There is a similarity between crypto and stocks and shares that crypto users and investors tend to overlook.
At least, this is a similarity that is not as emphasized as other uses of crypto, such as a means of transactions and investment vehicle.
I think that this similarity is ignored by many investors who choose to invest in stocks and shares, as well.
What I am talking about is the option to own a part of a corporation by buying stocks and shares issued by it..
The majority of investors who put money in stocks only seek to make a profit by buying low and selling high.
For example, in a bear market, they will rush to take advantage of the opportunity offered by low share prices, so that they cash in when prices go high in a bullish market, and hopefully make a hefty profit.
Along with this investment scenario, there is an alternative and complementary option of getting an additional return on investment, on top of trading stocks and shares in the hope of making a profit.
This option refers to earning through various types of dividends paid by listed companies to holders of stocks and shares.
Again, this a popular strategy that has many loyal fans among investors.
What about owning a part of a corporation by buying and holding shares?
An investor could be involved in decision-making in that corporation, as a result.
This is a vital point that hasn’t grabbed the attention it deserves, in my opinion.
Investors in stocks and shares, and especially casual ones, complain about unpredictable market conditions causing them to suffer a loss.
What if they could have themselves a say in the decision-making and operation of the companies that they have invested in?
This is the critical function of stocks and shares that I am talking about, which is often overlooked.
In many ways, it is similar to buying and holding different cryptocurrencies.
By buying and holding a specific cryptocurrency, investors and users are automatically involved in the project that this cryptocurrency represents.
I am not sure if I got it too wrong, but I think that, in terms of investment, running a specific crypto project is similar to the operation of a listed company.
Similar to how investors can determine the present and future of a company, crypto investors, users, hodlers, and stakers can have an impact on the success of a crypto project, through their direct or indirect involvement in it.
As a result, the success or failure of the project will mean that their investment is profitable, or not.
The same applies to investors in stocks and shares.
Those investors, either in stocks and shares or/and crypto, who manage to change their mindsets, and see themselves as “internal owners”, rather than just external investors, will probably earn more in the long run, because owning more stocks or crypto will allow them to have more votes to affect the future of their investments.
Further reading:
Voting Shares: Definition, Types, and Examples
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