A question that may be intriguing for many future traders and investors is about the overshadowing of one over the other, between Bitcoin trading and forex trading. Trading spaces have evolved in the past decade as the old and the new clash. Both markets have their complications and intimidate users in their unique way.
Forex: What is it?
Forex is the abbreviated version of foreign exchange. It is the global exchange market between government-issued national currencies. It emerged during the 19th century when the gold standard was created along with the establishment of the US dollar as the currency of the world reserve. Like Bitcoin, Forex too was met with a lot of mistrust and rumours in the beginning. But today, it is the world’s largest trading market.
How is the trading landscape for Bitcoin?
Cryptocurrencies have had a much briefer time in trading, yet they aren’t any less formidable. Since Bitcoin was created, it has been in the spotlight through a sporadic fall and rise in value. Despite the rumours, scams, and emerging rival currencies, Bitcoin has remained the crypto world powerhouse.
In recent years, cryptocurrency trading has become well-known with traders, especially with Bitcoins. There are several companies that have enabled cryptocurrency use as a means of payment for products and services. This opens up new opportunities for conversation regarding the future liquidity of crypto and enlargement in trading volumes. Bitcoin is surely something to have your eyes on.
Bitcoin Trading versus Forex Trading
Similar to forex, Bitcoin involves the trading of currencies. But forex is well-established and larger in the market while Bitcoin is a relatively new player.
Bitcoin and Forex, both have their pros and cons. However, the best one for you depends massively on your goals, future expectations, and comfort. Here are a few crucial differences between bitcoin and forex trading that traders must consider:
Liquidity is the ease with which an asset may be converted into ready cash without changing the present market price. In forex, it depends on the currency pair being traded. Popular currencies have astonishingly high everyday trading volumes. The liquidity provided by forex overpowers that of Bitcoin, as it is new. It is yet not a universal form of money. Though, the rise in the liquidity of cryptocurrency has been consistent with the passing years.
There is no single central authority that regulates the market transactions taking place in Bitcoin and forex. In forex trading, some banks manage a number of daily trades. This means there are brokers, middlemen, and other institutions which collect fees almost at each step. The fees depend on the market conditions, trading pair, and institutions involved. However, in Bitcoin trading today, there is no existence or requirement of a middleman. Traders can complete trades by themselves with different payment options. Although in traditional exchanges, you may find them taking a cut, it is considerably lower as their rates are fixed. It makes the trade simpler.
Like business, there should not be a particular time for trading. Forex is available 24 hours a day from Monday to Friday, with no break. But it pulls the breaks during weekends. Time zones also come into play, especially during closing hours. Bitcoin has no such limitations and is available every day, all year. You can decide at any time if you are ready for Bitcoin trading and it will welcome you.
You may take advantage of price movements in trading if you know how to. The susceptibility of price change is higher in Bitcoin than in forex. That is so because of the daily high volume of forex trades. They move in thin bands, in comparison to the large shifts experienced by bitcoins. Individuals who own a large number of bitcoins can dramatically increase or decrease the prices in one trading session. That can be used to your advantage if you determine the difference in value from when the contracts are bought and sold.
Which is better, Bitcoin or Forex?
Over the coming years, Bitcoin has the potential to rise almost tenfold in value, while Forex might only fluctuate a typical 10% over the same period. Your strategies for the future and needs greatly influence the trading you should invest in. Forex has more years on it, but the up-and-coming cryptocurrency, Bitcoin holds a promise that is too hard to let go of. If forex had not been trusted by traders, it would not be where it is today. So, why should not Bitcoin trading be given a similar chance, especially at a time when it seems to be flourishing?
Investment is a serious decision, and thus, it is necessary to test out fields that interest you. If you require trustworthy and free software to begin bitcoin trading, Bitcoin Digital is the one for you. Join today!