Topic: Why is crypto trading so similar yet so different from Forex trading? - page 4. (Read 665 times)

If you ask on crypto forum like this the answer will pretty much on crypto side including me as well.

The Forex market in my opinion is good but people who like more volatility will choose crypto if you pro on Technical Analysis then do trade on Crypto will gave you more money because the volatility is crazy here and if you a full time trader that doesn't have holiday crypto market is also a choice because crypto doesn't have close market like other trading instrument

Forex trading is much less risky than crypto trading. Forex trading is basically to trade (GBP, USD, EURO unique stable coins). Here you buy Euro and sell order at high price. When the price of the Euro rises and moves to your position, your order will be completed and your profit generation will occur. The profit generation from here is basically forex trading. The probability of these coins being destroyed is very low.  If you want to destroy all these currencies, you have to destroy all these countries. For example, if you want to destroy the USD, you must destroy the US. Which is not possible at all. But whenever you trade on a crypto trading platform you have to trade with a lot of risk. Although there is high risk involved, there are high profit potentials and very quick gains. If we compare forex trading and crypto trading then definitely forex trading is less risky than crypto trading.

You can, in my opinion, trade both because they are tradeable. Both have whales and institutions, and they are the ones who influence the market because they are the only ones who can produce a large price move, which normal traders cannot. However, not all strategies can be utilized in crypto; however, they can be employed in forex, particularly if the strategy includes pattern trading. However, if SMC or ICT is your strategy or concept, it applies to both crypto and forex. The only thing you should do in crypto market is to increase the stop loss because the volatility is so high.

Both are really just that the same but
only into these points;

1. Platform terminologies/ MT4.MT5
2. Reactive to news
3. Application of TA and FA analysis

But they do really majorly differ

1. Centralized to Decentralized
2. Volatility
3. Market duration (Crypto is 24/7)

This is why some Forex traders did really make out that entire transfer to crypto just because of the volatility.
This is something that makes more income or money or profits due to that faster movement but of course this is something
which is more risky and its normal that traders would really be mindful on what they are really dealing with.

Yes one can do both and grading is simply the buying and selling of financial assets  which might include foreign exchange (Forex) stock, gold, cryptocurrency and lot more of them and I believe  you're referring  to trading g them online when then .amen it digital assets.
Both Forex  and cryptocurrency  assist that can be traded and depending  on how good and conversant one might be with each assets determines how much profits one could get and speak  of such asset.
Both  trading are good and yes both can be traded by one person rather than  switching  sides.

Personal preferences, market conditions, or perceived possibilities may lead some traders to specialize in one market over another. It's fairly unusual for traders to favor forex or cryptocurrency trading depending on their expertise, experience, and degree of comfort with the different markets. Whether a trader decides to focus only on forex or crypto trading, or engage in both at the same time, is determined by their own tastes, knowledge, and trading objectives.

The big difference is in their volatility range which keeps the forex traders away from entering into the cryptocurrency trading and also I know some people who keep doing both simultaneously so we can't say no one chose one over another cause not everything will going to become a news unless a fame person commits it.

One who is successful in crypto trading may not have any reason to complete shift to forex because the profit making ability obviously differs in huge.

To me these are two very different things. Forex operates on much higher liquidity and volume, but much lower volatility. That's why cryptocurrencies are favored by people who want trading to be more like gambling, as shitcoin markets are heavily manipulated and influenced by pump groups. Many of these coins are outright ponzi schemes where some of the supply is held by developers and insiders who only wait to dump it on new investors.
Crypto trading is much more dangerous and it's much easier to lose all your money doing it, unless you focus on trading bitcoin with no leverage.

No doubt there are many similarities here. If we leave the assets, then almost everything is similar. If a person has learnt one type of trading, then definitely he can do the other one, as both are interlinked. I see that OP has mentioned that people are dumping forex for crypto trading. The reason is very simple for that, forex trading has too many complications, unwanted fees and hidden taxes for which the trader often suffers. But crypto trading can be done in a decentralised manner and hence many new generation are attracted towards it.

