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

[jaberwock]

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

It's okay to be biased and I am sure other users are going to feel the same. It won't still affect the forex traders because they are not here listening to our conversations. Maybe some Bitcointalk users does it but I think they will still do both in order to gain maximum profit. The reason why crypto trading looks so similar to forex trading is because both of them are currencies. The only difference is their volatility rate. As you said, cryptos are more volatile than in forex.

It's risky but very rewarding. This is perfect for those who are looking for more challenge. Crypto market have a closing time too like other financial markets. We can slow down during these times but that's okay to be like that sometimes. At least we can relax a little bit.

[1714608096]

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[omgitsmehehe]

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.

Although the crypto and forex markets have the same operations in terms of fundamental and technical research, their perspectives on trading differ. Cryptocurrency is risky and controlled by whales in the market; they have the ability to make coins pump and dump, whereas the forex market is controlled by countries. I prefer trading forex over crypto since forex is permitted by the government, whereas crypto is not permissible and if detected, taxes or bank accounts are frozen, which is a risk I am unwilling to accept.

[palle11]

Although the crypto and forex markets have the same operations in terms of fundamental and technical research, their perspectives on trading differ.

Not that much. If you can trade forex then you can trade crypto with same perspective of buy and sell but forex has better guide than cryptocurrency.

Cryptocurrency is risky and controlled by whales in the market; they have the ability to make coins pump and dump, whereas the forex market is controlled by countries.

Individual government also can manipulate their currency outlook and if you are a newbie trader you may keep losing your capital in forex trading.

I prefer trading forex over crypto since forex is permitted by the government, whereas crypto is not permissible and if detected, taxes or bank accounts are frozen, which is a risk I am unwilling to accept.

Cryptocurrency trade is permissible depending on the country you are trading from, if you are in a country where they have friendly atmosphere and space for crypto then you can freely have your way in your trade.

[jrrsparkles]

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?

What if those people who is doing one over other not really wanted to mention it to public?

Ofcourse anyone one can do both at the same time with right time management skills.

I know people who is doing trading as their main profession involved in multiple trading which also includes forex, crypto so yes they are exists but we can't expect everyone do label hey I am doing both.

[GreatArkansas]

Bitcoin and Forex both speculate, whereas on both you can do the same like buying or selling. Both are volatile but I believe that cryptocurrency is much more volatile.

But now, cryptocurrency trading for us now is new, we considered it new compared to forex where it is already here for some time, and that's why some people are afraid to trade on cryptocurrency.
And when you do trade on cryptocurrency, it's kinda difficult because there's a lot of exchanges and on every exchanges there's a lot of pairs you will trade, so you need to choose what pairs you want to trade compared to Forex where they only have few.

[taufik123]

Bitcoin and Forex both speculate, whereas on both you can do the same like buying or selling. Both are volatile but I believe that cryptocurrency is much more volatile.

That's because Cryptocurrency has high volatility so prices will be more volatile compared to Forex.
and the difference is also that Forex trading on weekends will be closed while Crypto never closes 24 hours non-stop trading will always run.

But now, cryptocurrency trading for us now is new, we considered it new compared to forex where it is already here for some time, and that's why some people are afraid to trade on cryptocurrency.
And when you do trade on cryptocurrency, it's kinda difficult because there's a lot of exchanges and on every exchanges there's a lot of pairs you will trade, so you need to choose what pairs you want to trade compared to Forex where they only have few.

Those who are afraid of cryptocurrency trading may still not understand how crypto trading works.
If they already understand them and master them, the turnover of money will be faster and the risk is also greater.
up thousands of percent to down tens of percent in crypto is common. prepare mentally, and prepare good knowledge for crypto trading.

and for crypto trading pairs that are often chosen, of course, Fiat pairs with various altcoins and Bitcoin which are the main crypto trading pairs.

[South Park]

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?

What if those people who is doing one over other not really wanted to mention it to public?

Ofcourse anyone one can do both at the same time with right time management skills.

I know people who is doing trading as their main profession involved in multiple trading which also includes forex, crypto so yes they are exists but we can't expect everyone do label hey I am doing both.

We must not forget that not only this market is relatively new compared to the forex market, there were even some companies that directly stated that if they found one of their traders trading this market then they will fire them, this was long ago but it still happened, so it is not surprising that even if those that trade forex have the abilities to trade this market as well, they are only beginning to do so as there was a significant effort to try to discourage them from doing so.

