Can Forex Trading Crash Like Crypto Currency

[moonchild]

What have been going on in the crypto world is no news, so questions abound for forex trading.

First thing first, you have to understand that forex Trading had been existing for a very long time, and the analogy behind it is very straight forward, traders make money through the changes of currencies.

Changes of prices is the opportunity that retail traders use to make money on the market.

So, in a clear view, you have to understand that Forex is not a multi level marketing, even though some brokers makes it very hard to make money on the market due to the arbitrage they use.

Also forex is not a close market with a market cap, forex is an open market that anybody can participate, it has a market cap of over one trillion dollar which is a cumulated amount of the currencies world wide.

In crypto currency you'll be told to hold on to a coin even if it is on an obvious downtrend you'll be told that it'll come up and basically there isn't any structure for it

In Forex Trading you'll have to learn chart analysis to be able to read the market movements.

Forex Trading will always be available but we can't say the same for crypto currencies

 

[Lens1000]

In my opinion as a crypto trader and as a forex trader, I do not believe that the market crahes could cause an alarm but what I think that one should do is that every market be it the deep or the surge would present an opportunity to make money. All you need to do is to have a good knowledge on cryptocurrency that you are buying or you're selling. that is basically the best way to actually venture into cryptocurrency and any other type of business on the internet. A good knowledge around these businesses would boost your ability to make money, but if you do not have a good knowledge on the business or the cryptocurrency investment or forex that you are venturing into, you could fall and lose a lot of money. I always advocate for business that you know a lot about and not putting your head on business that you do not know. I would strongly recommend that you put your hands on so many things on the internet so that you could have something to fall back on when you lose on a particular business. The dip that is in cryptocurrency presently, present in buy option.

 

[Ithedicious]

I don't really think so , the point is that both of them are volatile market but from all indication and from my research cryptocurrency is extremely more volatile than forex because forex mostly deal with stable currencies with a little price differences but cryptocurrency deals with the whole set of cryptocurrencies with their own specified price which can turn into zero within a twinkle of an eye depending on the condition of the market..

There was a time in which the price of Nigerian currency really crashed so much that there was a serious observable constant decline on daily basis and a lot of people were not happy with the news. Mostly it will depend on the condition and the strength of the economy of such country that will determine , there may never be an immediate downstrend

But I has I understand the market will just be in a slow progressive downstream.

 

[Asahi]

Leverage is the most demanding facility and it’s a loan taken from brokers on capital.

 

[Jack Reacher]

Following risk-management strategy has become a narrow practice among traders. Always try to trade in low spread trading pairs to avoid trading risk.