The original goal for crypto was to one day become a currency that’s as commonly accepted as cash and credit. Unexpectedly along the way, it has become popular to buy crypto as a form of investment. Many people now associate crypto with stocks, even though they’re completely different. Let’s take a look at some of the differences between crypto and stocks.

Different: What you own

When you buy crypto, you own a certain amount of that digital currency. Someday it may be possible to use crypto in transactions as easily as other currencies, but today it’s primarily a store of value that you can hold onto or sell. By comparison, stocks are offered by companies as equity or ownership in that company.

Different: Volatility

Both crypto and stocks can go up and down in value, so buying either one involves risk. But crypto has gained a reputation for sudden and drastic changes in value that can happen without warning. Stocks, on the other hand, are directly linked to companies that must publicly and regularly share how they’ve been doing and how they expect to do in the future. Investors can potentially use that information to reduce the risk of volatility.

Different: How they’re governed

Federal agencies like the US Securities and Exchanges Commission (SEC) have authority over the entire stock market to protect fair trade. In contrast, as of now, there is no central authority regulating the crypto market. For each unique crypto, governance is distributed among those involved with growing and maintaining its technology.

Different: Hours of operation

The crypto market runs 24/7, 365 days a year. You’ll see the price of cryptos change even as the clock strikes midnight on New Year’s Eve. The stock market works full time Monday through Friday, but takes nights, weekends, and designated holidays off.