Difference between forex trading and crypto trading.

[JeffBrad12]

I have many forex traders that will argue this. They also said forex consume less data.

Forex indeed consume less data, heck I can even see it from their UI that often outdated and often resemble an old computer terminal.
Just how after years of making big profit these forex company don't even want to put an effort into making a better UI is beyond me.

Good thing at least many exchanges will come to the rescue so I can trade forex with better UI.

[DanWalker]

It's okay to say that Forex trading is basically trading of fiat currencies that are less volatile but can be impacted by inflation badly on the other hand crypto trading is trading of Bitcoin and other crypto-currencies that are highly volatile and can be easily traded without any leverage requirements.

If I'm not wrong then in Forex trading one has to set lots and that's somehow similar to leverage and it's somehow important in Forex trading but when it comes to crypto trading even someone with as low as $100 can begin trading and overtime if he/she manages to trade well in spot market then he/she can make something from that trading, and in crypto trading if someone chooses Bitcoin then there's less risk of losing any capital as long as its bought at spot market.

You can start trading forex with just $5, $10, or even just $1. Beginner accounts, also known as cent account, have very low minimum deposit requirement and extremely low leverage of just 0.01 lot.

In trading, even if you use Bitcoin and only trade spot, you can still lose money and your entire capital if you trade incorrectly. If you constantly buy high, sell low, and cut your losses, you will soon lose all your capital.

Trading is very risky even without leverage, so knowledge is essential before starting to trade.

[dunfida]

I have many forex traders that will argue this. They also said forex consume less data.

Forex indeed consume less data, heck I can even see it from their UI that often outdated and often resemble an old computer terminal.
Just how after years of making big profit these forex company don't even want to put an effort into making a better UI is beyond me.

Good thing at least many exchanges will come to the rescue so I can trade forex with better UI.

You mean MT4 and MT5? Yes, it do looks outdated but you can have other options as well like using up Ctrader on which I do say that it is better but if you've been a forex/stocks trader for so long then these things doesnt bother you anymore. What matter most is that as long you can be able to plot and excute orders without any hiccups or issues then this what matter the most. Everything will be basing up on your own preference and also trading up forex and crypto is totally different specially when it comes to volatility. Chart UI or looks doesnt mind that much but just like been said that it will be depending into someones preference.

If you do go with those known crypto exchangers out there then you can definitely say the UI is much more better but since MT4/MT5 are terminals then there's a fine line if we do speak about differences but in overall functionality then it is just that the same. It turned out that these crypto platform charts are looking so fancy.

[EarnOnVictor]

-Snip-
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.

You have good points there, I've also seen some people who looped the two together, thinking they are the same thing. Well, as much as both Forex and Cryptocurrency are now being co-offered for trading by both Exchanges and traditional Brokers, which further confuse the beginners, they will always be different.

The government issues and controls the currencies traded in Forex, but cryptocurrency is mostly decentralized, with no government controls. Another point is that cryptocurrency is highly volatile than government-issued currencies.
 

[_act_]

The government issues and controls the currencies traded in Forex, but cryptocurrency is mostly decentralized, with no government controls. Another point is that cryptocurrency is highly volatile than government-issued currencies.

Forex trading is more than saying the currencies offered by the government are less volatile, it is more about the use of high leverage which also makes it very volatile because the little the currencies move, the move is hundreds or thousands of times higher because of the leverage the forex traders are using. This is the reason you will see may forex traders that are losing and get their money liquidated within short period of time if they do not know what they are doing.

[Danica22]

The government issues and controls the currencies traded in Forex, but cryptocurrency is mostly decentralized, with no government controls. Another point is that cryptocurrency is highly volatile than government-issued currencies.

Forex trading is more than saying the currencies offered by the government are less volatile, it is more about the use of high leverage which also makes it very volatile because the little the currencies move, the move is hundreds or thousands of times higher because of the leverage the forex traders are using. This is the reason you will see may forex traders that are losing and get their money liquidated within short period of time if they do not know what they are doing.

Like many people who have never traded gold, they assume that gold is less volatile and even think that it hardly moves when viewed on a 1H or 30M timeframe. But in reality, anyone who has ever traded gold knows how frighteningly volatile it is. If someone only has $3,000-$5,000 in capital but prefer to use high leverage like 2-3 lot, they will be liquidated immediately if the price of gold suddenly fluctuates.

In forex trading, leverage ratios can be 1:2000, or even 1:unlimited (some brokers). This makes the foreign exchange market even riskier than the crypto futures market

[Hamza2424]

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.

These are the fundamental differences between the forex and crypto trading but do nowadays the factors causing an impact on the forex or stock market are also impacting the crypto market as first bitcoin got affected and later it is impacts the altcoins.

