Crypto Market vs the Stock Market

Beau Stoner
A free video tutorial from Beau Stoner
Certified Bitcoin Professional|Engineer|Investor|YouTuber
4.7 instructor rating • 2 courses • 6,850 students

Lecture description

In this lecture, students learn about the similarities between the Stock market and the Cryptocurrency market, and how to use these similarities to your advantage. 

Learn more from the full course

Cryptocurrency Investment Fundamentals | Buy, Sell & Store

This course teaches the key fundamentals in buying and investing in cryptocurrencies, focusing on the Australian market

04:10:05 of on-demand video • Updated December 2018

  • Learn all about the fundamentals of Cryptocurrencies, including the foundational Blockchain technology behind it
  • Learn about Bitcoin, Ethereum, Bitcoin Cash and Ripple
  • Learn about Australian cryptocurrency exchanges, how to create an account and know your customer/anti money laundering laws
  • Learn how to buy, sell, and store cryptocurrencies including using digital wallets
  • Learn about the risks involved with cryptocurrency investment, including scams, hacks, phishing and pump and dumps
  • Learn about how to identify cryptocurrencies to invest in and how to employ proper investment strategies
  • Learn about Australian specific cryptocurrency tax and superannuanation
  • Learn some excellent resources for increasing your knowledge on investment fundamentals, and where to find cryptocurrency communities
English [Auto] In this first lecture I'm going to show you just how similar crypto currencies are to traditional stocks or shares. So he we are on the Nasdaq Web site now. The Nasdaq is the stock exchange for technology related private companies. Now what it does is it compiles all the companies that are listed on that particular exchange and it gives kind of like a global view of the price of all those individual shares and then plotted on a graph just like these. So at the moment this is showing what all those shares what the sum of all those shares are worth plotted against a graph on time. So let's just take an example and look at one particular company that's listed on the Nasdaq exchange and that is the Intel Corporation. And at the moment the Intel Corporation is worth two hundred eight billion dollars that's the total market cap. Now remember the total market capital is basically the process of the share multiplied by the number of shares out there that are available available to be purchased. So we can say that the price of one in Toshiba is forty four dollars and 40 cents US. We can say that in the last 24 hours it has gone up by 7.3 percent. When we look at the graph over a year we can see that the price of the shares are slowly going up which means that the demand is increasing and the supply that demand is outweighing the supply of the Intel shares. So we can see here basically the price of the shares was actually pretty stable across sort of the first six months of this year. And then we've had a shoot up just in the last couple of months so we can say here that the shares were around $37 $35. And they've shot up to $44. Now this is Lochley on the back of some probably some pretty big news or maybe some new big partnerships and people have jumped on board a lot of the shares. So the demand is increased and therefore the prices increased as well. There are many companies you can buy shares on. Generally when a company offers shares it means that they have gone public. There's something called an IPO an initial public offering where they offer the public a chance to purchase their shares and then the shares are traded on a stock market. And as we discussed before technology related companies are usually traded on the Nasdaq stock market. OK. So that's a quick breakdown of shares and the share market let's say has similarities to the cryptocurrency market. So here we are over on the global charts on coin market cap dot com. Now here we can see the total market capitalization for the last five years for all cryptocurrency. So much like looking at the Nasdaq the cryptocurrency market is kind of his coin market cap Ripper's represents all the different exchanges out there. And then it shows it basically sums the market capitals of every single cryptocurrency So at the moment we have 1226 different crypto currencies with the combined market capital of 168 billion dollars that's how much all crypto currencies in existence are worth right now. So as we can say looking at the total graph of the market caps basically crypto currencies were pretty insignificant all the way up to about September of last year. And as you can see we've had a tremendous surge in value. We've had corrections and corrections when the market basically pulled back some of its money. Now that means that people sell their crypto currencies or their shares they take their money out and then they put the money maybe back in the bank then we can say the market has again had a huge surge and then has had a correction. So we could see that really just in the last sort of six to 12 months. Crypto currencies have become extremely extremely popular. So just like we had a look at Intel let's go have a look at a particular cryptocurrency and try and compare that to share. So here we are over on Bitcoin. Bitcoin is always the best example to use because it's been around for the longest. Now this graph represents just the same as the Intel's stock but we're looking at the price of the Bitcoin. So we can see that Bitcoin was around $220 on this date which is Fabry the 8:8. And if we come along here we can say on on September the 19th the price of one bitcoin was six hundred nine dollars. That we can say Bitcoin just shoots up in value. Having those corrections along the way to rate its current price of four thousand seven hundred thirty four dollars. Now you can see that it's gone down by 1.4 percent in the last 24 hours. Now coin market cap also gives us how many of the current amount of Bitcoin are at their own exchanges at the moment to be bought and to be sold. And then it shows it's the maximum supply that will ever exist of Bitcoin of 21 million bitcoins. So then when we have a look at all the crypto currencies in existence we can easily dissect that data. And again just compare them to a traditional sheet. Now they aren't ashing. There are much more use cases with Crypta currencies which we will get into. But for the purpose of getting your head around the Kensi market and you head around investing into crypto currencies comparing them to shape is really the best and simplest way to look at it. So here we have all these different crypto currencies. Now let's have a look at another one for example. Let's get Nayo So let's click on the Hey Whyfor to load and we can see the process of Nijo over the last couple of years now and has not been on the market for as long as Bitcoin. It's actually only been released to market for a couple of years. It's quite new as a cryptocurrency but we can see the total market cap of 1.3 billion dollars. Again comparing that to Intel Intel has a market cap of two eight billion dollars so the shares that they are in the private market up Bob more valuable than keep their currencies at the moment. But again we could look at that and say well we're very early on in the cryptocurrency space at the moment and crypto currencies are eventually going to reach that market cap one day. So coming back to Neo we can see the process has gone up and it's gone down it's gone up and it's gone down. And there's a lot more things we can do. We can have a look at a bit more granularity and we can we can zoom in and see how the show has performed. But again if we think of crypto currencies use the analogy of the share market and think of them kind of as a sham we're investing it gives us a much more clear picture on what crypt counties are and how we can Galban visiting them. So with that out of the way let's move on to the next lecture.