Difference between forex trading and crypto trading.

[free-bit.co.in]

I think it's the other way around. Forex is the least stable market of all because currency volatility can be much higher than that of Bitcoin. Also cryptocurrencies have one advantage: unlike Forex, here you can wait out a deposit drawdown and even if you bought Bitcoin at 20,000 in 2017, wait until 2021 and come out ahead, or if you buy Bitcoin at highs in 2021 or 2022 at 50-60 thousand, you can also wait until 2025 and come out ahead, but this is not possible with forex. In addition, unlike the stock market, the forex market does not pay dividends, and even some cryptocurrencies have staking, which can be called an analogue of dividends, and you can send your coins to staking and receive passive income, but this is not possible with forex.

I don't think national currencies are more volatile than Bitcoin. I have never seen a national currency increase or decrease by 5-10% in just one day or a few hours.

Forex is considered the world's largest financial market, possessing extremely high liquidity of up to 7-8 trillion dollars along with strict regulations. So, I disagree with the assertion that it is less stable than crypto.

Furthermore, forex cannot be compared to cryptocurrencies or stocks in terms of dividends or staking because the majority of the foreign exchange market is a derivatives market, while the other two markets are largely spot.

[SirLancelot]

I thought OP is going to explain the difference in trading strategies, mindset etc. between forex and crypto trading. That was a clickbait in the sense that it literally just said, a chair is a chair and a table is a table.
You have every right to be offended hahaha

Haha, well there are people who actually don't know the difference between the two types of trading. So, I guess it helps them. For sure more details would have helped because the above content is as generic as a google search .

One thing I would add to the topic from my experience; Forex trading is much more predictable while crypto trading is as wild as it gets (not in a bad way) because you literally can't predict anything. And once you start trading those meme coins it's insanely volatile.

[Minor Miner]

One thing I would add to the topic from my experience; Forex trading is much more predictable while crypto trading is as wild as it gets (not in a bad way) because you literally can't predict anything. And once you start trading those meme coins it's insanely volatile.

Forex trading is easier to predict because it has complete data and analytical basis, such as economic indicators, interest rates, and monetary policy, and not be manipulated. Meanwhile, cryptocurrencies lack data, are highly speculative, and are frequently manipulated.

However, although the foreign exchange market is easier to analyze and predict, in reality, not many people actually make a profit from it. I also traded forex many years ago, and honestly, I lost more money than I made a profit.

[shawonngp]

Forex and crypto both of different platform, so of course some differences both of them. It’s not true Forex trading operated only with national currencies, you can start forex trade by cryptocurrency, BTC and another altcoins. I don’t know forex trading but I have an ideas some basic things, crypto trading is always open, but forex trading have weekly off day If I'm not mistaken.

[Mpamaegbu]

Forex Trading: forex trading is the trading of national currencies or it involves trading only national currency

Instruments and commodities are also traded as pairs on FX brokerage. So, your conception that only fiat is traded isn't correct.

Crypto Trading: crypto trading is the trading of digital currencies or it involves trading only digitalcurrency for example Bitcoin, Ethereum, Chamby token, and it operates on blockchain-based markets.

I hope this isn't a cheap plug for Chamby token? I don't even know what that token is as it's a first time for me. I ended up checking it on aggregator site. It looks like one of those memetokens.

So crypto trading and forex trading is different one involve country currency and the other involve digital currencies created by people or community. The country currency or national currency which is forex trading government has major and large control over it but the other which is crypto trading government has little or no governmental control.

I advise you do a thorough reading of those two subject matters. Perhaps, it will help you understand better what's going on as it looks like you aren't an active trader of any.

[MinMan]

Forex trading is a bit more high octane, and crypto trading (unless you are doing leverage) is bit more calm. I know people will be shocked about this, because crypto is volatile, but it depends on what kind of trading you are doing. A bitcoin/usd trader for example, who does spot trading, will not lose too much, but if you are doing x150 leverage on it then yeah you can lose all of it in a minute.

