STOCKS vs CRYPTO TOKENS
Understanding Ownership: Stocks vs Crypto Tokens
Both stocks and crypto tokens represent ownership, but they operate on different systems with different rules, benefits, and limitations.
SELECT ASSET TYPE
VISUAL REPRESENTATION
WHAT IS A STOCK?
A stock represents ownership in a company. When you buy a stock, you own a share of that company.
KEY CHARACTERISTICS
Represents ownership in a company
Traded on stock exchanges (NYSE, NASDAQ)
Regulated by SEC and government agencies
Pays dividends (optional)
Voting rights in company decisions
Traditional business hours trading
Settlement takes 2-3 business days (T+2)
Requires brokerage account
KYC/AML requirements
✅ Advantages
- Well-established regulatory framework
- Backed by real companies with assets
- Dividend income potential
- Voting rights and shareholder benefits
- Insurance protection (SIPC)
- Long history and proven track record
❌ Limitations
- Limited trading hours (market hours only)
- Slow settlement (T+2 days)
- High fees for small transactions
- Geographic restrictions
- Requires intermediaries (brokers)
- KYC/AML compliance overhead
EXAMPLES
Apple (AAPL)
Tesla (TSLA)
Amazon (AMZN)
Microsoft (MSFT)
DIRECT COMPARISON
Feature
Stock
Crypto Token
Trading Hours
Market hours only (9:30 AM - 4 PM EST)
24/7, no market hours
Settlement Time
2-3 business days (T+2)
Seconds to minutes
Transaction Fees
$0-7 per trade (varies by broker)
$0.00025 - $50 (network dependent)
Custody
Held by broker (custodian)
Self-custody possible (your keys)
Regulation
SEC, FINRA, government oversight
Code-based (smart contracts), evolving regulations
Minimum Purchase
1 share (can be $100+)
Any fractional amount
KYC Requirements
Required (brokerage account)
Optional (depends on exchange)
Geographic Access
Restricted by country/regulations
Global, borderless
Programmability
No (static ownership)
Yes (smart contracts, DeFi)
Insurance
SIPC insurance up to $500k
No insurance (self-custody risk)
KEY SIMILARITIES
Ownership Representation
Both represent ownership or rights to something valuable.
Tradable Assets
Both can be bought, sold, and traded on markets.
Price Discovery
Both have prices determined by supply and demand.
Potential Returns
Both can appreciate in value and generate yield/income.
Voting Rights
Both can grant voting rights (company decisions or DAO governance).
Risk & Volatility
Both carry investment risk and can be volatile.