you have seen, crypto and stocks have upsides and downsides. While stock markets are relatively less volatile than the crypto market, the latter has the potential for higher returns. Crypto offers something futuristic and exciting, whereas the Stock market is a safer investment instrument. Therefore, it is up to you which market matches your investment goals and risk-taking capacity. Many investors often combine stock and crypto in their investment portfolio to enjoy the best of both worlds. It is entirely up to you which market you opt for initiating your investment journey. However, one sure thing is that investment is better than saving any day. Thus, take your call and make a sound and informed decision.

Closing Thoughts

The two popular investment markets may differ in myriad ways, but both give great opportunities to bring home the bacon. Regardless of which one you choose, always make sure to do thorough research to stay aware of the risks and consequences involved.

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