Trading FOREX vs Trading Crypto
Updated: May 26
In 2020 I cut my teeth on day trading and investing with Crypto currencies like Bitcoin, Ethereum and yes, Doge coin. I haven't owned any Doge coin since selling my bags on the nite of Elon Musk's SNL appearance when it topped out at $.75. My first purchase of Doge was for $.04. I was by no means a Doge coin Millionaire, but I did have a new sense of opportunity and the bull run of 2020 made me feel like I had a natural talent for winning at day trading and investing.
Three years later and losing lots of the initial capital I originally earned by hands on learning. Early on I saw I was not as good as I thought. The previous bull run I learned on had inflated my idea of how good I was. After a couple years I started to look into other markets to trade. I was more protective of my capital after paying for several big lessons, so I found the Forex market and instantly was hooked by the low-ish volatility and new lingo, like pips. Forex is the foreign currency exchange, the most liquid market in the world. All the technical analysis I had been learning in Crypto applied the just the same. I already had a great start to my continued learning journey in the world of trading and investing. I am not funded yet & barely consistent profitable, but every day I am getting leaps and bounds better and getting closer to my goal of getting funded by a firm so I can trade with their money.
Forex trading is a way of exchanging one currency for another, with the goal of making a profit from the difference in their value. For example, if you believe that the US dollar will become stronger compared to the Euro, you can exchange Euros for US dollars, and then exchange back to Euros once the exchange rate changes, to make a profit.
Cryptocurrency trading, on the other hand, is a way of exchanging digital currencies like Bitcoin, Ethereum, or Dogecoin. Like forex, the goal of crypto trading is to make a profit by buying low and selling high. However, the value of cryptocurrencies is not tied to any government or central bank, which means they can be highly volatile and their value can fluctuate rapidly.
One similarity between forex trading and crypto trading is that they both involve buying and selling currencies to make a profit. However, the currencies traded in each market are different, as forex involves traditional currencies such as the US dollar, Euro, Japanese yen, and British pound, while crypto involves digital currencies like Bitcoin, Ethereum, and others.
Another difference is that the forex market is highly regulated and traded through established financial institutions, while the cryptocurrency market is largely unregulated and traded through decentralized exchanges. This means that forex traders have more protection and stability, while crypto traders may face greater risks and volatility.
Overall, forex trading and crypto trading share some similarities, but there are also significant differences in terms of the currencies traded, market regulation, and risk level. It's important to do your research and understand the risks involved before getting involved in either market.
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