So depending on how you do your crypto trading, even on worst days, all you lose is %10 of your money. Whereas, forex is not done without any leverage, because currencies go up or down tiny fractions, so you need high leverage to profit out of it, and that means one wrong direction movement could make you lose all your bet.

[Achalugo BTC]

Haha, well there are people who actually don't know the difference between the two types of trading. So, I guess it helps them. For sure more details would have helped because the above content is as generic as a google search .

One thing I would add to the topic from my experience; Forex trading is much more predictable while crypto trading is as wild as it gets (not in a bad way) because you literally can't predict anything. And once you start trading those meme coins it's insanely volatile.

Every one and their choice, there are people who see crypto trading as an easy thing than forex trading because they think its more predictable than the other.
But one thing is sure, which is that crypto is volatile assets, that people needs to be careful because any little mistake can lead one into ruining their investment, which might really affect them in every area of their lives, both financially, mentally and emotionally.
So, to avoid such from happening, people needs to follow instructions and make the necessary adjustments, in order to achieve their target in life.

[Polkeins]

I think it's the other way around. Forex is the least stable market of all because currency volatility can be much higher than that of Bitcoin. Also cryptocurrencies have one advantage: unlike Forex, here you can wait out a deposit drawdown and even if you bought Bitcoin at 20,000 in 2017, wait until 2021 and come out ahead, or if you buy Bitcoin at highs in 2021 or 2022 at 50-60 thousand, you can also wait until 2025 and come out ahead, but this is not possible with forex. In addition, unlike the stock market, the forex market does not pay dividends, and even some cryptocurrencies have staking, which can be called an analogue of dividends, and you can send your coins to staking and receive passive income, but this is not possible with forex.

I don't think national currencies are more volatile than Bitcoin. I have never seen a national currency increase or decrease by 5-10% in just one day or a few hours.

Forex is considered the world's largest financial market, possessing extremely high liquidity of up to 7-8 trillion dollars along with strict regulations. So, I disagree with the assertion that it is less stable than crypto.

Furthermore, forex cannot be compared to cryptocurrencies or stocks in terms of dividends or staking because the majority of the foreign exchange market is a derivatives market, while the other two markets are largely spot.

You are absolutely right about volatility, which is why forex is more dangerous for beginners than crypto. As you correctly point out, there is no such volatility in forex and if you incur losses, you have to sit on huge losses for a long time, which not everyone can withstand, so they usually just close the position at a loss.
In crypto, if you don't buy shitcoins, but rather Bitcoin or at least a coin from the top 50, the chances of making a profit in the long term are high, and any crypto in a bull market can make 20-30 percent in a day, while in forex you have to wait years for that.

[Zigabel]

The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading, some people usually think it's same thing but the truth is that they are totally different from each other.
Forex Trading: forex trading is the trading of national currencies or it involves trading only national currency for example USD, EUR, GBP, NGN, and it operate in the global foreign exchange market alone.

Crypto Trading: crypto trading is the trading of digital currencies or it involves trading only digitalcurrency for example Bitcoin, Ethereum, Chamby token, and it operates on blockchain-based markets.

For their market size and stability forex trading has the largest financial market in the world meaning it's more large than the crypto market and forex has very high liquidity but crypto has lower liquidity except for major or big coin like bitcoin and it is more stable and less volatile than crypto market.

So crypto trading and forex trading is different one involve country currency and the other involve digital currencies created by people or community. The country currency or national currency which is forex trading government has major and large control over it but the other which is crypto trading government has little or no governmental control.

You have a misconception at some point, Forex is not just about the trading of foreign currencies alone, the trade of commoditiesare also involved in forex trading.  You also have some indicies trading and company shares been traded on the floor of the forex, crypto is solely crypto and does not have all of the other commodities and indicies as seen with the forex market.

[slaman29]

Feels like one of those dumb topics to talk about. Of course they're different. But for practical purposes of trading for 99% of the population doing trading, you will see in the end of the day the same things in terms of how things happen.

I would say experience wise, forex traders moving to crypto (like myself) will find it quite weird at first to see liquidity issues especially for shitcoins. But that was really a problem for DEX with orderbooks and maybe small liquidity pools, I think on exchanges now even shitcoins in general are good enough for most traders not to see big slippage.

