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Weighing the Benefits of Forex and Crypto Trading

Weighing the Benefits of Forex and Crypto Trading

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When it comes to choosing between forex trading and crypto trading, there are several things that traders need to consider before choosing one over the other. While there are traders who tend to do both, many traders still choose one to focus on. This report examines the unique offerings of both crypto and forex trading, as well as the benefits associated with these highly sought-after markets.

Advantages of forex trading

Forex trading is one of the oldest and largest forms of trading available today. Simply put, it is the conversion of one currency into another to make money when one currency gains or loses strength against another currency. So a trader buys a currency, say USD, waits for it to go up or down depending on his position, and then sells in another currency. Here are the benefits of forex trading.


One of the most important things when it comes to trading any type of asset is having enough liquidity. Considering that the Forex market is the largest in the world with an estimated daily trading volume of 6.6 trillion dollars, there is a lot of liquidity in the market. This means that there is good market depth between the available trading pairs.


Leverage is something that is abundant in the forex market. Forex brokers are able to provide incredibly high leverage for trading forex currency pairs due to the low volatility of the market. In some cases, leverage can go up to 30:1, allowing traders to trade larger amounts than they have in their accounts. So, by using leverage, investors can open larger positions than they have in their balances.

Photo: Marga Santoso on Unsplash

Low trading costs

Another important thing about forex trading is the significantly low trading costs associated with it. Forex traders tend to pay what’s called a “spread” and/or a “commission” of about 1 pip for each trade made. This 1 point means about 0.08% of the trade.

Versatile options

There are plenty of trading pairs to choose from in Forex trading. Traders can trade between major pairs, minor pairs or lesser known pairs/exotic pairs. The market has something for every trader.


The stability of the currency market is also a big draw for traders. The market now has its own risk, but since it is not as volatile as cryptocurrencies, there are no large swings that can quickly wipe out an entire portfolio in a matter of minutes or seconds due to the large number of trades recorded there. forex market.

Advantages of crypto trading

The crypto market is still relatively new, but its popularity among investors has grown rapidly. Assets in the market are generated by multiple individuals and communities, and in some cases are fully decentralized using blockchain technology. The appeal of the crypto market to traders is getting stronger day by day and here are the reasons why.

High volatility

The high volatility of the crypto market has made it very attractive to traders who want higher margins when it comes to trading. Much of the crypto market assets are not regulated by the community. That’s why their prices vary wildly. These fluctuations offer traders the opportunity to make a lot of money in a short period of time. However, it significantly increases the risk of traders losing their positions in one fell swoop.

Photo: Pixabay

Low barrier to entry

Unlike forex trading, traders do not need to go through a broker in order to trade. Instead, they can just open an account on a centralized exchange, deposit money and get started. Traders can also have direct access to the market through decentralized exchanges where they can deal directly with other traders without the intervention of a third party.

The market is always open

Cryptocurrencies do not have so-called “trading hours”. Simply put, the market is always open and traders can make trades no matter what time or day it is. This “always open” feature is a huge draw for those traders who don’t want to be restricted to certain hours or days of the week.


The choice between crypto trading and currency trading is usually up to the discretion of the trader. However, platforms like Oanda have made currency trading easy even for beginners. The platform offers a demo account where traders can learn and sharpen their skills before moving to a live account.

The platform is one of the fastest and most reliable forex trading sites and includes over 65 popular indicators that help traders spot forex price trends.

Image by Sergei Tokmakov, Esq. Terms.Law from Pixabay

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