What is the difference between cryptocurrencies trading and forex trading?

[Kinglegend01]

Alot of people dont know the difference between this two types of trading, infact just last week a friend of mine confused both of them to be the same thing. Am not actually saying that I am totally knowledgeable about the two trading types ( I think that is why I created this thread) but I think I can differentiate fairly between them.Both of them are really different. Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the underlying coins via an exchange. While forex which is an acronym for foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines (foreign exchange market) rates for every currency. It includes all aspects of buying, selling and exchanging currencies. If you have a better or more information to these you can share your thoughts at the comment section.

 

[Robson Dey]

To become a profitable forex trader, one should choose the best trading techniques. Trading techniques and strategies is mainly responsible for making profit. different broker has different trading techniques. We should choose the best one which match with our strategy. I choose Forex4you as my broker. I can easily apply my trading strategy with them. They are very supportive and helpful. They give me all kind of facilities in my trading.

 

[Ekuvero]

Crypto trading and Forex trading are two different trading though the difference isn't that much but they is still a bit different from each other, for instance Forex trading is much more like stock exchange cause they deals on trading currency pairs, indices, volatility et al while that of crypto trading deals with trading of cryptocurrency on crypto trading platform like Binance unlike Forex trading which make use of mt4 and mt5 platform with the help of a broker. You can buy cryptocurrency and hold for long term but I can't say same for Forex due to depreciation in Fiat

 

[btaliat]

The two are examples of online investment or business. Jusy like you said, forex is shortened form of foreign exchange. It is a legal business recognized by laws and deals with the determination of the currency rate in the world. However, it doesn't deals trading in currency alone. It also deals in selling other assets like gold and some other assets.

 

[Deleted member 28873]

The difference between cryptocurrency trading and forex trading hmm I won't say the gap is that long knowledge of the basics of one could make learning of the other easy.cryptocurrency trading has to do with trading digital currency coins e.g bitcoin,litcoin e.t.c bitcoin,litcoin, ETH are some among many coins been traded while forex trading involves currency pairs where one currency is considered the base currency and the other quote currency.In forex, the base currency represents how much of the quote currency is needed for you to get one unit of the base currency. For example, if you were looking at the CAD /USD currency pair, the Canadian dollar would be the base currency and the U.S. dollar would be the quote currency.

 

[sincerem]

When it comes Cryptocurrency trading, it uses digital currency to trade on it. But forex trading deals on fiat currency, country's main currency to trade online. Crypto trading looks somehow understandable than forex trading. You need some certain level of skills to trade forex than in crypto. As long as you recognised the digital coins and how they rank in the crypto market you can trade crypto okay and make profit as well.

 

[Queentener]

While currencies in the Forex market are backed by a centralized government, cryptocurrencies are not. They are hosted online and backed by a peer-to-peer authentication process that prevents you from using a cryptocurrency (such as a Bitcoin) more than one time.

 

[Yugocean]

In Forex, people trade in recognized currencies of different countries; and in crypto trading, people trade digital currency that no one controls and people themselves can mint with the possible device or purchase. Digital currency is easy to traded, everyone is able to do it, but in Forex one has to get it done through some trading institution.

 

[Suba]

The most basic difference between forex trading and cryptocurrency trading is that the assets traded are forex trading fiat money belonging to a country while crypto trading is trading crypto in pairs with crypto or fiat money (USD) like BTC/ETH, but if you pair crypto with fiat money ( BTC/USD) will have a similar scheme to the calculation of forex transactions. There are also differences in the sources of fundamental decisions. In forex traders will see the state of origin of the fiat money country, for example the Euro, it will be more inclined to the European zone even though there is a global influence. If you pair EUR/USD then you should also pay attention to the sentiment of fundamental data in America. Meanwhile, crypto trading focuses more on blockchain news and interest rates in America.

 

[Finger Geek]

There are some different between the two. But even if we explain it to some people, they will still not understand. Because there was a time that someone that only trades cryptocurrency but was recently introduced to forex trading, was now asking some questions that need nit to be asked . He was asking if the enter a buy, then who are they going to sell to? I was like, I thought you read the beginner's guide because if he did, he is not supposed to be asking that.

In cryptocurrency, we enter a trade by buying a cryptocurrency when the price is low and waiting for the price to rise before we sell it out to make our profit. But this is not it with cryptocurrency. In forex trading, we are nit bothered about who to buy from or who to sell to. We enter a buy trade when we think the price we rise and exit when we are making profit while vise versa for sell trade.

 

[Asahi]

Making a strategy is the result of persistence, perseverance and hard work. Use a strategy for a long time to prove whether it works well or not.

 

[Jack Reacher]

When you can see lacking in your performance, you can work hard to recover from this situation. Keep up a mentor to take some advice to beautify your trading performance.

 

[Gastrology]

Both the markets irrespective of the type of currencies involved require sufficient knowledge and skills to make profit. Cryptocurrency market, being more volatile and nascent, is riskier to trade than forex.

 

[Spittle]

In nutshell, the buying and selling of digital assets such as cryptocurrencies, tokens, and NFTs is known as crypto trading. Forex trading, on the other hand, is exchanging one fiat currency for another in the belief that the currency's value will rise, allowing the trader to reconvert for a profit. Also, the crypto market is more volatile than the forex market, which is the largest financial market in the world.

 

[Cittosis]

Then the clear difference between the two is of the currencies that are being. Crypto trading deals with the trading of cryptocurrencies - a form of digital currencies that are decentralised in nature, But forex trading refers to exchange of fiat currencies. In terms of market size, forex is larger than the crypto market, which is relatively new yet is growing at a great rate. Volatility is another factor that differentiates the two. The crypto market is more volatile than forex.

 

[eldavis]

Simply put for every one to understand, forex Trading has to do with the trading of currency pairs, it could be the dollar against the euro, and vise versa.
Crypto trading on the other hand is a trading between crypto currency. I have come across some persons who associate buying and selling of crypto currency as part of crypto trading. Personally I feel this is something totally different from crypto trading though but I might be wrong thou.

 

[Mary Frederick]

Newbies can’t derive profit from the market moderately just because they don’t have sufficient knowledge.