One could say that trading cryptocurrencies, stocks, or trading forex - it's all very similar. And from one perspective it is, but when you take a closer look at it, there's one clear and important difference.

For example, when it comes to investors in stock or forex market, only around 1 percent of them manage their own portfolios while 99 percent are using third party companies to manage their investments. With cryptocurrencies it's the exact opposite. Around 99 percent of people investing in cryptocurrencies manage their portfolios personally. So while in case of bad news the stock market might move down a bit, in crypto market if there's some bad news, the price of cryptocurrencies might go down a lot because of fear, and full-on panic mode, among the individual investors.

The average investor in stock market is way more educated about investing. So in stock market, during downswing, the average investor might see an opportunity to make money from short selling stock, in crypto market the average investor panics and causes havoc by his or her actions.