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

[alastantiger]

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?

[1714586571]

1714586571

[1714586571]

1714586571

[Ever-young]

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.

[coupable]

In defining concepts, trading in virtual assets includes both stocks and cryptocurrencies, and there is not much difference in both activities since it is clear that the same tools and even strategies are used. And to find that some traders have changed trading activity from stocks to crypto does not mean at all that they succeeded with one or failed with the other. This is like going from trading bitcoin to trading ripple, both of which are called trading.
The difference that can be tempting for adventurous traders is that they will move to the field of crypto since prices are very volatile and fantastic profits can be achieved in a short time (they can lose imaginary losses as well), while those who prefer safer investments prefer stock exchanges and Since the prices are more stable.

[Adbitco]

The bottom line there is that forex and crypto are both trading there's no much different, same principle you uses in forex same with cryptocurrency. They make uses of all analysis, charts, candlestick and whatsoever, sometimes forex traders are more smarter than cryptocurrency traders because they undergo series of class and training before they could venture into it, but as a Cryptocurrency trader I think what you needed most is for you to understand the coin you are trading with whether is a reliable coin or not. Crypto seems more reliable than forex so there's no much differences it all depends on individuals how they understand it and learn from.

[Dr.Bitcoin_Strange]

Possibly, one can do both at the same time, but it depends on how good or smart you are. While both trading has the same pattern of some technical analysis and predictions of the market direction with the help of some indicators and other trading tools, the simple difference is that in Forex trading, the user is only concerned with trading foreign currencies in pairs like EUR/USD and JYAN/USD, while in cryptocurrency trading, the user is concerned with coin/coin, coin/token, token/token, and coin/fiat or token/fiat pairs. That is to say, it's possible that one can learn the two depending on their personal capabilities. There is always risk in both types of trade, so I can't say that crypto traders make more profit than forex traders; they both encounter losses, but what matters is how experienced one is; if not, they will encounter more losses than the other.

[safar1980]

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?

From the very beginning, there were large trading leverages in Forex, which very often leads to trading losses. KYC is mandatory in Forex, and it is still possible to trade on crypto exchanges without KYC. The crypto market has no breaks, and many companies do not work on weekends and holidays.

[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?

The principles to trade both markets are the same, however there are some differences which will require an adjustment in your strategy, the volatility of this market is higher and if you do not reduce your position size accordingly then the risks that you will take will be too high and your losses will increase as well, also the reason you probably do not see a forex trader becoming a crypto trader and the other way around is because once you know how to trade and asset and you can obtain profits with it, it makes more sense to specialize on that asset rather than to look for other markets to trade.

[nesty]

Crypto trading and Forex trading are similar in that they both involve buying and selling currencies. There are some differences between the two and that is Forex trading involves trading of fiat currencies, while crypto trading involves trading digital currencies. The markets for Forex and crypto trading operates differently, with Forex being a more established market and crypto being a newer and more volatile market. Crypto trading also involves a higher degree of risk due to the lack of regulation and the potential for extreme price fluctuations. Forex trading is generally considered to be a more stable market with less volatility and more predictable price movements.

[adaseb]

Forex is less transparent. Even the volume is not real. The volume you see on any forex chart is not actual volume since it’s impossible to report that. It’s basically the amount of ticks and it’s an estimate. You don’t have any liquidation data or even open interest.

Crypto is more transparent and you can use that and have a better chance of making actual money. Most that tried forex lost most of their money. Something like 99% of all forex traders lose all their money and give up.

[xSkylarx]

Forex is less transparent. Even the volume is not real. The volume you see on any forex chart is not actual volume since it’s impossible to report that. It’s basically the amount of ticks and it’s an estimate. You don’t have any liquidation data or even open interest.

Crypto is more transparent and you can use that and have a better chance of making actual money. Most that tried forex lost most of their money. Something like 99% of all forex traders lose all their money and give up.

