Difference Between Forex VS Bitcoin
There is no greater feeling in the world than to know that the time, money and effort you exerted will return back with a profit. “How can I choose between Forex vs Bitcoin trading?”. “What is the safer option?”. “And above all, which can get me to earn the highest amount of money?”
If those questions have ever popped into your head, then look no further because we shall be dabbling on the difference between the two. By the end of this article, you should be familiar with the difference between Forex vs Bitcoin.
The first thing you may notice about the cryptocurrency market is it is relatively small compared to the forex market. In fact, the forex market is the largest and most liquidated trading market available right now. Therefore it is being closely backed by a central government. And because of how it affects every currency in the world, there are significant effects on the market based on global news. Furthermore, inflation numbers and job reports make up a large percentage of the flow of the forex market. On average, over $5 trillion is being traded in the forex per day.
Meanwhile, cryptocurrencies, also known as digital currencies, do not use traditional dollar or yen currency figures. It is not controlled or governed by any central government. And they are only hosted online. But a peer-to-peer authentication is how it will be managed, preventing you from abusing the cryptocurrency market. That network is what generates the digital currencies that will now be traded for digital cash. The people who check entries in exchange for digital money are called miners. The market has reached a cap of more than $700 billion and has the capacity to grow.
It should be noted that both articles are still highly profitable if done right regardless of the market size. Although there are still some factors that should be considered.
The forex market has an unlimited supply due it consisting of the world’s global financial markets. However, cryptocurrency trading is limited because of its finite supply. In spite of its limited supply, it creates a higher demand. In turn, inflating the value fast.
Cryptocurrency traders have a tremendous potential gain due to the young nature of the market. However, you must remember that higher rewards also mean higher risks. Case in point, people who have invested around $1,000 on Bitcoin back in 2013 is now seeing returns of up to $400,000. Although in the forex market side, there are more active participants. Thus, making it quick and easy to trade currencies regardless of volume. You should note that it will require a significant amount of traders to make a large-scale impact.
Lastly, one major discerning factor in forex vs bitcoin is in its availability. The forex market is significantly more difficult to apply and manage because of how the global news and economy affect it. Although it does mean you can plan ahead before you start trading. As long as you are staying current on the news. On the other hand, cryptocurrency trading is accessible to everyone. And it levels the playing field for all by having all opportunities be available on the internet. Thus making it a great way for everyone, even those situated in underdeveloped countries, to start trading.
Both the forex market and cryptocurrency can be lucrative businesses or investment. However, it should also be understood that they are both highly volatile markets. If done improperly then it could result in you losing all your money. But if you manage it well then you can be in for a fantastic opportunity.