Crypto and Forex: Whats the Difference?
We live in a time when the world of financial trading is expanding and attracting more and more beginners who are willing to do a lot to become a successful trader. Cryptocurrency and forex are two completely different markets that open up many new opportunities for those who dare to try. Although, when we hear about them we have similar associations, in fact these markets are very different because each of them has its own rules and peculiarities. And we suggest learning a little more about this interesting world.
To begin with it is important to note that the forex market is strictly regulated, despite the fact that it is decentralized. There are some standards for brokers which they must maintain, and also in order to trade in the forex market, brokers have to be licensed.
As for the cryptocurrency market, it is much less regulated, even though some countries started to introduce stricter requirements. The cryptocurrency market, like forex, is decentralized, and it should be noted that this quality has some disadvantages, for example, vulnerability to fraud. That is why it is highly important to choose a broker carefully. You can also try a forex metatrader demo account just to check how everything works.
Comparing these two markets it is also impossible not to mention their working hours. Forex works 24 hours a day, 5 days a week, which expands the opportunities of traders, because they are not tied to place or time. Moreover, forex trading is divided into 4 main sessions, so a trader can choose the one that seems to them the most active and suitable in time.
The cryptocurrency market operates non-stop 24/7 and traders have access to it at any time. But on the other hand, this can be a disadvantage, because it means that traders always have to monitor the market so as not to miss anything.
By the way, it is very important to note that forex is one of the most liquid markets in the world. The whole thing is that the money turnover there is very high, sometimes it reaches about 5 trillion dollars per day. As for volatility, here it depends on many different factors and on a currency pair.
At the same time, the cryptocurrency market is considered to be very volatile because even within a few minutes prices can change dramatically. As for liquidity, it is very relative and depends on the specific coin: some coins, such as bitcoin, are liquid, while others may have low liquidity.
So, as you see, these two markets have some differences, and probably the main one is that forex is about trading currency pairs while the cryptocurrency market is about digital assets.
BTC Forex Trading: Is It a Fairytale?
As you probably already know, bitcoin is the worlds first digital currency, it is becoming more and more popular every day, and the cryptocurrency market in general is becoming more and more embedded in ordinary life. But the most interesting thing is that bitcoin has started to be used frequently by companies in the world of forex trading.
In the forex market traders are able to use bitcoin as part of a currency pair, for example BTC/USD or BTC/EUR. In fact, it is not so difficult to start trading bitcoins in the forex market, because you only need a contract for difference (CFD) and a broker that works with such pairs.
When trading such a currency pair, it is very important to remember that bitcoin is highly dependent on cryptocurrency news and changes in the financial world. It is also very important to choose the right strategy for successfully trading, and if you are just starting out as a trader, we would advise you to consider simpler strategies, as they are a perfect option for the beginning.
Well, as you can see, trading bitcoin in the forex market is not something extremely complicated; despite the fact that this cryptocurrency is still only a beginner in forex trading, bitcoin is gaining huge popularity among traders, so dont miss your chance and try it now!
What to Choose for a Beginner
In this article we have provided you with main differences between the forex and cryptocurrency markets and shared some details on how to combine these two spheres. The only thing which is highly important to add is that you should be aware of risks which are possible while trading. One of the biggest risks is the possibility of losing not only the profits, but also your money. Therefore it is very important to realize that studying the markets and choosing reliable brokers is something you should pay special attention to, as your earnings directly depend on it.
To be honest, there is no single right answer to the question of what is best for a beginner, because first of all you need to consider your preferences and strengths.
Read more: https://www.tronweekly.com/crypto-and-forex-whats-the-difference/
Text source: TronWeekly