This is right! also this is the reason won't you be hearing a lot of total volume in forex. They tend to always talk about news, and Forex is mostly affected by news, like every day there is news in the country. It depends on what pair you are trading too, as Forex value will be affected by all types of news, like economic news, catastrophes, or anything else that involves the country. Why most forex traders do not want to move to crypto is that it is not that predictable in crypto. I think it is because they have a lot of experience in forex and are already able to easily read the chart patterns and know which is the best entry into them.

[KiaKia]

The answer is already in your question, crypto is CRYPTO and forex is FOREX, if you are asked to define what crypto is and what Forex is you know that they aren't the same, so the price action will be very different, some of my pals refer forex trading more than crypto trading and I choose crypto trading over forex.

Either one, price movement is what brings you money, when you bet on price up and it goes down it's lose for you and this isn't because they are different, charts and movement are similar but you need to pick a side to avoid confusing yourself.

Since crypto is where I began my journey, I understand crypto more than Forex, and the last time my pal made me tried forex I lost money.

[Questat]

I think you are confused why they are too similar, strategies and trading principles. And probably what you are trying to ask is which is one is more profitable considering that they likely have the same features.

Well, just wondering why some are leaving forex trading for crypto (and vice-versa). It is not because of finding which one is profitable but it is all about finding themselves comfortable. I believe everyone has the option and for some reason, they will choose crypto over Forex or forex over crypto.

[romero121]

Trading process is common. The assets listed to different form of trading varies. With cryptocurrency trading we were able to see the list of cryptocurrencies added to the exchange. With forex the trading practice is of the foreign currencies. The market determines the price for every foreign currency and based on the same trading is processed. The difference is much on the volatility, with cryptocurrency we can see a big variation whereas the forex is of very small fluctuation, which makes it low risk investment.

Cryptocurrency is not easy predictable, to which the risk is high along with chance of big profiting. However once a person have got used to it he/she won't easily switch to other form of trading. With forex the market is big and could switch to other form of trading looking for better profit.

[franky1]

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?

if you are of the type of person that thinks crypto analysis is just watching the market candle sticks for trends then your knowledge base is small.
if you think traders just do the same then your circle of people you know is small.

actual traders dont just do trend analysis(not to be confused with technical analysis)
actual traders look outside of the silly trends and find proper fundamental impacts

i did do a bit of forex trading many years ago. but that game was boring and yes i made more on bitcoin than on forex.

the main problems/differences in forex are these:
when 2 countries currencies are traded. people dont do trend analysis, instead they look for things like:
has a country changed its import/export tariffs to affect international trade
has the country doing food exports had a good growth season. where their produce has yielded and so are able to sell more thus causing an effect of forex money shuffling when they export.
however when those reports come out. the big entities have already seen the reports and set their trades accordingly so by the time regular(non institutional) forex investors see the results, the market is already priced in. the hype is over before regular people get a chance to react

however on bitcoin there are some fundamentals that play out after results are published
for instance mining. when there is a hashrate rise. that means more competition for the miners. meaning less coin for them meaning when they sell(later) they will want more fiat for their less coins to break even, thus this is why there is a bitcoin market hype a year after a halving.

when 2022 seen electric prices increase due to international crap happening. the price in 2022 didnt go up immediately.
this is becasue miners buy equipment and pay for electric on upto a 1-2 year contract meaning their costs are priced in at the start and its only when their contracts are up do they evaluate their earnings against their costs to price in the bitcoin they need to sell at. hence the delay

so forex is where when regular people get the news.. the hype is already over.. in bitcoin when people see hashrate rises and halving. they get to see upfront before the hype results
also another difference is institutional forex investors do not hoard and hype. they day trade on 0.00x% fee's, sniping even the smallest under1% changes to the price becasue the trade fees are so low they can do this. whereby adding up all the small percentages per hours/day results in many percent per year.

bitcoin investors see that CEX trade fee's as being higher so they cant snipe under1% opportunities because the maker taker fees add up to nearly 1% or more then 1% at times. so they only act when there are more then a few % changes involved. most of which makes people not want to wait around for hours. and instead they hoard and sell on the hype

[EarnOnVictor]

There are no market instruments that are 100% the same, they could only be similar, and this is because of the sector differences, there is no way the economics of Forex can be 100% similar to that of Crypto because they are not the same asset class. That is why you might see some economic news that was so significant in effect with Forex but had a minimal effect on Cryptocurrency. The characteristics of the asset class also explain why Bitcoin, for example, is mostly sluggish in movement than volatile, and this could be so discouraging as it also causes me to avoid it for Forex trading many times.

