Why is crypto trading success different than other markets?
Forex trading can be a way to success for many, over the years, there have been tens of different people who became very successful thanks to Forex trading. These people have dedicated most of their time to Forex trading and everyone has heard about them at some point.
However, the success that FX traders can have is totally different from the success that crypto traders can have. It generally depends on several different factors, but in most cases, while it is also a lot riskier to trade, crypto traders mostly make a lot bigger profit.
However, although there are a lot of differences between trading Forex and crypto, these two still have some things in common. Generally, traders in both of these situations predict the possible changes in the market and that is how they make a profit. However, the amount of profit they make is the difference here. Both of these markets are changing constantly, but what makes the real difference is the fact that the difference in crypto prices is a lot bigger than it is for the Forex industry.
How to be a successful Forex trader?
There are a number of things that influence your success in the world of Forex. One of the most important things today is to make sure that you are using a safe and secure Forex broker. There are a number of brokers around the world, and every trader should make sure that they are trading with the ones that are authorized and licensed by regulatory agencies for maximum safety.
A great thing to do is to look for the most successful Forex traders. There is a lot that you can use from their experience, to learn, and to grow as a trader. The list of top 10 most successful Forex traders include people who you might already have heard about, the list includes names like George Soros Soros is best known as the man who broke the Bank of England, because of the short sale that he did of $10 billion worth of pound sterling. In ended up making a lot of profit during the 1992 Black Wednesday UK currency crisis and thought a lot of people the importance of taking risks.
With this, Soros made history and is known as one of the successful traders in the history of trading. However, not everyone is as successful as him. Because of the fact that the amount of changes in the prices of currencies is very little, making a huge profit is not in any way an easy thing to do. Soros is one of those people who is known to have a close relationship with other traders, in many cases giving them tips for successful Forex trading.
What is the main difference between success with Crypto and Forex trading?
Although there are many things that these two have in common, there also are a lot of differences. One of the biggest differences is the amount of money that investors spend on trading.
When it comes to crypto, Bitcoin, for example, involves the smallest costs. When it comes to trading with BTC, because of the nature of bitcoin blockchain, BTC is being traded on a peer to peer basis, which means that the costs for trading are very low, especially compared to FX trading.
Because of the fact that there is no one between the traders, it has much lower fees than FX trading, where brokers and aggregators are the ones that facilitate transactions between the participants of the market.
Also, for many traders around the world who use crypto, making a profit is a lot easier than it is for those who are trading Forex. This mostly happens because of the fact that the prices of cryptocurrencies are changing every moment and these changes are huge which gives traders the ability to make huge amounts of money in just a few minutes. With this, also comes to some risks, however, if most of the traders who use crypto are very knowledgeable and do their best to make sure that they are making a lot more money than they are losing.
On the other hand, the prices of currencies are also changing very quickly. In this case, however, the difference is very little, and making a huge profit is very hard. What it means is that crypto trader can make as much profit in an hour as Forex trader might need more than a few days to make.
Because of this, more and more people are starting using cryptocurrencies for trading than ever before, and the number is rising constantly.
Also, a huge difference is the fact that trading with crypto is not as well regulated as Forex trading. Because of this, crypto traders have the ability to trade without any restrictions. But this comes with a huge risk as well. To make crypto a safer place for traders, many regulatory agencies have come up with new regulatory frameworks.
As of today, many Forex brokers have restrictions when it comes to the amount of money crypto traders can deposit on their trading accounts. As much as it can cause some problems for some traders, it also ensures that these traders can be a lot safer than before. More and more countries are coming into terms that they have to regulate crypto, and this can make this field even more secure.
Regulations are generally very important for successful trading. They are something that makes sure that Forex traders can stay as safe as possible. With regulatory guidelines, Forex brokers are doing their best to keep their clients’ funds safe.
Why are so many people trading with crypto?
Crypto is a digital currency that was designed to work as a medium of exchange. The individual coin ownership of crypto is stored in a ledger that exists in the form of a database that uses very strong cryptography to secure the records of transactions.
Because of this, crypto offers people security and privacy that is very important for many traders. This is one of the reasons why so many people are starting to use crypto, which also offers them to make huge profits in a very little time.
Cryptocurrencies are pretty new, one of the best known and first cryptocurrencies, Bitcoin, was created in 2009 and since then, it has changed a lot. Although there still are some skeptics, the currency is developing at a very fast pace. In 2017, Bitcoin managed to get its highest price in history and proved to many people that it could be a very successful way of investment.