Many cryptocurrency investors have never learned anything about cryptocurrencies, but most of them have some understanding of the stock market. In fact, stocks and cryptocurrencies are two different fields. It is not a good idea to learn from the experience of the stock market to participate in the cryptocurrency market investment.
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P/E Ratio
P/E Ratio
The price-to-earnings ratio (P/E or PER) of a stock refers to the price per share divided by the profit per share. For example, KFC stock is 100 yuan, a total of 20 stocks, then the total market value of KFC is 100 yuan * 20 = 2000 yuan. The company earned 200 yuan in 2018, and the profit for each stock is 200 yuan/20=10 yuan per share. The price-earnings ratio for this year is 100/10=10 times. That is to say, if an investor buys this stock for 100 yuan, theoretically, the original investment can be recovered within 10 years.
NAV per share
Net assets per share refers to the ratio of shareholders equity to the total number of shares. Its calculation formula is: net assets per share = shareholders equity / total number of shares. This indicator reflects the present value of assets owned by each share of stock. The higher the net assets per share, the more value of assets per share owned by shareholders; the lower the net assets per share, the less value of assets per share owned by shareholders. Usually the higher the net assets per share, the better. When the company sells all assets and pays off all liabilities, the net asset value is the amount that shareholders can get back.
discounted cash flow
The discounted cash flow model is referred to as the DCF model. The implication of this model is that the current value of an investment or an enterprise is equal to the sum of the present values of the cash flows it will generate in the future. If the discounted value is lower than todays share price, the stock is attractively priced.
None of the above valuation models apply to cryptocurrencies.secondary title
Multiple comparisons between stocks and cryptocurrencies
Similarities:
The most similar thing about stocks and cryptocurrencies is that the value of both depends on the next buyer. If the price of a stock/cryptocurrency is $10, a seller wants to sell it for $100, finds a buyer and buys the stock/cryptocurrency, then its value becomes $100. So in a way the most important factor in the value of a stock/cryptocurrency is what other buyers in the market are willing to buy/sell.
Differences:
Ownership and Voting Rights
Cryptocurrencies do not give you ownership and voting rights.In the field of stocks, if you own 1% of the companys stock, it means that you have the right to vote at the companys general meeting of shareholders, and it also means that you have the right to receive 1% of the companys remaining assets after the company goes bankrupt (Note: some DPOS projects also have voting rights, but these are meaningless for cryptocurrency transactions).
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secret deal
secret deal
Stocks are strictly regulated by the government, and there are many regulations and laws for listed companies. For example, stocks prohibit market personnel from trading stocks based on inside information (information that affects a companys stock price). But this kind of insider trading is very common in the cryptocurrency market.
For example, A works in a listed company, and he happens to know that the company has developed a complete market solution, and the news will be released next Monday. If A buys stocks this week, he is likely to be sentenced for insider trading. But if As company is a cryptocurrency company, he will not bear any responsibility and can reap all the benefits of the new news release.
Financial Statements
Regulatory authorities require listed companies to publish quarterly and annual financial statements showing the companys business development and future development during this period. But in the cryptocurrency exchange market, the issuing company is not obliged to publish any information about the companys financial statement expectations.
transaction hour
transaction hour
transaction fee
transaction fee
in conclusion
in conclusion
It is easy to draw conclusions from the above analysis:Investing in cryptocurrencies is much riskier than investing in stocks.(I am Zhao Huanxin, a reporter from Odaily. I am exploring the real blockchain. Please add WeChat 17778170972 for breaking news and communication. Please note your name, unit, position and reason.)
(I am Zhao Huanxin, a reporter from Odaily. I am exploring the real blockchain. Please add WeChat 17778170972 for breaking news and communication. Please note your name, unit, position and reason.)
