Differences between bitcoin trading and forex trading

[Kelward]

Once upon a time na foreign exchange trading wey be "forex" na im be di currency trading wey people de trade. In recent years bitcoin come enter di currency trading. So na wetin be di difference between di two and which one get advantage pass? Make I first define dem in simple terms.
 Forex trading na where dem de sell and buy different fiat currencies for centralized foreign exchange market. While bitcoin and oda cryptocurrency trading na digital currency wey dem de buy and sell for decentralized exchange. So bellow I go list di differences between di two and which I feel says get advantages pass.

,1: Regulation, dis one mean say to a large extent bitcoin no de regulated, so di traders inside get more freedom to operate without central authorities interfaces. While forex de regulated, di central authorities wey be government, de decide di framework of how dem de operate.

2: Liquidity, bitcoin de less liquid because e never de universally accepted for now, and people no fit to easily spend am. Whereas  forex de more easy to liquidate because you fit to easily  convert fiat to another fiat and fit to easily take am make payments.

3 Volatility, bitcoin na currency wey de experience highs and lows within a short period of time, so dat one make am to be volatile. Also plenty bitcoin de in di hands of a few individuals wey be whales, and if any of dis big fish come sell dem bitcoin, e go sharply affect di price. While plenty big traders de inside forex, and di volume of trades for forex pairs no de make am  experience volatility like bitcoin.

4: Accessibility, you fit trade forex directly or tru a broker. While bitcoin de  less liquid and e require say make you get wallet and exchange account.

5: Risk, aside from di risk wey de for bitcoin volatility, if hackers find your access keys, na to clear your coins wey de inside your wallet. Whereas di main risk wey de inside forex na di factors wey de  affect currency pairs, such as di exchange rate wey de differentiate di two currency.
I carry small research from did link https://www.ig.com/en/trading-strategies/forex-vs-bitcoin--what-are-the-differences--190321.amp#aoh=16961574448631&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s

As for di one wey get advantage pass, as e concern to make money between bitcoin trading and forex trading, aldo risk de more for bitcoin, but if person learn di techniques of how to trade am, bitcoin na im sure pass. Because di end wey go justify di means na to make money.

Forex na di biggest market wey de for di world and im don already de established, compared to bitcoin wey just de start. I believe say with di fast adoption of bitcoin by individuals and as some governments de also adopt am inside dem currency, im go soon pair with forex. And as di world de became one global village, bitcoin  wey bi digital currency wey no get boundaries go take over. How you see am?

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[Antotena]

Once upon a time na foreign exchange trading wey be "forex" na im be di currency trading wey people de trade. In recent years bitcoin come enter di currency trading. So na wetin be di difference between di two and which one get advantage pass? Make I first define dem in simple terms.
 Forex trading na where dem de sell and buy different fiat currencies for centralized foreign exchange market. While bitcoin and oda cryptocurrency trading na digital currency wey dem de buy and sell for decentralized exchange. So bellow I go list di differences between di two and which I feel says get advantages pass.

This one no be true sha.
Decentralized exchange is a place where you can buy and sell bitcoin and other coins but that is not the only place to buy bitcoin. You can bitcoin in centralized exchange like Binance, Kucoin and Okex exchanges but there is always requirement for signup and verification of KYC before you can used the exchanges, you can also convert your coins from bitcoin to fiat in centralized exchange using the P2P.

2: Liquidity, bitcoin de less liquid because e never de universally accepted for now, and people no fit to easily spend am. Whereas  forex de more easy to liquidate because you fit to easily  convert fiat to another fiat and fit to easily take am make payments.

This liquidity self also get as e be.

Bitcoin is not like other altcoins that will be hard to spend as they are limited by some exchange. Today, there is no exchange that is crypto base that don't have BTC and if they support the pairs that you need, you just need to sell and convert to whatever you need. If you are expert, Bitcoin is even more friendly to sell under some minutes than Forex that you have to request and probably wait for some hours before you get your cash.

