Topic: Why is crypto trading so similar yet so different from Forex trading? (Read 663 times)

In my opinion, crypto trading and forex trading are similar in that people involve themselves in investing with these assets with the intention of making a profit. However, there are also significant differences between the two. Crypto trading involves buying and selling decentralized cryptocurrencies, which are not controlled by any government or financial institution. While Forex trading involves government-regulated currencies such as USD, EUR, and JPY. These currencies are controlled by central banks and are affected by economic and political events.

Also, in terms of market hours, forex trading is open 24 hours a day, five days a week. Crypto trading, on the other hand, is open 24/7. This means that crypto traders can trade anytime, while forex traders need to be aware of market hours and adjust their trading accordingly.

Both crypto and forex trading involves buying and selling assets for profit, and they have significant differences in the assets traded the level of volatility, and market hours. Whatever you decide to invest in, make sure to understand their differences to make informed decisions and maximize profits.

I think forex is just something that other people do and not us, and that's why it's not going to be something we can fully understand well neither. I just hope that it gets to a point where we end up with a good result one way or another, and if we could do that then we could end up with a return not that later neither.

I just hope that it would be something that I could see happening on the long run, and if we could see it happen on the long run then we could end up with a good profit one way or another as well. I get that people are not really understanding the situation because forex does have similar sides, but if you do not trade on forex then how could you know it that well. Bitcoin is a lot better for that, we understand it at least, so we can't compare it with anything else.

In my own stage i choose FOREX to crypto but i started with crypto as at 2017, one reason i went from crypto to forex is because of the regulation on forex tho is very volatile, why so is because forex doesn't just move based on strategies, the fundamental news plays a big row in forex, unlike crypto where by someone will just come out of no were and pump and dump money in, while in forex you cant try that shit.

I have a different perspective about manipulation. Forex and other trading markets are very much centralised and only such centralised trading markets can be manipulated. Bitcoin is purely a decentralised crypto market that is designed from scratch to remain decentralised and there is no way anyone can manipulate a decentralised trading market which is distributed among so many stake holder.   

There are may different Between cryptocurrency trading and forex trading. Although tools and others activists is same to cryptocurrency and forex trading. I think forex trading is good for us. People think forex is realstric on the other hand bitcoin or cryptocurrency as a manipulated so people telling forex is best from crypto invest. For forex trading need creat a account in a brokarez but for cryptocurrency trading need creat a exchanger account. Foe Forex trade we need to know many countries currency but for cryptocurrency trading we need to know crypto market. I can tell there has many difference between forex amrket and crypto currency market.

Yes, and theres no such thing about opening and close of markets on which you could be able to trading it 24/7 without any issues. Actually these markets are really just that the same on the sense that you would really be

buying and selling out.Profitability would really be able to depend on how well you do able to play with volatility.The main significant differences in between things is about its volatility which we know that it isnt something
that would be similar because the level of volatility in crypto is much more that with forex or stocks and this is why on the talks about huge profits and of course on huge losses would really be pertaining on crypto
trading and not on the other side. Legality issues or in comparison? We do know that forex/stocks is heavily that regulated and been mostly be stick out with those traditional investors or traders.

Speaking of marketcap? Forex does have trillions of volume that generated day by day but cant really be known the numbers in speaking about in overall cap
which we can say that crypto space would really be just a tiny bit portion of this but well its a matter of choice on which place you would really be tending to stick on.

Since Forex trades with other currencies, I think it's only profitable if you are trading in millions of dollars or pounds because most of the exchange in currency most of the time have a cent difference unlike crypto where it's up to a dollar or tens of dollars of difference so you can easily profit even if you trade in small amounts. I could be wrong though, that's just my understanding of how forex works, and that it's just a currency exchange. Plus forex also opens like stock market right? And they're closed at nights unlike cryptocurrency trading which is open 24/7.

I guess this could be a factor but this is not a difference of the trading, it's the preference of the individual that you're talking about which is not the point of this topic. But I agree with what you're saying, they can't give what they have for the other just because there are similarities.

This is a good point, the forex and other markets as well are only open five days a week and they close for the weekend and for some holidays, bitcoin and the market of cryptocurrencies are always open, so someone which is interested on making profits no matter what will always have the chance to find some trading opportunities.

And if you add the volatility of this market then the profits they can get can be very high, now such a thing also increases the risk traders have to face but that is an acceptable price to pay, taking into consideration the massive profits they could get.

Currently, crypto trading is more interesting and more profitable because there are no strict rules and no holidays.
And the main difference is the high volatility which makes crypto price fluctuations faster.
Just look at Forex trading fluctuations, fluctuations are very low and quite slow.

But the risk incurred will also be less, crypto has a higher risk and a greater and faster return.

It just depends on choice and convenience.
80% of your friends use crypto because they know they can only trade in crypto and are more comfortable in crypto.
For trading theory everything is the same, there will be no difference.

