The daily limit of A-shares in the past few days has made many friends who have just entered the cryptocurrency circle envious. However, today's sudden plunge has dumbfounded those who were preparing to withdraw funds and prepare to enter A-shares.

I have always had a point of view: I would rather trade in cryptocurrencies than stocks! Today I will try to analyze it objectively from different angles.

01 Reason 1: Cycle Return Rate

In terms of periodic return rate, cryptocurrency trading can be said to be far superior to stock trading.

Take a look at the K-line of the Shanghai Composite Index and BTC.

Shanghai Composite Index:

Let's be fair. From 1,000 points in 2005 to 6,000 points in 2008, this is only a 6-fold increase. Another relatively large cycle rate of return is from 2,000 points in 2014 to 5,000 points in 2015, which is about 2.5 times.

After 2017, A shares fluctuated from 2000+ to 3000+, and there was almost no outstanding performance.

BTC：

Even if we don’t count from the very beginning, but start from 2017 when it gradually became popular in China, starting at 3,000 US dollars, the high point is more than 20 times.

Looking at it this way, isn’t the rate of return on cryptocurrency trading scary?

02 Reason 2: Volatility

The stock market has a strict regulatory system, and with price limits and trading on weekdays, volatility is limited.

However, BTC can be traded 24 hours a day, with no limit on price fluctuations, no limit on transaction amounts, and a free market with very high volatility.

It seems that the greater the volatility, the greater the risk, but if you want to make money trading, sufficient volatility is very necessary.

As long as it does not return to zero, it will rise sooner or later, which is the so-called "trading time for space".

If you believe in long-term investment, you can hold on to it.

If you find that BTC has fallen 50% from its high, you can generally start regular investment. If it falls 65-80%, you can buy at the bottom and then calmly wait to make money.

Why do we invest in stocks? Is it because it is easy to deposit and withdraw money, or because there are dividends? However, these have little to do with your rate of return.

In my opinion, the most important factor is that cryptocurrency trading is too flexible and it is easy for people to lose control. There are too many coins and they can be traded at any time. They can also play with contracts. It is too free and open, and people can easily make crazy moves.

This is essentially a process of recognizing oneself.

If you are worried that you won’t be able to control it, why don’t you just invest and hoard coins?

In short, if a person has a high level of trading skills, he can also play contracts and make money very quickly.

However, if a person has no trading skills, it is recommended to directly invest in BTC and make big profits.

If you don’t believe it, you can check in 5 years to see if the rate of return from your cryptocurrency trading is much higher than that from stock trading?