Topic: The Main Difference Between Forex and Crypto Trading (Read 167 times)
Very useful information, especially for those who don’t know which to choose from these two. From what I’ve noticed, Bitcoin is unstable and it’s risky. Forex is also risky, but you can learn to predict it in time and with experience. I prefer Forex, for me it’s more profitable. But it’s profitable only if you have the right forex apps and you have the time and patience to study it. I’ve got some friends who trade and they all say that Forex is better, whereas Bitcoin’s future is unknown. It’s better to make a bet on what you know better and be sure that you won’t lose money. I agree that they both are like a gamble, but what will you achieve if you don’t do it?
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Thank you for this useful share about trading and forex. I lost a lot of time and money in my background when I was trying to earn money on forex with my own hands and head. Damn, I was so stupid. I was losing money because of my gambling. I have lost nearly 9000$ in first few months. I wanted to stop trading, I thought that this job is not for me. Finally one of my friends advised me to try to buy forex signals. That was the thing that really saved me. I have recouped my money in the first year. I was surprised that my income was smaller, but I stopped loosing. When I was trading alone I was earning 20% and losing 40%. Now I earn approximately 15% in a month, but my losses are near to 3%.
Do you have 15% in a month?
I tried trading both options and I liked Forex trading better. Cryptocurrency is too unstable and if you aren't careful, you can lose a large amount of money
None of the market is safe. You will only be safe if you knew what you are doing. In crypto if you don't know what you are doing you will also lose a lot of money here. This is why most of the advice that a newbie get is just to hold what you got. Because if you don't learn the ins and out of trading, you will just lose you BTC. Losing its value is normal, its price will soon go up and go down but as long as your BTC is with you, you don't lose anything. You can even cancel your buy or sell order in crypto BUT in FOREX, you can either exit in a losing position or win few bucks to exit a position. Mostly, traders will exit in a losing position to avoid margin call. Leverage is also introduced in Crypto, not much difference. This is why both is not safe until you know what you are doing.
Crypto trading is often considered to be similar to Forex, or foreign exchange trading. Forex, like crypto, involves trading currencies. However, there are some key differences between the two.
Forex trading is a big and established practice, while crypto trade is a newcomer to the world. Forex often involves intermediaries, brokers, and other institutions that receive payments at every step of the trading process.
The lack of intermediaries is one of the biggest drawings of crypto trading. And another important point between them is the liquidity available on Forex, versus the lack of liquidity in crypto - once you get away from the most common coins. And of course, there is security.
Let’s look at the differences between them in detail.
Swiss Franc vs. Bitcoin
Forex trading is very large. The average daily turnover rate for Forex is trillions, with $ 5 trillion USD traded on Forex in 2016. Compared to that, the most significant coin in crypto, Bitcoin, only has a turnover of $ 1 billion USD.
BTC trading is not even as big as Forex trading in the Swiss franc, responsible for 5% of trading volume and $ 243 billion USD in daily turnover.
However, unlike Forex, crypto trading can show returns of more than 70%. High returns almost never occur in Forex trading.
Because Forex trading is very well established, this is an orderly and mature market. This means that brokers are everywhere in the Forex world.
From currency exchange brokers to exchanges, and other hidden costs and costs, Forex trading can be expensive, even before a trader makes a dollar profit.
This means that Forex traders need to have considerable capital before they can trade. Institutional involvement is another important aspect of Forex trading.
Stability and Volatility
Forex also does not have the same volatility in crypto, making it difficult to take advantage of small differences in exchange rates. However, this is complemented by easy-to-obtain liquidity benefits.
In other words, it is quite easy to trade certain currencies with other currencies, such as trading US dollars for Nigerian naira. Such orders tend to be filled almost instantly.
Because Forex has a high daily turnover, there are many pairs that exist even if they are small currencies.
Foreign exchange liquidity also ensures that even large trade will not change the asking price of a particular trade too much. For crypto trading, large trade often has a large impact on prices.
Although crypto prices can change for large orders, especially when dealing with altcoin and less-known tokens, there are almost no barriers to entry.
It’s easy to start crypto trading, and many online platforms allow users to jump and start trading practically instantly.
Costs are usually far less than Forex fees, and the lack of intermediaries means that there are no hidden fees.
Crypto Volatility also says that large daily swings are possible and common, meaning that it is much easier to buy at lower prices in the morning, and sell high at night.
Security and Regulation
There is one more major difference between the two. The difference is security. Cryptocurrency is a relatively new technology, with all the risks associated with new technology.
There are many stories in the news about cryptocurrency being hacked, stolen, or just lost due to interference.
Because of the enduring nature of the blockchain, such actions are very difficult to reverse, though not impossible.
