Difference between forex trading and crypto trading.

[leonair]

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.

There are many differences between crypto and forex. Crypto is very volatile, so there is a lot of risk here, but there is also a lot of profit. But in the case of forex, it can be compared to gambling. Forex is a bit like trading the currency of another country with the currency of another country, but if the candle prediction is not correct, you have to lose money on the trade. I think it is more risky than futures trading. A friend of mine has made a lot of money by trading forex for a while. I saw him and did forex for a while, but what I understood there is that it is a kind of death trap.

[MinMan]

Forex indeed consume less data, heck I can even see it from their UI that often outdated and often resemble an old computer terminal.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.

Sometimes it could be a strategy to keep the user at home. I mean, yeah better user interface does help and everything evolves, but I've noticed it does feel odd sometimes when you visit a website, for example, that has updated itself.

You don't feel the same way as you did before the update. One odd example is Stake Casino, they constantly change the look and makes subtle changes like changing the VIP icon and all that. They might feel they are improving the user experinece but as someone who is using the site for years, I find it odd and somehow not so worthy.

One reason I find crypto trading way better than forex is that the government is not so involved. Yeah, most exchanges require KYC but there are ways to bypass it. Some countries have absurd taxes on trading profits.

[dannyatwork8]

Most altcoins are like national currencies of developing nations. They eventually lose value over the long term. 99.8% of them don't make it.

[Alpen]

Forex offers higher and more consistent returns than the crypto market

[fuguebtc]

Forex offers higher and more consistent returns than the crypto market

Forex traders might agree with you, but cryptocurrency investor will certainly agree with this assessment. People choose this market because they believe that crypto is easier and offers higher return.

To be fair, every market has the potential to generate profit, and the rate of return depend on the trader not the market itself. Your profit will be determined by your knowledge and experience. If you do not have the right and sufficient knowledge, whether it is the forex market or crypto, you will never make a profit.

[Adiljutt156]

You are absolutely right about volatility, which is why forex is more dangerous for beginners than crypto. As you correctly point out, there is no such volatility in forex and if you incur losses, you have to sit on huge losses for a long time, which not everyone can withstand, so they usually just close the position at a loss.
In crypto, if you don't buy shitcoins, but rather Bitcoin or at least a coin from the top 50, the chances of making a profit in the long term are high, and any crypto in a bull market can make 20-30 percent in a day, while in forex you have to wait years for that.

Forex trading is not just trading of local currencies because many people are Investing in gold and they are buying the shares on that platform and they are selling at good price. There is high risk because you can get reward good in that And millions of people want to join that platform because few people got benefit from that and they are not showing that what they lose at the start of the investing but they are showing their growth and what they are getting from the investment. People lose big amount mainly due to high leverage, poor risk management and lack of trading experience not because Forex asset cannot be held and that is not likely bitcoin and other cryptocurrencies because BTC is as comparison to all other investments and people are losing the good amount who invested for long term future.

[Alpen]

Forex traders might agree with you, but cryptocurrency investor will certainly agree with this assessment. People choose this market because they believe that crypto is easier and offers higher return.

To be fair, every market has the potential to generate profit, and the rate of return depend on the trader not the market itself. Your profit will be determined by your knowledge and experience. If you do not have the right and sufficient knowledge, whether it is the forex market or crypto, you will never make a profit.

What kind of “knowledge” are you talking about when it comes to crypto trading? Look at what has actually been popular in this market—not technology, by any means. First it was ICOs, then farming, which was basically just pyramid schemes, then the Metaverse hype, and now meme coins.

All of it is just hype.

[savetheFORUM]

Forex and cryptos are completely different assets even though the trading strategies or the method or trading might be the same. A major differentiation for me is, forex markets are open only for a specific interval of time whereas bitcoins are open 24 x 7 giving us year around opportunities. A lot of people have made a fortune trading forex as well so I would never bad mouth forex but I personally think bitcoins are way better than forex.