Which is something that hit me early at first moving from forex.

[JeffBrad12]

Im new and trying to decide which one to start with, is it true that forex has better tools for beginners or is crypto easier because of the apps

I always find forex to be overly complex with their tooling, basically over the top while the same functionality can be achieved with simple exchange app like what crypto have.
With forex you get garbage uninformative UI and with crypto apps you get simple and straightforward UI. So i doubt forex have better tools for beginners.

For trading, it's basically the same thing, the difference is just on volatility since forex didn't move in dramatical manner like crypto does.
Honestly, just wait until those crypto exchanges provide forex market. You get best of both worlds.

[Charles-Tim]

I always find forex to be overly complex with their tooling, basically over the top while the same functionality can be achieved with simple exchange app like what crypto have.

I understood this, but forex is not also hard at all if you really want to learn how to trade fiat. But I understood you, crypto trading is made simple which is true.

With forex you get garbage uninformative UI and with crypto apps you get simple and straightforward UI. So i doubt forex have better tools for beginners.

I have many forex traders that will argue this. They also said forex consume less data.

For trading, it's basically the same thing, the difference is just on volatility since forex didn't move in dramatical manner like crypto does.
Honestly, just wait until those crypto exchanges provide forex market. You get best of both worlds.

Forex is not volatile like crypto but the leverage used also matters.

[Rengga Jati]

One of the fundamental differences between forex and cryptocurrency trading is the assets. As you explained in this thread. More explanation in this image may help.


This means that the risk levels are also different, as is the potential for profits. Sometimes the players are also different. Crypto is more widely used for trading by all levels of society, and each is truly capable of managing its risks.

This means that before deciding whether to trade forex or crypto, be sure to study them and establish several basic principles, such as being aware and understanding them about:

• Wisely and smartly managing risk
• Market trend updates
• Doing research
• Probably professional financial advice

i got from here:
Crypto vs Forex

[fuguebtc]

Im new and trying to decide which one to start with, is it true that forex has better tools for beginners or is crypto easier because of the apps

I always find forex to be overly complex with their tooling, basically over the top while the same functionality can be achieved with simple exchange app like what crypto have.
With forex you get garbage uninformative UI and with crypto apps you get simple and straightforward UI. So i doubt forex have better tools for beginners.

For trading, it's basically the same thing, the difference is just on volatility since forex didn't move in dramatical manner like crypto does.
Honestly, just wait until those crypto exchanges provide forex market. You get best of both worlds.

You find forex trading complicated or the user interface (UI) poor because you're probably not a trader or you have little experience in the forex market. In other words, it's simply a matter of habit, because if you ask a forex trader, they'll say the opposite.

Because I'm a forex trader, and I still remember when I first switched to trading cryptocurrencies, I found it a bit more complicated. So I think it's all just a matter of habit.

Additionally, if you are looking for a cryptocurrency exchange that offers forex trading, you can check out Bybit.

[colinistheman]

Haha, well there are people who actually don't know the difference between the two types of trading. So, I guess it helps them. For sure more details would have helped because the above content is as generic as a google search .

One thing I would add to the topic from my experience; Forex trading is much more predictable while crypto trading is as wild as it gets (not in a bad way) because you literally can't predict anything. And once you start trading those meme coins it's insanely volatile.

Every one and their choice, there are people who see crypto trading as an easy thing than forex trading because they think its more predictable than the other.
But one thing is sure, which is that crypto is volatile assets, that people needs to be careful because any little mistake can lead one into ruining their investment, which might really affect them in every area of their lives, both financially, mentally and emotionally.
So, to avoid such from happening, people needs to follow instructions and make the necessary adjustments, in order to achieve their target in life.

Technically, forex trading is more predictable because it has more data, higher liquidity, and is less susceptible to manipulation compared to crypto. Foreign exchange market fluctuations depend on macroeconomic factors, monetary policy, and global capital flows, and monitoring this news is not too difficult. Meanwhile, crypto is a speculative market, subject to manipulation and lacking in data.
Those who claim that crypto is easier are simply making a biased assessment based on their one sided experience.

