When it comes to trading, people have a lot of opportunities nowadays. Not only are they able to pick one market to invest in, but they can also choose from a variety of trading platforms. Aspiring traders look for an eToro or Liteforex broad review to see whether the platform can offer them just what they need for their trading journey.
Nevertheless, choosing between crypto and forex trading on Biti Codes can be a challenge. Both options have pros and cons, and if you’re just starting out, you may fail to see how different the two trading markets are, and which one is good for you. So, if you don’t know how to choose, keep reading this article and you will be able to come to a conclusion after learning the differences between the two.
Size of the Market
The two markets are different in size.
Cryptocurrency markets have grown a lot in popularity lately, especially in the last few years. In total, the daily cryptocurrency market volume in the autumn of 2021 was $1.3 trillion. While that is a lot, it is nowhere as big as the forex market.
The forex market is the one with the largest volume in the world. Trillions are traded daily according to the Bank of International Settlements. It goes to show how different the two markets are.
Both cryptocurrency and forex markets have multiple assets people can trade.
For forex, traders can use United States Dollar, Euro, Pound Sterling, and many other currencies. Meanwhile, there are up to 14,000 cryptocurrencies available in the whole world, including Bitcoin, Ethereum, Litecoin, Dogecoin, and many others. Bitcoin is the most popular one.
Usually, it costs less to trade cryptos than forex because the fees for purchasing and selling cryptos are pretty low. They tend to be less than 1% most of the time. For forex platforms, fees tend to sit around 0.5%.
With cryptocurrencies, you can trade the majority of the large currency pairs and various cryptocurrencies. At the same time, in forex markets, you have the option to trade currencies, but also commodities and indices.
The crypto markets allow people to trade at any time of the day, and the time zone will not affect the possibility to trade. However, they are usually more volatile during the “off hours”, and that is something to keep in mind.
Forex markets trade 24/7, but there may be special events every month that can cause noticeable price movements.
Forex trading can be done through special brokers, which are generally banks. On the other hand, crypto trading is done through centralized and decentralized exchanges.
The Bottom Line
Whether you go for crypto, or forex trading depends on which option is more convenient for you. The markets have a lot of differences, and you should compare them in order to pick the best one for your trading experience. Hopefully, this post was able to ease your decision.