The risk with bitcoins might be a bit more as compared to forex as the forex usually does not fluctuate a lot but the availability of high margins on forex makes it way riskier. When it comes to bitcoins, people mostly avoid using leverage to minimize the risks but in forex, margins are something which makes us gain profits. Without margins, forex trading will almost never yield profits.

Any new person can consider forex and bitcoins as a similar asset but now, almost everyone knows the difference. There are some basic guides online which can differentiate those 2 markets, and we can choose one from those depending on our risk appetite.

[Minor Miner]

Forex offers higher and more consistent returns than the crypto market

I disagree. Both are merely financial tools and they cannot determine the outcome. Profit or loss will depend on and be determined by our knowledge, experience, and risk management capabilities. The market cannot decide that for us.

The forex can be more stable due to its high liquidity, tight regulation, and greater difficulty in manipulation. But that does not mean it will yield better profits or guarantee anything. The investor themselves determines the outcome, not the tools they choose.

[gunhell16]

From what I understand, in Forex, it seems you need a broker to execute an actual trade on their platform, if I’m not mistaken. Besides that, trading isn't 24/7; instead,
there are limited hours for when you can trade, and it's closed on weekends.

Meanwhile, in Crypto, it’s the opposite where no broker is required and we can trade anytime 24/7. Also, in the crypto industry today, we can see that it's already possible to trade Gold
on some exchanges, such as Bitget.

[DraculaBTC34]

Cryptocurrency is extreme and unstable yet you know what you are getting into and can hold hold assets as long as things are bad. Forex is safer on the surface and then it can play you out in a jiffy, particularly on leverage.
A lot of individuals get money in forex in the short run and that gives them confidence and then they make one wrong step and everything is gone. This is why it seems it is a trap. It is not that forex is not a profitable business, but it requires very high levels of discipline and risk management. In its absence it actually seems more perilous than people would want to acknowledge particularly to those who are new at it and simply mimic the others rather than grasp it.

[Ayers]

There are many differences between crypto and forex. Crypto is very volatile, so there is a lot of risk here, but there is also a lot of profit. But in the case of forex, it can be compared to gambling. Forex is a bit like trading the currency of another country with the currency of another country, but if the candle prediction is not correct, you have to lose money on the trade. I think it is more risky than futures trading. A friend of mine has made a lot of money by trading forex for a while. I saw him and did forex for a while, but what I understood there is that it is a kind of death trap.

Forex is precisely the trading of currency pairs, not merely a bit like, and there is no difference between forex trading and cryptocurrency trading. If you predict incorrectly, you will lose money.

If you trade without knowledge, without analysis based on data and experience, and only make predictions based on emotions and hope. It is gambling, regardless of the market.

No offense, but calling forex trading gambling, while crypto is not gambling. This indicates that you have never traded forex before and lack knowledge about it.

[Alpen]

I disagree. Both are merely financial tools and they cannot determine the outcome. Profit or loss will depend on and be determined by our knowledge, experience, and risk management capabilities. The market cannot decide that for us.

The forex can be more stable due to its high liquidity, tight regulation, and greater difficulty in manipulation. But that does not mean it will yield better profits or guarantee anything. The investor themselves determines the outcome, not the tools they choose.

Without knowledge, you won't make a dime in any market, whether it’s Crypto or Forex. However, crypto attracts crowds of newbies because it often operates on Ponzi dynamics. Those who get into memecoins early—and I include Bitcoin in that category—hit the jackpot, provided they "cash out their chips" in time.

On the other hand, Forex is purely about skill and knowledge. That’s exactly why 90% of participants blow their deposits there.

There is, however, a separate group of savvy, conservative newcomers. From my experience talking to many Cryptomus payment gateway clients, those who actually earn consistently are into stablecoin arbitrage, farming, and staking. But let’s be real: their profits aren't exactly "Lambo" level—it’s steady but modest.