In the era of money playing a significant role in the lives of people, where Time is Money, Online Trading has been a beneficial option to the newer world. From a student to a retired one everyone can easily trade with proper understanding and knowledge.
Forex trading, also known as Foreign exchange market, is buying and selling of currencies and earning profits on currency speculation which began in 1970s. It is simply converting one currency to another and trading. When the price of a currency is high, then selling of that currency will lead to profits.
On the other hand when the price of a currency decreases buying of the currency is beneficial so as to sell it later when the price increases. Therefore people are very much indulged in Forex trading because of the simplicity yet complexity of the Market.
It is over the counter market because it is practiced through a computer system and an internet connection. Hence all one need to have to multiply their income is a computer system and an internet connection.
Some of the interesting facts about Forex are that the Market is 27 times larger than Stock market. Also around 30% of the transactions are done EUD and USD currency. Moreover UK and US are having most transactions nearly more than 50 percent.
Crypto trading is also gaining popularity worldwide. It is a form used for payment in exchange of goods and services. Currencies are bought or sold in terms of tokens which are used for buying and selling i.e trading of goods and services.
Neither operated under Central Bank of the country nor is under government control, it is still a secure network for online payment and necessary transactions. Moreover it is an autonomous platform free from middle men providing more flexibility in transactions.
One of the important differences in these two is liquidity. Crypto trading is less liquid whereas Forex trading is more liquid. There are more than 300 million users of crypto trading among which 20 million users are Indian.
Crypto Trading and Forex Trading are both indulged in currencies. Forex trading market is rooted and is in practice from a longer period of time. Whereas Crypto trading market is still fresh for the existing market and people because of different national currencies. Also it is more risky as compared to Forex trading. Crypto Market is relatively less regulated because of latter is considered traditional in comparison.
Despite having differences in the two different trading platforms, there are similarities between them. Both tradings are affected by market supply and demand. The price increases when the buyers are more i.e. demand is more and supply is less while the price decreases when sellers are more and buyers are less.
In a nutshell, with complete knowledge and proper understanding of both the markets trading is much easier in its own complex manner. Forex trading and Crypto trading are a golden opportunity to be done efficiently and effectively once comprehended.