Cryptocurrency Trading vs. Forex Trading – Is It Any Different

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Cryptocurrency Trading vs. Forex Trading – Is It Any Different?

Cryptocurrencies are often referred to as being revolutionary, different and unique. These strong words put off many traders since they fear that their current trading strategies may no longer work. Is it really the case? We’ve examined it in practice.

In theory, cryptocurrency is a currency as any other currency. So, one may expect that the rules should be identical with those used for other currencies with some specific features. Anyway, each currency has its specific features. So, how this is in reality?

Technical analysis

Technical analysis is the most popular type of all analyses and strategies among retail traders. Can we apply it in the same style we know from cryptocurrencies? Of course, we can. On the chart showing a day timeframe, I spotted a point that caught my attention – like from a school book. Take a look at it!

3 strong signals clearly showing the trend

Divergence itself on RSI is seen as a strong trading signal. Someone may argue that this divergence is too weak and he would be right. Anyway, it is still correct divergence. More, it’s been confirmed on MACD and the trading signal would also be visible to a trader using a clean price chart because what we can see here is a pivot point. It’s really unusual to have three such strong technical indicators in a single place.

And what about the next development of the chart? A downward trend, no surprise.

On a chart showing a 4-hour timeframe, I was suddenly attracted by a 1-2-3 gap strategy, which speculates on filling out the gap between the high and the low of the first and the third candles (of an upward formation) or the low and the high of the downward formation.

1-2-3 formation on a chart

It’s evident that technical analysis is universal, which applies to cryptocurrencies, too (in our case to the above bitcoin). If your forex strategy relies on technical analysis you don’t have to worry. Or, you can find inspiration from the above examples. However, always do a back-test first.

Fundamental analysis

Those who guess that the fundamental analysis will be successful or offers the same potential as the fundamental analysis for euro, USD or CZK are right. Cryptocurrencies have some specific features but what you are interested in is not the nationality and the central bank but the availability of using the crypto for payments, its security, and technical background, the developer team, origin, distribution etc.

Most cryptocurrencies are controlled by the users themselves which does not rule out the existence of a system suffering inflation and other such things. In general, what you focus on when using fundamental analysis is the same type of formations. In several cases, you have to find an alternative, which is still possible (instead of watching central bank regulations you concentrate on the regulation of mining etc.). It is not as easy as with the technical analysis.

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To give you a hint – the willingness to use particular crypto, the willingness to mine it (create, enable transactions…) are indicators you should watch in the first place. Concentrate on the very mechanics and safety (security) of the cryptocurrency. The robustness of the cryptocurrency and its security system are equally important.

Technical and fundamental analyses can be used for cryptocurrency trading. There is no big difference between them. If you are a forex trader, hey why not! If you are a novice in this field try out strategies you normally use for commodities or shares. The logic should work, what you will have to do is to adjust take profit, stop loss etc. Beginners in trading should test their techniques on a forex demo account and some of the technical strategies referred to in the article/s.


More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

The Main Differences Between Forex and Crypto Trading

Crypto trading is often thought of as similar to Forex, or foreign exchange trading. Forex, like crypto, involves trading currencies. However, there are a few key differences between the two. Forex trading is a large, well-established practice, while crypto trading is a relative newcomer to the scene. Forex often involves middlemen, brokers, and other institutions that take fees at every step of the trading process. The lack of a middleman is one of the biggest draws of crypto trading. And another major sticking point between the two is the liquidity available in Forex, versus the lack of liquidity in crypto – once you move away from the most common coins. And of course, there’s security.

Let’s take a look at the differences between the two in detail.

Swiss Francs vs. Bitcoin

Forex trading is large. The average daily turnover rate for Forex is in the trillions, with $5 trillion USD being traded in Forex in 2020. Compared to that, the most significant coin in crypto, Bitcoin, had only $1 billion USD turnover. BTC trading is not even as large as Forex trading in the Swiss franc, responsible for 5% of trading volume and $243 billion USD in daily turnover. However, unlike Forex, crypto trading can show returns of over 70%. Returns that high are almost unheard of in Forex trading.

Since Forex trading is so established, it is a regulated and mature market. This means that middlemen are everywhere in the Forex world. From brokers to exchanges, and other hidden fees and costs, Forex trading can get expensive, even before a trader has turned a dollar in profit. This means that Forex traders need to have pretty substantial capital also before they can trade. Institutional involvement is another significant aspect of Forex trading. Unlike crypto, Forex traders are competing with established banks, high-frequency traders, and other specialized firms. This institutional involvement can make it difficult to compete.

Stability and Volatility

Forex also lacks the same volatility present in crypto, making it hard to take advantages of small differences in exchange rates. However, this comes with the benefit of easily available liquidity. In other words, it’s pretty easy to trade any given currency for another, like trading US dollars for Nigerian naira. Orders like that tend to be filled nearly instantly. Because Forex has such high daily turnover, there are a lot of pairs that exist even if they’re otherwise minor currencies. Forex’s liquidity also ensures that even large trades won’t overly change the asking price of a given trade. For crypto trading, large trades often have a huge impact on price.

