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Stocks, forex and cryptocurrencies may be familiar to your ears. But do you know what the difference is from the three?

Trading stocks, forex and cryptocurrencies can both be traded to generate returns. But the way it trades is not the same between stocks, forex and cryptocurrencies. In addition, the form of the instrument and the level of risk are also different.

The three instruments also have their own advantages and disadvantages. In this article we will explore about the differences between stocks, forex and cryptocurrencies. Starting from the understanding, function or benefits and how to trade it to get a return.

Differences in Crypto, Forex and Stock Investments

A stock is a valuable document that is able to display the ownership part of a company. That is, when someone decides to buy shares, then actually the person has bought some of the ownership of the company he bought.

Or simply a means of proof of ownership of a company. The form of the stock itself is usually a sheet of paper in which the contents state the ownership of the securities is the owner of the company that made the letter.

Forex is a foreign exchange transaction. This term is better known as foreign exchange or forex in Indonesian. The occurrence of foreign currency exchange is none other than the need for foreign currency, such as travel abroad, shopping for goods from abroad, and so on.

Cryptocurrency is a digital asset that is understood as a digital currency. This currency is very different from the conventional version, where cryptocurrency is used for virtual transaction needs over the internet network.

This currency is decentralized, which means that neither party is an intermediary on a transaction. So, payments take place on a peer-to-peer basis, which means they are made between sender and receiver directly. In addition, all transactions will be recorded through the system that has been available with optimal security.

Because it is decentralized, cryptocurrencies require sophisticated and qualified computer specifications. In general, it will use the blockchain platform to make it easier to make transactions.

"Since entering the cryptocurrency must be ready for its volatile, this is no longer discussing the fundamental formula but speculation. We see that the opportunity is still there. But you have to understand the risks," he explained.