The Binance vs. Stocks: Which Do You Choose?
Whether you are a long-time money creator or a first-time investor, Binance vs. Stocks may put you in a difficult position when it comes to investing.
Many people find it daunting to pick between Binance vs. Stocks when they want to start investing. You may wonder which of these investments is the right place for you.
The idea of investing in stocks or Binance is attractive, making them one of the popular investments today. However, before you think of dipping your toes in crypto or the stock market, weigh the risks involved.
What are the pros and cons of starting a cryptocurrency or stock trading? The generous returns from each of these trading can deceive many newbie investors from researching first.
Comparison Table for Binance vs. Stocks
Is the supply limited?
(21 million BTC maximum guaranteed.)
Businesses can always issue more stock.
Is the asset impossible to fake?
Bitcoin is independently verifiable via blockchain.
Companies verify stocks but may require auditing.
Can you use or transfer the asset anywhere?
Bitcoin can be used to pay or to transfer value anywhere in the world.
You can’t use stocks outside of the stock market.
Is this asset independent in a way that no central authority controls it?
Creating and governing it involves a network of decentralized nodes or computers.
All stocks come from just one company and are usually held by a few controlling shareholders.
Can one unit of this asset be divided into smaller quantities?
There are 100,000,000 satoshis in one Bitcoin.
Generally not divisible, unless a company engages in a stock split.
Is this asset protected in the long term?
As a digital asset, Bitcoin will not deteriorate.
Stocks are reliant on a company’s longevity.
Can this asset be traded for other goods or assets?
Bitcoin can be used to pay for a wide array of goods.
|Yes to a limited extent|
You can cash in or cash out but you do not use stocks to pay for goods.
|User-friendliness and Awareness|
Is the asset easy to use? Is it known to more people?
|Not quite yet|
Bitcoin has a long way to go in terms of general knowledge.
Few people deal with stocks
Stock Trading: Binance vs. Stocks
Do you want to invest in the stock market? When you compare Binance vs. Stocks, investing in the stock market has numerous pros and cons.
It has the potential to earn you dividends, including an average annualized return. However, the market could be volatile. This means you are not guaranteed returns.
While we have spoken about the pros and cons of Binance vs. Stocks, we can take more about their differences and similarities.
The aim of Binance is to ensure that it becomes globally accepted a currency, while the stock has maintained its form of investment that represents shares of ownership.
Similarities Between Binance vs. Stocks
Today, investors log on to any digital exchange, mobile application, brokerage account, or other online platform for trading.
Most stocks and crypto platforms share similar user experiences in terms of order-book-based liquidity mechanisms, trading options, and users.
You can buy or sell stocks or crypto online without difficulties. You make use of retail trading platforms for your business.
These platforms offer access to stop or stop-loss, limit, and market orders. This is what you should know:
Market Order: A market order is an order that allows investors to buy or sell an asset as soon as possible at the current bid or ask price.
Limit Order: A limit order allows you to buy or sell an asset at a specific price.
Stop: A stop (or stop-loss) order is for mitigating excessive losses.
Many decentralized crypto exchanges (DEXs) offer market orders only, while the full range of orders exists on most established centralized exchanges (CEXs).
Binance vs. Stocks Differences
What you own
Investors buy crypto as a digital currency that can allow them to make transactions whenever they need it as other currencies.
It works as a store of value that owners sell or hold onto. Companies offer stock as ownership or equity.
Both stocks and crypto can rise and fall in value. This means both involve risk when trading. Crypto suffers more changes in value regularly.
Stocks depend on the current events of the day to either rise or fall.
How they are governed
When it comes to stocks, Federal agencies like the US Securities and Exchanges Commission (SEC) have authority over the market.
This ensures protect fair trade. Crypto has no central authority regulating the market.
Hours of operation
Stock does not run 24/7 every year, but crypto does. You can buy and sell crypto anytime without difficulty in its hours of operation.
- Stocks grow with the economy.
- It stays ahead of inflation.
- Stocks are easy to buy and sell.
- Investors risk losing it all.
- It requires time to research.
- It comes with emotional ups and downs.
Benefits of Stock Investing
When comparing Binance vs. Stocks, you should know more about its benefits and disadvantages. Here are some of the benefits of stocks:
It takes advantage of a growing economy:
Stocks ride on the economy. As the economy gets favorable, so do stock earning. The reason is that economic growth helps in creating sales, incomes, and jobs.
When the paycheck is fatter, the consumer’s demand also increases. Stocks revolves around the business cycle.
It stays ahead of inflation:
Stocks can offer an average of 10% annualized return. This means that stocks are better when you compare it to the average annualized inflation rate.
You can easily buy stocks:
You can easily buy the shares of companies. This could be done through a financial planner or a broker, or online. When you have an account, buying stocks can be done within minutes.
You can make money in two ways:
Wondering why you should consider Binance vs. Stocks before you invest, stocks allow you to make money in two ways.
You can buy at low and sell high. Investing in fast-growing companies is easier with stock. Whether you are a buy-and-hold investor or day trader, you can make money with stocks.