Trading Forex and Bitcoin almost borders on same fundamental principles, but the differences are quite there which separate each from the other. The crypto market is highly speculative and prone to manipulation. A person with a good amount of funds can manipulate any low cap alt, this is not possible in forex at all. Some people will say that crypto is trading 'out of thin air' commodities and that's quite true, cus most of the tokens are just mere cash grab..

This is simply a matter of peer influence. 80% of my friends are in cryptocurrency trading. We eat, breathe and sleep Bitcoin. It is therefore normal to lean into crypto trading more than forex trading. I have more experience with the crypto trading app that forex. I have met with crypto traders and we've had a fair discussion on the similarities but no one is willing to give up their passion for the other.

Compared to the forex market all markets seem small, so this is not a problem exclusive of this market, with that being said it is true the manipulation this market can go through can be very intense, however that volatility can be deal with by reducing your position size.

But at the end of the day if your friend does not like to trade cryptocurrencies then he is free to avoid this market, however there is no doubt either he is missing a great deal of potential profits by taking that decision.

At a point, I had to think that Forex trading was even more risky compared to cryptocurrency trading, but it's not; they have the same risk level because crypto trading is of two types: sport buy, where you have to buy when you think the price is low and sell when the price becomes high, and the crypto "future trading, where you have to use some technical analysis and trading tools to predict the direction of the market. Although you can still use those tools in the two types of crypto trading so you can know the market trends,


In crypto trading, when you buy low and sell high, you have a lower risk compared to a futures trader because futures traders are trading with leverage and volatility, which means that any time the market goes against them, their asset will just get liquidated. The same thing applies to forex traders. But if you are buying low and selling high, you also face the volatility risk, but just that you will still have your coins or tokens in your wallet until the price of the market begins to see an uptrend again before you sell high. Sometimes, the project owners for the token you've bought can just abandon their projects and the token will just be worthless leaving you in a very huge loss too.

What you must know is that in both crypto trading and FOREX trading, the risk is the same. If you are not very skilled at analyzing market trends and also using some trading tools to control your risk level, then you will likely encounter a heavy loss.



Cheers 🥂, Dr.Bitcoin_Strange 👺👺

That can be another difference between cryptocurrency trading and forex trading. But from what you said, I guess you are not a day trader because day traders always use stoploss for any trade. Not using stop loss will cause them to bury their capital and become reluctant long-term holders, and that's what they don't like.

For me, neither is better than the other, we simply choose which one we feel is the best fit. Both are used to make a profit, as long as they can be profitable, both are good.

Depending on personal preference. I also have a friend who has been trading forex for over 10 years, but he has no interest in crypto trading and hates it. He said that cryptocurrencies are too small and price manipulation makes it impossible for him to do any accurate analysis, but with forex, the manipulation is less and more dependent on supply and demand, so analysis becomes simpler. That's what he shared with me and I find what he said makes sense. The forex and stock markets are huge, I really don't think cryptocurrencies will overtake those two markets anytime soon.

With a difference that is not too big, that's why it doesn't seem like it will be so difficult when we have already traded in crypto and tried forex,
because basically it's almost the same so to adapt it won't take long,
but it depends on everyone's ability as well.

The current forex market has over $4Trln daily turnover and the crypto market is a small dot compared to the daily worldwide transactions on foreign exchange markets. I doubt crypto trading will replace the traditional ways to exchange money on physical and digital platforms but it is a known fact as the crypto industry gets bigger every day. Forex traders look for stable profitability strategies which have low odds of happening in the volatile crypto pairs. Maybe that is the reason behind the fact why fundamental analysis doesn't work in crypto charts, unlike Forex charts.

If you are looking for someone who dumped Forex trading for crypto trading, then search no more, you found one here, and if I must be sincere with you, i don't trade frequently anymore, but I enjoyed and still enjoy crypto trading much more than I did with Forex trading.

And yeah, it is very easier to make more money in forex if you are really good, but then is only because Forex trading is a multi trillion dollar market where as crypto is still struggling to become stable at its current market cap of billions, liquidity is never an issue in Forex trading, but liquidity is something the crypto market is yet to really achieve..

In the future, crypto trading will become the biggest in the money market, but before this can be achieved, we need adoption, and a market cap as big as how big the Forex market currently is.

There is not much difference between crypto trading and forex trading. Forex though is money representing countries while cryptocurrencies are digital currencies or tokens representing companies, organizations, platforms, and other various projects which are a little similar to stocks.

In actual trading, there are no forex platforms that offer spot trading. But we can buy foreign currencies in banks and money exchanges. In crypto trading, spot and leverage exist depending on your preferred style of trading.

This is the odd side of trading cryptocurrency, Both have their odd side.  
In this case, there is also a provision made available which I have used on Binance exchange for shorting or longing Bitcoin to earn more Bitcoin for example, so in a situation, we enter a bear market, you open a short position and as the position goes in your direction more BTC will be added to your portfolio.



Generally, from the experience I have got having been involved in forex and crypto trading, I'm at peace with trading crypto and precisely Bitcoin to trading forex when we talk about the spot aspect of the trading and not the future side because this angle, it's the same as trading forex which makes it similar to crypto trading while the spot aspect of crypto differentiates it from forex trading.