The US stock market and the crypto world may seem like two different markets, but their underlying logic is actually interconnected.
They are both processes of value discovery and re-pricing. In the stock market, a company's valuation is reassessed from being undervalued to its true worth, driven by earnings data, strategic adjustments, and changes in market expectations. The same applies to the crypto world—moving from obscure coins to popular tracks, driven by technological advancements, application implementation, and capital inflows.
Behaviorally, they are also similar. Retail investors chase gains and sell off, institutions strategize, and capital flows drive price volatility—this works in Nasdaq and is equally applicable in the crypto market. Cycles, sentiment, and capital games are universal rules of the game.
The only difference is: the stock market has better regulation, higher transparency, and relatively milder volatility; the crypto market is an emerging market, rules are still being explored, information gaps are larger, and price swings are more intense. But essentially? Both are about voting with money.
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TradingNightmare
· 01-04 05:55
There's nothing wrong with that, but the crypto world is definitely more exciting than the stock market. That's the reason we play in it.
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GasWaster
· 01-03 12:07
Speaking of which, there's nothing wrong with this logic, but the crypto world is just way more刺激 than the stock market, really.
Retail investors are being wiped out in the crypto market at a lightning-fast speed, while the stock market at least has the SEC watching over it.
Basically, it's just that the rules are not perfect, and the information gap is huge.
With the same game theory, the crypto world is more like a casino, while the stock market is just a豪华版 of a casino.
But this really hits the point—it's all about money voting.
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GasFeeNightmare
· 01-03 00:50
The crypto world is just the stock market with a different disguise; it's all about getting taken for a ride.
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SandwichTrader
· 01-03 00:48
That's right, it's just a game of capital. The high volatility in the crypto market is because no one is regulating it, which actually tests your mentality more.
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TestnetNomad
· 01-03 00:48
The stock market and the crypto circle are basically the same game, just that players in the crypto circle are a bit more reckless.
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Poor regulation, information asymmetry, and wild volatility... makes the crypto circle more exciting than the stock market.
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It's all about capital battles; retail investors can't escape the fate of chasing highs and selling lows on both sides.
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That's true, but the risk level in the crypto circle is not on the same scale, okay?
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Essentially, it's all about voting with money; retail investors are always on the losing side no matter how they vote.
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Understanding the underlying logic is quite important, but knowing it and actually doing it are two different things.
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The crypto circle is just an amplified version of the stock market, with more leverage, information gaps, and manipulation by big players.
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The difference is actually quite significant; don't fall for this logical trap.
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FlashLoanLarry
· 01-03 00:46
Well, the logic makes sense, but the risk factor of "money voting" in the crypto circle is much higher haha.
It sounds like all the tricks are the same, but in the crypto world, it's really a battle of information—whoever knows first makes the most profit.
But to be honest, retail investors are always the chives on both sides.
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SillyWhale
· 01-03 00:44
Exactly right, but the volatility in the crypto market is insanely high, and you can get liquidated accidentally.
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ForkThisDAO
· 01-03 00:38
Well said. The regulation in the crypto circle still needs to catch up, otherwise information asymmetry will always be a nightmare for retail investors.
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It's all a game of chance; stock markets have been played longer, but the essence of the crypto world isn't different.
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That logic makes sense, but the problem is that there are more market manipulators in the crypto market, haha.
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Value discovery? Most of the crypto world is just pure speculation, don't deceive yourself.
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So retail investors just need to bring their experience of losing money in the stock market; they'll lose the same way.
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The core difference is one word: transparency, which determines everything.
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DegenGambler
· 01-03 00:36
It's all nonsense. There's no such thing as rationality in the crypto world; it's purely gambling.
The US stock market and the crypto world may seem like two different markets, but their underlying logic is actually interconnected.
They are both processes of value discovery and re-pricing. In the stock market, a company's valuation is reassessed from being undervalued to its true worth, driven by earnings data, strategic adjustments, and changes in market expectations. The same applies to the crypto world—moving from obscure coins to popular tracks, driven by technological advancements, application implementation, and capital inflows.
Behaviorally, they are also similar. Retail investors chase gains and sell off, institutions strategize, and capital flows drive price volatility—this works in Nasdaq and is equally applicable in the crypto market. Cycles, sentiment, and capital games are universal rules of the game.
The only difference is: the stock market has better regulation, higher transparency, and relatively milder volatility; the crypto market is an emerging market, rules are still being explored, information gaps are larger, and price swings are more intense. But essentially? Both are about voting with money.