While crypto’s price can shift for big orders, especially when dealing with altcoins and lesser-known tokens, it has almost no barriers to entry. It’s incredibly easy to start trading crypto, and many online platforms allow users to jump in and begin trading practically instantly. The fees are usually much less than Forex fees, and the lack of a middleman means that there are no hidden costs. Crypto volatility also says that large, daily swings are possible and common, meaning that it’s a lot easier to buy in low in the morning, and sell high in the evening.

Security and Regulation

There is one more major difference between the two. That difference is security. Cryptocurrencies are a comparatively new technology, with all the risks associated with emerging tech. There are mountains of stories in the news about cryptocurrencies being hacked, stolen, or simply lost due to glitches. Due to the immutable nature of the blockchain, such actions are incredibly difficult to reverse, though not impossible.

There are also very little to no regulations surrounding crypto trading. This can leave traders open to scams and fraudulent behavior with no method of recourse. Having your funds hacked and stolen is not a pleasant experience – even less when there’s no real way to get that money back. Forex trades often carry some level of protection, and brokerage accounts are usually insured by the government in the event of theft or fraud.

Which Is Better?

Both Forex trading and crypto trading carry their own pros and cons and their own risks and rewards. Generally speaking, Forex trading is more stable, more protected, and highly regulated. Crypto trading carries the promise of much larger returns than Forex, at the cost of the stability of Forex. This means that smart and skilled traders with a large appetite for risk can realize much higher profits in crypto than they could in Forex trading, while not dealing with the same institutional involvement.

The two markets are similar, but only in the sense that they are both electronic trading forms of currency. The liquidity of Forex versus the volatility of crypto means that traders will need entirely different trading strategies for the two.

Bitcoin Forex Brokers 2020 — Top Crypto Brokers

We review and rate Top Forex Brokers offering Cryptocurrency Trading. In our rating you’ll find brokers that accept payments via Bitcoin, Bitcoin Cash, Ethereum, Ripple and other cryptocurrencies.

Forex Broker Review Year Status Instruments
1 FXTM 2020 Bitcoin, Forex, CFDs, CFDs on Bitcoin, CFDS on Spot metals, *Cryptocurrencies are only available in FT Global Limited; *NGN are only available to Nigerian clients
2 Libertex 1997
3 FxPro 2006 CFDs and Spread Betting on FX, futures, spot indices, shares, spot metals, spot energies, сryptocurrencies
4 FIBO Group 1998 FOREX, Spot Metals, CFDs, Bitcoin
5 HotForex 2020 Forex and Spot Metals, CFDs on Commodities, Indices, Oil and Shares, cryptocurrencies, bonds
6 XM 2009 Forex, CFD, bitcoin, stocks, indices, commodities, precious metals, energies
7 OctaFX 2020 Gold, Silver, Crypto, Indices
8 Grand Capital 2006 MT4: 500+ instruments: Forex, CFD on shares, metals, indices, Bitcoin, cryptocurrencies. MT5: 450+ instruments
9 ROinvesting 2020 Forex, Indices, Stock Market, Cryptocurrencies, Commodities, Metals, ETF
10 Olymp Trade 2020 Crypto-currencies, Currencies, Commodities, Indices, Stocks
11 USG 2006 Forex, Metal, Indices, Bitcoin
12 ETFinance 2020 Forex, Crypto Pairs, Indices, Commodities, Stocks
13 InstaForex 2007 Bitcoin
14 ITRADER 2020 Available Assets: CFDs on Forex, Crypto Pairs, Indices, Commodities, Stocks
15 ProfitiX 2020 Currency Trading, Commodities Trading, Shares Trading, Precious Metals, Cryptocurrencies, Stock Indices
16 FXOpen 2003 Metals, Oil, Gas, Indexes, CFDs, Bitcoin, Cryptocurrencies
17 Dukascopy 2000 Metals, Gold
18 eToro 2007 Bitcoin
19 Exness 2008 CFDs on metals, cryptocurrencies
20 1999 Spot Metals (US unleveraged trading, UK and AU leveraged trading), CFDs (UK and AU only)
21 Forex4you 2007 Forex, Commodities, Indices, Stocks, Bitcoin
22 FreshForex 2004 CFDs, Bitcoin
23 IronFX 2020 Forex, Spot Metals, CFDs on commodities, indices and shares, futures, cryptocurrencies
24 NordFX 2008 Gold, Silver, 16 cryptocurrency pairs, 4 crypto indicies
25 Bithoven 2020 CFD for crypto
26 IG Markets 1995 no

Read our extended Forex Guide to find out how to choose the Best Forex Broker 2020.

