Why is crypto trading so similar yet so different from Forex trading?

[Findingnemo]

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.

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[wajik-tempe]

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.

[Obari]

Have you made a move from Forex trading to crypto trading or crypto to Forex? What happened? Can one do both at the same time?

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.

[Lanatsa]

This question seems so simple, yet the answer seems to escape me. Both involve technical and fundamental analysis, which includes indicators, charts, and candlesticks. They make use of the same trading principles, ideologies, and strategies. However, I have yet to see a forex trader who has dumped forex trading for crypto trading. I have yet to see a forex trader who doesn't claim that they make more money than crypto traders. I have also yet to see a crypto trader who has dumped it for forex trading. Have you made a move from Forex trading to crypto trading or crypto to Forex? What happened? Can one do both at the same time?

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.

[jeraldskie11]

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.

[Rigon]

We all have our trading strategies which works for us, those who are trading in the forex believe they are the best people on the open market, like they are making the best that the market can offer, why those who are also in the crypto (me included) believe  the best things are from crypto trading and that forex has a very higher risk which makes me avoid it the more.

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.

[dansus021]

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

[worle1bm]

The risk factor involved in crypto trading is more as compared to forex trade because any company can't go rug or it's hard to manipulate the share prices but in crypto any project can be rug with team just going off the radar and keeping your funds if you understand what I am saying.There is no regulatory body to authorise them but in forex it's not the case and there are securities board protecting the interest of shareholders.But on trading base you need to implicate lot of strategies and skills if you need to make profits in both of them.

[kapalmabur]

The risk factor involved in crypto trading is more as compared to forex trade because any company can't go rug or it's hard to manipulate the share prices but in crypto any project can be rug with team just going off the radar and keeping your funds if you understand what I am saying.There is no regulatory body to authorise them but in forex it's not the case and there are securities board protecting the interest of shareholders.But on trading base you need to implicate lot of strategies and skills if you need to make profits in both of them.

It can be said that for crypto it is too free for something like that while in forex it is not,
in trading in both are almost the same as a whole,
knowledge and skills are needed and become an important factor in trading.

[LastKiss]

This question seems so simple, yet the answer seems to escape me. Both involve technical and fundamental analysis, which includes indicators, charts, and candlesticks. They make use of the same trading principles, ideologies, and strategies. However, I have yet to see a forex trader who has dumped forex trading for crypto trading. I have yet to see a forex trader who doesn't claim that they make more money than crypto traders. I have also yet to see a crypto trader who has dumped it for forex trading. Have you made a move from Forex trading to crypto trading or crypto to Forex? What happened? Can one do both at the same time?

I have a friend who move from stock trading to crypto trading since stock is a little bit slow to get profit compared to crypto then he decide to move all his money from stock to cryptocurrency. Both of them are the same just like you said they use analysis, charts, etc. The main difference is probably the volatility and the risk that both have.

[cabron]

Crypto is more similar to stock market the difference is that the holdings you got can be withdrawn outside the market while on stocks, your holding stays in the platform.

Crypto trading can be similar to forex if you do it on leverage trading where the exchange allows you to borrow from them. Youre in crypto though so you're going to be trading on BTC/Usdt and not the major currencies of the world.

[jawaher]

Crypto trading and Forex (foreign exchange) trading share similarities but also have significant differences. Here are some key reasons why they are similar yet different.

Similarities:

Both crypto trading and Forex trading involve buying and selling assets with the aim of making a profit. Traders in both markets analyze price movements, use technical and fundamental analysis, and employ various trading strategies to capitalize on market fluctuations.

Crypto and Forex markets can exhibit high levels of volatility, presenting opportunities for traders to profit from price movements. Volatility can result from economic news, geopolitical events, market sentiment, or other factors impacting the respective markets.

Both crypto trading and Forex trading operate around the clock, enabling traders to participate in the market at any time. Cryptocurrency markets are decentralized and operate 24/7, while the Forex market operates in different time zones and remains open during weekdays and closed on weekends.

Differences:

The Forex market is heavily influenced by macroeconomic factors, central bank policies, and geopolitical events. On the other hand, the crypto market is decentralized and consists of various digital assets (cryptocurrencies) traded on different exchanges. The value of cryptocurrencies is influenced by factors such as technology developments, adoption, regulatory news, and market sentiment.

Forex trading is regulated by government bodies, financial institutions, and industry organizations in different countries. There are established rules, standards, and oversight mechanisms in place to ensure market integrity and protect traders. In contrast, the crypto market is relatively less regulated, with varying degrees of regulation across different jurisdictions. The regulatory landscape for cryptocurrencies is evolving, and different countries have different approaches to regulating digital assets.

The Forex market is the largest and most liquid financial market globally, with significant trading volumes and narrow bid-ask spreads for major currency pairs. Crypto markets, while growing in liquidity, are generally less liquid compared to Forex. Some popular cryptocurrencies have good liquidity, but many others can have lower trading volumes.

