Difference between forex trading and crypto trading.

[BitBakerr1]

The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading, some people usually think it's same thing but the truth is that they are totally different from each other.
Forex Trading: forex trading is the trading of national currencies or it involves trading only national currency for example USD, EUR, GBP, NGN, and it operate in the global foreign exchange market alone.

Crypto Trading: crypto trading is the trading of digital currencies or it involves trading only digitalcurrency for example Bitcoin, Ethereum, Chamby token, and it operates on blockchain-based markets.

For their market size and stability forex trading has the largest financial market in the world meaning it's more large than the crypto market and forex has very high liquidity but crypto has lower liquidity except for major or big coin like bitcoin and it is more stable and less volatile than crypto market.

So crypto trading and forex trading is different one involve country currency and the other involve digital currencies created by people or community. The country currency or national currency which is forex trading government has major and large control over it but the other which is crypto trading government has little or no governmental control.

[Oshosondy]

The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading

I am active on this trading discussion but I do not noticed what you are saying. Many people do not know much about trading but not that they are posting rubbish about the difference between crypto and forex trading.

Can you point to one or two or more posts that you see people posting rubbish about the difference between crypto and forex trading?

Also why not explain trading stocks and commodities?

[memehunter]

I thought OP is going to explain the difference in trading strategies, mindset etc. between forex and crypto trading. That was a clickbait in the sense that it literally just said, a chair is a chair and a table is a table.
You have every right to be offended hahaha

[logfiles]

"The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading" Then goes ahead to talk about something rather vague.
You haven't told as exactly how the two are different except just stating the obvious, why not say more like the kind of brokers one has to use, the active trading sessions etc

And you had to shamelessly sneak in Chamby token because you have been active in their ANN? 

[cryptoaddictchie]

I'm a crypto trader but not a forex trader. So I am quite curious how's exactly it differs from each other but since I was able to do local stock trading in our country which I don't like is that can only operate until 5pm and no weekends. Kek unlike in crypto you can do 24hrs. But as far as I heard that forex is different from local trading I wonder whats the difference and not just a description.

[BitMaxz]

I would have you compare them; we know they are different: FIAT vs digital currency or crypto.
However, they also have similarities: both of them are tradable. You can apply your strategy to crypto or forex and then adopt and adjust.
I do trade both of them, but I am more active in trading crypto.
The only thing that I have never tried yet in forex is the spot trading via OTC. I only trade there with a micro account, and my broker is currently XM to trade forex, but take note they also have crypto. BTC, ETH, and Dogecoin are currently what I tested from XM. The only difference is they take fees via spreads or pips; unlike in crypto exchanges, they take fixed trading fees around 0.02%/0.05% standard fees on OKX as a sample.

And another thing that I noticed is that, like the above said, they are closed on weekends, and you can't trade in 24 hours, unlike in crypto.

[Rruchi man]

"The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading" Then goes ahead to talk about something rather vague.
You haven't told as exactly how the two are different except just stating the obvious, why not say more like the kind of brokers one has to use, the active trading sessions etc

It is very possible that even the OP does not have a good idea or deep knowledge of the differences between trading Forex and crypto, hence the reason for the vague post, stating the obvious that almost everyone already knows.

There are differences between Forex and crypto, and also similarities; hence, you can find a crypto trader with good knowledge and strategy in crypto making good trading predictions or analysis for a Forex pair.

The two offer differences so that people with an interest in trading can choose the characteristics that they prefer and can work with. For instance, crypto trading is very volatile and moves quickly, so if trading volatility and quick moves are something you can deal with, then that could become an option for you.

[Gozie51]

Crypto Trading: crypto trading is the trading of digital currencies or it involves trading only digitalcurrency for example Bitcoin, Ethereum, Chamby token, and it operates on blockchain-based markets.

Anyway I expected op to elaborate more on crypto from the generic knowledge regards to it. Most traders commenting here on trading are not totally novice and they also know exactly what you have listed out as the difference. However, since you wanted to point out the difference, I expected you will remind users that the crypto market is traded daily 24 hours meaning that it never takes a break like the forex market. That the crypto market is based on ownership of coins through either custodial or non custodial wallet . That it is highly pump and dump usually influenced by the big players called whales. Although it seem as if you mentioned it is not regulated or if you missed that and I think that is why it creates alot of volatility especially shit coins and you could have a multiplier of if not up to 500 percentage on a day in your account if you are lucky. These are some of the visible differences apart from not being backed by government unlike forex that can raise trillions of dollars in one trading day.

[Alphakilo]

The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading, some people usually think it's same thing but the truth is that they are totally different from each other.
Forex Trading: forex trading is the trading of national currencies or it involves trading only national currency for example USD, EUR, GBP, NGN, and it operate in the global foreign exchange market alone.

Crypto Trading: crypto trading is the trading of digital currencies or it involves trading only digitalcurrency for example Bitcoin, Ethereum, Chamby token, and it operates on blockchain-based markets.

For their market size and stability forex trading has the largest financial market in the world meaning it's more large than the crypto market and forex has very high liquidity but crypto has lower liquidity except for major or big coin like bitcoin and it is more stable and less volatile than crypto market.

So crypto trading and forex trading is different one involve country currency and the other involve digital currencies created by people or community. The country currency or national currency which is forex trading government has major and large control over it but the other which is crypto trading government has little or no governmental control.

I beg to differ when you say cryptocurrencies trading has little or no government control, because the government is trying so hard to regulate it, mimic it, mine it, own a strategic reserve for it, create policies both to favour it and oppose how it is used and in coming years when there is much adoption of cryptocurrency, the government would have to allow their CBN enable crypto currency transactions in order to prevent economic downturns and loss of control over the citizens who now have much power in terms of wealth that isn't under control of the government.

