Bitcoin Forum

I think almost the same factors drives both or you think any different?


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Well in general yes I suppose. But there are some differences like the fact forex I think and I may be wrong here is more based in algorithms whereas bitcoin and crypto markets are

still human beings for the most part. Thats one distinct difference that I can think of in this regard but otherwise yeah they both are markets that operate irrationally  :P

Bitcoin and forex trading are the same and when we are referring to bitcoin trading we are refer to forex trading just that the later deal with countries currency exchange and what determines the price of the market are issued that emanating from interest rate, GDP,  employment and not farming payroll e. t. c.  In bitcoin trading what determines bitcoin price is the  hardfork, technology and exchange issue. Technically everything the same.

Almost the same type of market.

However, there is huge difference that we all know and that's the decentralised market of crypto currency. This is huge difference because it allows us to fluctuate the market with the help of investments, more the investment we can really pump the specific assets in the market, grab the profits and let it dump itself again.

In case of forex, everything is centralised and the market depends on worlds investment where market can not be altered with big investment. That's because worlds market is big and it gets altered only if big news comes about the asset making alarming people to invest throughout the world.

The market for bitcoin is way small and anyone with major bitcoin holding so called as whales can alter the market as and when needed which we call as pump and dump in current market.

Forex is much more risk than bitcoin. They are differ into one another also, because in Forex it is centralized while in bitcoin is decentralized as we all know about it.

The Foreign Exchange market (Forex) is the world’s center for exchanging currencies. Traders gauge currencies’ health and attempt to exploit its volatility in exchange rates with other currencies to make a profit. The more a currency varies, the bigger the profit (and risk).  Bitcoin trading is similar as traders are essentially exchanging a cryptocurrency for another currency, which is the principle Forex is built on. However Bitcoin’s more unpredictable volatility and influential price-driving factors are divergent from Forex.

I don't think so when it comes to Forex which is basically about the trading of currencies,  the strength and the weakness of the currency is totally dependent on the economy of the said currency.But bitcoins strength and weakness is based on the investors and their demand for the cryptocurrency.

Forex are depend more on geographical reasons whereas Bitcoin is more driven by demand factor. In case of Forex, market forces work as secondary force.
Like China devalued Yuan 2 years ago which depreciated its value against foreign currencies but if Bitcoin is being affected in any specific region, it affect whole global market. Like Japan legalized Bitcoin and global prices surged.
So both markets are quite different.

Forex market is not centralized as it happen to be made by banks and financial institutions all over the world. There are four FOREX sessions (Sydney, Tokyo, London, New York) where all together operate 24/5. Both system, crypto and forex are peer to peer, the only difference is that FOREX is open only for instututional invstors. Retail customers rerly operate on FOREX they mostly hold the CFD (derivative) on forex products. Subsequently crypto market is small drop in capitalization when comparing to forex. Bottom line is that FOREX doesnt operate on central exchange but among many nodes same as cryptocoins.

I think they have a slight difference though both are almost similar when it comes to trading. It's just that the forex market is well stabilized because it came first and it is I think much more riskier too compared to bitcoin.

Can you elaborate why do you think bitcoin market been safer than forex market. Thanks for your opinion in advance.

I personally thinks that the concept can be consider the same but how the market has been played is really big difference bitcoin volatility is really huge
and a good analyzer can bring millions out of a single spike from this system while in forex there's a big influence before a certain movement will take
and it can be anticipated by those who understand but not that huge unlike to bitcoin.

almost the same in terms of trading function is also almost the same but his vision and mission are different Iam sure and know for sure bitcoin trading is almost the same as forex market because it deals with money

In general they are similar to each other but cryptomarket is more unstable so you should analyze it in a bit different way than forex. Also as i noticed  in forex most people are using a bit leverage. As I've seen a typical newb mistake on forex is to set a huge leverage and get a call from the bank with saying that you now have a huge debt.

Bitcoin is not trying to reinvent our economic theory, bitcoin is just the best of what we know about economics so it makes sense that is bound to the same principles, it is not really surprising that bitcoin is compared most of the time to gold except that bitcoin has the advantage of being easier to carry and to conceal than gold, but in everything else bitcoin is still subject to the same laws of supply and demand as any other currency.

Somehow Yes, Forex and crypto-market trading mechanism is almost same with some difference like FOREX work  24*5 where as crypto trading remain open 24*7. Crypto market is totally decentralized, where as FOREX is semi-centralized. Crypto market is way more volatile than Forex market. Forex exchanges are regulated, on the other hand crypto exchanges are run by private co. and there are no as such rules and regulation for them