Learn to Trade
Voted Best Global FX EducatorAward 2012 to 2017

Cryptocurrency vs Forex guide

Traders and potential investors looking for fresh opportunities on the market might be deciding whether to trade forex or bitcoin/cryptocurrency. Forex is the trade of currency, and the forex market is one of the largest, most liquid markets in the world. The average daily trading volume for Forex regularly exceeds five trillion. Bitcoin, on the other hand, is quite different. Bitcoin is a cryptocurrency, a digital finance option that can be used to invest in new projects such as ICOs (Initial Coin Offering). However, compared with Forex, the bitcoin trading market is considerably newer and smaller, and this is perhaps one of the greatest differences between the two.

Even if you were to buy bitcoin low and sell high, you still might not see the big payday you’re hoping for. “You try to sell it, and by the time the order goes through, the price may have dropped,” said Matthew Elbeck, a professor of marketing at Troy University. “It’s really, really not worth it for the ordinary consumer.”

Matthew Elbeck
Professor of marketing
at Troy University

Bitcoin is an extremely risky investment

Right Quote

Bitcoin Is Volatile

Since the forex market is so vast, it is also relatively stable. Forex works on the individual economic circumstances of the currency that is being traded. Bitcoin, on the other hand, is a small market that is only worth three billion daily. While that might seem like a significant amount, it’s nothing compared to forex – which is worth a huge $5.3 trillion daily. As such, bitcoin values can go up and down based on seemingly small and insignificant factors. It is highly unstable and may go up or down in response to tiny shifts in volume. It will change based on the microeconomics of the cryptocurrency and thus it presents a far greater risk for investors.

Forex Is Safe And Secure

When you trade in forex, all the information and data is secure. Forex trading uses encrypted systems to ensure that the investments being injected by users are not vulnerable to hacks or theft. Bitcoin wallets on the other hand, are typically digitally stored on a computer system. As such, hackers could access a bitcoin users digital wallet. To avoid this, investors need to make sure they are working with brokers who have insurance protection.

Bitcoin Is Completely Unregulated

Since the bitcoin market lacks proper regulations brokers can use the level of volatility in the market, typically to the disadvantage of users and investors. The broker can essentially use different exchange rates to ensure that the deal being advertised is not the deal investors gain access to and then keep the a significant portion of the potential profits.

In contrast, the Forex market is regulated by independent providers including the National Futures Association and the Financial Conduct Authority. In Australia, Forex is heavily regulated by the Australian Securities and Investment Commission, ensuring there are no issues with brokers taking advantage of investors.

It’s very much speculative. It’s a bubble

Right Quote

Ray Dalio Calls Bitcoin a Bubble and a Highly Speculative Market. Ray Dalio, who heads the $160 billion Bridgewater Associates, says bitcoin is a bubble.
“It’s very much speculative. People are thinking, ‘Can I sell it at a higher price,’ so it’s a bubble,” he said in an interview Tuesday on CNBC.

Ray Dalio
CEO of Bridgewater Associates

Forex Brings Greater Profits

Generally speaking, forex is used by clients and investors who are eager to make larger profits. Download our guide, and you can learn more about how to earn a fortune through forex trading and discover how easy it is to get started. You can invest a lot of money into forex trading and see a huge ROI. Bitcoin and cryptocurrency trading is typically used for smaller gains. Again, it’s the level of liquidity on this particular market that makes larger gains more difficult. Bitcoin traders generally see far smaller returns.

Bitcoin Uses Alternate Currencies

Various trading platforms offer the possibility to trade both bitcoin and forex. Indeed, some investors would even argue that bitcoin is a type of forex trading as it is still classified as a currency. Some of the examples of platforms that allow the trade of both include Bitfinex, Coinbase and Bitstamp. Thus, the difference between these two actually lies in the alternate currencies availability when trading. As an example, we can look at Kraken. Kraken uses and trades currencies such as EUR and USD fairly regularly with cryptocurrencies such as Litecoin. These are not part of the foreign currency platform and instead are replaced with other, more elusive currencies.

Forex Traders Have A Secret Advantage

Forex traders have a significant advantage over those trading in bitcoin. Forex brokers can use leverage. This is the ability to trade more than is actually in your account. Essentially, this will allow you to control the trade of one hundred thousand dollars using only ten thousand of capital, depending on the ratio of leverage. Of course, this type of trade decision comes with certain risks, but it’s one of the ways the forex traders make millions. Download our ebook to discover more about the strategies that forex traders use to become millionaires!

As you can see then, there are lots of differences between forex and bitcoin trading. Despite the fact that bitcoin involves the exchange of different currencies, it is a far more volatile market, and typically the cryptocurrencies are completely unregulated. Forex trading, on the other hand, is a far safer option and could lead to massive profits for investors. Register with our service and we will provide you with key information you need for successful forex trading and ensure you become the next forex millionaire.

Be two steps ahead of Bitcoin with our FREE guide – Download your copy now

Book Mockup

Book Mockup

Learn to trade
The currency Market

Register now for a FREE two hour seminar