Unlike Bitcoin, you are limited to the type of broker to sell. If you have Bitcoin on Binance, you can withdraw it to another exchange to sell but some broker will not allow you move your forex from a broker to another broker.

3 Volatility, bitcoin na currency wey de experience highs and lows within a short period of time, so dat one make am to be volatile. Also plenty bitcoin de in di hands of a few individuals wey be whales, and if any of dis big fish come sell dem bitcoin, e go sharply affect di price. While plenty big traders de inside forex, and di volume of trades for forex pairs no de make am  experience volatility like bitcoin.

4: Accessibility, you fit trade forex directly or tru a broker. While bitcoin de  less liquid and e require say make you get wallet and exchange account.

5: Risk, aside from di risk wey de for bitcoin volatility, if hackers find your access keys, na to clear your coins wey de inside your wallet. Whereas di main risk wey de inside forex na di factors wey de  affect currency pairs, such as di exchange rate wey de differentiate di two currency.
I carry small research from did link https://www.ig.com/en/trading-strategies/forex-vs-bitcoin--what-are-the-differences--190321.amp#aoh=16961574448631&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s

As for di one wey get advantage pass, as e concern to make money between bitcoin trading and forex trading, aldo risk de more for bitcoin, but if person learn di techniques of how to trade am, bitcoin na im sure pass. Because di end wey go justify di means na to make money.

Forex na di biggest market wey de for di world and im don already de established, compared to bitcoin wey just de start. I believe say with di fast adoption of bitcoin by individuals and as some governments de also adopt am inside dem currency, im go soon pair with forex. And as di world de became one global village, bitcoin  wey bi digital currency wey no get boundaries go take over. How you see am?

I need to combine this together for easy comprehension.

Volatility of market depends on how intense the market is, if you can to go google, check for yourself how the oil market crash to negative price during pandemic, it happen less than 24 hours, many market crash including bitcoin market but Bitcoin never went down to zero. The reason why the price of oil crashed was because of the fear in investors, the same applies to the price of bitcoin as well.

Bitcoin is not less liquid except say you no get money, you get $1M worth of Bitcoin to sell and e no possible. That forex that you think is liquid, if everyone decide to sell their shares today, it is going to be like there is a world war coming because the damage is going to be bad. When people sell shares, other holders don't panic of fear to sell but bitcoin, people fear what will happen after and that is as a result of trust, stop saying bitcoin is not liquid.

Lastly, every business get him risk, you fit try Forex make am or go home and you fit try Bitcoin make am or still hold, depend on the perspective.

[CryptopreneurBrainboss]

Forex trading na where dem de sell and buy different fiat currencies for centralized foreign exchange market. While bitcoin and oda cryptocurrency trading na digital currency wey dem de buy and sell for decentralized exchange. So bellow I go list di differences between di two and which I feel says get advantages pass.

To add to wetin Antotena talk, Bitcoin or cryptocurency trading isn't done only on decentralized exchange (although that's the idea advice to avoid been subjected to regulations on centralized exchange like mandatory KYC verifications). Exchanges irrespective of their types are like broker for a cryptocurrency trader, they're the platform which we use for trading our cryptos dem. Centralized exchange oh, Decentralized exchange oh can all be used to trade Bitcoin and other cryptocurency available on their platforms. The difference between Forex and Bitcoin trading na the type of currency Involved in both trading because Bitcoin na for cryptocurency and fiats na for fiats currency. As you talk about the risk come dey talk about hacking, forex get more risk because forex uses a centralized system wey be say everyone need to deposit their money into the broker before you fit trade Forex but you can trade Bitcoin directly form your wallet through P2P without standing a risk of hack. But this one no mean say your own wallet no go fit dey compromised but if you take the necessary precautions you no go get that problem.

4: Accessibility, you fit trade forex directly or tru a broker. While bitcoin de  less liquid and e require say make you get wallet and exchange account.

