Stocks vs Cryptocurrency Trading: A Simple Guide to Differences and Similarities

1. What is the main difference between stocks and cryptocurrencies? 

Stocks give ownership in a company with claims on earnings and voting rights, while cryptocurrencies are digital tokens without company ownership. 

2. Are cryptocurrencies riskier than stocks?

Yes. Cryptocurrencies are far more volatile than traditional stocks. Prices can swing dramatically in a single day, whereas stocks generally move more steadily, especially large-cap equities. 

3. Can I earn income from cryptocurrencies like I do from stocks?

Stocks can pay dividends to shareholders. Some cryptocurrencies offer staking rewards or fee-sharing, but these depend on the protocol and carry unique risks like smart contract failures. 

4. Do stocks and cryptocurrencies trade the same way?

No. Stocks trade during exchange hours and settle on T+1, while cryptocurrencies trade 24/7 and settle within seconds or minutes on their respective networks. 

5. How do I safely trade cryptocurrencies?

Use reputable exchanges or protocols, enable two-factor authentication, consider hardware wallets for custody, verify contract addresses, and avoid overleveraging in illiquid markets.