By they way you are right two are different things and newbies must learn about it first before start doing any. Even if the forex market is big but I still like crypto market more and more profitable too.

[EarnOnVictor]

The government issues and controls the currencies traded in Forex, but cryptocurrency is mostly decentralized, with no government controls. Another point is that cryptocurrency is highly volatile than government-issued currencies.

Forex trading is more than saying the currencies offered by the government are less volatile, it is more about the use of high leverage which also makes it very volatile because the little the currencies move, the move is hundreds or thousands of times higher because of the leverage the forex traders are using. This is the reason you will see may forex traders that are losing and get their money liquidated within short period of time if they do not know what they are doing.

Well, this leverage addition is not necessary, because my statement was in their (Forex/Crypto) simplest states, with respect to their volatility. You, adding leverage to it will only distort that, and mind you, volatility and leverage are not the same thing, so I know the reason why I limited my point to volatility, as leverage reference is an additional risk.

Regardless, with all parameters being equal, use the maximum leverage for your trade in cryptocurrency and the same with your trade in Forex and see what I mean. It's obvious that your trade in cryptocurrency will liquidate way faster. That's the power of the volatility I mentioned, all conditions being equal (without leverage interference).

[_act_]

Well, this leverage addition is not necessary, because my statement was in their (Forex/Crypto) simplest states, with respect to their volatility. You, adding leverage to it will only distort that, and mind you, volatility and leverage are not the same thing, so I know the reason why I limited my point to volatility, as leverage reference is an additional risk.

Regardless, with all parameters being equal, use the maximum leverage for your trade in cryptocurrency and the same with your trade in Forex and see what I mean. It's obvious that your trade in cryptocurrency will liquidate way faster. That's the power of the volatility I mentioned, all conditions being equal (without leverage interference).

I am not saying that you are wrong, I am only saying that both are very risky because of people's mindset. Someone with $100 may not go for 1:10 but instead go for 1:1000 or more in forex, while many forex traders are going above 1:1000 up to 1:3000 or more when they are newbies.

I can have $500 on my crypto account on an exchange but use $50 to trade a shit coin, that is because I understand how suddenly a less volatile boring market can be volatile in a way that 1x leverage can get my account liquidated on long or turned my money to nothing on short in just few minutes. I can trade bitcoin with just 1x leverage.

All these have to be considered in both forex and crypto. I know you talked about what they are, crypto is more volatile which I did not against but I said for traders, trading is more than the volatility that you talked about. When they started to trade will be when they will know how trading is generally risky.

[Dr.Bitcoin_Strange]

Well, it's not rocket science, at least this is one of the simplest information that every newbie can easily know about, the term crypto trading is very obvious and self explanatory, one can easily know that crypto trading involves trading different crypto pairs (BTC/USDT) while forex is for fait pairs.

[Iamcrypticguy]

Both Forex and crypto trading can be a source of income depending on where you feel most comfortable. In my case, I just happen to be more comfortable with crypto trading.

When it comes to the concept and how you actually execute trades, they are almost the same. Perhaps the only major difference is the trading hours; Forex is only active on weekdays, while in crypto, it’s not like that we can trade 24/7.

True.. fees too plays a role and lots sizes but basically they're almost the same,  I just started paying much attention to fz now due to Bitget imswitch to tradfi and one thing I discovered is the ease I passed verification, 6mins.. I'm checking out XAUUSD now though. Looking forward to trying it out more...

[Queentoshi]

Even if the forex market is big but I still like crypto market more and more profitable too.

I believe this is a personal opinion because there are others to whom the forex market has been more profitable to, it just depends on preference and personal understanding. The crypto market is very broad and people who would want to trade crypto usually often make the mistake of trying to trade all the cryptocurrency pairs they know, I see that as a big mistake because you can be winning from one and losing from another. I think the best option for crypto traders as well as forex traders is not to trade everything but try to specialize in a few.

[vanesha]

sorry if my comment contains a bit of criticism. it seems you should understand that this is a bitcoin forum, where almost all forum users truly understand the difference between forex and crypto. it’s not a problem if you write a thread like this, but you should provide more complete, useful, or unique information. that would make it easier for us to comment and exchange good opinions. it’s fine as long as it doesn’t violate the rules set in the subforum. i think it’s still okay even if the content feels somewhat unworthy. sorry for saying that.

[Webutxo]

sorry if my comment contains a bit of criticism. it seems you should understand that this is a bitcoin forum, where almost all forum users truly understand the difference between forex and crypto. it’s not a problem if you write a thread like this, but you should provide more complete, useful, or unique information. that would make it easier for us to comment and exchange good opinions. it’s fine as long as it doesn’t violate the rules set in the subforum. i think it’s still okay even if the content feels somewhat unworthy. sorry for saying that.

