Comparing Crypto Trading and Forex Trading

Most of the time, people always tend to misinterprete the difference between crypto trading and the Forex trading. Both definitely looks so close but they are different and that is what we really need to look into. In fact, I have come to discover that they share a lot of similarities that it can make it difficult for someone to differentiate the difference between both of them. There are a lot of difference that exist between them when it comes to their volatility nature, their market structure and generally the regulation attached to each one of them.

I as a person have tested both of them and I can tell the difference. When it comes to the market structure, crypto works on digital assets like bitcoin, Ethereum and lots more. While Forex trading is based on currency pairs like USD, EUR and others also. Actually, Forex market have the highest liquidity between them. When it comes to crypto market, it is run by a Decentralised Blockchain technology which helps to regulate the activities in the crypto space.

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There are also differences that exist when it comes to market hours of their trading period. For Forex, it is open in 24 hours but only for five days in a week. Forex trading market did not always open during the weekend but when it comes to the crypto trading, it is 24/7 that even during weekends, you can still be trading and have access to the market. In fact, this major reason makes the crypto market more accessible to people than the forex trading.

The other difference that exist is volatility and the risk involved in both of the trading. For me personally, I believe that the crypto market is highly volatile much more than the forex trading and that is because crypto market did not have that level of liquidity compared to the Forex market. Well even at the same time, the Volatility can be a blessing in disguise because it gives investors more opportunities to earn much more if they are able to make proper use of the Volatility.

The last difference I will like to talk about is the regulations and security. Forex trading is highly regulated much more than crypto trading and that makes it safe for investors to consider it as a form of investment. In fact, this is one of the present issue that crypto trading is currently facing as this exposes it to scams and a lot of fraudulent activities. Well, at the end of the day, both of them are different but they work differently.