https://padlet.com/maqilazeez/34bv0j9y7xsw4x61 Stocks vs. Cryptocurrency - Evaluate Risks & Benefits en-us 2021-11-29 16:05:52 UTC 2026-02-16 01:36:46 UTC hello@padlet.com maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1918435553 Stocks and Cryptocurrencies are different in many ways. Stocks can be seen as an investment in a company. Their prices are affected by the company's performance. Cryptocurrency is a form of digital currency and it's value is affected by the scale of community involement (more demand = higher supply). Throughout this padlet, I will be explaining the risks and benefits involved with investments in stocks and cryptocurrencies. ]]> 2021-11-29 16:54:36 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1918435553 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1918481290 Buying stocks essentially means that you are buying a small portion of a company. For example, if Apple was split into 100 shares and you bought 1 you own 1% of the company. People buy stocks for companies that they believe will perform well, which will increase the price of each share they own. Investing in stocks won't be too risky if you invest in multiple companies rather than putting all of your money into one. Another way to reduce risks when buying stocks is to do your research on companies to see if they are reliable enough to invest in. Cryptocurrency is a decentralized form of digital currency meaning that it isn't managed by any specific government or country. Cryptocurrency market prices are more volatile than stocks since they are based on supply and demand. This means that there is a possibility for a higher risk along with a higher reward for investments. Stocks offer lower risks along with lower rewards, which is better for people that are new to investing in the market.

I chose to include this video because it explains stocks and cryptocurrency using simple terms that can be easily understood by people that are new to investing. I think this video is important for new investors since it explains that you need to properly do research on stocks or crypto that you wish to invest in in order to reduce the risk of losing money. Investing in stocks should be based on your views of the reliability of a certain company or project rather than gambling money based on what is popular.]]> 2021-11-29 17:12:24 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1918481290 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1918925295 This was one of the best videos I found about the stock market since it gives great advice to beginners without using too many complex words. One of the tips was to choose a strategy based on your financial position. For example, it is important to make sure all of your debts are paid off and that you have an emergency fund before allocating money to invest in stocks. Another tip he gave was to invest in ETFs (Index Funds) which are less risky and distribute your investment across hundreds of company stocks rather than making you pick and choose individual ones. 

I chose this video because it encourages viewers to constantly analyze their financial position as well as the current state of the market before making and impulsive decisions. It also explains the importance of having a strategy (short/long term goals) rather than just investing in good stocks to make as much money as you can (Eg. setting a goal to save up for children's education or setting up a retirement account).]]> 2021-11-29 20:28:56 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1918925295 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919037006 This video explains the purpose of why Bitcoin was created along with reasons why it is so important in todays society. It is explained that there are many issues to having centralized money (less privacy, bank/government can lock your account).  Bitcoin was created to be used as an asset as well as an alternative to regular fiat money. Some of its advantages are that you are in full control of your funds, there is no need for a middleman such as a bank, and that it can be used to send and receive funds by anyone in any part of the world.

I chose this video because Bitcoin was the first cryptocurrency and it has been the largest one for years. It is important to do your own research before investing in random cryptocurrencies or stocks. Although Bitcoin was the first cryptocurrency, it has outlasted hundreds of other ones. It started by selling around 0.06 cents in 2009 to now being worth over $75000 CAD per coin. When I started investing in cryptocurrencies and stocks last year, I watched videos similar to this since the concepts are easy to grasp and are explained using simple terms.]]> 2021-11-29 21:44:55 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919037006 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919081127 This video explains how new investors are fooled into investing in popular stocks and lose money because they don't know what they are doing. It explains that the proper way to make money in the stock market is to research undervalued stocks from reliable companies and investing in them. The mistake that most people make is buying stocks when they are high and selling when they are low without having any reasoning for  their actions. Most people think that stocks are a quick and easy way to double or triple their investments, so they invest in whatever stocks they see are doing well in news headlines or on social media. As soon as the stock value drops, they fear that they will lose their money and quickly sell the stock in order to reduce their losses.

I chose this video because it reminded me of how some of my friends began investing in stocks. Some of them spent hundreds of dollars on Nokia stocks when they were almost at an all time high value. Due to their lack of research, my friends ended up losing most of that money after the value of the stock plummeted. This video is important because it teaches the lesson that money doesn't just magically double or triple in the stock market and that it is important to have strategies and goals rather than just following what your friends tell you to buy or what you see on social media.]]> 2021-11-29 22:21:58 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919081127 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919112199 This article sarcastically explains common mistakes that are made by "lousy stock traders". One mistake is to put 60% or more of your money into one or two stocks and avoid diversifying them. This is a common mistake where people find popular stocks on social media or through friends or family and blindly invest in them. By not diversifying stock picks, people invest in only one category or industry. For example, if someone puts all of their money into energy stocks and it happens to be a bad year for that industry, they will have lost a lot of their money.