You dey use only Bitcoin which gives more Pros to Bitcoin trading because Bitcoin can be traded without the need of an exchange or an escrow because you can trade Bitcoin P2P without any third party or platforms and that's the real P2P. That local P2P wey you dey do with vendors without needing an escrow that's the main P2P and you can trade Bitcoin that way or other ways using other decentralized exchange platforms. When it comes to accessibility, Bitcoin trading dey more accessible than forex trading. And for the discussion since no be about cryptocurency but Bitcoin, the main difference between Forex and Bitcoin trading na say Forex trading na the biggest market in th world and has to do with trading different currency but Bitcoin trading na just one cryptocurency trading. When you talk about cryptocurency trading na when you fit compare the two small but forex go still get the upper hands when it comes to volume since the market no start today.

[Charles-Tim]

2: Liquidity, bitcoin de less liquid because e never de universally accepted for now, and people no fit to easily spend am. Whereas  forex de more easy to liquidate because you fit to easily  convert fiat to another fiat and fit to easily take am make payments.

Because Forex has higer marketcap, that does not mean that bitcoin is not liquid. Bitcoin is very liquid. Even there are many altcoins like ether, bnb etc cetera which has lower marketcap to bitcoin but they are also liquid with high trading volume, not to talk of bitcoin which is have higher trading volume.

3 Volatility, bitcoin na currency wey de experience highs and lows within a short period of time, so dat one make am to be volatile. Also plenty bitcoin de in di hands of a few individuals wey be whales, and if any of dis big fish come sell dem bitcoin, e go sharply affect di price. While plenty big traders de inside forex, and di volume of trades for forex pairs no de make am  experience volatility like bitcoin.

Bitcoin is volatile but appreciate in long term and people make profit, while fiat that people think is not volatile depreciate over time and people lose. Fiat is a scam to holders.

4: Accessibility, you fit trade forex directly or tru a broker. While bitcoin de  less liquid and e require say make you get wallet and exchange account.

Bitcoin is easy to access than forex.

Forex na di biggest market wey de for di world and im don already de established, compared to bitcoin wey just de start. I believe say with di fast adoption of bitcoin by individuals and as some governments de also adopt am inside dem currency, im go soon pair with forex. And as di world de became one global village, bitcoin  wey bi digital currency wey no get boundaries go take over. How you see am?

Compare forex with crypto but fiat like United States dollar with bitcoin. I hope you understand what I mean here.

[Gozie51]

3 Volatility, bitcoin na currency wey de experience highs and lows within a short period of time, so dat one make am to be volatile. Also plenty bitcoin de in di hands of a few individuals wey be whales, and if any of dis big fish come sell dem bitcoin, e go sharply affect di price. While plenty big traders de inside forex, and di volume of trades for forex pairs no de make am  experience volatility like bitcoin.

For the level of volatility, me I know think say btc dey volatile pass forex or fiat. Btc fit only dey that volatile from time to time like when major news hit the crypto market like if one whale just decide to dump on the market or buy huge or even begin hype one coin, maybe bitcoin or altcoin. Another time wey btc dey get such volatility na during halving bull. But on a normal, we no fit carry btc volatility compare market wey every country currency dey involved wey dey interchange about 6 trillion dollars on a daily basis.

If you look at the volume of pairs like pounds, dollars on daily we dey trade we go know. For example pairs like gold or silver paired with dollar na something wey dey dreaded with volatility and they are traded in the forex. Pairs wey like pounds and dollar too na very volatile fiat.

[Charles-Tim]

@Gozie51
Bitcoin is very volatile than United States dollar and pounds sterling, but in long term, the volatility is in the uptrend direction. So if you hold bitcoin, we all know that you will gain more than if you hold dollar or sterling. Also bitcoin is still volatile than gold. I think one of the reasons is that the marketcap of gold is far higher. But anyone that complain of the volatility, bitcoin is more volatile and better in RoI than any of them. But as the marketcap of bitcoin is increasing, the volatility is also reducing.

[Kelward]

Forex trading na where dem de sell and buy different fiat currencies for centralized foreign exchange market. While bitcoin and oda cryptocurrency trading na digital currency wey dem de buy and sell for decentralized exchange. So bellow I go list di differences between di two and which I feel says get advantages pass.

