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

[tvplus006]

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.

There is almost no volatility in Forex and it is for this reason that high leverage is used there so that a trader has a real opportunity to earn 1%. In contrast to Forex, in the cryptocurrency market, you can earn even 5-10% without using leverage. And using leverage simply increases your profit in proportion to its size or increases the chance of getting liquidated.

[palle11]

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.

They are almost the same but different also from each other like in cryptocurrency it is not regulated and so because of that you can not monitor news information but only rely on technical. The news you get from trading cryptocurrency is seasonal especially when there is some event or scam happening around the exchange or the whales but in Forex, you can really monitor it by checking the currencies of the country on the news and policies around them from their host country. There are more difference like the leverage used, technicalities etc.

[irhact]

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.

Speaking about their difference, one that I also noticed is that crypto trading isn't profitable during some period of years and that's when the crypto market is in its bear market. Trading during this period aren't always profitable since the price of Bitcoin and other coins will keep falling and if you decide to trade, you'll end up losing. You can only make profits if you're using other advance trading method like future trading.

Meanwhile there's no time that trading forex can't be be profitable unless you're not good at forex trading because you can decide to buy a currency or sell that same currency depending on the news coming from the country that uses that currency, example if their economy is doing well, you buy.

[Mauser]

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?

While on paper the two might seem very similar they are in fact not actually so similar. Technical analysis is a great tool to help us trade financial securities, it doesn't really matter if it is Stocks, Cryptos or Forex. As long as the financial assets have trends that we can identify with the technical analysis we can make a profit. The big difference in Forex and Crypto trading is in the fundamentals, which is probably why big Forex traders are not switching into the crypto world easily. When it comes to Forex trading it is very important to look at the local interest rates in a country, because you replicate any Forex trade with low risk government securities in a country. For example, if you trade US Dollars vs Euros, you already know today how the price will be in the future. Because you can sell your Dollar today and buy Euros, then invest them in government bonds with almost no risk for 1 year and get let's say 4% back. The profit you make then you can already today covert back with a contract in 1 year to USD to make a fixed profit. On the other side you have the US government bonds which for example make you 8% in one year. With that relationship you know today already that the USD in 1 year needs to rise more than the Euro because it offers higher interest rates. These relationships unfortunately don't are in the crypto world as we don't get any risk free interest with our coins. It's better to focus on one sector of the two and not at both at the same time in my opinion.   

[KingsDen]

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.

Speaking about their difference, one that I also noticed is that crypto trading isn't profitable during some period of years and that's when the crypto market is in its bear market. Trading during this period aren't always profitable since the price of Bitcoin and other coins will keep falling and if you decide to trade, you'll end up losing. You can only make profits if you're using other advance trading method like future trading.

Actually, good traders doesn't lose money during the bear market. It is just that they don't make good profits because of lack of upward movement of the coins. Since no appreciable movement is made by the coins, trading is always not interesting during the bull period.

Everything that has pros also has cons, it is undeniable that there are the downsides crypto trading and which should also be the reason some people prefer forex trading to it.

[tvplus006]

Speaking about their difference, one that I also noticed is that crypto trading isn't profitable during some period of years and that's when the crypto market is in its bear market. Trading during this period aren't always profitable since the price of Bitcoin and other coins will keep falling and if you decide to trade, you'll end up losing. You can only make profits if you're using other advance trading method like future trading.

Meanwhile there's no time that trading forex can't be be profitable unless you're not good at forex trading because you can decide to buy a currency or sell that same currency depending on the news coming from the country that uses that currency, example if their economy is doing well, you buy.

A bear market does not mean that the price is constantly declining. Each decline is necessarily corrected and this is exactly the time when a trader on the spot market opens a long. And similarly, such corrections in the cryptocurrency market, as well as in Forex, are very much influenced by news, which leads to a short-term price change.

[teosanru]

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?

It's very simple why it's different, crypto has much more volatility than forex. Crypto is a very different market because the things that the results depend on is quite different. Also leverage is pretty heavy in forex. Talking about doing both I don't think it's possible to trade both. Both are 24 hours market and you'll be in a very difficult situation when you'll try to remember variables of both the markets so obviously it's not advisable to really trade in both the markets.

[Franctoshi]

Speaking about their difference, one that I also noticed is that crypto trading isn't profitable during some period of years and that's when the crypto market is in its bear market. Trading during this period aren't always profitable since the price of Bitcoin and other coins will keep falling and if you decide to trade, you'll end up losing.

This is the odd side of trading cryptocurrency, Both have their odd side.  
In this case, there is also a provision made available which I have used on Binance exchange for shorting or longing Bitcoin to earn more Bitcoin for example, so in a situation, we enter a bear market, you open a short position and as the position goes in your direction more BTC will be added to your portfolio.

