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Zachary Stever

Mrs. DeBock

English IV Honors

October 12, 2017

Which is More Profitable: Stock Market vs Cryptocurrency

In todays society people invest their money in all different types of companies and

lotterys to try and make a profit. The most well known way to invest your money is through the

stock market. The stock market has been around for almost three hundred years and it is still

seen as one of the best ways people can make money by investing low and selling high. A new

competitor to the stock market that has been on the rise in the recent years and it is known as

cryptocurrency. The most well known cryptocurrency is Bitcoin and it is a completely

anonymous way that people can buy sell and trade cryptocurrency. It is seen as a competitor to

the stock market because the prices of bitcoins fluctuate at times and people can make major

profit off of bitcoins. The major question that is surrounded around these two methods of making

money is which is more profitable.

The stock market has been around for nearly three centuries and it is known as one of the

riskiest, most profitable ways to earn a major amount of money. When it comes to buying stocks

a person is basically joining a game of risk and reward. Every time a stock purchase is made they

are taking a risk due to the fact that a stock can plummet as soon as it is purchased. Stocks can be

seen as a golden ticket from rags to riches for many people. The stock market has a science to it

as well as just luck. Liss wrote an article on how the market can be profitable even when a stock

is on a winning trade. Liss stated, In fairness, I must say that your real risk here is that Tesla

goes to 220 on the January expiration and then just dies at the strike, as we used to say on the
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floor. In that case, you not only miss the last 4.50 points, but your long call still expires

worthless. Admittedly, though, that is an unlikely scenario. Liss is basically saying that it is a

huge risk investing into Tesla but it could also be extremely profitable if the company continues

to flow with no problems. Stocks do not only fluctuate due to the economy they also fluctuate

due to how the company is doing as a whole. For example, if a substantially large amount of

employees strike for some reason they will not produce enough product causing their stock to

decrease. The stock for the company will decrease due to the fact that without a mass number of

product the companys investors are losing money on the share. Cohn states that, Technical

analysis can reveal behavioral patterns in trading activity on stock markets. It has the potential to

uncover behavioral cues of market participants and capture psychological biases such as loss

aversion or risk avoidance. In its arsenal, sound statistical and quantitative analysis methods can

be found in addition to heuristic pattern analysis such as candlestick pattern matching functions.

This means that analysis can be used to predict when the market is at a strong point and when it

is about to fluctuate. This can be extremely helpful to anybody that is trying to figure out when

they should sell their stock and or trade it. Stocks have a newer competitor known as

cryptocurrency which is believed to be a more modernized safer way to buy sell and trade.

Although the stock market has been around for a long time it is being challenged by a

new money maker. Cryptocurrency is a new industry that is booming with business. Investors

can buy sell and trade their coins and make profit off of this. The most popular cryptocurrency

that is around today is Bitcoin. Bitcoin is becoming so successful because people have a demand

for a currency that is completely encrypted and anonymous.

In some cases people compared cryptocurrency to video games since you have no physical

money it is a virtual and you use these coins to purchase large items in reality like if you were
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use virtual currency in a game to buy items (Shin 1). People have use this analogy due to the fact

that some people get confused on how cryptocurrency works due to mass encryption that occurs

when buying selling or trading coins. The most well known cryptocurrency that is around today

is selling for almost $5000 a coin. The main problem that can occur when buying selling and

trading crypto currency is that the market fluctuates all the time so one day you can drop a

substantial amount in price. To acquire these currencies you need to do a process that is known

as mining for a wallet. Powerful computer equipment is needed to mine for bitcoins. It is also

only profitable if the market is high (Chun 1). Obtaining cryptocurrency can be profitable for

anybody due to the fact that the market fluctuates all the time and you can maximize profit just

by paying attention to the market and knowing when to buy and sell. Crypto currency and the

stock market can be seen as almost the same type of business due to the fact you have to buy sell

and trade by in many ways they are extremely different.

Many analysts have figured out how to almost calculate when to buy and sell stocks

proving that there is a science to becoming a trader on the market. Also many analysts have

come to the conclusion that crypto currency such as bitcoin can be extremely profitable because

no matter how far the price of a bitcoin depreciate it will almost always get back to where it was

if not gain value. The stock market seems to be the more profitable of the two sources of income

due to the fact that there actually formulas that can predict when a certain stock will be on the

rise allowing investors to sell whatever they have and gain profit. Cryptocurrency is still being

analyzed and will someday be on the same level of profit as the stock market.

Works Cited
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Bitvai, Zsolt, and Trevor Cohn. Day Trading Profit Maximization with Multi-Task

Learning and Technical Analysis. Machine Learning, no. 1-3, 2015, p. 187. Edsgao,

EBSCOhost, doi:10.1007/s10994-014-5480-x. Accessed 12 Oct. 2017.

Chun, Rene. Bitcoin Mining. Atlantic, vol. 320, no. 2, Sept. 2017, p. 26. Points of View

Reference Center, EBSCOhost,

search.ebscohost.com/login.aspx?direct=true&db=pwh&AN=124311549&site=eds-

live&authtype=uid. Accessed 12 Oct. 2017.

Liss, Randall. Question: How Can You Take Profit on a Winning Trade Yet Maintain

Upside Potential? Futures: News, Analysis & Strategies for Futures, Options &

Derivatives Traders, vol. 44, no. 1, Jan. 2015, pp. 1212. Small Business Reference

Center, EBSCOhost,

search.ebscohost.com/login.aspx?direct=true&db=b9h&AN=109025838&site=eds-

live&authtype=uid. Accessed 12 Oct. 2017.

Shin, Laura. THE EMPEROR'S NEW COINS. (Cover Story). Forbes, vol. 200, no. 1,

27 July 2017, pp. 6270. Business Source Premier, EBSCOhost,

search.ebscohost.com/login.aspx?direct=true&db=buh&AN=123970373&site=eds-

live&authtype=uid. Accessed 12 Oct. 2017.