Stocks are easy to sell:
Buying stock is easy and you can easily turn your shares into cash quickly with low transaction costs.
Disadvantages of Stock Investing
Here are some of the disadvantages of stocks:
With stock trading, you risk losing your funds. Stock price plummets and affects the value of shares. You can lose your entire investment or part during bad sales.
Stockholders get paid last:
Some bondholders, creditors, or stockholders can get paid first when there is bankruptcy. If you keep a well-diversified portfolio to save you when a company goes down.
Comparing Binance vs. Stocks, stocks take time if you are buying on your own. Individuals must research each company before they can make up their minds.
You have to learn how to read annual reports and financial statements and follow the developments of the company you bought shares of.
Emotional roller coaster:
The price of stocks can rise and fall within seconds. Greed buying is high, making stock an emotional roller coaster for investors.
Fluctuations are common and happen on regular basis.
Professional traders and institutional investors invest better because of the sophisticated trading tools, financial models, and computer systems at their disposal.
Individuals when they compare Binance vs. Stocks prefer Binance when it comes to these disadvantages.
Ways to Diversify to Lower Stocks Risk
The following are some of the ways you can reduce the stock risks via diversification:
By investment type:
When you make use of a well-diversified portfolio, it offers you more benefits and reduces the disadvantages you might have suffered initially.
When you invest in commodities, bonds, and stocks, you have a lower risk in losing your entire fund.
By company size:
We have small-cap, mid-cap, and large-cap companies. The term “cap” stands for “capitalization.”And means the total stock price times the number of shares.
You can shares in different-sized companies because they perform differently in each phase of the business cycle.
You can own shares in any part of the world. This offers you a soft landing when it comes to losing a lot of money in your economy.
Through mutual funds:
When you own mutual funds, it let you own hundreds of stocks selected by the mutual fund manager.
Binance vs. Stocks: Binance Investment
Binance is considered one of the most popular cryptocurrency exchanges in the blockchain industry.
This investment was originally based in Hong Kong, and governed by Hong Kong law. However, Binance is not listed on any stock exchange.
The company’s corporate structure is not transparent, and you can find it difficult to find clear information on the location of its headquarters.
The coin is not available in the United States but has a special site for those in the country with the Binance.US.
The Binance US has the same engine and wallet technologies of Binance.
|# of employees||2,800|
|Client base (million)||15|
|Traded volume on exchange (quarterly, USD billion)||180|
|Latest available data as of June 2021|
Binance vs. Stocks helps you understand that it is not easy to determine the safety of a cryptocurrency exchange.
Sometimes, cryptocurrency exchanges do not qualify for deposit insurance programs. What this means is that you have to make your research.
Before you think of using a crypto, check the following:
- the exchange has a sizable client base,
- if it has a robust traded volume per quarter,
- if it is an established company
- or the company that operates the exchange is listed on a stock exchange.
Binance Pros and cons
|• It has a low non-instant and instant buy fees||• Accountverification is challenging|
|• The investment has an extremely large coin selection||• It is not available in the US|
|• It offers numerous extra services||• It has non-transparent corporate structure|
|Binance main features and highlights|
|🗺️ Country of origin||Hong Kong|
|💰 Trading feesclass||Low|
|💰Withdrawalfeeamount||$1-30 or 1% to card|
|💰 Minimum deposit||$0|
|🕖 Time to open an account||Lessthan 15 mins|
|💳 Depositing with bank card||Available|
|👛 Depositing with electronic wallet||Not available|
|💱 Number of coins supported||400+|
|🛍️ Products offered||Stablecoins, altcoins, futures on coin, options|
When it comes to cryptocurrencies, Binance has the lowest trading fees among exchanges. Its non-trading fees are low, except for withdrawal fees.
|•It has the lowest trading fees||• Withdrawal fees|
|• It has low non-trading fees|
If you want to categorize the Binance fee levels, they come as low, average, and high.
The terms you should know when dealing with Binance.
- Trading fees: This happens when you trade. You are expected to pay commissions, and some charge spreads, which is the difference between the bid and ask price.
- Non-trading fees: This fee includes charges not directly related to trading.
This could be in the form of deposit and withdrawal fees, inactivity fees, conversion fees, and bank transfer fees, among others.
Binance vs. Stocks: Binance Trading Fees
Trading fees are low. The fee investors pay depends on your traded volume.
When comparing Binance vs. Stocks, Binance offers discounted trading costs depending on traded volume and Binance coin (BNB) holding.
It also depends on whether you take or make liquidity.
The investment you make in Binance is riskier than the shares you buy in companies. You enjoy fewer hurdles when trading in Binance than stocks.
Just like other transactions, before you think of making your investment on Binance or stocks, you should make your research.
We have numerous coins you can trade on Binance, likewise stock has its different shares you can buy. You do not want to invest in bad coins or shares.
This means you need due diligence when it comes to investing in any of these businesses. No matter how juicy they may appear, they have high risks.