I chose to include this article because it does a great job of telling you what not to do in a funny, sarcastic manner. One of the lessons it teaches investors is that high rewards come with high risks and it isn't smart to take high risks with a lot of your money over long periods of time.]]> 2021-11-29 22:51:33 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919112199 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919146146 Earlier this month scammers got away with around $3.38 million USD after tricking people into buying his cryptocurrency token. The token was called "Squid" and was inspired by the extremely popular Netflix show "Squid Game". The digital token was marketed to be used in games and able to be traded for other cryptocurrencies. It got lots of hype from social media and news outlets and its price went up from 1 cent to approximately $2850 USD a few days later, its value dropped 99.9% and people who had purchased the tokens were unable to sell them. The creators of the "Squid" token took down its website and disappeared from social media. They exchanged their all of their tokens for real currency, which drastically dropped the liquidity of the cryptocurrency, causing other buyers to be unable to sell their tokens.

I included this article because I see it as a lesson to not blindly follow what is popular when it comes to investing my money. Making quick money comes with extremely high risks of losing it. Millions of dollars were lost because people blindly purchased a cryptocurrency based off hype from news outlets and social media influencers. Many social media influencers tried to warn others that the token was a scam but it was already too late. This is why it is important to only invest money that you are ok with losing as well as doing your own research to purchase cryptocurrencies that you believe are reliable and have some longevity.]]> 2021-11-29 23:27:02 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919146146 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919181009 This article explains the difference between investing and gambling when it comes to cryptocurrency. Investing and gambling offer both risk and reward however the difference between them is that a person who invests has a strategy as well as short and long term goals. On the other hand, gamblers mainly care about winning and earning money fast. Whether you decide to invest or gamble your money in stocks or cryptocurrency is up to you. However, it is important to only invest money that you're ok with losing. Long term investors don't worry about short term losses because they account for volatility in the market when creating strategies.

I included this article because I was confused about this exact topic when I first started investing in stocks and cryptocurrency. I saw my friends gambling lots of money into random altcoins and quickly pulling out their money to make quick gains. It made me wonder what the point of trading stocks or purchasing crypto was if there was such a high risk. After doing some of my own research I realized what to look for in cryptocurrencies or stocks to know whether they'd be reliable to invest in over a specific time period. I only allocated a certain amount of my earnings to invest and I never took huge risks because I didn't care about making money quick since I had long term goals.]]> 2021-11-30 00:01:16 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919181009 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919206057 This website explains the benefits and disadvantages involved with investing in stocks. Some benefits are that stocks take advantage of the growing economy and that they're a very liquid investments meaning they are easy and quick to buy and sell. Some reasons not to buy stocks include the risk of losing some of your money, the time involved in researching good stocks, and the emotional rollercoaster that comes with investing (avoiding being greedy and buying stocks while high while also avoiding selling them too early when they drop a little).

I included this article because it explains who investing in stocks is and isn't for. It is especially important to understand the disadvantages before investing rather than learning the hard way which could cost you a lot of time and money if you're not careful. Another reason why I included this article is because it explained ways to lower investment risks such as diversifying your portfolio by industry or by location.]]> 2021-11-30 00:23:30 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919206057 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919217183 This image displays a popular cryptocurrency called Dogecoin that is known as a "memecoin" since it has been extremely volatile in the past. It has been talked about all over social media by influencers and even Elon Musk, the CEO of Tesla. I've seen many investors including a lot of my friends pour lots of money into this coin and while some of them gained a lot of money, many more of them lost a lot. I tend to avoid "memecoins" as I find them to be unreliable and too risky for my liking since they only rise due to social trends. I prefer to set long term goals and invest in more reliable coins that I can either use or sell in 8+ years (Eg. Ethereum).]]> 2021-11-30 00:32:04 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919217183 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919227835 This image is of the app "Wealthsimple Trade". I personally use this app to invest in stocks and ETFs and I believe that it is the best Canadian stock trading app. It is the best trading app because its easy to use and understand, it requires no account minimums, and it is the only stock trading app in Canada that doesn't charge commission for trading stocks and ETFs.]]> 2021-11-30 00:39:58 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919227835 maqilazeez https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919322388 What did you learn about your topic that surprised you the most?
The thing that I learned about this topic that surprised me the most was that scammers got away with approximately $3.38 million dollars after promoting a scam token called "Squid". It made me realize that I shouldn't necessarily follow trends on the crypto market especially if I haven't done any research or if things seem too good to be true.

Provide a real-life example of how this topic is relevant or interesting for you.
The reason why I chose this topic in the first place is because I recently started investing in crypto and stocks and I wanted to learn more about the risks and benefits involved with them. One example of how the risks are relevant to me is that I first started trading stocks without knowing what I was doing and I lost around $150 last year. I made the mistake of blindly following what my friends were doing and I also freaked out and sold my Blackberry stock early out of fear that I would lose more money from it dropping.

If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?
I would let them know that it is smarter to allocate some of your money towards investments and create long term goals rather than trying to make some quick cash and taking huge risks. I wouldn't recommend gambling money in stocks or cryptocurrencies since it is much easier to lose money than gain it when you don't have a plan.]]> 2021-11-30 01:42:59 UTC https://padlet.com/maqilazeez/34bv0j9y7xsw4x61/wish/1919322388