Choosing Between Forex Trading and Crypto Trading
We have more than 7000 Cryptocurrencies and its impossible to track all cryptocurrencies., traders have to choose and work with limited watchlist. Some of the most traded cryptocurrencies are Bitcoin and Ethereum In forex traders focus on major currencies and exotic pairs.
Forex is less volatile compared to crypto. Small cryptocurrencies can make more that 10000% increase in 24hours which is rare in the forex markers. Thus it is more easier to control risk in forex than in crypto in this context. Crypto to leave you homeless in a small period and vice versa
Total market cap for crypto is less than 2 trillion and Bitcoin occupies 45% of the market cap. Hence most of the trading is revolves around Bitcoin. Forex is extremely liquid, volume exceeds $6 trillion which makes it easy to buy and sell any asset.
The forex market is open 5 days a week 24hours whilst the crypto market is open 24/7. Thus crypto traders have to be busy also during the weekend to target the biggest gains that usually occur during weekends.
The cryptocurrency market is still at its infancy and regulations are still being developed. Lack of regulation poses a risk to many investors as they invest in cryptocurrencies which can be dumped. Furthermore there is hacking risk, hackers can steal your funds. On the other hand the forex market is heavily regulated, thus the industry is well developed thus eliminating a lot of scams.
In crypto markets there is probability to make outsized profits that’s why the crypto markets are popular. However increases profit potential also increases risk. In the forex market traders can also profit big by increasing leverage which is a double edged sword since it also increases risk.
Availability of information
The is a lot of information online on forex trading. There are many communities which teach different trading strategies, YouTube channels, blogs etc. However with cryptocurrencies more information is available on the popular cryptocurrencies like Bitcoin with the less known traders have to dive deep into their fundamentals.