There are also very few or no rules regarding crypto trading. This can make traders open to fraud and fraudulent behavior without the help method. Having funds that are hacked and stolen is not a pleasant experience.
Forex has much regulation across the world. So, it’s safer now.
Which one is better?
Both Forex trading and crypto trading carry their own pros and cons and their own risks and rewards. In general, Forex trading is more stable, more protected and highly regulated.
Crypto trade carries the promise of a far greater return than Forex, at the expense of Forex stability.
This means that smart and skilled traders with a great interest in risk can realize profits that are far higher in crypto than they can in Forex trading, while not dealing with the same institutional involvement.
Both markets are similar, but only in the sense that they are a form of electronic currency trading. Forex liquidity versus crypto volatility means that traders will need a completely different trading strategy for both.
So, this was the main differences between Forex and Cryptocurrency and if you have any topic in mind that you want me to cover for you then please let me know.
Forex trading is a big and established practice, while crypto trade is a newcomer to the world. Forex often involves intermediaries, brokers, and other institutions that receive payments at every step of the trading process.
The lack of intermediaries is one of the biggest drawings of crypto trading. And another important point between them is the liquidity available on Forex, versus the lack of liquidity in crypto - once you get away from the most common coins. And of course, there is security.
Let’s look at the differences between them in detail.
Swiss Franc vs. Bitcoin
Forex trading is very large. The average daily turnover rate for Forex is trillions, with $ 5 trillion USD traded on Forex in 2016. Compared to that, the most significant coin in crypto, Bitcoin, only has a turnover of $ 1 billion USD.
BTC trading is not even as big as Forex trading in the Swiss franc, responsible for 5% of trading volume and $ 243 billion USD in daily turnover.
However, unlike Forex, crypto trading can show returns of more than 70%. High returns almost never occur in Forex trading.
Because Forex trading is very well established, this is an orderly and mature market. This means that brokers are everywhere in the Forex world.
From currency exchange brokers to exchanges, and other hidden costs and costs, Forex trading can be expensive, even before a trader makes a dollar profit.
This means that Forex traders need to have considerable capital before they can trade. Institutional involvement is another important aspect of Forex trading.
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Unlike crypto, Forex traders compete with established banks, high-frequency traders, and other specialized companies. This institutional involvement can complicate competition.
Stability and Volatility
Forex also does not have the same volatility in crypto, making it difficult to take advantage of small differences in exchange rates. However, this is complemented by easy-to-obtain liquidity benefits.
In other words, it is quite easy to trade certain currencies with other currencies, such as trading US dollars for Nigerian naira. Such orders tend to be filled almost instantly.
Because Forex has a high daily turnover, there are many pairs that exist even if they are small currencies.
Foreign exchange liquidity also ensures that even large trade will not change the asking price of a particular trade too much. For crypto trading, large trade often has a large impact on prices.
Although crypto prices can change for large orders, especially when dealing with altcoin and less-known tokens, there are almost no barriers to entry.
It’s easy to start crypto trading, and many online platforms allow users to jump and start trading practically instantly.
Costs are usually far less than Forex fees, and the lack of intermediaries means that there are no hidden fees.
Crypto Volatility also says that large daily swings are possible and common, meaning that it is much easier to buy at lower prices in the morning, and sell high at night.
Security and Regulation
There is one more major difference between the two. The difference is security. Cryptocurrency is a relatively new technology, with all the risks associated with new technology.
There are many stories in the news about cryptocurrency being hacked, stolen, or just lost due to interference.
Because of the enduring nature of the blockchain, such actions are very difficult to reverse, though not impossible.
There are also very few or no rules regarding crypto trading. This can make traders open to fraud and fraudulent behavior without the help method. Having funds that are hacked and stolen is not a pleasant experience.
Quote
Especially when there is no real way to get the money back. Forex trading often has a certain level of protection, and brokerage accounts are usually insured by the government in the event of theft or fraud.
Forex has much regulation across the world. So, it’s safer now.
Which one is better?
Both Forex trading and crypto trading carry their own pros and cons and their own risks and rewards. In general, Forex trading is more stable, more protected and highly regulated.
Crypto trade carries the promise of a far greater return than Forex, at the expense of Forex stability.
This means that smart and skilled traders with a great interest in risk can realize profits that are far higher in crypto than they can in Forex trading, while not dealing with the same institutional involvement.
Both markets are similar, but only in the sense that they are a form of electronic currency trading. Forex liquidity versus crypto volatility means that traders will need a completely different trading strategy for both.
So, this was the main differences between Forex and Cryptocurrency and if you have any topic in mind that you want me to cover for you then please let me know.
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