I don't think it's a bad idea if you do the same. Subject about thread are not limited to one person. If you know better than what OP has said, you should try and help the trading board with, it's going to help many of us that don't know much about forex. I don't know if I'm the only person that find trading complex, their terms are complex or perhaps the people and influencers that talk about them make it that way so we can see them as professionals than other traders.

There is another thing I do see forex traders exhibit, the show off and the money. Real forex traders don't show off like money and cars like Instagram and Facebook traders do, there is money in trading but the social influencers make it look too fake to be real.

[jaberwock]

Biggest difference is that fiat is literally in control of whoever has the power of that nation at the time. Like since it's globally known, lets give example from USA, now I am not from there but I know them and say that power of Dollar is depending on Trump and republicans now, but 10+ years ago and before, for 8 years, it was on Obama and democrats.

So as you can see, it's people, regular normal people, who are politicians, who control everything about the money. Do you really think you want that, or crypto where we ALL have power over it and not just some powerful people in politics? This is why I prefer crypto, because in that regard, I feel like I have equal vote on it just like everyone else and not have anyone bigger than us.

[Jegileman]

You can start trading forex with just $5, $10, or even just $1. Beginner accounts, also known as cent account, have very low minimum deposit requirement and extremely low leverage of just 0.01 lot.

In trading, even if you use Bitcoin and only trade spot, you can still lose money and your entire capital if you trade incorrectly. If you constantly buy high, sell low, and cut your losses, you will soon lose all your capital.

Trading is very risky even without leverage, so knowledge is essential before starting to trade.

Being knowledgeable is the bedrock of trading and if you don’t have that fundamental and basic knowledge, you should not even try to want to start trading because it’ll most definitely end in tears. Trading is actually time demanding and knowledge based required, so in order to be profitable in trading, you need to be able to sacrifice to have both.

Trading doesn’t matter which of them you’re doing, without having that knowledge, you’ll most likelt face back to back loss and leave the market sooner than expected. No major difference that could easily distinguish between forex and crypto trading. Just have the right knowledge and apply the best proper risk management to make everything work in your favour.

[Iranus]

Even if the forex market is big but I still like crypto market more and more profitable too.

I believe this is a personal opinion because there are others to whom the forex market has been more profitable to, it just depends on preference and personal understanding.

That is just his personal opinion, but it is the thinking of most crypto investors. Everyone believes that cryptocurrency offers higher return, and that is why we chose it.

However, you are right, it will depend on personal preference and understanding. In investing, profits are determined by each investor's knowledge and experience, not by the market.

The crypto market is very broad and people who would want to trade crypto usually often make the mistake of trying to trade all the cryptocurrency pairs they know, I see that as a big mistake because you can be winning from one and losing from another. I think the best option for crypto traders as well as forex traders is not to trade everything but try to specialize in a few.

This is a common mistake made by traders, and it happens in every market. I once witnessed a forex trader analyzing 5-7 currency pairs every day and trying to trade all of them

[Faisal2202]

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.

No doubt the government has not control over crypto trading but indirectly any decision they made that is now related to fed is now have a control over crypto their decisions could easily pump and dump it, play with the trader's emotions and they can almost do anything due to their huge influence and I am talking about only one country at the moment (US).

But you are right, unlike the control of a government on forex platforms, they can't control the trading platforms, if they go after CEXs they can't do anything against DEX users because they would never know unless the user were careless.

[Jatiluhung]

Actually, there isn't much difference between the two. Both are traded in the same way. Even in my country, cryptocurrency is officially considered a commodity asset, so the regulations governing the two are also almost the same.
The difference may only be that one trades foreign currencies, while the other trades digital assets.

Another difference is that all crypto spot markets can withdraw assets purchased on the spot market, whether it's Bitcoin or any other altcoin.
Meanwhile, in the forex market, there are usually some brokers who cannot withdraw the foreign currency purchased. They can only withdraw the base currency used for trading. However, not all brokers are like that. But I am really not interested in forex because without leverage, trading in forex can be quite boring. However, the spot market for cryptocurrency still presents challenges due to its high volatility.

[tottong]

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.

Furthermore the forex market is closed on Sundays, while crypto trading has no holidays, so many people may engage in both based on their preferences.
I've been involved in forex before, and it generally moves faster, as if there were manipulation, although I'm not sure if that's true. Now, I'm much more comfortable trading crypto, although certain coins have similarities.
When discussing forex further, we also need to examine brokers because there are many cases of scams and frequent market manipulation happen which creates a lot of concern for the unwary and don't understand trading in forex.