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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. #21
    Trader musiliu's Avatar
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    Quote Originally Posted by Yayami View Post
    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.
    cryptocurrency has there own unique feature that the forex and the stock market doesn't have, the cryptocurrency market is a 24/7 market and that translate to more opportunity to trade and make money, there is also a large volatile in Cryptos, so you don't need leverage to make significant profit and if you are buying, you can not loss more than the amount you are using to buy it, because you don't need leverage.

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  3. #22
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    Cryptos, stock, Forex, CFDs..
    These are all instruments that could be traded in the money market.
    But is strongly insist on trading just forex.
    Probably because that is what I understand better or better still, because it's the most stable instrument to trade.
    Cryptos are very volatile, stocks move slowly.
    But forex is fast paced, with lots of opportunities for money making.

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  4. #23
    Trader jamey's Avatar
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    To know more about the differences between cryptocinistry, stock and forex market, I see the drop by your thread. I saw you made some significant points about the difference between them. Good to know about these differences and find the market for us. There are some comfortable purchasing Cryptocurrencies for some stock or Forex currency market. In the end, one has to study in the market, which they can perform well and see their progress.

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  5. #24
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    Regulation is the most appropriate word discriminating Crypto with other traditional tradings. during 2017 to 2018 there was no use of crypto as people were using Euro, Dollar and other currencies. everybody was just investing their amount, converting traditional to crypto currency and late 2018 as the balloon explode nobody was a winner.
    So first we have to regulate it and then allow people to trade otherwise same situation may occur time and again.

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  6. #25
    Trader xauyuro's Avatar
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    Quote Originally Posted by tfs2012 View Post
    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
    Forex, stocks and Bitcoin have their own advantages and disadvantages. Keep in mind that trading Bitcoin tends to be more risky because the price is more volatile than the other two markets, but the potential that Bitcoin has is far greater than both.
    Bitcoin is more like stocks if we compared to Forex in terms of assets, but unlike stocks or Forex, investors in the world of Bitcoin don't need to depend on third parties or brokers. You don't need to be afraid that someone will run away with your money as long as you quickly withdraw the Bitcoin that you have into your personal wallet. In addition to investing, Bitcoin can also be utilized for various other things such as faster money transfer processes with very low transaction costs, safer hoarding tools, and more efficient modern payment tools.
    We need to remember that Bitcoin was originally created not as an investment tool, but as a new payment method in the financial world that utilizes decentralized technology to avoid human error that often becomes a source of problems, such as inflation, corruption in financial institutions, or third parties / brokers who carry run away for your money. Bitcoin is used as an investment tool because of its fluctuating price, and seeing its limited supply, many people think that the price of Bitcoin in the future will increase dramatically.
    but in reality no one is able to predict whether the price of bitcoin will rise high again or return to the lowest price as at the beginning of the appearance of bitcoin or even later there will be no price at all.

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