The only similarity on Forex and cryptocurrency is trading because they both involves trading but however Forex trading requires more knowledge than cryptocurrency.
Forex trading has to do with trading of different pairs like USD/EUR and other numerous fiat, however fiat is a government issued currency so is different from cryptocurrency, so however forex trading is majorly focus on trading fiat and also one of the major factor that determines the success of forex trading is knowledge because forex trading need someone that understand the fundamental and the technical analysis of the market in other to understand market movement.
so on the other hand cryptocurrency trading has to do with trading including Bitcoin and other lower coins but perhaps irrespective of how knowledge is very important in times of trading, having basic knowledge of buying and selling could be enough to start trading cryptocurrency but on the other hand forex trading requires a lot of knowledge.
Also in forex trading the possibility of getting your account blown within minutes or hours is possible because in as much as there are opportunities of making money from forex there is also a very high risk involved.
Topic: Forex and Cryptocurrency, the same thing? (Read 98 times)
So try enlighten me with more essential points about the differences and similarities of Forex and Cryptocurrency because my colleague is keen on knowing more about FX and Crypto.
Abeg allow me to use pidgin. When we say forex, we mean trading of currencies for the global market. The forex market na the biggest and most liquid financial market for this world with trillions of dollars trading every day. Forex na worldwide market wey people and companies dey buy and sell currencies to make profit but Crypto na digital or virtual currency wey dey use cryptography for it transaction. Both forex and crypto carry high risk and volatility although, Forex trading get higher liquidity level, as in e get more money wey dey flow through the market. Crypto get lower liquidity level and na e volatile pass forex.
Forex market dey much bigger and well known pass crypto market. Government and financial institutions dey regulate forex but crypto no get any regulation. Crypto dey operate without central authority. Na brokers dey handle forex trading and exchange take care of crypto. Inflation, interest rates, economical and political event dey affect forex but e no dey too touch crypto. Both of dem actually dey similar but if you no fit differentiate dem, I go advice you to comot body from both of dem to avoid story wey go touch body later.
I was trying to convince my colleague who's a newbie in the space the other day about the similarity of a an FX market compared to that of Crypto market,
So try enlighten me with more essential points about the differences of Forex and Cryptocurrency because my colleague is keen on knowing more about FX and Crypto.
Which are you actually looking for, is it "similarities or difference between the two, because I can see two contradicting statements in what you just gave above, and it will be clearer if you can be specific on which point you will like to be discuss here on the forum. But however, here are a few points from mine. So try enlighten me with more essential points about the differences of Forex and Cryptocurrency because my colleague is keen on knowing more about FX and Crypto.
In FX, numerous pairs are traded, FX do extend to indices in the market, and it's broad because it deals with the current foreign market between countries.
In crypto, it also has numerous trading pairs, which also deal with the law of demand and supply. So it is a similarity which both have. Secondly, another similarity between the two is that they involve/require the use of a chart to analyze/predict the next movement of a either forex trading pair or crypto.
Thirdly, Both forex and Crypto trading pairs are both volatile.
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Regarding Crypto, it's not legally legalized in most countries because they believe it will surpassed their general currency, although some countries have embraced it.
And here is a difference that forex has against crypto because while forex is legalized in all countries, crypto isn't legalized.Secondly, another difference between a forex pair and a crypto pair is that while a forex trading pair (e.g. USD, EURO) has an unlimited market supply, a crypto trading pair (e.g. BTC) has a limited market supply.
I was trying to convince my colleague who's a newbie in the space the other day about the similarity of a an FX market compared to that of Crypto market, both markets have high presence of volatility and there's existence of liquidation in the system. They match up in every sectors, the main distinctive areas used to settle the differences are the pairs traded. In FX, numerous pairs are traded, FX do extend to indices in the market, and it's broad because it deals with the current foreign market between countries. Regarding Crypto, it's not legally legalized in most countries because they believed it will surpassed their general currency, although some countries have embraced it. For instance, El Salvador have made Bitcoin their legal tender and BTC is currently in used today. So try enlighten me with more essential points about the differences and similarities of Forex and Cryptocurrency because my colleague is keen on knowing more about FX and Crypto.
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