Start Forex Trading Now! Open Forex Account with the Best Forex Brokers 2020.

Cryptocurrencies Trading Forecasts

Bitcoin has remained well supported in today’s trading session after the latest job figures from the US painted a grim picture of the US employment market.

Bitcoin was trading at $5,352.5 by 03:54 (07:54 GMT) on the Index on Tuesday, up 10.05% on the day. It was the largest one-day percentage gain since.

Bitcoin was trading at $4,719.3 by 05:03 (09:03 GMT) on the Index on Monday, down 11.11% on the day. It was the largest one-day percentage loss since.

In the past decade, Exness has managed to establish a leading position in the CFD industry and greater fintech world by offering services and trading conditions matched by the few. These include hundreds of financial instruments, best execution, narrow spreads, market-leading platforms, flexible leverage options, proprietary apps and the most sought-after tools to fortify any trading strategy. Furthermore, deposits and withdrawals are instant, seamless, and available in our clients’ local currencies through the most popular payments in their region.

Bitcoin has lost about 1% in the last 24 hours and traded near $7,900 this morning. During Tuesday, BTCUSD failed to break above $8K, faced pressure.

Ethereum fell bellow the $199.77 level on Tuesday. Ethereum was trading at 199.77 by 03:03 (07:03 GMT) on the Index, down 2.45% on the day.

Over the past seven days, Cardano has seen a drop in value, as it lost 15.94%. The volume of Cardano traded in the twenty-four hours to time.

The first cryptocurrency falls on the third day, losses amounted to almost 9% per week. On Wednesday, a wave of sales covered other cryptocurrencies.

Bitcoin (BTC) took an unexpected dive, plunging $600 in a matter of minutes. The plunge saw 15 of the 20 largest crypto assets by market cap down.

Bitcoin (BTC) fell by almost 2% in an hour on Feb. 13 as markets faced rejection after reaching higher levels around $10,500. Data from Coin360.

Forex Forecasts

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How to trade Bitcoin on Forex?

There are two ways a forex trader can use his Bitcoins: to open a deposit in BTC or trade BTC. Now more and more forex brokers offer their clients to have trading accounts in bitcoins, with this type of deposit a trader makes a loss or profit in bitcoins while trading conventional currency pairs. The second option – Bitcoin trading itself – is quite straightforward. Like other currency pairs, Bitcoin at Forex is traded as part of a bitcoin / dollar currency pair. In the trading terminal, it is designated as BTCUSD or Bitcoin.

Why has BTC become such a hot trend with forex brokers?

The answer lies in the coin’s nature. It is the first product of breakthrough blockchain technology, which is perceived as the main tool of finance of the future. The scope of cryptocurrency’s usage is constantly growing, as well as its recognition by governments across the globe. Having successfully conquered the field of OTC transactions and investments, bitcoin has quickly advanced into the world of online trading. The long-term growth of the bitcoin exchange rate attracted investors, who increasingly see cryptocurrency as an alternative to the traditional investment tools. It’s only natural that forex brokers have begun to implement bitcoin as a traded asset on their platforms. At the same time, the cryptocurrency market as a whole, and bitcoin in particular, is subject to very high volatility, which, under successful circumstances, can bring the trader significant profits in a very short-term period, as well as significant losses. The ambiguity in the regulation of the cryptocurrency market and its high volatility create additional risks for private investors. In such circumstances, the choice of a reliable bitcoin broker becomes especially important.

Bitcoin trading vs. Forex trading: similar or different?


Trading BTC/USD pair is technically no different from trading conventional forex currency pairs. In the same way, deals for buying and selling are opened, stop loss and take profit orders are set.

High level of risk.


24/7 regime of BTC trading.

Low liquidity of BTC trading as compared to liquidity of forex market.

Price sensitivity to news. With BTC, the media has an unusually significant influence on its price. You need to follow the hot news on the air: if a large fund invested a huge amount in Bitcoins, you may enjoy the excellent bull market. In case of hacking a major crypto-exchange, it will be reasonable to work on sales. That is why it may be a good idea to look for a forex broker that has a strong news section on the site.

A sufficiently large spread is set which makes scalping impossible. For trading it is recommended to consider timeframes from H1 and higher.

Tips when choosing a Bitcoin Forex Broker

When searching for a bitcoin forex Broker, check what regulators have licensed the company, as well as the period of its work in the market.
See if pairs are available other than standard BTC/USD, what are the minimum account size, terms of deposit, spread and leverage.
Consider an additional advantage of easy transfer of funds between your forex and cryptocurrency accounts, as well as the availability of technical and fundamental analytics.

Choosing a broker based on these factors can help you reduce risks when entering this promising market. The main difference between brokers is the number of available types of cryptocurrency: the larger the list of available coins, the more opportunities a trader has. Which broker is better for trading bitcoin? There are several of them – the best Bitcoin brokers we recommend are be listed in the ranking list below.

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