Trading Cryptos or Forex？
It's hard nowadays to look at the news or read an article without coming across something about cryptocurrencies. Despite it being a relatively new market it has drawn a lot of members and attention due to its value growing at an astonishing rate over the last decade. The general sentiment is that cryptos is the future of currencies, just as fiat currencies became digitalised and put into bank cards and enabled online transactions. We may just call it the evolution of finance.
Since cryptos have gained a lot of value and with Bitcoin leading the front of this 'crypto revolution' organisations have begun to accept it as a method of payment for goods and services. Therefore there has also been an increase in the number of investors and traders. Investors basically buy a cryptocurrency with the outlook that it will increase in value over a period of time regardless of factors acting upon the crypto. Traders on the other hand make money through buying and selling in the fluctuations of the crypto since the one universal characteristic of any currency is that it can never increases or decreases in value indefinitely without a single fluctuation even for a minute.
A question that is often by many aspiring traders is whether it's better to trade Forex or Cryptos. Cryptos by conception were designed to be unlike fiat currencies. Therefore, the factors and forces that affect the two may be different. For instance cryptos are independent of governments and central banks therefore data releases and rate changes don't affect them as much. When analysing the charts using technical tools however there may be similarities as some might say historic price action repeats itself on the smaller time frames since on the larger ones, cryptos are still on the rise, breaking above prices they've never reached before.
In conclusion we can say that cryptos and forex may share the same technical tools for analysis but they are fundamentally different. The driving forces are different for various reasons including that cryptos are not tied to assets and are therefore not driven by economic strength. Which of course makes them riskier when faced with the threat of hyperinflation as compared to forex. Also as seen in the recent weeks, as opposed to forex, a single influential individual has the power to drive the crypto market as demonstrated by Elon Musk just by tweets. We saw similar events in the forex market when Trump was still president but the forex market cannot be swayed for long before stabilising.