Crypto vs Forex - differences

[giankam]

Maybe it's a noob question but what are the main differences between trading Forex vs Crypto? is it about market predictability?

 

[lurhays]

Both crypto and forex can be volatile, but the nature of their volatility is different. Crypto volatility is often driven by speculative trading and can be unpredictable, while forex volatility is driven by economic events and tends to be more predictable.

 

[akinomono]

Crypto and forex are both forms of currency trading, but there are some key differences between them:

1. Nature of the markets: The forex market is the largest and most liquid financial market in the world, with a daily trading volume of around $6.6 trillion. It is a decentralized market that operates 24 hours a day, five days a week. Cryptocurrency markets, on the other hand, are relatively new and smaller in size, with a daily trading volume of around $300 billion. They are also decentralized and operate 24/7.
2. Currency types: Forex involves trading fiat currencies, such as the US dollar, Euro, and Japanese Yen. Cryptocurrency trading involves digital currencies, such as Bitcoin, Ethereum, and Litecoin.
3. Volatility: Cryptocurrency markets are generally more volatile than forex markets. Cryptocurrencies can experience large price swings in a short period of time, which can result in significant profits or losses for traders. Forex markets are generally more stable and predictable.
4. Regulation: Forex trading is regulated by financial authorities in different countries, such as the SEC in the US and the FCA in the UK. Cryptocurrency trading is still largely unregulated, with some countries implementing regulations but others still debating how to approach it.
5. Trading strategies: Both crypto and forex trading involve a range of strategies, including technical analysis, fundamental analysis, and automated trading. However, some strategies are more effective in one market compared to the other, due to differences in market structure and volatility.

Overall, crypto and forex trading are different in terms of the markets, currencies, volatility, regulation, and trading strategies. Traders should carefully consider these differences when deciding which market to trade and develop a trading strategy that suits the particular market conditions.

 

[jhon56983]

Forex is better as it's been fundamentally strong.

 

[ashiff]

from what i see crypto is usually pump and dump. its great to make money with crypto just wait till pump is over and the dumping will begin.