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  1. #1
    Trader tfs2012's Avatar
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    the differences between crypto exchanges from stock and forex markets

    Introduction

    In the past two years, interest in cryptocurrencies has increased significantly both in public and in the media. But when we know that the Bitcoin for example in 2016 was worth $ 1000 and in late 2017 it was worth more than 19,000 dollars, we will not be surprised by all this attention about everything related to it and This is what attracts more people to invest and trade in cryptocurrencies



    Now if you are a Forex trader you are half way there because both traditional currencies and cryptocurrencies are based on the same standards
    so technically what works here works there with some differences that you should be aware and that's what we'll discuss here the differences between crypto exchanges from stock and forex markets

    1-Tradeable 24/7



    Unlike currencies in the Forex market Cryptocurrencies are traded 24/7,as we know, the Forex market closes for the weekend and does not open until Monday Perhaps in forex this pause does not mean much, but in the cryptocurrencies market it could make the difference between losing your investment or making a small fortune, and this may occur due to high volatility in this market.

    2-Volatility

    In the traditional currency market and even in the stock market, we find that volatility is often not more than 1 percent while in cryptocurrencies, including Bitcoin, the volatility may reach 20 and 30 percent with an average of 10 percent



    This is because the cryptocurrency market is smaller compared to the traditional currency market, which means that any move in the currency may have a clear effect on the price which is ideal for substantial ranges for daily trading and spikes of volatility

    3-Market size

    As I mentioned before, the size of the cryptocurrencies market compared to other markets is still small, with a turnover of about 355 billion compared to the Forex market, which is more than 5 trillion, which makes it the largest financial market



    4-Market Manipulation

    in order to talk about manipulating the cryptocurrency market, we must first address the concept of whales.



    Whales refer to a person or a group of people who own a large share of specific digital asset and use this advantage to manipulate prices in line with their interests, usually they lower the price of the cryptocurrency so they can buy it at a lower price, creating a phenomena known as FUD (Fear, Uncertainty, Doubt)
    On the other hand, manipulation is also present in the Forex market and the stock market, but in a limited way, because unlike the cryptocurrency markets it is a regulated market

    Conclusion

    As a Conclusion, i can say that the cryptocurrencies market is similar to the Forex market in many aspects but there are some differences that play an important role in determining the behavior of each market
    It is true that high volatility in the cryptocurrencies market makes it more profitable but at the same time the Forex market is more stable, safe and mature

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    Last edited by tfs2012; 04-20-2018 at 01:57 PM.

  2. #11
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    when coming to cryptocurrencies I really prefer stock market , i cant use strategies of forex and bla bla bla , i just Analyse the market , most of times using news, but you have to be smart in this type of trading , because you have no chart analysis no forex strategies , the price can drop very hard and then you find yourself a big loser , for ex if you bought some btc about 2 or 3 weeks ago (it was more than 7500$) and you want to sell it now you have big loses because the price fell to less then 6000$ ...

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  3. #12
    Trader Silhouette's Avatar
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    Quote Originally Posted by mehdiitim View Post
    when coming to cryptocurrencies I really prefer stock market , i cant use strategies of forex and bla bla bla , i just Analyse the market , most of times using news, but you have to be smart in this type of trading , because you have no chart analysis no forex strategies , the price can drop very hard and then you find yourself a big loser , for ex if you bought some btc about 2 or 3 weeks ago (it was more than 7500$) and you want to sell it now you have big loses because the price fell to less then 6000$ ...
    Another benefits from crypto currencies investment that we can hold our current coins and sell them as we wish with no restrictions to limit us from doing such thing. If the price drops to specific amounts that might caused us to loss then we should wait for another moment until market has move higher than the price when we bought the coins. We must be a smart people if we want to get profits from crypto currencies investment and stay as patient as possible.

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  4. #13
    Trader Senorita's Avatar
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    Quote Originally Posted by mehdiitim View Post
    when coming to cryptocurrencies I really prefer stock market , i cant use strategies of forex and bla bla bla , i just Analyse the market , most of times using news, but you have to be smart in this type of trading , because you have no chart analysis no forex strategies , the price can drop very hard and then you find yourself a big loser , for ex if you bought some btc about 2 or 3 weeks ago (it was more than 7500$) and you want to sell it now you have big loses because the price fell to less then 6000$ ...
    Everyone will have their own preferences and this is the real deal. Stocks, forex, and cryptocurrencies are all profitable investments that if we learn properly, we can sure be able to make good profits from this then always. I guess we need to be very wise to make the best investment which we don't regret with time. Personally forex is better for me and my study about this market gives us boundless opportunities to manage your risk and have a high means of trading good.