This does not matter. It depends on the traders preference and choice or likeness for the two different markets yet same idealogy. If you like some thing more than another, you are likely going to speak good about it. That is how it is with cryptocurrency and forex trade.

There can be some factor one likes above the other like regulation. For example forex is well regulated and you could see all the information about a particular news like you can see this platform https://www.forexfactory.com/. A forex trader may likely speak good of it because of the direct access to a news that can help him make trading decision


Why not. You can perfectly trade the two markets including more markets like derivatives and binary. Moreover forex is only weekdays excluding weekends while crypto and deriv are 24/7, so you can have lesser loads by the weekend to relax from Forex trading.

The forex and crypto market works in different ways due to volatility and some other factors. The crypto market is highly volatile and it can go from 10%-30% or even higher within a single day sometimes. The forex market on the other hand is not that much volatile, the movements in that market was pretty low as compare to crypto market. The main cause of volatility of crypto market is the volume and decentralization. There isn't a single entity who can control the market while the forex market is control by centralized authorities.

Although, the trading principles are basically same for both of the markets and the indicators, charts, and other factors are also same for both markets but the volatility has the difference and that's the main cause of concern. Other than volatility the crypto market is highly affected by news media and influencers while that doesn't happen in forex market.



I have traded in both markets in forex as well as in crypto, but I must say that forex market is not that difficult to master, the crypto market is very difficult. There have been cases where newbies earned 1000's of dollars in crypto over night, but  they have lost even more after that. I used to be a forex trader back in 2016's but I transition to crypto-currencies in late 2016 and since then I have never done forex trading. I'm considering forex trading now, but still not doing it yet because they crypto is far more easier and is more lucrative for someone like me.

It's a matter of capability, one person could go both Forex and Cryptocurrency trading simultaneously, and you can definitely profit from any of them with the right strategies and principles in place. But if someone is not that successful, they would dump it together. Maybe forex alone isn't a challenge anymore, and why would you even leave it if you are just technically doing the same thing?

It's just like putting more eggs in more baskets to prevent losses. Especially if you have experienced it already well enough, it should be fine when it comes to this. People can do it both times.

There are no market instruments that are 100% the same, they could only be similar, and this is because of the sector differences, there is no way the economics of Forex can be 100% similar to that of Crypto because they are not the same asset class. That is why you might see some economic news that was so significant in effect with Forex but had a minimal effect on Cryptocurrency. The characteristics of the asset class also explain why Bitcoin, for example, is mostly sluggish in movement than volatile, and this could be so discouraging as it also causes me to avoid it for Forex trading many times.

However, I've never totally abandoned one for the other, I trade them both weekly, yet, I trade Forex more because it gives me more trading opportunities and earns easier for me when Bitcoin which is my preferred crypto would take a longer time to bless my trading account.

if you are of the type of person that thinks crypto analysis is just watching the market candle sticks for trends then your knowledge base is small.
if you think traders just do the same then your circle of people you know is small.

actual traders dont just do trend analysis(not to be confused with technical analysis)
actual traders look outside of the silly trends and find proper fundamental impacts

i did do a bit of forex trading many years ago. but that game was boring and yes i made more on bitcoin than on forex.

the main problems/differences in forex are these:
when 2 countries currencies are traded. people dont do trend analysis, instead they look for things like:
has a country changed its import/export tariffs to affect international trade
has the country doing food exports had a good growth season. where their produce has yielded and so are able to sell more thus causing an effect of forex money shuffling when they export.
however when those reports come out. the big entities have already seen the reports and set their trades accordingly so by the time regular(non institutional) forex investors see the results, the market is already priced in. the hype is over before regular people get a chance to react

however on bitcoin there are some fundamentals that play out after results are published
for instance mining. when there is a hashrate rise. that means more competition for the miners. meaning less coin for them meaning when they sell(later) they will want more fiat for their less coins to break even, thus this is why there is a bitcoin market hype a year after a halving.

