First of all let's start with a Disclaimer
And now after you read the disclaimer let's get started.
Yes, Forex and Crypto are separate and two different things but both share two things : both can make money, both can waste money. Thier definition is quite simple,
Forex stands for foreign exchange and is also referred to as FX. An easy way to understand the foreign exchange market is to think of it as changing money when you go on holiday abroad. it is like converting your local currency to the currency of the country you are visiting. So for example it's converting from US dollar to Euro. In the other side, Crypto is digital currency, also means converting digital currencies into other digital currencies. So for example it's converting from Bitcoin to Etherum.
NOTICE: Forex currencies can be converted to Crypto currencies buy cannot gather in same market
Why forex is better than crypto ?
Well, from my perspective I've tried both of them and i decided to pick a side, from some researches and more researches and some experience i chose forex because :
- Established/Large market : Forex market tend to be more established and largest financial market in the world with daily trading volume exceeds 7.6 Trillion dollars in 2023 according to this source. While Crypto daily trading volume is between 18.78 Billion dollars in 2023 according to this source .
- Higher Liquidity : Forex market tend to have higher liquidity which makes it easier to enter and exit trades with competitive prices, reducing risk and increasing profits odds. source. In cryptocurrency market pairs liquidity volume depends on number of investors of a cryptocurrency and as we mentioned before that low daily trading volume in crypto market means not enough trades happening which means not enough investors and which means low liquidity.
- Stability : Forex market tend to be more stable because of low Volatility, stable global economic environment, increased efficiency through algorithmic trading, stricter regulation, rise of passive investing, and lack of major geopolitical risk have all contributed to lower volatility in the forex market. source. While Cryptocurrency markets exhibit high volatility due to factors such as lack of regulation, speculative trading, sensitivity to news, low liquidity, and the absence of intrinsic value. source.
- Availability : Forex market tend to be more available because of two factors we mentioned before, higher liquidity and lower volatility and same thing goes for Cryptocurrency market and it's unavailability because two factors we also mentioned before which are lower liquidity and higher Volatility.
trading crypto also has its own merits, including potential for high volatility, stability and good opportunities to invest, but these chances are unpredictable and can happen anytime. while forex market is 24/5 available, the market is always busy except for the weekends. Still sticking to my opinion, Forex is better than crypto, if you have something thay can change my mind, im open to it.
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