Main differences between Forex and Crypto trading

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Main Differences Between Forex and Crypto Trading
Presented by

• The Forex Secret

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Introduction

• Crypto trading is often thought of as similar to
  Forex, or foreign exchange trading. Forex, like
  crypto, involves trading currencies
• Forex trading is a large, well-established
  practice, while crypto trading is a relative
  newcomer to the scene.

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Introduction

• Forex often involves middlemen, brokers, and
  other institutions that take fees at every step
  of the trading process
• The lack of a middleman is one of the biggest
  draws of crypto trading.
• Liquidity available in Forex, versus the lack of
  liquidity in crypto

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Swiss Francs vs. Bitcoin

• The average daily turnover rate for Forex is in
  the trillions, with 5 trillion USD being traded
  in Forex
• The most significant coin in crypto, Bitcoin, had
  only 1 billion USD turnover.
• BTC trading is not even as large as Forex trading
  in the Swiss franc-

responsible for 5 of trading volume and 243
billion USD in daily turnover
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Swiss Francs vs. Bitcoin

• Unlike Forex, crypto trading can show returns of
  over 70. Returns that high are almost unheard of
  in Forex trading.
• Since Forex trading is so established, it is a
  regulated and mature market.
• This means that middlemen are everywhere in the
  Forex world.

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Swiss Francs vs. Bitcoin

• Forex traders need to have pretty substantial
  capital also before they can trade.
• Institutional involvement is another significant
  aspect of Forex trading.
• Unlike crypto, Forex traders are competing with
  established banks, high-frequency traders, and
  other specialized firms.

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Stability and Volatility

• Forex also lacks the same volatility present in
  crypto, making it hard to take advantages of
  small differences in exchange rates.
• This comes with the benefit of easily available
  liquidity.
• Forexs liquidity also ensures that even large
  trades wont overly change the asking price of a
  given trade.

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Stability and Volatility

• For crypto trading, large trades often have a
  huge impact on price.
• Fees are usually much less than Forex fees, and
  the lack of a middleman means that there are no
  hidden costs.
• Crypto volatility also says that large, daily
  swings are possible

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Stability and Volatility

• Incredibly easy to start trading crypto, and
  many online platforms allow users to jump
• Cryptos price can shift for big orders
• Especially when dealing with altcoins and
  lesser-known tokens, it has almost no barriers to
  entry.

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Security and Regulation

• There are mountains of stories in the news about
  crypto currencies being hacked, stolen
• There are also very little to no regulations
  surrounding crypto trading.
• This can leave traders open to scams and
  fraudulent behavior with no method of recourse.

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Security and Regulation

• Having your funds hacked and stolen is not a
  pleasant experience even less when theres no
  real way to get that money back.
• Forex trades often carry some level of
  protection, and brokerage accounts are usually
  insured by the government in the event of theft
  or fraud.

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Which Is Better?

• Both Forex trading and crypto trading carry
  their own pros and cons and their own risks and
  rewards.
• Forex trading is more stable, more protected, and
  highly regulated
• Crypto trading carries the promise of much larger
  returns than Forex, at the cost of the stability
  of Forex.

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Which Is Better?

• The two markets are similar, but only in the
  sense that they are both electronic trading forms
  of currency.
• The liquidity of Forex versus the volatility of
  crypto means that traders will need entirely
  different trading strategies for the two.

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