Cryptocurrency Trading vs Forex - Which is More Profitable?

Cryptocurrency trading versus Forex? Which do you think is more profitable? How do they compare? We receive many questions about them and have therefore written this article! You'll find satisfactory answers to these questions and more as we have done in-depth research on crypto trading vs Forex.

September 11, 2020 | AtoZ Markets – Around the time when Bitcoin was created in 2009, not many people could explain the concept of cryptocurrencies in no vague terms, since then, its popularity has skyrocketed, and currently, most people are aware of what Bitcoin is. However, cryptocurrencies aren’t limited to Bitcoin - there are also Ethereum, Litecoin, or IOTA, to name just a few, which threaten the position of the number one player.

Even if you aren’t that much interested in buying products using various cryptocurrencies, which 11 years after Bitcoin’s birth still remains difficult, the crypto world might have attracted your attention for another reason. Instead of paying for services, you could just trade cryptocurrencies for profit. How does crypto trading vs Forex compare? Let’s find out!

Cryptocurrency Trading vs Forex - How they compare

People who are used to forex might be reluctant to try their luck with crypto trading, as usually, newer alternatives seem rather risky. Is this assumption correct? Yes, it is. If you compare the extent of daily swings, even the most experienced forex traders might be intimidated by the quick pace of changes in cryptocurrency markets.

However, it’s not only a matter of fear or bravery - it’s just that if you would like to make a steady profit based on careful decisions, it’s best to stick to forex. The biggest players in foreign exchange rely on algorithms, meaning that for individual traders, critical decisions must be made in a matter of seconds.

Still, in the case of forex, it is easier to predict what will happen next than in the case of cryptocurrency trading, where every day brings new surprises.  According to this crypto currency news site, those who choose to make a profit by trading cryptocurrencies might potentially earn much larger sums, but if their predictions are proven incorrect, the risk is also higher.

Another thing that influences the choices of the traders is the cost. If you are interested in trading foreign exchange, you’ll have to rely on the services of brokers, which won’t be free. As a result, if you don’t trade using large sums, those fees might discourage you from playing, as you would have to give away your meager earnings even to continue playing.

One main reason why so many people who haven’t ever tried forex are eager to take their chances with crypto trading is that there is no middleman, meaning they don’t have to pay any fees just for using their accounts. Admittedly, the products and services such as AML compliance software of the brokers that aren’t that expensive, but for someone who would like to play just for fun, it could be a huge difference.

On the other hand, the high volatility of cryptocurrencies paradoxically means that most people don’t’ analyze every step to a similar extent. The value of Bitcoin often experiences drastic swings with no apparent reason. It doesn’t mean that it’s just a game of luck, but there is no stability that characterizes forex markets.

That’s one of the reasons why those with extensive knowledge about the current state of the economy in all parts of the world tend to pick forex over crypto trading. It’s not to say that forex markets are entirely predictable, but they at least follow a certain, if sometimes weird logic.

Forex and Crypto Trading - Which one is safer?

Forex and Crypto Trading - Which one is safer

Forex trading is generally safe as most of the fx brokers require AML checks and uses AML compliance software and AML compliance program. Despite many voices claiming otherwise, fiat currencies will be with us for a long time. On the other hand, when it comes to cryptocurrencies, the situation is a bit different. Although when most people say cryptocurrencies, they actually mean Bitcoin. But as we have previously mentioned, its competition is quickly growing.

However, currently, there are more than 5,000 different cryptocurrencies. It means that apart from major players, there are many pretenders to the throne, but no one can know what next year will hold.

That’s why we recommend sticking to the most popular ones - Bitcoin, Ethereum, IOTA, or Litecoin. If you would rather take your chance and invest in a lesser-known cryptocurrency, at least learn a bit more about its history beforehand, or you might waste your time and money.

Crypto Trading vs Forex - Conclusion

There’s no point arguing whether cryptocurrency or foreign exchange is better, as although both of them share some similarities, there are also noticeable differences. Forex markets are more stable, and the decisions require knowledge about the economy and politics in various parts of the world.

Crypto trading, on the other hand, might be more interesting for those who love risk. This method can help you learn larger profits, but you’ll risk losing much of your money if you fail.

What do you think about our cryptocurrency trading vs Forex comparison? Let us know your thoughts in the comment section below.

  1. deeptieampertaa says:

    I think cryptocurrency is more profitable than forex. Plz correct me If i am wrong.


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