Should i invest in forex or crypto, Should you invest in forex or cryptocurrencies? More and more people are asking themselves this question, but the answer can be hard to find.
It’s not a secret that just about anyone can start investing in cryptocurrency and forex trading for free, but a lot of people decide against it.
This is mostly due to the strenuous learning curve, lack of information and the fact that there are so many different opinions on how to do it properly. This article will make answering this question much easier for you.
If you’re into cryptocurrencies, chances are you’ve already heard about forex trading. However, there are a lot of people who see forex as nothing more than a financial bubble. Let’s check if that is true or not!
It depends on you. If you are a good trader and love doing it, you should go for forex trading but if you are not much into day trading then crypto trading is a perfect choice for you.
Cryptocurrencies and Forex have exploded recently in popularity, growing to the point where the two markets have a valued of over 800 billion dollars. All around the world there are people trading and investing in this new and exciting technology.
You could trade forex or stocks but those are quite risky and there are many stories of people losing lots of money. Plus you’ve heard about Bitcoin skyrocketing in 2017 so you might be wondering, should I invest in cryptocurrencies instead?
Key takeaway points
- Should i invest in forex or crypto
- Is cryptocurrency more profitable than forex?
- Is forex more volatile than crypto?
- Can crypto make you rich?
- Why should I invest in forex?
- Why should I invest in crypto?
Should i invest in forex or crypto
Forex – Foreign Exchange is a decentralized market where currencies are bought and sold. This market is very volatile, with price swings of up to 20% in a single day not uncommon. It is also very liquid, meaning that there are many buyers and sellers at any given time.
Crypto – Cryptocurrencies (Bitcoin, Ethereum, Litecoin etc) are digital currencies that use encryption techniques to regulate their generation and verification. These currencies are not controlled by any government or central authority, but instead rely on peer-to-peer networks to verify transactions using blockchain technology.
I think crypto is the future and I believe that crypto will be able to replace all fiat currencies in the near future.
However, there are some risks with crypto as well. The value of cryptocurrencies can fluctuate very quickly, which means you might have made a lot of money today but tomorrow it could be gone.
Also, you will need to find a reputable exchange to trade on and although there are many legitimate ones out there, there are also many scammers who will try and get your money.
So if you want to invest in cryptocurrency then I would recommend only investing what you can afford to lose because the risk is high and the reward is low (compared with other investment opportunities).
If you are looking for an alternative investment then I would recommend forex trading as it has a much higher return on investment than crypto and isn’t as risky either as it doesn’t involve purchasing cryptocurrencies themselves but rather trading them on exchanges like Binance or Coinbase Pro (but not Coinbase itself).
Crypto has the potential to give you huge gains in a short amount of time, but it also has the potential to lose everything you invested. Many people have made millions in crypto, while others have lost everything they invested.
Forex traders can expect to make between 2-5% per trade over the long term. That’s not as much as crypto, but it’s more stable and predictable. It also requires less technical knowledge than crypto trading does, which makes it easier for new traders to learn how to do it.
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Is cryptocurrency more profitable than forex?
The answer is a resounding yes. But you will have to do your research and understand the market well before you decide to invest. However, if you have a good understanding of cryptocurrency, then it can be more profitable than forex.
Cryptocurrencies are digital currencies that use encryption techniques (cryptography) to regulate the generation of units of currency and verify the transfer of funds.
The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, which serves as a public financial transaction database.
Bitcoin, created in 2009 by an unknown programmer or group of programmers under the name Satoshi Nakamoto, is generally considered to be the first decentralized cryptocurrency.
Since then there have been many other cryptocurrencies created with varying degrees of success. Forex is short for Foreign Exchange Market; it’s the largest financial market in the world by volume.
Forex traders make profits by buying or selling currencies at different rates in different countries; these transactions are called “pairs.” For example, if we have an exchange rate of 1 USD for 0.75 GBP (1 dollar = 0.75 British pounds), we say that USD / GBP = 1 / 0.75 = 1/0.75.
So, if I buy one US dollar for 75 cents, this means I am buying 0.75 GBP for $1; so I can sell them back at any time and make a profit of 25% on my investment. If I sell one US dollar for $1, then I can buy 0.75 GBP with my profit of 25%.
What is cryptocurrency?
A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure transactions, control creation and manage the creation of additional units of currency issued according to a distributed protocol.
Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems.
