As we all know it, Bitcoin and Forex are both currency in which you can invest in and reap large amount of profits. As of today, a lot of people are investing in either of them worldwide just because of how easy it is to get profit from them. But, while they’re both the same investing platform, they both still have differences that we just can’t ignore. So, here’ the difference between Bitcoin and Forex Trading
But before that, let’s look into what bitcoin and Forex trading is before we see what differences they have.
Bitcoin trading, as its name implies is a trading activity in which traders use Bitcoin as their main trading tools. This exchange is often done in cryptocurrency exchange platforms such as Binance, Coinbase, Kraken, et cetera.
Forex itself is a shorthand for Foreign Exchange. So, different from Bitcoin that uses a cryptocurrency, Forex trading uses real money from different countries. While it may be similar, Forex Trading is still different from money changer that exists in various countries.
Bitcoin and Forex Trading Differences
Now that we’ve covered what Bitcoin and Forex Trading are, let’s look into what differs them from one another.
1. Price Fluctuation
The first in the differences between Bitcoin and Forex trading is of course, price fluctuation. As we’re all aware of, Bitcoin’s worth and value can fluctuate wildly just in the span of a couple hours. It rises and drops dramatically. But Forex, while still also experiencing price fluctuation, it’s not as extreme or drastic as Bitcoin.
What this means is that while the profit traders can get from Bitcoin can be massive, it also possesses just as massive of a risk of loss, making it a high-reward high-risk trading option.
2. Leverage Trading
Different from Bitcoin, leverage trading in Forex is way bigger compared to Bitcoin. Leverage in Forex can start at 1:100 and goes up until 1:1000 or even more than that. But in Forex’s bitcoin broker, they’ll only give 1:2 or 1:20 leverage seeing how high of a risk it is.
3. Information Influence
Bitcoin values and worth aren’t affected by the news and media. For it to rise or decrease is dependent on the traders’ activities themselves.
Unfortunately, this doesn’t apply for Forex. Forex value extremely depends on information out there, be it about politics, economics, disasters, et cetera. If a country with strong economy experiences a natural disaster or something along the lines, their currency’s worth will of course decrease. This can be seen as an opportunity by some, or misfortune for most.
And that’s the differences between Bitcoin and Forex Trading. By understanding and knowing their differences, we hope it helps you deciding which platform you decide to invest to. Whether it’s Bitcoin or Forex, make sure to gauge the risk and value you’ll get out of either of them, and then decides which one suits you best. Be selective and don’t settle for less.
That is all from us, we hope you find this article useful, and we’ll see you some other time with another Bitcoin and cryptocurrency related article.