[Bushdark]

The forex market deals with different countries currencies like the USD for United States dollar, Hero for European countries, Pounds for the United Kingdom and many more of them. If you want to trade the forex market, you will need to understand how currency pairs works and so many things and how the market is being influenced by the news which is the fundamental part of the market analysis.
In crypto, things are pretty different from each other and you need to know majorly what influences the price of Bitcoin and how the altcoins market reaction to the rising and the falling in price of Bitcoin.

[programmer3666]

i think some of the key differences is that crypto in its span of description is purely a digitized asset created in dependant on blockchain while in terms forex, it is more dependant on government issued currencies, one of the major reason why forex is stable and has very high liquididty is that, it is regularly backed by very developed countries and well established institutions and as for crypto, it is a bit more volotile and has less of controll over certain govenment policies, crypto offers more freedom compared to forex, but forex is more safer in terms of stability.

[Charles-Tim]

idk if i would say forex is safer in terms of stability because if a major central bank changes its interest rates you can get liquidated just as fast as in a crypto dump, the liquidity is definitely higher in forex but for most of us retail traders it doesnt really matter if the market moves trillions or billions a day, the barrier to entry is what makes crypto better for me because you dont need a fancy broker or a mountain of paperwork to get started, just a wallet and some sats and you are good to go xd

You need more than a wallet to begin crypto trading, although some people can use instant exchange or swap on some wallets to convert from one coin to another and be using it to trade but the real crypto trading which are about derivative markets can be done only on crypto exchanges. Also if you are actively trading in spot market, you will prefer exchanges. Margin trading is also on exchanges and not only wallets just as derivative trading like perpetual future and options.

[Perfectbaby]

As far as I know you can trade whatever currency you want to trade on either with BTC or with any of them you want.. if I could remembered vividly I have funded my MT4 account with BTC back then and I traded with it.. so, you can trade crypto on binary without solely depends on national currencies as you said. And of course there are brokers today that do permits the deposit of cryptocurrency such as; BTC, LTC, TRX, BNB and other well known coin, and they can be tradable with other national currencies.

[terrific]

i think some of the key differences is that crypto in its span of description is purely a digitized asset created in dependant on blockchain while in terms forex, it is more dependant on government issued currencies, one of the major reason why forex is stable and has very high liquididty is that, it is regularly backed by very developed countries and well established institutions and as for crypto, it is a bit more volotile and has less of controll over certain govenment policies, crypto offers more freedom compared to forex, but forex is more safer in terms of stability.

Both are volatile and anyone who's been into both markets can classify it to be both highly volatile.
If we are going to describe them, both are medium of exchange and with their use for trading, they're also assets.
As for safety, what we've been hearing is with th markets in crypto and exchanges getting hacked.
With forex, I have not heard of brokers been hacked or I am not just updated to it since I can say that I am new to it.

[wozzek23]

Why people get confused is because most of the functions remains the same when it comes to forex trading and crypto trading. They are completely different and have their own benefits. Even if cryptos does not have high liquidity, they are still quite volatile as compared to the currencies and thus they increase the chances of making profits and similarly, also increase the risk factor. On the other hand, forex trading does offer some really exciting leverage options which too can increase the profits keeping the risk on top. In either option, the chances of getting liquidated are pretty high.

I would personally prefer crypto trading because I have been trading since years now and have decent experience when it comes to crypto markets. Forex is still kind of new for me and I would not risk entering the market until and unless I have a decent experience with paper trading.

[rbynxx]

So crypto trading and forex trading is different one involve country currency and the other involve digital currencies created by people or community. The country currency or national currency which is forex trading government has major and large control over it but the other which is crypto trading government has little or no governmental control.

Of course they are, especially with how they works, the other could only be traded for a specific timeframe while the other is fully tradable 24/7 and probably that's the main difference apart from crypto is fully onchain and what you've said that's it's decentralized. The thing with this thread is that it's more like saying the meaning of it but it doesn't clearly explained the difference they do, was expecting that kind of thread by opening this one but clearly it's not.

[adultcrypto]

The reason why I'm creating this thread is because i notice some people especially  newbies don't understand the difference between forex trading and crypto trading, some people usually think it's same thing but the truth is that they are totally different from each other.
Forex Trading: forex trading is the trading of national currencies or it involves trading only national currency for example USD, EUR, GBP, NGN, and it operate in the global foreign exchange market alone.

Crypto Trading: crypto trading is the trading of digital currencies or it involves trading only digitalcurrency for example Bitcoin, Ethereum, Chamby token, and it operates on blockchain-based markets.

For their market size and stability forex trading has the largest financial market in the world meaning it's more large than the crypto market and forex has very high liquidity but crypto has lower liquidity except for major or big coin like bitcoin and it is more stable and less volatile than crypto market.

So crypto trading and forex trading is different one involve country currency and the other involve digital currencies created by people or community. The country currency or national currency which is forex trading government has major and large control over it but the other which is crypto trading government has little or no governmental control.

Forex trading may seem to be related to trading of fiat currencies but it is not limited to that because there are many other instruments that can be traded in the forex market including stocks, indices, commodities, and even cryptocurrencies. I don't the need to differentiate forex trading from cryptocurrency trading because everything traded work on the principle of demand and supply which by extension means the same chart is applicable for all. Some of the cryptocurrency exchanges that were exclusively used for cryptocurrency trading are gradually onboarding fiat currency pairs thereby enabling the trading of everything.