Forex today is the largest trading market in the world which involves traders investing money on currency pairs and gaining quick profits based on the economy and currency difference between the two countries. Cryptocurrency offers a new digital currency trading platform which may seem like forex but is completely different.
Many traders fall into believing that crypto trading is the same as forex as both the markets do not require a centralized authority to handle the trades. However, crypto trading can today be a part of forex as an option of investment. But when it comes to trading between two different cryptocurrencies, it will be a lot different. In order to learn to trade in the two markets, let us understand how they function.
Forex is a decentralized global market where people trade different currencies from around the world. There are several online trading platforms, and the trades stay open 24/7 for five days. It is the biggest trading market in the world with $5 trillion being traded daily. The forex trading platforms provide investment opportunities that include the profitability of interested parties.
There are forex trading platforms through which you can carry out currency exchanges from any corner of the world. You also receive options to trade with your favourite currencies whenever there is an opportunity available. Today there are plenty of trading platforms which attract different season traders as they can direct the trading patterns to achieve the best results.
Crypto trade is also a completely digital trade but does not entertain any fiat currencies. Cryptocurrencies are totally decentralized and work on blockchain technology. Since any central administrator is not controlling these currencies, the control of the trade totally depends on the trader.
Trading with different cryptocurrencies is an entirely new method compared to traditional trading methods. Bitcoin is the worlds most valuable cryptocurrency, and the trading usually revolves around bitcoin while traders try to make a fair trade to buy bitcoin from another trader. Learning about Bitcoin and the upcoming cryptocurrencies can help the traders to make the best decisions. Cryptocurrency is also highly volatile, which makes buying and selling a bit complex for the traders. Only when they learn to recognize the patterns in the shifts of crypto prices, they can make profits.
Similar to forex, there are trading platforms for cryptocurrency as well. The trading can either involve exchange two different cryptocurrencies or exchanging cryptocurrency for fiat currencies. Another way to trade cryptocurrencies is through the exchange of crypto contract for difference (CFD). With this option, you can trade through a cryptocurrency broker or a bitcoin trade broker. You do not need to have a cryptocurrency to bet using CFDs as you can pay fees to a broker to invest on your behalf and enjoy the profits. You do not even have to worry about the security and storage of your cryptocurrency.