Cryptos vs Stocks
Overall
I won't be trading cryptos. This will be it--in short, the time i'm spending on currencies is time away from refining my equities trading skills.
Returns
Cryptos are undeniably the hottest sector and is reminiscent of the 2000 Internet bubble. For long-term investors, this might not end well for a lot of inexperienced investors/traders. However, for traders that are risk averse-oriented that's capturing a slice of the big ass opportunity that's the ongoing bubble--so much opportunity everywhere to easily make 100-500% of your position size which is INSANE. The downside is that having a huge position size on some of the smaller-known altcoins can result in a loss of 30-50% in a day or two.
Stocks on the other hand, i'm only reasonably expecting to grab anywhere of 3%-8% of a 30% move. I am able to control my risk much more with stocks because the platforms I use for stocks are much more mature and has hotkey capabilities.
It really is a struggle NOT to want the returns of crypto trading. The returns far outweigh the risk involved ESPECIALLY if I am participating in pump and dump groups that routinely manipulate these unregulated markets. The returns of cryptos far exceed that of stocks but there is one con that I will explain further below.
Liquidity
Anything on the top 20 actually has enough liquidity to support the type of trading I do. When I was in a couple of groups that try to spot pump groups for alt coins--the $volume for some of the picks sometimes is barely 1million. Hell yes its easy money to make x5-x10 of your money in a day or two but coupled with the fact that I don't like pump groups--i'm fine not trading false hype like this because I'm already at the point i'm primarily not trading for money anyways. In short--finding pumps or even manipulating the market to lure in outside cash from new investor/traders is fun and all, but it's not my cup of tea.
TIME
This is pretty much what catches and reels me in. Crypto market is 24/7 and trying to find pumps is a 25/7 job. Yes, it's a 25 hour job because it takes a lot more than what I currently have in a day to be able to track and keep in touch with the smaller altcoin market somewhat. Unless i'm in a group where we will be clearing out the bid or ask to wipe out weak hands--most of the time in cryptos is just waiting since you do not necessarily know exactly when the volume will be coming in. So like i said--most of the time is spent waiting.. Trading is patience.. but If i had a choice between finding a market that has a consistent time day after day where the volume is high and a specific time--i'll choose that even if it has less returns.
Swing trading cryptos--I can do and really is what I've been doing in cryptos.
vs Stocks-- Stocks has a market open and a market close. The good thing about the stock market is that fact that during the open--a TON of volume is pushed through everyday at 930am-10am. I can literally trade for 10minutes up to 1-2hrs max and call it a day. The returns will be far inferior than that of the crypto market--but like I said, I trade not for the sole reason of the money anyways.
But can't I just trade cryptos--make a million then quit it entirely? Yes, but it was never about the million for me anyways.
There are plenty of markets out there outside of the crypto market that I can make a million dollars from. Crypto market is just another asset class in which a portfolio can be diversified into.
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