To add to wetin Antotena talk, Bitcoin or cryptocurency trading isn't done only on decentralized exchange (although that's the idea advice to avoid been subjected to regulations on centralized exchange like mandatory KYC verifications). Exchanges irrespective of their types are like broker for a cryptocurrency trader, they're the platform which we use for trading our cryptos dem. Centralized exchange oh, Decentralized exchange oh can all be used to trade Bitcoin and other cryptocurency available on their platforms. The difference between Forex and Bitcoin trading na the type of currency Involved in both trading because Bitcoin na for cryptocurency and fiats na for fiats currency. As you talk about the risk come dey talk about hacking, forex get more risk because forex uses a centralized system wey be say everyone need to deposit their money into the broker before you fit trade Forex but you can trade Bitcoin directly form your wallet through P2P without standing a risk of hack. But this one no mean say your own wallet no go fit dey compromised but if you take the necessary precautions you no go get that problem.

4: Accessibility, you fit trade forex directly or tru a broker. While bitcoin de  less liquid and e require say make you get wallet and exchange account.

You dey use only Bitcoin which gives more Pros to Bitcoin trading because Bitcoin can be traded without the need of an exchange or an escrow because you can trade Bitcoin P2P without any third party or platforms and that's the real P2P. That local P2P wey you dey do with vendors without needing an escrow that's the main P2P and you can trade Bitcoin that way or other ways using other decentralized exchange platforms. When it comes to accessibility, Bitcoin trading dey more accessible than forex trading. And for the discussion since no be about cryptocurency but Bitcoin, the main difference between Forex and Bitcoin trading na say Forex trading na the biggest market in th world and has to do with trading different currency but Bitcoin trading na just one cryptocurency trading. When you talk about cryptocurency trading na when you fit compare the two small but forex go still get the upper hands when it comes to volume since the market no start today.

Na true say no be for only decentralized exchanges person fit to trade bitcoin, you fit also trade am for centralized exchanges. Only be say na for decentralized exchanges di originality de, dat na why I focus emphasis on di decentralization, say make I talk on where dem no get comparison. As you talk am say centralized exchanges for bitcoin de serve as brokers de serve for forex, so di two get similarities, unto say na third parties dem be for trading matter. But bitcoin in decentralized exchanges de more unique, and direct P2P no de involve anything centralized.

Also bitcoin de very accessible in dis regard wey you emphasize, because with direct P2P you don bypass every centralized third party. Aldo im get im own limitations wey be say barrier no de to prevent or reduce the possibilities of scams, meaning say you de on your own if di other person scam you. Unlike using exchanges wey fit to drastically reduce the chances of scams. For di fact say bitcoin give more freedom to operate, and say im no de tied to any particular government because im de decentralized, go make am to be more accessible for trading pass forex wey carry plenty government regulations.

[Gozie51]

@Gozie51
Bitcoin is very volatile than United States dollar and pounds sterling, but in long term, the volatility is in the uptrend direction. So if you hold bitcoin, we all know that you will gain more than if you hold dollar or sterling. Also bitcoin is still volatile than gold. I think one of the reasons is that the marketcap of gold is far higher. But anyone that complain of the volatility, bitcoin is more volatile and better in RoI than any of them. But as the marketcap of bitcoin is increasing, the volatility is also reducing.

My guy unless you dey talk regards to hodling bitcoin but wetin me I dey talk na say for trading it on a daily. So for IMO oo, if you use gold against USD, or silver against USD, or pounds against USD, I no think say btc dey volatile pass dem on ROI wey dem dey give traders. Me I no be trader but I dey watch these two different markets from time to time. At least if you don see jeffery benson video you go fit relate with wetin I dey yarn.

However, I dey talk on daily basis trade and no be for hodling.