The decentralized control of each cryptocurrency works through distributed ledger technology, typically referred to as a blockchain, which requires an electronic signature and is supported by a proof-of-work protocol to provide the security and legitimacy of money transactions.
Cryptocurrencies have been compared to Ponzi schemes, pyramid schemes and economic bubbles, such as housing market bubbles.
Central bankers, including former Federal Reserve Chairman Alan Greenspan, investors such as Warren Buffett, as well as George Soros have stated that bitcoin is a bubble.
In 2013, economist Nouriel Roubini said it was “the mother of all bubbles.” Central bankers, including former Federal Reserve Chairman Alan Greenspan, investors such as Warren Buffett, as well as George Soros have stated that bitcoin is a bubble. In 2013, economist Nouriel Roubini said it was “the mother of all bubbles.”
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Is forex more volatile than crypto?
It’s a common misconception that forex is more volatile than crypto. In fact, the opposite is true. The volatility of bitcoin has always been much higher than that of major currencies like the US dollar, Euro or Japanese Yen.
The reason for this is simple: bitcoin is a relatively new and immature market compared with traditional currencies. The crypto market has many fewer participants and thus less liquidity than the forex market, which has been around for decades.
This means that it takes less money to move the price of bitcoin than it does to move the price of major currencies! In addition, there are many more factors influencing the price of major currencies than there are for crypto.
For example, central banks typically control interest rates and monetary policy to influence currency prices in an attempt to manage inflation and economic growth (among other things).
While some cryptocurrencies have their own influencers controlling their prices (such as miners), this is not true of all coins – nor should it be expected to be true in most cases since this would make them centralized rather than decentralized systems.
Moreover, even if they do have influencers controlling their prices they may not always be successful at doing so because their actions could be counteracted by other forces on the market (e.g. speculators).
In contrast, crypto markets are driven primarily by speculative activity and thus tend to be much more volatile than traditional markets.
This is because any individual or group can buy or sell a cryptocurrency at any time without needing permission from anyone else; there is no equivalent of a central bank that controls liquidity supply for crypto markets as there is for fiat currencies.
This means that when someone decides to sell off all their bitcoin holdings it can trigger a massive sell-off across the entire market which has been seen time and time again.
The volatility of crypto is due to the fact that there is no central authority or bank in control of how much of a coin is in circulation and what price it should be at. This means that if you want to buy a coin, you are relying on the seller to accept your payment and then transfer the coin over to you.
This process can take days and sometimes weeks before it’s completed, which makes cryptocurrencies unsuitable for day trading or other forms of short-term investing.
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Want to learn how to trade forex? Click here!
Can crypto make you rich?
The answer is yes. Crypto can make you rich, but it’s not easy and it’s not guaranteed. The most important thing to understand is that investing in crypto is different from investing in stocks or bonds or any other asset class.
Crypto is volatile and illiquid meaning that it can swing wildly in value and not be easy to sell when you want to cash out. The second thing to understand is that crypto is less about predicting the future than it is about building the future.
When you buy a stock, for example, you’re betting on what someone else may do in the future whether it’s a company or an individual investor who owns shares of that company.
When you buy into a new blockchain platform, like Ethereum or NEO, you’re betting on the future applications built on top of those platforms as well as their potential value as they become more widely adopted by companies looking for better ways to run their businesses online.
That’s why many people are skeptical about making money in crypto: because they don’t know what will happen next week let alone next year.
But if you have a long-term view and believe in the power of decentralization, then there are good reasons to believe that crypto could change our lives in ways we can only imagine today.
The fact that Bitcoin has gained more than 1,700 percent since last year shows how volatile this market is. But here are some reasons why you should invest in crypto: As the world goes through an economic crisis, many investors are looking for new assets to invest in.
That’s why we’ve seen a boom in ETFs (exchange-traded funds) and mutual funds over the last few years; they’re easy ways for people to invest their money without having to understand individual stocks and bonds. And now we have cryptocurrency ETFs!
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Why should I invest in forex?
The best way to answer this question is to compare investing in forex with other investment opportunities. The different advantages of forex are:
1. You can choose your own risk level and investment amount (i.e., micro, mini, standard or max account). This means that you can start with very little money and gradually increase your investment as you become more experienced and comfortable with the market.
2. You can trade 24 hours a day, 5 days a week and therefore have more opportunities to make profits than most investors or traders who only trade during the day at certain times.
