I think it's funny how some here claim crypto is high risk and forex isn't. I've never made easier money in my life than with cryptocurrency. But there are a few rules that you have to follow in order to be successful with it.
The most important one is trading the sentiment, which can be extreme since crypto is very volatile. You have to do the opposite of what the masses are doing. When everyone is greedy because the prices gone up much and they think it will last forever, sell to them. On the other hand when prices crash and most people think it's over for crypto you have to load up your pockets. This is how investing works and especially with crypto since it's so sentimental. As smart money you try to pray on the stupid money, steal money out of the noobs pockets.
High volatility is often the case with new technologies. The dotcom bubble was kind of the same. I think the reason is that it's hard to value a new technology so investors don't know what to make of it. It's not like with stocks that you can look at P/E and peg ratio's etc to determine if the stock is undervalued. How to calculate the intrinsic value of a cryptocurrency? I've been breaking my head over this question for a long time. It's almost impossible to give an accurate answer. But i do know that a market cap of just over 100 billion for all cryptocurrencies is not much. It could stretch to a few trillion dollars in the next few years before it become's expensive again. That's still not very much when you compare it to gold or fiat so it's not unrealistic. Especially considering we haven't even reached the high of the dotcom bubble, and crypto is global the dotcom bubble wasn't. Now with the internet things also spread faster. It's surely not over yet for cryptocurrency. When moooon. When lambooooooooo.
crypto more easier and it's decentralized , in forex bad or good news will affect this market
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Forex is something pretty tough to learn. Crypto I guess would be a better choice. I have friends who have invested thousands in forex with nothing left.
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Forex is about macro economics you need to understand them well to be a qualified forex trader. You can't really buy and hold forex like you could with cryptocurrency. How hard is cryptocurrency investing really when all you have to do is have enough patience and don't get fooled by the sentiment. I think cryptocurrency is one of the few available ways to get wealthy as a normal individual.
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Agreed my bro. Thanks for the reply.
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Forex is more about fundamentals (economic indicators, political and economic news) for long term trends and trading. For short term technical analysis can give you good insights if you take its signals under the context of long-term fundamentals. That said, if you learn to read the price action well you can get good FX gains. With cryptocurrencies, the problem is that it is a relatively small market with little volume that can be moved easily by the "whales". In addition, a simple news can cause savage market oscillations that can cause huge losses if you are on the wrong side.
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I found this book interesting trying to understand the psychology behind financial markets: https://amzn.to/2t6EdLT
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