[Charles-Tim]

My guy unless you dey talk regards to hodling bitcoin but wetin me I dey talk na say for trading it on a daily. So for IMO oo, if you use gold against USD, or silver against USD, or pounds against USD, I no think say btc dey volatile pass dem on ROI wey dem dey give traders. Me I no be trader but I dey watch these two different markets from time to time. At least if you don see jeffery benson video you go fit relate with wetin I dey yarn.

To compare forex like those USD with bitcoin, you will use bitcoin leverage in the future market to do that. I do not know how you use pips or lots or what it is called in forex to compare the leverage in bitcoin trading in derivative market.

But no matter what, bitcoin is still more volatile. Let us use spot market as an example. Go to Binance, you will see these pair:

• BTC/USDT
• GBP/USDT
• PAXG/USDT

USDT to be the equivalent for dollar
GBP is pounds sterling
PAXG is equivalent for gold

Trade them all with no leverage and see how bitcoin is far more volatile. The leverage forex traders are using to trade is what that gives the volatility in forex. If the same leverage is used with bitcoin which you can see in derivative market, bitcoin is more volatile.

Crypto generally are more volatile than fiat. What makes forex volatile is excessive leveraging.

[Kelward]

My guy unless you dey talk regards to hodling bitcoin but wetin me I dey talk na say for trading it on a daily. So for IMO oo, if you use gold against USD, or silver against USD, or pounds against USD, I no think say btc dey volatile pass dem on ROI wey dem dey give traders. Me I no be trader but I dey watch these two different markets from time to time. At least if you don see jeffery benson video you go fit relate with wetin I dey yarn.

To compare forex like those USD with bitcoin, you will use bitcoin leverage in the future market to do that. I do not know how you use pips or lots or what it is called in forex to compare the leverage in bitcoin trading in derivative market.

But no matter what, bitcoin is still more volatile. Let us use spot market as an example. Go to Binance, you will see these pair:

• BTC/USDT
• GBP/USDT
• PAXG/USDT

USDT to be the equivalent for dollar
GBP is pounds sterling
PAXG is equivalent for gold

Trade them all with no leverage and see how bitcoin is far more volatile. The leverage forex traders are using to trade is what that gives the volatility in forex. If the same leverage is used with bitcoin which you can see in derivative market, bitcoin is more volatile.

Crypto generally are more volatile than fiat. What makes forex volatile is excessive leveraging.

From my experience in di study of bitcoin, I don learn from various links, from crypto experts and this our forum say bitcoin de very volatile. In fact volatility de synonymous with bitcoin, even as a layman dat time wey i no too sabi di technicalities wey de for bitcoin, I don de hear am. Di sincere advice wey any learned person for bitcoin go give be say di coin de volatile and no be get rich quick syndrome, meaning say risk de involved well well. Aldo di advantage of bitcoin volatility be say if person diligently learn bitcoin and sabi all di technicalities wey de inside, e de more profitable dan forex. From my small research I find out say forex de more stable than bitcoin, because of di various regulations wey de guide di tradings.

[Charles-Tim]

Aldo di advantage of bitcoin volatility be say if person diligently learn bitcoin and sabi all di technicalities wey de inside, e de more profitable dan forex.

If you are comparing bitcoin trading and forex, both are very risky and most traders lose more than gain. But if comparing fiat holding or trading forex with bitcoin holding, bitcoin holding is far more better if comparing their risks.

From my small research I find out say forex de more stable than bitcoin, because of di various regulations wey de guide di tradings.

The government in each country have the full control over their own fiat's price. Although, it has its own advantages and without fiat inferiority their will not be bitcoin superiority because fiat is used to estimate the price of bitcoin.

[Wiwo]

@Gozie51
Bitcoin is very volatile than United States dollar and pounds sterling, but in long term, the volatility is in the uptrend direction. So if you hold bitcoin, we all know that you will gain more than if you hold dollar or sterling. Also bitcoin is still volatile than gold. I think one of the reasons is that the marketcap of gold is far higher. But anyone that complain of the volatility, bitcoin is more volatile and better in RoI than any of them. But as the marketcap of bitcoin is increasing, the volatility is also reducing.