when 2022 seen electric prices increase due to international crap happening. the price in 2022 didnt go up immediately.
this is becasue miners buy equipment and pay for electric on upto a 1-2 year contract meaning their costs are priced in at the start and its only when their contracts are up do they evaluate their earnings against their costs to price in the bitcoin they need to sell at. hence the delay

so forex is where when regular people get the news.. the hype is already over.. in bitcoin when people see hashrate rises and halving. they get to see upfront before the hype results

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also another difference is institutional forex investors do not hoard and hype. they day trade on 0.00x% fee's, sniping even the smallest under1% changes to the price becasue the trade fees are so low they can do this. whereby adding up all the small percentages per hours/day results in many percent per year.

bitcoin investors see that CEX trade fee's as being higher so they cant snipe under1% opportunities because the maker taker fees add up to nearly 1% or more then 1% at times. so they only act when there are more then a few % changes involved. most of which makes people not want to wait around for hours. and instead they hoard and sell on the hype

Trading process is common. The assets listed to different form of trading varies. With cryptocurrency trading we were able to see the list of cryptocurrencies added to the exchange. With forex the trading practice is of the foreign currencies. The market determines the price for every foreign currency and based on the same trading is processed. The difference is much on the volatility, with cryptocurrency we can see a big variation whereas the forex is of very small fluctuation, which makes it low risk investment.

Cryptocurrency is not easy predictable, to which the risk is high along with chance of big profiting. However once a person have got used to it he/she won't easily switch to other form of trading. With forex the market is big and could switch to other form of trading looking for better profit.

I think you are confused why they are too similar, strategies and trading principles. And probably what you are trying to ask is which is one is more profitable considering that they likely have the same features.

Well, just wondering why some are leaving forex trading for crypto (and vice-versa). It is not because of finding which one is profitable but it is all about finding themselves comfortable. I believe everyone has the option and for some reason, they will choose crypto over Forex or forex over crypto.

The answer is already in your question, crypto is CRYPTO and forex is FOREX, if you are asked to define what crypto is and what Forex is you know that they aren't the same, so the price action will be very different, some of my pals refer forex trading more than crypto trading and I choose crypto trading over forex.

Either one, price movement is what brings you money, when you bet on price up and it goes down it's lose for you and this isn't because they are different, charts and movement are similar but you need to pick a side to avoid confusing yourself.

Since crypto is where I began my journey, I understand crypto more than Forex, and the last time my pal made me tried forex I lost money.

This is right! also this is the reason won't you be hearing a lot of total volume in forex. They tend to always talk about news, and Forex is mostly affected by news, like every day there is news in the country. It depends on what pair you are trading too, as Forex value will be affected by all types of news, like economic news, catastrophes, or anything else that involves the country. Why most forex traders do not want to move to crypto is that it is not that predictable in crypto. I think it is because they have a lot of experience in forex and are already able to easily read the chart patterns and know which is the best entry into them.

Forex is less transparent. Even the volume is not real. The volume you see on any forex chart is not actual volume since it’s impossible to report that. It’s basically the amount of ticks and it’s an estimate. You don’t have any liquidation data or even open interest.

Crypto is more transparent and you can use that and have a better chance of making actual money. Most that tried forex lost most of their money. Something like 99% of all forex traders lose all their money and give up.

Crypto trading and Forex trading are similar in that they both involve buying and selling currencies. There are some differences between the two and that is Forex trading involves trading of fiat currencies, while crypto trading involves trading digital currencies. The markets for Forex and crypto trading operates differently, with Forex being a more established market and crypto being a newer and more volatile market. Crypto trading also involves a higher degree of risk due to the lack of regulation and the potential for extreme price fluctuations. Forex trading is generally considered to be a more stable market with less volatility and more predictable price movements.