链研社|AI First🔶💧|Jun 10, 2026 14:04
The recent sharp decline in the US stock market is a good opportunity to talk about why investing in US stocks and cryptocurrency are two different things
The US stock market has fallen quite sharply these days. On June 5th, the Nasdaq closed at -4.18%, while the VIX panic index surged 39.7%. It rebounded on Monday and continued to plummet on Tuesday.
Many friends in the cryptocurrency industry's first reaction to this situation is' it's over '. As soon as I got in, I got stuck, but what I want to say is exactly the opposite: this kind of decline is a rare window for those who want to invest in the US stock market in the long run.
Why do you say that? We need to first clarify the essential difference between US stocks and cryptocurrency trading.
1、 What is the difference between trading in the US stock market and the cryptocurrency market
My biggest experience with doing both sides myself is that these are two completely different sets of game rules.
1. The underlying assets are different
Most tokens in the cryptocurrency industry are driven by narratives, consensus, and expectations. There is no cash flow, no dividends, and price fluctuations rely entirely on financial games and emotions. What you earn is the money that the next person is willing to pay a higher price for, essentially zero sum.
High quality companies in the US stock market are different. Companies like Apple, Microsoft, and Google are truly making money, with products, users, and moats. What you are buying is a genuine ownership of the enterprise, with real profit growth behind it.
2. The sources of returns are different
The profits from cryptocurrency trading are almost entirely based on price differences. Buy 100 today and sell 120 tomorrow, the price difference is your entire profit, or the market maker reaps it through contracts. Without a valuation system, it all depends on the distribution of chips and short selling. Even if the project wants dividends, there is no cash flow, and it is almost impossible to hold for a long time. The vast majority of coins will go back to zero in the long run.
The return that high-quality companies in the US stock market offer to shareholders is two-tier: rising stock prices+dividend buybacks. Apple spends billions of dollars every year to repurchase stocks and distribute dividends, while Microsoft and Coca Cola have continuously increased dividends for decades. You can hold it still, and the company is continuously giving you money. This is the value of the four words' high-quality assets'.
3. The volatility is different
It is common for Bitcoin to drop 10% in a day, and it is even more common for altcoins to go to zero.
The US stock market has already experienced a 'super big drop' this time, with the Nasdaq -4.18% in a day not even making a splash in the cryptocurrency circle. The long-term annualized return of the S&P 500 is about 10%, which is a compound interest curve verified over a hundred years, relying on the overall profit growth of the top 500 companies at the bottom.
Summary in one sentence: Trading coins earns money from poor expectations and emotions, fast but uncertain, and cannot be held for the long term. Buying high-quality assets in the US stock market earns money for business growth, slow but certain. You can earn both types of money, but you need to know which type of money you are making.
Binance has opened trading for over 7000 US stocks and ETFs, with a cumulative reward of over 200u for the first transaction completed. The threshold is already very low. If you have not bought US stocks yet, I suggest you give it a try.
Why is there a significant drop this time? I suggest you buy it?
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