We have heard this question many times: “cryptocurrency or forex?.” No matter if you want to trade on a regular basis or not, you should know about these two markets and why they are important to you.
Cryptocurrency became a very important market in recent years while forex has been actively traded by thousands of investors around the world for decades. Thus, the answer to the question of cryptocurrency or forex? should focus on your needs and financial activities. In this guide, we share with you the information you should know about both cryptocurrency and forex.
Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional. financial advisor.
Cryptocurrency or Forex?
Cryptocurrency and forex are two different markets in which we can trade or cryptocurrencies or national currencies from different countries. Each of these markets has its own characteristics and each of them will be suitable for different types of traders.
While virtual currencies became popular in the last decade, the forex market has been a multi-decade market in which people and companies operate directly or indirectly. Both markets are good options for investors that want to make some profits with price fluctuations.
What is Forex?
The forex market allows users to trade national currencies from all over the world. You can exchange your EUR for USD, your GBP for EUR, or JPY for USD, and vice-versa. These trading pairs mentioned are just some of the most popular ones (larger volumes), but there are many other trading pairs with currencies from emerging countries.
The goal in the forex market is to exchange currencies and make profits with these price fluctuations. If the EUR appreciates 10% against the USD dollars and you were able to exchange USD for EUR, now you made a 10% profit.
What are Cryptocurrencies?
Cryptocurrencies instead were created in 2008 with Bitcoin (BTC) and expanded all over the world throughout the last decade. Nowadays, users can exchange more tha 10k virtual currencies in different platforms called exchanges.
The cryptocurrency space has also evolved in many different aspects. While in the past it was just a market for retail investors, it now became a market for both retail and institutional investors.
Considering that there are now new solutions offered by different protocols and blockchain networks, the possibilities to make profits with this market are certainly large.
Is Crypto more Profitable than Forex?
It might be possible for cryptocurrencies to be more profitable than forex in the short term. Indeed, cryptocurrencies are more volatile than national currencies. If we take that into consideration, traders could open and close trades on a daily basis in order to profit from these fluctuations.
Despite that, users that follow AltSignals trading signals would be able not only to trade in the cryptocurrency market but also forex. This would make it possible for users to be part of the market and enjoy the profits that these markets could generate.
Can you Trade Crypto like Forex?
Yes, you can trade crypto like forex. However, there are some differences between these two markets. To trade in the forex market, you will need to use a forex broker. Instead, when you trade virtual currencies, you will have to use an exchange.
For both markets, you can apply both technical analysis and fundamentals. Everything would depend on the type of trader you are and which strategy suits better to you. Remember that these markets are different and would require you to execute different trading strategies.
Is Crypto Considered Forex?
Cryptocurrency is not considered forex. Users can trade virtual currencies in different markets than forex. That means that you should open a cryptocurrency exchange account to start handling the virtual currencies you want.
To trade in the forex market, as we mentioned before, you will have to use a broker account. These are different platforms with different services, fees and functionalities. Depending on the type of trader you are, you would be able to select between these two markets.
In recent years, a large number of individuals considered Bitcoin a currency. Nonetheless, this virtual currency is considered by governments a commodity, which is different from a currency. El Salvador has been the only country to make Bitcoin legal tender for transactions and payments.
