We review the characteristics of both options so you know where to go when investing.
Anyone who knows a little about the FX options that exist knows that the Forex is a market with many options and possibilities. Those who begin to enter the world of trading usually explore this area first, since trading with currency pairs is usually something simpler than entering other types of products within the stock market sector.
But, in recent years, with the rise of cryptocurrencies, the option of Crypto Trading has begun to gain more and more ground. In fact, there are professionals who have come to point out that it is something very similar to Forex, and they have no reason; but they are also wrong. They are two different fields.
The first aspect that differentiates them is the product. In FX it is operated with pairs of physical currencies, currencies such as the euro, the dollar or the yen are used daily in shops and entities of all kinds; while the crypto field focuses primarily on the digital sector, with money that really is not tangible.
On the other hand, the amounts of money that are handled in both sectors must be taken into account. While the Forex does not usually require much money to work on it, since currencies usually have not too high amounts in value, in the crypto we can find a brutal disparity. Compare the price of Litecoin with that of Bitcoin, for example, it is something that makes the difference clear.
Stability must also be taken into account. Cryptocurrencies form a very young market and in which solid steps have not yet been completed, which has led to some revaluations that have swung enormously in recent years. Returning to the BTC, maximum exponent of cybercurrencies, in just two years it has gone from having a value of 14,000 euros to stay in just over 3,000.
The latter is something that does not happen with the usual currency pairs in the Forex. This field is much safer and even easier to predict, offering the most inexperienced certain confidence that crypto cannot give it.
It is true that there are also similarities , deep down we talk about money and also proposals fully accessible from the internet; but the differences are there and, now, we hope you have become clearer.