How Crypto Trading is Different From Traditional Trading

Vandana  |  Jul 8, 2020

With the changing world and the increase in digitization, it has been seen that the financial market is also evolving. People have started moving more towards the cryptocurrency market rather than the traditional market. It is a proven fact now that the crypto market is much better than the traditional one in many aspects. This is the reason why there has been a huge increase in crypto adoption and its trading volume across the world. It has become one of the greatest sources for people when it comes to digital trading and one of the most reliable one. The cryptocurrency market is quite different from the traditional securities market.

Here are some of the major differences between both of these markets -

Making profits:

Well, one of the most important things that come in everyone’s mind is how much profit they will get from trading, be it traditional trading or crypto trading. Profit is the major reason because of which people make investments in these markets. Hence, it becomes the top priority for the traders. 

Since a very long time, it has been seen that in order to make profit in a traditional market, one needs to have a lot of patience and understanding of the market. It is a very long-term process and a hectic one as well. There is a lot of paperwork that needs to be done in order to trade in the traditional market. Along with this, the person dealing in the traditional market will have to keep an constant eye on the news and have to analyse it regularly. Plus the trader will have to be well aware of all the economic and political trends which are going on locally and worldwide.

However, this is not the case in the crypto market. The chances of getting higher profits on your investment is quite high in crypto trading as compared to the traditional one. One of the major benefits with cryptocurrency is that it is far away from the political or economical trends which are centralized. The reason being that cryptocurrency has been developed on a decentralized concept and because of this, such factors doesn’t seem to have any effect on cryptocurrency.


Volatility is the major factor that can’t be ignored when it comes to both traditional as well as crypto markets. In the traditional market, people can rely upon it to some extent. There is slight volatility associated with it but one can assume the coming threat in the market and vice versa. However, the risk is associated with the traditional market as well and one cannot guarantee a profit in such a market.

In the crypto market, the case is different as the volatility is quite higher which makes the whole market quite uncertain. The traders can only assume and predict that what is going to happen next but no can be 100% sure about it. Even though the profit that people get in the crypto market is quite high, the same is the case with losses also and this is because of high volatility only.

Easy trading:

Crypto market comes first in mind when it comes to convenient and easy trading. It is an accepted fact that the crypto market is far more convenient than the traditional market. One of the biggest reasons for this is that there is not any kind of paperwork involved in this market plus there are not any standard rules or regulations to this. Because of this, it becomes quite convenient and easy for people to trade cryptocurrency. Along with this, there is not any need of any kind of broker or mediator while trading cryptocurrency.

With the traditional market, it gets quite complicated when a person first starts trading because of the amount of paperwork that is required in it. The reason behind so much paperwork is because all the traditional markets are highly regulated. Any person who wants to invest his/her money in the traditional market will have to give complete information about themselves and this process gets quite lengthy and complicated.

Availability for trading:

Now comes another important aspect, that is available for trading. In the traditional market, there is a certain time frame and anyone who wants to trade will have to follow that time frame only. There are a very few of the traditional exchanges which provide an option to trade 24x7.

However, as far as crypto exchanges are considered, they are available for trading 24x7. One can trade anytime they want as per their convenience. Plus crypto exchanges also give an instant response to the events that occur. Because of this, one needs to be very active and keep a constant eye on the events in order to make sure that they do not miss out on anything.


There are a lot of other differences also which are there but these were some of the major ones. Through this whole analysis, the major thing that comes out is that crypto exchanges are far better than the traditional exchanges in many aspects. The major drawback that comes with crypto trading is that there is high volatility due to which the risk factor is quite high and people tend to hesitate to trade sometimes due to such factors.

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