I agree with what Charles is saying in terms of the rate of volatility between Bitcoin and fiat currencies like the dollar or pounds,  but then also I won't pay a deaf ear to the possibility of what fiat currency such as the Nigerian naira which has exhibited a high feature of volatilities in the last couple of months,  year's back,  but then if we talk of more stable fiat currencies such as the USDT we will know that Bitcoin is higher in volutlities compared to those currencies.

But we have to also have it at the back of our mind of the many possibilities that are embedded in the volatilities in the price of assets that are in the Bitcoin categories which makes them the best choice against other stable currencies like the United States dollar.

[Mpamaegbu]

Forex na di biggest market wey de for di world and im don already de established, compared to bitcoin wey just de start. I believe say with di fast adoption of bitcoin by individuals and as some governments de also adopt am inside dem currency, im go soon pair with forex. And as di world de became one global village, bitcoin wey bi digital currency wey no get boundaries go take over. How you see am?

I see how some men don play you tape vis-a-vis some conceptions wey you nor too get well. Make I nor dwell on dem again because I believe you go don pick d corrections. So, as per dis place wey I quote here; na true wey you talk. Forex na baba ATM for where cryptos dey. Currently, the daily flow na close to $7 trillion while cryptos still dey struggle with less than $1.3 trillion. We know sey na during bull run crypto capitalization dey swell like River Niger for rainy season. After dat everywhere go lockup. May be one day dis crypto industry go reach where FX dey, and dat go be wen regulations take place wey go fit control scam wey too much for cryptos. Somebodi go just float scam or shit coin and wayo public and disappear, nothing go happen or nothing much go happen to dem. Na dis thin follow kip cryptos back where e dey like dis.

[Forever101]

Well, I no too dey use to this forex trade of a thing but as be now the thing dey confuse me, I be dey think say na to dey guess the up and down movement of the currency. Abeg make person explain make I understand.

[Amphenomenon]

May be one day dis crypto industry go reach where FX dey, and dat go be wen regulations take place wey go fit control scam wey too much for cryptos. Somebodi go just float scam or shit coin and wayo public and disappear, nothing go happen or nothing much go happen to dem. Na dis thin follow kip cryptos back where e dey like dis.

This one na be the biggest issue way cryptocurrency dey face and na this thing dey affect why SEC never accept bitcoin ETF and also this one dey make people to avoid crypto investment because either they know person way don fall for this scam or na them fall put themselves but if they fit see say bitcoin dey different from all these crypto, it sha go better because SEC know say they nor go fit stop all these scams and others like trading manipulation totally because even for other like the forex scam and other issue like the trading manipulations still dey self.

Well, I no too dey use to this forex trade of a thing but as be now the thing dey confuse me, I be dey think say na to dey guess the up and down movement of the currency. Abeg make person explain make I understand.

Forex trading is similar to crypto trading is just that in one you trade cryptocurrency like bitcoin while in Forex you trade traditional currency like USD (dollar). Though the terms might be different but it has almost same approach like Technical Analysis, Fundamental analysis and others.
While bitcoin and other cryptocurrency can be traded anytime forex trading is done Monday to Friday.

[Charles-Tim]

Forex trading is similar to crypto trading is just that in one you trade cryptocurrency like bitcoin while in Forex you trade traditional currency like USD (dollar). Though the terms might be different but it has almost same approach like Technical Analysis, Fundamental analysis and others.
While bitcoin and other cryptocurrency can be traded anytime forex trading is done Monday to Friday.

It is true that forex close during weekend. It is also true that if you know an indicator, you can use it both for forex and crypto trading, but forex has some differences. A crypto trader do not know anything called pip or lot because crypto trading is just layman calculation if you understand how to calculate. It was easy for me to calculate in crypto trading, but in forex, you will use pip or lot for the calculation which you need to learn.

If you want explanation about this, I can recommended EarnOnVictor according to what he has been posting on trading discussion. Maybe he will post something about it here.