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  5. #14
    Trader Yayami's Avatar
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    Quote Originally Posted by Senorita View Post
    Everyone will have their own preferences and this is the real deal. Stocks, forex, and cryptocurrencies are all profitable investments that if we learn properly, we can sure be able to make good profits from this then always. I guess we need to be very wise to make the best investment which we don't regret with time. Personally forex is better for me and my study about this market gives us boundless opportunities to manage your risk and have a high means of trading good.
    cryptocurrency business looks interesting in the beginning for people who never take any real trading in related business such as forex and stocks. those who failed to understand the nature of cryptocurrency which still new to the market will lose everything soon enough. i don't know why people prefer to cryptocurrency because both stocks and forex market are better in many ways and has been famous by people in decades.

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  6. #15
    Trader tfs2012's Avatar
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    Quote Originally Posted by Yayami View Post
    cryptocurrency business looks interesting in the beginning for people who never take any real trading in related business such as forex and stocks. those who failed to understand the nature of cryptocurrency which still new to the market will lose everything soon enough. i don't know why people prefer to cryptocurrency because both stocks and forex market are better in many ways and has been famous by people in decades.
    [lang=ar]There are many reasons why people are trading digital currencies for example, It does not need a big balance and also you do not need leverage while in the forex market or the stock market you need a big balance or to use a leverage, which means that you will put your money at risk ,in the digital currencies, the only way to lose all your money is if the cryptocurrency becomes worthless[/lang]

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  7. #16
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    Quote Originally Posted by tfs2012 View Post
    [lang=ar]There are many reasons why people are trading digital currencies for example, It does not need a big balance and also you do not need leverage while in the forex market or the stock market you need a big balance or to use a leverage, which means that you will put your money at risk ,in the digital currencies, the only way to lose all your money is if the cryptocurrency becomes worthless[/lang]
    i'm quite interested to start with alternative coins such as litecoin and maybe when i get free money in my wallet i want to purchase them and hold until the price's increasing. it's also remind me of a traditional investment which we don't have to manually trade it like forex and stocks because we can participate by buying the coins and sell them when we see they has higher price of value.

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  8. #17
    Trader tfs2012's Avatar
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    Quote Originally Posted by Yayami View Post
    i'm quite interested to start with alternative coins such as litecoin and maybe when i get free money in my wallet i want to purchase them and hold until the price's increasing. it's also remind me of a traditional investment which we don't have to manually trade it like forex and stocks because we can participate by buying the coins and sell them when we see they has higher price of value.
    [lang=ar]Exactly you will not need to worry about analysis and all those things we need in forex or stock market,But I would like to suggest that it is better to buy a number of cheap currencies that have a good chance of going higher in the future this way increase your chances of success[/lang]

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  9. #18
    Trader elghina's Avatar
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    Although crypto currency very high volatility, some trader is love so much with crypto currency because volatility in that. When market volatility more give the chance more to get profit too. But also same compared with risk too in crypto currency. So risky. Although crypto currency is so traceable open in 24 hours in 7 weeks and size market so big too and high volatility too and in there maybe market manipulation looks like what you say. At there is mining as alternative to get crypto currency. Not only forex. Maybe we can say that what we talking in this forum likes a mining at crypto currency. Best for robo forex. I love this.

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  10. #19
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    Quote Originally Posted by Regina View Post
    Although crypto currency very high volatility, some trader is love so much with crypto currency because volatility in that. When market volatility more give the chance more to get profit too. But also same compared with risk too in crypto currency. So risky. Although crypto currency is so traceable open in 24 hours in 7 weeks and size market so big too and high volatility too and in there maybe market manipulation looks like what you say. At there is mining as alternative to get crypto currency. Not only forex. Maybe we can say that what we talking in this forum likes a mining at crypto currency. Best for robo forex. I love this.
    The reason why many people like buying and trading cryptocurrencies are the success stories caused by the rise in prices last year, so many are still trying to invest in the hope that they will be the next despite the decline in prices others are stuck there from the beginning of the year just hoping to get their money back.

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  11. #20
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    Forex, stock, derivative, bond or crypto currencies, all are various investment options available in front of the traders around the world. From my point of view, there is no such comparison between currencies and stock. Each product will have some definite features and a trader needs to cope with that. As I am not so matured trader, I still favor equities and forex as I lack trading expertise about crypto trading.

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