The Forex market has been operating for decades and has a well-established infrastructure, market participants, and historical data. Cryptocurrency markets are relatively newer and evolving rapidly. They can be subject to higher price volatility, market manipulation, and regulatory uncertainties compared to the more established Forex market.

[gabbie2010]

We all have our trading strategies which works for us, those who are trading in the forex believe they are the best people on the open market, like they are making the best that the market can offer, why those who are also in the crypto (me included) believe  the best things are from crypto trading and that forex has a very higher risk which makes me avoid it the more.

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.

I had traded both forex and crypto trading and experience both volatility which is quite high in crypto than forex trading except during a major news that is when forex pairs tends to move with an unusual high volatility and prior to a high impact news time many traders will be time cautious in trading to avoid hitting Stop Loss during the news hour, honestly I agreed with you that forex trading is less risky than crypto trading and some of my observations is that candlestick patterns do work well in forex trading while most crypto trading pairs defies Technical analysis and when a forex trader has vast knowledge in fundamental analysis predicting the next likely trend of a pair will be easy though it's matter of different folks for different strokes.

[el kaka22]

I think the "you are done" part of forex that makes it so hard. I mean leverage trading at crypto is same in that regard, but if you are spot trading at crypto, it can go down but it won't be zero, well most of the time unless you bought something like Luna.

So, I guess that it would be lovely if you could end up with something in return, so that means forex could make you go to zero the moment you are wrong, but crypto will keep your money going down and yet still have value that could recover. Forex means there is no return, if that money is gone, it's gone, crypto means wait a year or two years if you have to and you will be back where it once was and that's boring I know to many people but that's the HUGE difference between them.

[AicecreaME]

The reason why is the difference in volatility and how it works. Cryptocurrency has higher volatility than fiat, so a forex trader would need to adjust a lot to minimize losses in trading cryptocurrency, while a cryptocurrency trader needs to study how fiat pumps, dumps, and also how to have a lot of patience, this is only my opinion though.

[irhact]

This question seems so simple, yet the answer seems to escape me. Both involve technical and fundamental analysis, which includes indicators, charts, and candlesticks. They make use of the same trading principles, ideologies, and strategies. However, I have yet to see a forex trader who has dumped forex trading for crypto trading. I have yet to see a forex trader who doesn't claim that they make more money than crypto traders. I have also yet to see a crypto trader who has dumped it for forex trading. Have you made a move from Forex trading to crypto trading or crypto to Forex? What happened? Can one do both at the same time?

Cryptocurency trading is easier than forex trading. I have experience in both markets and from my experience, when I was learning how to trade in the cryptocurrency market I found it very easier and I have have noticed same experience been described but other traders in the both market. There's more money to be made in the forex market and it isn't that easily manipulated like how whales can easily manipulate the cryptocurrency market.

To trade in the cryptocurency market, you have to pay attention to the price movement of Bitcoin because Bitcoin determines how other coins move. If the price was to increase or decrease, altcoins gets affected too but in the forex market, all market moves differently.

[death69]

We're wading into the quicksand of Forex and Crypto trading dynamics – similar in their frameworks but diverging at the heart of the matter. Isn't it all about what they're tossing around?

When dealing with Forex, we're handling currencies that have the solid backing of central banks and dance to the tune of macroeconomic indicators. On the other side of the spectrum, Crypto trading is like a game of dodgeball with market sentiment, yet its true driving force is the adrenaline-fueled frenzy of speculation and the laissez-faire charm of decentralized control. Here's where the paths diverge, right?

Now, you'll find some traders who prefer Forex like a comforting bowl of soup, appreciating its relative stability and liquidity. But then, wouldn't you say the crypto market, with its volatile temperament, is more like riding a unicycle on a tightrope, promising higher returns but with a hefty side of risk? Could switching between the two be a question of how much spice a trader likes in their financial soup? Mixing both could indeed offer the chance for diversification, but would require the careful strategy of a chess master and encyclopedic knowledge of both fields. Could this be the brave new world for our intrepid traders?

[cute nmp]

All trading are similar to each other weather crytocurrency,forex and the stock market.Both technical and fundamental analysis play their roles in all the markets. what makes them different is that each market has its own characteristics like the forex market has more manipulations than the crypto-market,while the stock market is slow and the crypto-market is very much volatile than the others.One needs study each market differently to be able to trade them well.

[Lorence.xD]

Both could be possible since the two involved money which is trading. They only differ on the system of the trading like it's more open to volatile the crypto unlike to forex which makes it easier to predict and analyze. It could also be done to crypto but due to its high volatility it makes it difficult and much risky than forex. People also love the volatility of crypto since it's the reason for people to enter and gain profit. If I were to ask who would be better, then of course people who trade from crypto shifting to forex since there's a lot of things you should consider in trading when there's volatility present.

[Iadegbola34]

Forex trading and crypto trading share similarities in terms of analysis and strategies. Although, traders' strategies often differ due to factors such as the volatility and potential gains of cryptocurrencies. Some traders may switch between the two markets based on their goals and market conditions. Also, It is possible to engage in both at the same time, but it requires careful planning and understanding of each market's dynamics.