[Captain Corporate]

Another reason is that one of them is a lot more common and been around for decades, whereas the other one is not so much. If you think about it, its currency exchange, its literally giving one and taking the other and vice versa, that's what forex is about. Humanity has done this since we invented money, probably before in other forms but since money was invented. Which means that its been perfected in many centuries, and for many decades it has been quite similar to what it is today and many economists worked on it. Crypto on the other hand is new, there could be some similar stuff to it, but that doesn't mean that it would be exactly the same, the result will always be a bit different and that's why its going to be a bit different for sure.

[palle11]

We must not forget that not only this market is relatively new compared to the forex market, there were even some companies that directly stated that if they found one of their traders trading this market then they will fire them, this was long ago but it still happened, so it is not surprising that even if those that trade forex have the abilities to trade this market as well, they are only beginning to do so as there was a significant effort to try to discourage them from doing so.

I'm not aware of this that companies would stop there employees from trying to source for alternative means of income with trading of cryptocurrency. I think that will be against the freedom of the employees and I think it shouldn't be the business of the employer to look into the privacy of those working for them if they are not using the time for their paid job for trading. If they are performing their jobs effectively then no need stopping them especially if they are not trading while in office or in office hour.

[carlfebz2]

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?

What if those people who is doing one over other not really wanted to mention it to public?

Ofcourse anyone one can do both at the same time with right time management skills.

I know people who is doing trading as their main profession involved in multiple trading which also includes forex, crypto so yes they are exists but we can't expect everyone do label hey I am doing both.

We must not forget that not only this market is relatively new compared to the forex market, there were even some companies that directly stated that if they found one of their traders trading this market then they will fire them, this was long ago but it still happened, so it is not surprising that even if those that trade forex have the abilities to trade this market as well, they are only beginning to do so as there was a significant effort to try to discourage them from doing so.

Trying out to compare on how long forex market existed. Trying out to make some search and found this one.

Its earliest beginning dates back to the Babylonian period when trading through the barter system was practiced as a means of exchange.
The general conception is that Forex trading started in Amsterdam roughly 500 years ago.
http://History of Forex Trading[/img]]History of Forex Trading

So we do have the idea on when it had started on which trading up on forex is really that already old.It is really just that normal that those people who do make
out trades into other market would really be easily be able to switch up on trading with other market as well just like on crypto. The overall essence on how things
would should be done on trading up on a market then making some switch up wouldnt really be an issue.

[goaldigger]

It frankly surprises me when trading is compared with gambling, for example. It seems to me that these are completely different things. But crypto trading and forex are quite similar things.

Trading can be consider as gambling if you are just guessing your position and only depends on your luck, that’s why many compare this two. Crypto and forex have its own similarity especially with the risk and the trading strategy, though personally I prefer more to trade with Crypto as I don’t need to deal with any broker just to allow me to trade while in forex, it matters to have a good broker or platform for your trading activities.

[tvplus006]

I think the most important thing here is the notion that this is trading. In any case, the trading process itself will not differ much, because the trading process is always approximately the same.

The main difference is that trading on the cryptocurrency market is associated with high volatility, which we do not observe in Forex. And despite the fact that you can use leverage both on Forex and on the crypto market, there will be significantly more liquidations on the crypto market.

[nur rochid]

before trading crypto, I first traded forex, analytically I think it's the same as using chartist technical analysis, and I don't completely abandon one of them, because both have different characteristics in terms of fluctuations, so it's just a matter of seeing which one enters the support area first and I bought it. I usually differentiate for these accounts, because in forex I only enter a maximum of 3 pairs, and accounts for normal crypto trading I use bitcoin and ethereum, which I think are easier to analyze because they have the largest capitalization

[Mrengage]

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?

This question, yes, it's possible to do both, my journey started from the CRYPTO MARKET, and the FOREX MARKET was looking kind of difficult to understand, not until 2022 I picked interest to understand how the forex market works, but the material I used in learning trading was all the knowledge of forex because FOREX came in before crypto.

[AmoreJaz]

before trading crypto, I first traded forex, analytically I think it's the same as using chartist technical analysis, and I don't completely abandon one of them, because both have different characteristics in terms of fluctuations, so it's just a matter of seeing which one enters the support area first and I bought it. I usually differentiate for these accounts, because in forex I only enter a maximum of 3 pairs, and accounts for normal crypto trading I use bitcoin and ethereum, which I think are easier to analyze because they have the largest capitalization

if you will really stick to few markets, you can easily grasp what's going on, either forex or crypto market. and yes, you can do both. but the movement in crypto is much faster, so you always need to be on the look out what's happening around the crypto market.
if you will stay in some top forex markets, you won't be worried about disappearing such market because it won't.  i guess, the common technique in both is that the more you know about the market you are dealing with, the better you can come up with your financial decisions.

