Having trouble finding the real difference between forex and crypto trading? You’re at the right place. In this blog post, we’ll let you know how crypto trading is different from forex trading. Before proceeding further, let’s have a look at the definitions of cryptocurrency and forex.
What is cryptocurrency?
Cryptocurrency is a digital form of currency in which specific encryption techniques are employed to confirm the transfer of funds and generate new units of currency, operating without any central body or bank. Cryptocurrencies are very difficult to counterfeit, since it doesn’t have any physical form and isn’t issued by any central body. It’s completely free from government manipulation and interference. Cryptocurrency trading is very popular among traders wanting to enjoy big returns in no time. Whether you want to invest in crypto trading or forex trading, be sure to weigh forex and cryptoucrrency trading signals to trade with utmost precision.
What is forex?
Forex, aka foreign exchange, currency or FX trading, is a decentralized international market where all currencies are traded. The FX market is the world’s largest liquid market, with an average daily trading volume of around $5 trillion. The more you study forex trading the more exciting opportunities you find.
The difference between forex and cryptocurrency trading
With FX trading, there’s always a valid reason for a currency to move upward or downward. Economic developments, interest rates, political uncertainty, bond yields, trade surplus/deficit, fiscal policy are the main reasons behind a currency fluctuation. With cryptocurrency trading, there is no reason for it to go up and down except fear and greed. Cryptocurrencies can also be used for a number of illegal activities like money laundering, tax evasion, etc.
How you look at this? Want to add your own thoughts to this? Please feel free to let us know your valuable feedback in the comment section below.