So, you’re considering investment trading and wondering which assets to focus on? Stocks, forex, and cryptocurrencies are the most popular, and they’re likely topping your list.

However, before picking one to trade on an exchange platform like Traze.com, you want to figure out how they’re separate from each other. Or are they all the same? Not quite.

In this blog post, you’ll learn some differences between buying and selling stocks, crypto, and forex on an exchange. Ready to kickstart your trading journey? Let’s dive in:

1.   Volatility

If you’ve followed cryptocurrencies since the first digital coin, you would know they’re an extremely volatile asset. In other words, prices can change quickly, sometimes within minutes. On the plus side, you can make a fortune instantly from these fluctuations.

However, you can also lose a lot of money within the blink of an eye. While several factors contribute to the unpredictability of the crypto market, I believe the most significant is investor behavior.

Traders and their decisions can cause price changes that affect the market drastically.

Forex is also pretty volatile. However, it’s not as unstable as cryptocurrencies, largely because of the high trading volume.

Stocks are the least volatile of the three. As a result, they’re an excellent pick for buy-and-hold investors. If you favor a more short-term investment strategy, forex and cryptocurrencies might be ideal for you.

2.   Trading Time

The forex and crypto markets are typically open round-the-clock. Which means, you can trade on an exchange whenever you want. Stocks don’t work this way, with opening and closing times a common theme in the market.

For instance, the stock market in the US runs from 9:30AM-4:30PM. Holidays also affect when you can trade stocks. The New York Stock Exchange (NYSC) is completely closed during the US Independence Day.

3.   Regulations

You can’t ignore regulations if you’re investing in assets like crypto, forex, and stocks. Unfortunately, I feel cryptocurrencies fall significantly short in this area.

Although many federal governments are putting more policies in place to control digital coins like Bitcoin, there’s still a wide regulatory gap compared to forex and stocks. As such, you’re not completely protected as an investor and could still face risks like ponzi schemes, cyber attacks, and market manipulation.

In contrast, the stock and forex markets have more laws in place to protect traders. Companies, for instance, have to regularly provide accurate and complete financial information to investors.

4.   Transaction Fees

You can expect trading fees when you’re into stocks, forex, or crypto. For forex, transaction fees include commissions, spread, currency conversion charges, and deposit and withdrawal fees.

If you’re buying and selling stocks, you’ll pay account maintenance charges, commissions, transfer fees, and inactivity charges. Crypto trading transactions come with network fees, exchange levies, withdrawal fees, and leverage/margin fees.

5.   Leverage Rates

Most exchanges offer leverage trading for forex, crypto, and stocks, so you can enter the market with a small deposit of the entire capital. But the rates differ for each asset class. You’ll likely receive higher leverage for forex, sometimes as high as 100:1, while crypto rates can go as high as 50:1. Stocks are significantly lower, sometimes sitting around 5:1.

Conclusion

Stocks, crypto, and forex are some popular assets you’ll find on an exchange platform. As a newbie, you’ll likely think they work the same way, but they don’t.

The stock market is typically more stable compared to forex and crypto. Differences in regulation, transaction fees, and trading time also exist between asset classes. Understanding these small details can help you determine which asset is best to prioritize on your investment trading journey.