3. Forex is one of the most liquid markets in the world, meaning that there are always buyers and sellers for every currency pair at any given time. This means that if there is an opportunity to buy or sell at a favorable price.
It will be available immediately without having to wait for orders from other investors like happens on many other trading platforms like stock exchanges or commodity futures markets where stocks/commodities that aren’t being traded immediately get canceled because no one wants them anymore! This means that there are always buyers and sellers for every currency pair.
4. Forex is highly regulated by the CFTC (Commodity Futures Trading Commission) and CME Group (Chicago Mercantile Exchange) which means that traders can be confident they will receive their funds after placing an order with their broker (no matter what happens).
In addition, unlike the stock market where your broker can go out of business without notice leaving you with no access to your account.
Futures brokers are required by law to have enough funds deposited with them at all times to cover all open positions held by their customers in case they need to close down their trading platform due to bankruptcy or other reasons.
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Why should I invest in crypto?
You can make money. Cryptocurrency has gone up in value at an incredible rate over the past few years, and it’s not over yet. The price of Bitcoin has gone up from around $1,000 at the beginning of 2017 to over $11,000 as of this writing. That’s good news if you bought low and sold high but what if you missed that window?
You can pay for things with crypto. If you want to buy something online using cryptocurrency instead of traditional payment methods like PayPal or credit cards, there are more and more merchants accepting it every day.
You can also use your crypto to pay for services like web hosting or domain registration or even donate it to charities like UNICEF!
You can invest in startups and ICOs (Initial Coin Offerings). Startups need capital to grow their businesses, and often look for investors through ICOs, which involve the sale of newly created coins or tokens that represent some type of value tied to the startup’s future success or profits (like shares).
If you believe in a company’s vision for the future, investing in its ICO may be a way for you to get in on the ground floor.
You can make money from market volatility. When markets are volatile, trading cryptocurrencies can be very profitable but it also means that you could lose money if you don’t know what you’re doing.
If you’re new to crypto trading and investing and don’t know what you’re doing, then it’s best not to trade at all until you do.
You can use your crypto as currency. Just like regular cash, you can use your cryptocurrency to pay for goods and services but only as long as merchants accept it. For example, if I want to buy something from Amazon with bitcoin but Amazon doesn’t accept bitcoin directly, then I have two options:
I can convert my bitcoins into dollars first (using an exchange service such as Coinbase), or I can buy an Amazon gift card with my bitcoins and then use that gift card to buy whatever item(s) I want from Amazon. The same applies to other cryptocurrencies such as Ether and Litecoin.
You can earn money by “mining” them. Mining is a process that involves solving complex mathematical problems using computers running software that solves these problems e.g., mining pools (a group of miners who combine their computing power and share any profits they may generate).
When you solve one of these problems, you get rewarded in ether tokens (for Ethereum), or newly created bitcoins (for Bitcoin), or whatever coin you’re currently mining for. The more powerful your computer is (or the more people who are in your pool), the better chance you have of solving these puzzles first which translates into more money.
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Final thought
So, you’re debating whether or not you should invest in either crypto or forex. As with any investment, there are pros and cons to each. The cryptocurrency market is still highly volatile and largely unregulated, so it comes with just as much risk as reward.
This market is still an attractive one from which to trade, although the question still remains: should you buy wallets and set up trades yourself, or should you use a trusted online platform that handles these transactions for you?
The cryptocurrency trend remains intact and unbroken. With the recent bullish run, we think that now the time is right to start investing in cryptocurrencies and the forex industry should seriously consider this alternative investment vehicle as well.
A lot of forex traders have been doing very well in the markets, and with their immense experience, they have now started finding success in cryptocurrencies as well.
We believe that it won’t be long before crypto trading becomes as popular as it once was in Japan where crypto trading became almost a national pastime.
The brokers listed have platforms available to trade cryptocurrencies. They offer the speed and ease of Forex trading in a very transparent, secure environment.
In addition, as cryptocurrencies are on the rise, there is no doubt that trading volume of this market will continue to increase exponentially in the coming years.
Though there are many reasons why cryptocurrency has taken off so quickly over the past few years, the biggest reason may be that it has provided an alternative to fiat currency.
Cryptocurrency may not be the end-all-be-all of money, but there’s little denying that it is here to stay. As such, investors and traders have had no shortage of opportunities to make their fortunes thanks to crypto.
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Want to learn how to trade forex? Click here!
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