the differences between crypto exchanges from stock and forex markets
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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 12:57 PM.

  2. #2
    Trader Sixteen's Avatar
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    Hi tfs2012. I see to drop by your thread to know more on the difference between cryptocuurencies, stocks and forex market. I have seen you have also made some notable points about the difference in them. It's good to know about this difference and know the market suitable for us. Some are comfortable purchasing Cryptocurrencies while some are in for stock or forex currency market. At the end one must study the market they can perform better into and look to advance in them.

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    Trader tfs2012's Avatar
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    Quote Originally Posted by Sixteen View Post
    Hi tfs2012. I see to drop by your thread to know more on the difference between cryptocuurencies, stocks and forex market. I have seen you have also made some notable points about the difference in them. It's good to know about this difference and know the market suitable for us. Some are comfortable purchasing Cryptocurrencies while some are in for stock or forex currency market. At the end one must study the market they can perform better into and look to advance in them.
    Yes, it is important to know all the necessary information whether in Forex, stocks or cryptocurrencies or any type of investment, but in cryptocurrencies may be easier for two reasons :

    - first that there are cheap cryptocurrencies suitable for investment without the need for a large capital, unlike trading in the Forex market that needs a fairly large capital and using leverage, which may put your investment at risk.

    - second, the factors influencing cryptocurrencies prices are less compared to the Forex market

    These things make cryptocurrencies suitable for long term investment (this is a common thing between cryptocurrencies and stocks)
    That's why so many people are now buying different cryptocurrencies ( Cheap Cryptocurrency with Huge Potential), hoping that some of them will increase significantly in the future.
    However, I prefer forex market because it is more logical for me and suitable for day to day trading (due to high liquidity)

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    stock market is still bigger and more volatile than cryptocurrencies and so i think that stocks are more profitable than the cryptocurrencies, but trading with crypto currencies maybe more risky because it sometimes becomes more rapid and so this will increase the risk and so the trader should be more careful during trading the crypto.

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    there is the big difference in forex/stock and cryptocurrencies. by the market cap forex is the big financial market in the world and stock have also a good growth other hand a determined world of cryptocurrencies in full boom, its saying right that crypto exchange market have not big market cap compare to forex but its so risky and so profitable everyday bitcoin change more than 5% to 10% if we trade with leverage than maybe we washed our account in one day or double in one day

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    Trader tfs2012's Avatar
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    [lang=ar]
    Quote Originally Posted by letsdo View Post
    there is the big difference in forex/stock and cryptocurrencies. by the market cap forex is the big financial market in the world and stock have also a good growth other hand a determined world of cryptocurrencies in full boom, its saying right that crypto exchange market have not big market cap compare to forex but its so risky and so profitable everyday bitcoin change more than 5% to 10% if we trade with leverage
    You should know that the leverage used in trading CRYPTO currencies in all brokerage (as far as i know) does not exceed 1/10
    Quote Originally Posted by letsdo View Post
    than maybe we washed our account in one day or double in one day
    On the other hand, if it is possible to double your account in a day or two, you will be exposed to losing it in the same period.[/lang]

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    well my personal expereince say that theri is hige difference becoz stock market change as to sell the condition of buying and selling how ever crypto market is same but no one control it becoz if you are heavy buyer so once you sell them market will crash badly :)

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    Quote Originally Posted by ahleyan22 View Post
    well my personal expereince say that theri is hige difference becoz stock market change as to sell the condition of buying and selling how ever crypto market is same but no one control it becoz if you are heavy buyer so once you sell them market will crash badly :)
    [lang=ar]the cryptocurrencies market is still a new market compared to the Forex market and the stock market, which means that there will be changes in the future, as well as restrictions by countries and that may make trading more secure and will look similar to the forex market[/lang]

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    crypto trading is a new trading opportunity for traders and still, it,s costly and not used by everyone. this is a big problem that every trader have no so much info about crypto trading. some traders do not do trade on crypto coz this is so volatile market compare to forex. we can lose all money in crypto trading if we use 1:10 leverage.

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    [lang=ar]
    Quote Originally Posted by letsdo View Post
    we can lose all money in crypto trading if we use 1:10 leverage.
    In fact, it is quite the opposite, using a big leverage makes most of your money available as a free margin. (which also means that you can use a bigger lot size)so If you do not use a stop loss or if you don't use a good money management, this will put your account at risk so a small average is always a good thing.[/lang]

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