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?

However, I've never totally abandoned one for the other, I trade them both weekly, yet, I trade Forex more because it gives me more trading opportunities and earns easier for me when Bitcoin which is my preferred crypto would take a longer time to bless my trading account.

[crwth]

It's a matter of capability, one person could go both Forex and Cryptocurrency trading simultaneously, and you can definitely profit from any of them with the right strategies and principles in place. But if someone is not that successful, they would dump it together. Maybe forex alone isn't a challenge anymore, and why would you even leave it if you are just technically doing the same thing?

It's just like putting more eggs in more baskets to prevent losses. Especially if you have experienced it already well enough, it should be fine when it comes to this. People can do it both times.

[SamReomo]

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.

The forex and crypto market works in different ways due to volatility and some other factors. The crypto market is highly volatile and it can go from 10%-30% or even higher within a single day sometimes. The forex market on the other hand is not that much volatile, the movements in that market was pretty low as compare to crypto market. The main cause of volatility of crypto market is the volume and decentralization. There isn't a single entity who can control the market while the forex market is control by centralized authorities.

Although, the trading principles are basically same for both of the markets and the indicators, charts, and other factors are also same for both markets but the volatility has the difference and that's the main cause of concern. Other than volatility the crypto market is highly affected by news media and influencers while that doesn't happen in forex market.

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 traded in both markets in forex as well as in crypto, but I must say that forex market is not that difficult to master, the crypto market is very difficult. There have been cases where newbies earned 1000's of dollars in crypto over night, but  they have lost even more after that. I used to be a forex trader back in 2016's but I transition to crypto-currencies in late 2016 and since then I have never done forex trading. I'm considering forex trading now, but still not doing it yet because they crypto is far more easier and is more lucrative for someone like me.

[palle11]

I have yet to see a forex trader who doesn't claim that they make more money than crypto traders.

This does not matter. It depends on the traders preference and choice or likeness for the two different markets yet same idealogy. If you like some thing more than another, you are likely going to speak good about it. That is how it is with cryptocurrency and forex trade.

There can be some factor one likes above the other like regulation. For example forex is well regulated and you could see all the information about a particular news like you can see this platform https://www.forexfactory.com/. A forex trader may likely speak good of it because of the direct access to a news that can help him make trading decision

Can one do both at the same time?

Why not. You can perfectly trade the two markets including more markets like derivatives and binary. Moreover forex is only weekdays excluding weekends while crypto and deriv are 24/7, so you can have lesser loads by the weekend to relax from Forex trading.

[Nrcewker]

No doubt there are many similarities here. If we leave the assets, then almost everything is similar. If a person has learnt one type of trading, then definitely he can do the other one, as both are interlinked. I see that OP has mentioned that people are dumping forex for crypto trading. The reason is very simple for that, forex trading has too many complications, unwanted fees and hidden taxes for which the trader often suffers. But crypto trading can be done in a decentralised manner and hence many new generation are attracted towards it.

[coolcoinz]

To me these are two very different things. Forex operates on much higher liquidity and volume, but much lower volatility. That's why cryptocurrencies are favored by people who want trading to be more like gambling, as shitcoin markets are heavily manipulated and influenced by pump groups. Many of these coins are outright ponzi schemes where some of the supply is held by developers and insiders who only wait to dump it on new investors.
Crypto trading is much more dangerous and it's much easier to lose all your money doing it, unless you focus on trading bitcoin with no leverage.