Meanwhile, there's no time that trading forex can't be profitable unless you're not good at forex trading because you can decide to buy a currency or sell that same currency depending on the news coming from the country that uses that currency, example if there economy is doing well, you buy.

Generally, from the experience I have got having been involved in forex and crypto trading, I'm at peace with trading crypto and precisely Bitcoin to trading forex when we talk about the spot aspect of the trading and not the future side because this angle, it's the same as trading forex which makes it similar to crypto trading while the spot aspect of crypto differentiates it from forex trading.

[inthelongrun]

There is not much difference between crypto trading and forex trading. Forex though is money representing countries while cryptocurrencies are digital currencies or tokens representing companies, organizations, platforms, and other various projects which are a little similar to stocks.

In actual trading, there are no forex platforms that offer spot trading. But we can buy foreign currencies in banks and money exchanges. In crypto trading, spot and leverage exist depending on your preferred style of trading.

[Fivestar4everMVP]

If you are looking for someone who dumped Forex trading for crypto trading, then search no more, you found one here, and if I must be sincere with you, i don't trade frequently anymore, but I enjoyed and still enjoy crypto trading much more than I did with Forex trading.

And yeah, it is very easier to make more money in forex if you are really good, but then is only because Forex trading is a multi trillion dollar market where as crypto is still struggling to become stable at its current market cap of billions, liquidity is never an issue in Forex trading, but liquidity is something the crypto market is yet to really achieve..

In the future, crypto trading will become the biggest in the money market, but before this can be achieved, we need adoption, and a market cap as big as how big the Forex market currently is.

[PuertoLibre]

If you are looking for someone who dumped Forex trading for crypto trading, then search no more, you found one here, and if I must be sincere with you, i don't trade frequently anymore, but I enjoyed and still enjoy crypto trading much more than I did with Forex trading.

And yeah, it is very easier to make more money in forex if you are really good, but then is only because Forex trading is a multi trillion dollar market where as crypto is still struggling to become stable at its current market cap of billions, liquidity is never an issue in Forex trading, but liquidity is something the crypto market is yet to really achieve..

In the future, crypto trading will become the biggest in the money market, but before this can be achieved, we need adoption, and a market cap as big as how big the Forex market currently is.

The current forex market has over $4Trln daily turnover and the crypto market is a small dot compared to the daily worldwide transactions on foreign exchange markets. I doubt crypto trading will replace the traditional ways to exchange money on physical and digital platforms but it is a known fact as the crypto industry gets bigger every day. Forex traders look for stable profitability strategies which have low odds of happening in the volatile crypto pairs. Maybe that is the reason behind the fact why fundamental analysis doesn't work in crypto charts, unlike Forex charts.

[CapGelatik]

There is not much difference between crypto trading and forex trading. Forex though is money representing countries while cryptocurrencies are digital currencies or tokens representing companies, organizations, platforms, and other various projects which are a little similar to stocks.

In actual trading, there are no forex platforms that offer spot trading. But we can buy foreign currencies in banks and money exchanges. In crypto trading, spot and leverage exist depending on your preferred style of trading.

With a difference that is not too big, that's why it doesn't seem like it will be so difficult when we have already traded in crypto and tried forex,
because basically it's almost the same so to adapt it won't take long,
but it depends on everyone's ability as well.

[Wend]

If you are looking for someone who dumped Forex trading for crypto trading, then search no more, you found one here, and if I must be sincere with you, i don't trade frequently anymore, but I enjoyed and still enjoy crypto trading much more than I did with Forex trading.

And yeah, it is very easier to make more money in forex if you are really good, but then is only because Forex trading is a multi trillion dollar market where as crypto is still struggling to become stable at its current market cap of billions, liquidity is never an issue in Forex trading, but liquidity is something the crypto market is yet to really achieve..

In the future, crypto trading will become the biggest in the money market, but before this can be achieved, we need adoption, and a market cap as big as how big the Forex market currently is.

Depending on personal preference. I also have a friend who has been trading forex for over 10 years, but he has no interest in crypto trading and hates it. He said that cryptocurrencies are too small and price manipulation makes it impossible for him to do any accurate analysis, but with forex, the manipulation is less and more dependent on supply and demand, so analysis becomes simpler. That's what he shared with me and I find what he said makes sense. The forex and stock markets are huge, I really don't think cryptocurrencies will overtake those two markets anytime soon.

[Minecache]

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.

That can be another difference between cryptocurrency trading and forex trading. But from what you said, I guess you are not a day trader because day traders always use stoploss for any trade. Not using stop loss will cause them to bury their capital and become reluctant long-term holders, and that's what they don't like.

For me, neither is better than the other, we simply choose which one we feel is the best fit. Both are used to make a profit, as long as they can be profitable, both are good.

[Dr.Bitcoin_Strange]

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.

