The perennial trader question: Forex or cryptocurrency? Both have their upsides and pitfalls, but which holds the most potential for gains? Below, we compare the volatility, liquidity, and the trading strategies working best for each.
Forex would typically be considered the safer option, being very liquid and with better infrastructural provisions. For example, the USD, EUR, and JPY have traditionally established their values-a fact that makes movements more predictable based on economic data and geopolitical events. On the other hand, cryptocurrencies such as Bitcoin and Ethereum are very volatile, with the price skyrocketing or crashing down within minutes.
While Forex has long been the darling of institutional traders, recent rapid development in both DeFi and crypto trading platforms has opened new paths to retail traders in their quest for higher returns. Which way to go, then? It all depends upon your risk tolerance and understanding of the markets.
Do you think crypto will ever be more profitable than Forex? If you found this post helpful in considering a different perspective or approach in your trading, upvote and share your thoughts.