Technology has had a huge effect on everybody’s lives and is widely considered to have changed social life, industry, government, and education. Unless people are a broker or an investor, there is little thought about the impact technology has had on The Stock Market’s productivity. Due to the technical advancements and regulatory reforms, financial markets have changed in several respects. With the use of digital technology and the rapid expansion of physical infrastructure, financial markets have changed quite a bit. The implications of big, high-frequency stock trading and other financial markets are becoming even simpler. Computer-based trading has become prevalent characteristics of global financial markets, including algorithmic trading and high-frequency trading.
High-frequency trading has expanded rapidly in developed countries’ capital markets in recent years and is now expanding to emerging markets led by proprietary trading firms’ growth and quantitative hedge fund strategies. When technology advances, high-frequency trading can expand into other asset classes such as futures, options, bonds, and foreign exchange beyond stock markets.
Although Bitcoin cryptocurrency stocks do not yet exist, people can still invest in Bitcoin by going through companies using cryptocurrencies and blockchain technology and avoiding much of its major volatility. Investing in BTC is close to investing in commodities, except for the regular fluctuations in BTC which are much more unpredictable. Below are the steps for investing in stocks right from the start:
- Open a brokerage account at a company allowing crypto investments
- Deposit funds into the investment account from their accounts.
- Buy Bitcoin stock using funds invested.
- Sell the stock later for gain or loss. They return the funds to their cash balance.
The key difference with BTC is for step three; instead of stock, they buy BTC or some other cryptocurrency. In most cases, the above flow is identical with BTC but it depends on the site for trade or trading. In some cases, people can purchase BTC using their credit card or transfer funds from their bank account. People must pass BTC directly to other platforms. This is called BTC direct deposit.