Crypto vs stocks: how the markets differ

Both markets let you buy and sell an asset, but the mechanics differ.

Crypto vs stocks side by side

The two markets look similar when you place an order. They differ in hours, venues, ownership, protections, structure and taxes.

When and where do they trade?

Crypto trades around the clock on global venues; US stock exchanges keep weekday hours. Stock trades go through brokers, while crypto trades happen on exchanges or peer to peer.

Who issues or runs each side?

A stock is issued by a company and usually gives the holder a claim on the business. A crypto coin comes from a network or project, and a token may carry a use, a vote or no claim.

How safe is each market?

US stocks trade inside a long-standing system. The SEC and FINRA oversee brokers, and SIPC protects against a failed brokerage. Crypto rules come from federal agencies and states, and exchanges usually lack SIPC protection. Crypto is more volatile and fragmented; stocks use circuit breakers and clearing.

• Stock exchanges use circuit breakers during sharp drops.
• Stock trades clear through a central system.
• Crypto venues trade separately, so prices differ.

How are gains taxed?

The IRS treats crypto as property. Buying crypto with US dollars is not taxable, but trading one crypto for another or paying with crypto can trigger gains. Stock gains are taxed on sale.

Written byVahe HakobyanVahe Hakobyan is the editor-in-chief of World-Crypt. He covers bitcoin, markets and regulation, and leads the newsroom that fact-checks every story before it goes live.