At a point, I had to think that Forex trading was even more risky compared to cryptocurrency trading, but it's not; they have the same risk level because crypto trading is of two types: sport buy, where you have to buy when you think the price is low and sell when the price becomes high, and the crypto "future trading, where you have to use some technical analysis and trading tools to predict the direction of the market. Although you can still use those tools in the two types of crypto trading so you can know the market trends,


In crypto trading, when you buy low and sell high, you have a lower risk compared to a futures trader because futures traders are trading with leverage and volatility, which means that any time the market goes against them, their asset will just get liquidated. The same thing applies to forex traders. But if you are buying low and selling high, you also face the volatility risk, but just that you will still have your coins or tokens in your wallet until the price of the market begins to see an uptrend again before you sell high. Sometimes, the project owners for the token you've bought can just abandon their projects and the token will just be worthless leaving you in a very huge loss too.

What you must know is that in both crypto trading and FOREX trading, the risk is the same. If you are not very skilled at analyzing market trends and also using some trading tools to control your risk level, then you will likely encounter a heavy loss.



Cheers 🥂, Dr.Bitcoin_Strange 👺👺

[wxa7115]

If you are looking for someone who dumped Forex trading for crypto trading, then search no more, you found one here, and if I must be sincere with you, i don't trade frequently anymore, but I enjoyed and still enjoy crypto trading much more than I did with Forex trading.

And yeah, it is very easier to make more money in forex if you are really good, but then is only because Forex trading is a multi trillion dollar market where as crypto is still struggling to become stable at its current market cap of billions, liquidity is never an issue in Forex trading, but liquidity is something the crypto market is yet to really achieve..

In the future, crypto trading will become the biggest in the money market, but before this can be achieved, we need adoption, and a market cap as big as how big the Forex market currently is.

Depending on personal preference. I also have a friend who has been trading forex for over 10 years, but he has no interest in crypto trading and hates it. He said that cryptocurrencies are too small and price manipulation makes it impossible for him to do any accurate analysis, but with forex, the manipulation is less and more dependent on supply and demand, so analysis becomes simpler. That's what he shared with me and I find what he said makes sense. The forex and stock markets are huge, I really don't think cryptocurrencies will overtake those two markets anytime soon.

Compared to the forex market all markets seem small, so this is not a problem exclusive of this market, with that being said it is true the manipulation this market can go through can be very intense, however that volatility can be deal with by reducing your position size.

But at the end of the day if your friend does not like to trade cryptocurrencies then he is free to avoid this market, however there is no doubt either he is missing a great deal of potential profits by taking that decision.

[mvdheuvel1983]

This is simply a matter of peer influence. 80% of my friends are in cryptocurrency trading. We eat, breathe and sleep Bitcoin. It is therefore normal to lean into crypto trading more than forex trading. I have more experience with the crypto trading app that forex. I have met with crypto traders and we've had a fair discussion on the similarities but no one is willing to give up their passion for the other.

[Willitivity]

Trading Forex and Bitcoin almost borders on same fundamental principles, but the differences are quite there which separate each from the other. The crypto market is highly speculative and prone to manipulation. A person with a good amount of funds can manipulate any low cap alt, this is not possible in forex at all. Some people will say that crypto is trading 'out of thin air' commodities and that's quite true, cus most of the tokens are just mere cash grab..

[taufik123]

This is simply a matter of peer influence. 80% of my friends are in cryptocurrency trading. We eat, breathe and sleep Bitcoin. It is therefore normal to lean into crypto trading more than forex trading. I have more experience with the crypto trading app that forex. I have met with crypto traders and we've had a fair discussion on the similarities but no one is willing to give up their passion for the other.

Currently, crypto trading is more interesting and more profitable because there are no strict rules and no holidays.
And the main difference is the high volatility which makes crypto price fluctuations faster.
Just look at Forex trading fluctuations, fluctuations are very low and quite slow.

But the risk incurred will also be less, crypto has a higher risk and a greater and faster return.

It just depends on choice and convenience.
80% of your friends use crypto because they know they can only trade in crypto and are more comfortable in crypto.
For trading theory everything is the same, there will be no difference.

[wxa7115]

Currently, crypto trading is more interesting and more profitable because there are no strict rules and no holidays.
And the main difference is the high volatility which makes crypto price fluctuations faster.
Just look at Forex trading fluctuations, fluctuations are very low and quite slow.

This is a good point, the forex and other markets as well are only open five days a week and they close for the weekend and for some holidays, bitcoin and the market of cryptocurrencies are always open, so someone which is interested on making profits no matter what will always have the chance to find some trading opportunities.

And if you add the volatility of this market then the profits they can get can be very high, now such a thing also increases the risk traders have to face but that is an acceptable price to pay, taking into consideration the massive profits they could get.