[stomachgrowls]

before trading crypto, I first traded forex, analytically I think it's the same as using chartist technical analysis, and I don't completely abandon one of them, because both have different characteristics in terms of fluctuations, so it's just a matter of seeing which one enters the support area first and I bought it. I usually differentiate for these accounts, because in forex I only enter a maximum of 3 pairs, and accounts for normal crypto trading I use bitcoin and ethereum, which I think are easier to analyze because they have the largest capitalization

if you will really stick to few markets, you can easily grasp what's going on, either forex or crypto market. and yes, you can do both. but the movement in crypto is much faster, so you always need to be on the look out what's happening around the crypto market.
if you will stay in some top forex markets, you won't be worried about disappearing such market because it won't.  i guess, the common technique in both is that the more you know about the market you are dealing with, the better you can come up with your financial decisions.

You could really actually do both if you do like on which these two are indeed markets and even including stocks and indices on which you could really make some trading or having this kind of market on which it does involved buying and selling.Their similarities? You could really be able to make use of those indicators on the same way on which you would really be finding about a good entry and a best time to exit. Are these things to be precise? No its not but its better to handle up yourself on a market on having these kind of tools on which it would really be that might helpful.It isnt really that something that would really be able to rely
but on the concept on how things should really be done then this is something that would be similar. The volatileness would be the actual difference in between markets on which on the time that you would really
be making out some trades in between markets then you would really be definitely noticing this one out.

[tbct_mt2]

The main difference is that trading on the cryptocurrency market is associated with high volatility, which we do not observe in Forex. And despite the fact that you can use leverage both on Forex and on the crypto market, there will be significantly more liquidations on the crypto market.

Forex market is volatile too with very high leverage. Cryptocurrenculy market is younger and has less regulations so developers, projects founders, whales and signal groups can manipulate price more regularly and more easily.

I see both markets are very volatile and risky if we use leverage for trading. Knowledge for trading, indicators are the same but each market has its different sensitivity with news. News can lift price up or dump it and can kill your position shortly when you are not aware of such news.

[judaspriest]

The main difference is that trading on the cryptocurrency market is associated with high volatility, which we do not observe in Forex. And despite the fact that you can use leverage both on Forex and on the crypto market, there will be significantly more liquidations on the crypto market.

Forex market is volatile too with very high leverage. Cryptocurrenculy market is younger and has less regulations so developers, projects founders, whales and signal groups can manipulate price more regularly and more easily.

I see both markets are very volatile and risky if we use leverage for trading. Knowledge for trading, indicators are the same but each market has its different sensitivity with news. News can lift price up or dump it and can kill your position shortly when you are not aware of such news.

Basically the two markets are almost the same but I think cryptocurrency is a much bigger risk,
specifically I only know the crypto market,
when we have trading knowledge I think we can apply it to both markets.

[wxa7115]

The main difference is that trading on the cryptocurrency market is associated with high volatility, which we do not observe in Forex. And despite the fact that you can use leverage both on Forex and on the crypto market, there will be significantly more liquidations on the crypto market.

Forex market is volatile too with very high leverage. Cryptocurrenculy market is younger and has less regulations so developers, projects founders, whales and signal groups can manipulate price more regularly and more easily.

I see both markets are very volatile and risky if we use leverage for trading. Knowledge for trading, indicators are the same but each market has its different sensitivity with news. News can lift price up or dump it and can kill your position shortly when you are not aware of such news.

Basically the two markets are almost the same but I think cryptocurrency is a much bigger risk,
specifically I only know the crypto market,
when we have trading knowledge I think we can apply it to both markets.

However where does this increased risk comes from? And to me the explanation is the volatility we see on this market, while the stock market will go crazy if there was a 5% drop on a single day, we see those kind of movements on the price of bitcoin in a single hour all the time.

So traders used to a smaller degree of volatility can get their accounts destroyed in a matter of hours as they were unaware of the risks they were taking, and this means that anyone looking to make that transition needs to reduce their position size or face the consequences of such mistake.

[KingsDen]

I do not want to comment much on the similarity between cryptocurrency trading and forex trading because many people have already said something about this topic.

I want to come in about the differences between the above-mentioned two.
I am writing this based on experience because I came from the forex trading background and I lost so much in forex trading including using a fake bot that was meant to return huge profits on a daily and weekly basis.

The only reason I abandoned forex trading totally for cryptocurrency trading is that when you trade in cryptocurrency good pair of known currencies, even if you eventually run into losses, you could be patient for weeks months, and even for years and that particular coin may return again to make a new all-time high. By then you will run back into massive profit. This cannot be said in forex trading, whereby if the market is against you, you can count it to be for ever. That is the reason I prefer crypto trading to foreign trading.