However, in terms of risk, although cryptocurrencies are more volatile, forex typically uses very high leverage. So the actual level of risk is almost equivalent. It will all depend on the investor.

[DanWalker]

Forex and crypto both of different platform, so of course some differences both of them. It’s not true Forex trading operated only with national currencies, you can start forex trade by cryptocurrency, BTC and another altcoins. I don’t know forex trading but I have an ideas some basic things, crypto trading is always open, but forex trading have weekly off day If I'm not mistaken.

You're right, just like the stock market, the foreign exchange market is only open from Monday to Friday. They close on weekends and major holidays.

However, recently some cryptocurrency exchanges like Kraken have offered perpetual forex futures, allowing for 24/7 forex trading. Furthermore, due to increasing demand, there have been several proposals and ideas suggesting that foreign exchange should be expanded to operate 24/7, similar to the crypto. Although there is no official information yet, given the increasing demand, I believe they will soon revise the regulations.

[SmartGold01]

I always find forex to be overly complex with their tooling, basically over the top while the same functionality can be achieved with simple exchange app like what crypto have.

I understood this, but forex is not also hard at all if you really want to learn how to trade fiat. But I understood you, crypto trading is made simple which is true.

With forex you get garbage uninformative UI and with crypto apps you get simple and straightforward UI. So i doubt forex have better tools for beginners.

I have many forex traders that will argue this. They also said forex consume less data.

For trading, it's basically the same thing, the difference is just on volatility since forex didn't move in dramatical manner like crypto does.
Honestly, just wait until those crypto exchanges provide forex market. You get best of both worlds.

Forex is not volatile like crypto but the leverage used also matters.

To be sincere, cryptocurrency trading is extremely volatile and anyone who is dealing with crypto trading should be that information especially when it comes to trading those shitcoin as memecoin we need to be active in their respective communities and media handles to know what steps they are to follow. When you understand crypto very well it would be that easier for you to follow up the forex market, although they are both volatile but with knowledge of crypto the person should be able to handle it.

[gunhell16]

Both Forex and crypto trading can be a source of income depending on where you feel most comfortable. In my case, I just happen to be more comfortable with crypto trading.

When it comes to the concept and how you actually execute trades, they are almost the same. Perhaps the only major difference is the trading hours; Forex is only active on weekdays, while in crypto, it’s not like that we can trade 24/7.

[Ndabagi01]

Both Forex and crypto trading can be a source of income depending on where you feel most comfortable. In my case, I just happen to be more comfortable with crypto trading.

When it comes to the concept and how you actually execute trades, they are almost the same. Perhaps the only major difference is the trading hours; Forex is only active on weekdays, while in crypto, it’s not like that we can trade 24/7.

Crypto trading is always active to trade on 24/7 unlike forex trading that happens to trade only on weekdays and not available on weekends. Although there is another form of forex trading known as synthetics, I don’t know if they’re also classified under forex trading or not, but they’re always active 24/7 and no weekend breaks. One fascinating thing about it that you can’t find in forex and crypto trading is that it doesn’t gets affected by news.

So if you’re a trader and trades synthetic, you don’t need to worry about fundamental news before taking trades. Just stick to your technical knowledge of the market and make trading plans and strategy and when you see a good setup, don’t hesitate to execute the trade. The synthetic market is not that wide but has been around for a very long time now.

[SamReomo]

It's okay to say that Forex trading is basically trading of fiat currencies that are less volatile but can be impacted by inflation badly on the other hand crypto trading is trading of Bitcoin and other crypto-currencies that are highly volatile and can be easily traded without any leverage requirements.

If I'm not wrong then in Forex trading one has to set lots and that's somehow similar to leverage and it's somehow important in Forex trading but when it comes to crypto trading even someone with as low as $100 can begin trading and overtime if he/she manages to trade well in spot market then he/she can make something from that trading, and in crypto trading if someone chooses Bitcoin then there's less risk of losing any capital as long as its bought at spot market.