Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
People looking for currency trading or planning to venture into forex trading might wonder whether they should go with Cryptocurrency or Forex. In fact, these are two similar things but the differences can be huge.
If you are trying to find out which way should you go, then you should have a few market stats so that you can weigh your options.
The key stats:
- The market research report says that on an average $5 trillion are traded in Forex each day
- On the flip side only $ 700 billion are traded in the cryptocurrency market
- Forex entails trading of the established currencies in the world and it is centralized for governance
- Cryptocurrency is a decentralized trading platform where there are no governing bodies to manage and it is often a digital transaction
Which one is better?
The supply of currency is unlimited since all the major currencies of the world are included where cryptocurrency is limited as far as supply is concerned.
You can get leverage of 50:1, which would also mean that the losses can grow rapidly, wherein cryptocurrency is quicker and doesn’t have often a high transaction cost as it is decentralized.
Since Firex has a larger pool of traders, it is easy and quick to trade large sum of currencies quickly. The fact is that one participant can rapidly influence and have an impact on the whole market.
On the flip side, you can be heavily benefited from cryptocurrency. For instance, if you trade $1000 on cryptocurrency today, then in 4-5 years the value can go up to $ 400,000. Now, that also means that risks are also palpably larger.
Forex is influenced by various factors such as global announcements, jobs, and reports. Often it gets easier to trade because the information can be found easily.
Similarly, cryptocurrency also allows the parties to trade easily by offering information and people can access it from any part of the world.
Final take:
The fact of the matter is that both the markets are volatile and involve risk. However, as nature would have it, if you aim for a bigger profit, then you will have to get ready for risks associated with it.
The crux of the matter is that you need to have the right knowledge, information and skill to trade on both these platforms. The more skilled you get, the better the chances of profit. All you need to do is to make rational choice depending upon the current market dynamics.
Â
About the Author
The Forex Scalpers is a professional day trader with more than 10 years of experience in trading Forex. We have personally designed the course to share knowledge and teach you the strategies to consistently and successfully trade the Forex Markets. This Forex Trading Course welcomes both beginner and advanced traders and is suitable for all trading styles.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.