Many would argue that comparing cryptocurrency trading with forex is like comparing apples and oranges, but that's not entirely accurate. On closer inspection, there is a number of similarities between the two. For example, the underlying market dynamics of supply and demand will usually govern the prices of the respective assets. Here traders share their thoughts on the mechanics of each.
Crypto vs Forex
It takes a certain type of savvy trader to navigate unpredictable market conditions and emerge in profit. Let's start with the pros and cons to be found from trading both crypto and forex.
Alex Mashinsky, CEO of Celsius Network, notes that crypto and forex both represent a digital store of value and can be purchased and sold with ease. They both have high volatility which creates an opportunity for quick profits going long or short.
"The pro of trading crypto and forex is that these are global markets dominated by large financial players who have algorithmic trading capabilities. Most individual players cannot compete or match the trading and speed of hedge funds and large banks which swim in these markets," said Mashinsky.
He explained that the biggest difference between forex and BTC markets is that unlike forex, bitcoin started and scaled via global retail trade and not via institutional players. This makes the BTC markets behave in a very different pattern than traditional forex markets.