Forex or Cryptos, the Forex market, the biggest market in the world in term of liquidity. So to really understand why I consider one better than the other we most understand why is this important.
5 trillions dollars per day, 57 millions of dollars per second. All this change from one hand to the other.
Now, in the other hand we have the cryptocurrency market, which have a great potential. We are talking about a market CAP of 700 billions dollars and a daily volume above 42 billions. Which already double the stock exchange of US.
Which for obvious reasons allow us to see that great potential cryptos have.
Then, which should you consider to use, Forex or Cryptos?
If you are planning to jump into this realm of finances, and you must know that Forex is moving 5 trillions per day, against cryptos, which represent from 2 – 5 % of the total liquidity per day in the Forex markets. In other words, Forex will always be the strongest market out there, simply because cryptos are considered part of the Forex currencies industry.
Now you need to make a decision though.
Will you start trading Forex or cryptos?
Obviously this is completely up to you, what I pretend is giving you some bullets points to help you make that decision.
In my particular opinion, Forex provide more information, more tools and news are everywhere. You can use these advantages to really make wise profitable trading decisions. Because of this when it comes to open a position, the est thing to do is avoid the forecasting and rely on the market information available. You choose your pair to trade with, go to an economic calendar and little of technical analysis, and voila! you will be close to a profitable smile.
Don’t you mind too much about technical analysis, when you start trading this might confuse you. Worse if you go ask somebody, because soon enough you will find out this: every trader have his or her own reading chart style. Yes they will tell you they are right. But results might give you a better fact.
In short: Forex is the answer.
About the forex or cryptos markets
Buying and selling cryptocurrencies requires direct access to the exchange market. If you are not at all familiar with these types of markets, you need to know when the learning curve is pronounced. You must make an effort to understand and accept the associated technology plus the risks, and also learn to interpret the charts and forecasting.
Also needed, your own trading account to trade the markets. These types of accounts have very specific characteristics:
- Opening the account might be slow: Registering the account is quite simple, but having the account fully verified might take few days, since the approval process will take place manually.
- The use of the trading account may be restricted: like a new client, your funds probably will be limited
- Trading accounts are expensive to keep: depositing and withdrawing funds usually entails charges, and even some big markets only accept wire transfers (which may take up to seven days to reach your account balance)
Plus, without a broker have not being in the markets for over the years, young companies can process your documents very slow, when it comes to solving simple service requests.
When trading Forex CFD, you are trading using the expectation which put you in situation of choosing if the market of a determined asset will go up or down. Prices actions are shown in common currencies and you never take possession of the currency itself.
Trading CFDs uses leverage, a dangerous yet powerful tool. Allowing you to open a position with only few amount of the total amount required. In simple words, a position can gain great exposure in a financial market by compromising a relatively small amount of the funded capital. However remember, although this can multiply your profits, it also would have the same effect to your losses.
Also, when trading cryptos or forex, there is no need to deal directly with a market, you can start trading much earlier.
In fact, with tradeview, you could start trading in a few minutes, thanks to the safety of a Demo account.