Forex Trading vs. Trading Bitcoin, Fortunately Which?
For those of you already experienced in the online world, certainly not familiar with the terms of trading both forex trading or trading Bitcoin. Trading is arguably a way to earn income from the internet. Nowadays, the people who are in the business are getting more and more, ranging from professionals who are usually called brokers or brokers , individuals or those who just try it.
Most trading players know Forex first rather than trading Bitcoin. This is because Bitcoin itself only appeared in 2009. Now even though both businesses are run online, of course you are curious about which is more profitable between Forex trading and Bitcoin trading. For this time we will discuss it, just follow the explanation:
About Forex and Bitcoin Trading (Forex vs. Bitcoin)
Before determining which one is more profitable, it is better to know first what is Forex trading and Bitcoin trading.
- Forex trading is a currency trading business between one country and another country. Forex is an abbreviation of Foreign Exchange which means currency exchange. An example of Forex trading is buying Euros which are European currencies and simultaneously selling USD which is an American currency, can be abbreviated EURO / USD
- Bitcoin (BTC) is an open source or cryptocurrency virtual currency developed by “Satoshi Nakamoto”. This currency is like a rupiah or dollar. but only available in the digital world. This bitcoin is stored in Bitcoin Wallet. This wallet will be used to send and receive bitcoin with varying shipping fees.The amount of bitcoin has been determined since it was created, which is 21 million BTC. This limitation is done to prevent inflation.
More profitable where forex trading or bitcoin trading
- The average daily volume is quite large up to $ 2 trillion, which makes it the most liquid market in the world.
- If there is a decline in currency prices in Forex trading, traders can still take the opportunity to take advantage
- The disadvantage of changing currency values from Forex can be said to be small, on average only zero comma.
- Price movements are strongly influenced by issues and news that are happening.
- Changes in the value of BTC Bitcoin compared to USD are no longer zero commas but in digit counts in front of a comma, so the price changes are so great. So that both possibilities are more profitable and vice versa are much greater. BTCUSD is very interesting to trade, but it must be carefully calculated.
- In terms of Bitcoin assets more like stocks but unlike stocks or Forex, investors in the world of Bitcoin need not fear that someone will run away their money as long as you quickly withdraw the bitcoin you have into a personal wallet.
- The Bitcoin market is still classified as a small market compared to Forex so that bitcoin prices tend to change 5-7 times more volatile. When a party buys or sells large amounts of Bitcoin this is what makes bitcoin trading a greater risk than Forex.
- If there is a decline in the currency value, there will be confusion between traders holding rupiah or USD and traders who have just bought Bitcoin. The risk of a decrease is very large and fluctuations once.
Looking at the advantages and disadvantages of Forex trading and Bitcoin trading, in terms of benefits it can be said that Bitcoin has greater potential than Forex trading. This is because Bitcoin has faster price movements and larger units than Forex. Even though on the one hand we also have to realize the greater the profit, the risk is even greater. For this reason which problem is more profitable between these two trades can be said to depend on each individual’s choice with a mature calculation, and all of them have a plus and minus.
A wiser choice is if you divide your portfolio in many baskets, and are not placed on only one instrument.