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Forex trading vs. сrypto trading

Forex trading vs. crypto trading — Olymp Trade

While the development of blockchain technology has made trading cryptocurrencies highly popular, Forex has not lost its relevance among traders. The world of trading is as rich as ever, and everyone can find a market to satisfy their needs and desires. This article will explain the difference between Forex and crypto trading, and what you should know about them.


Interact with the underlined words and green dots to get additional details and explanations.

What is Forex?

Forex is an international market where major convertible currency pairs are traded. Forex traders trade currencies in pairs and speculate on the rise or fall of one currency against another. For success, traders need to predict how the value of the selected asset will change.

Operated around the clock five days a week and excluding holidays, the Forex market is rightfully considered the largest in terms of market capitalization and transaction volume 🕓

What are cryptocurrencies?

A cryptocurrency is a digital asset based on distributed ledger technology — a blockchain. Due to crypto being a peer-to-peer tool, users can make transactions (for example, buying or selling goods) directly with each other, without the mediation of a third party or “middle man,” such as a bank. Other advantages of blockchain include its efficiency, lightning-fast transaction speed, smart contracts, increased security, and the fact that all transactions are recorded on the ledger.

The value of a cryptocurrency depends on several factors, such as public acceptance, institutional interest, utility, its blockchain, news backdrop and other factors that influence supply and demand. This leads to some cryptocurrency prices changing unpredictably and quickly. However, this behavior is not typical of stablecoins, which enjoy low volatility, thus combining the best of both worlds. One of the major stablecoins is Tether (USDT), which can be deposited and withdrawn on Olymp Trade.

What are the main differences between Forex and cryptocurrencies?

In the Forex vs. crypto market battle, we need to understand that while both deal with currencies and rely on supply and demand to determine prices, they differ greatly from one another.

Here are some of those differences:

Trading time 🕛

Forex trading stops on weekends and holidays, while cryptocurrencies can be traded 24/7.

Trading volume and volatility 📈

Cryptocurrencies are very volatile, while Forex markets are more stable. Small cryptocurrencies can make huge moves within a short time frame. Forex has more controlled risks, but the profit potential is greater in crypto markets.

Safety 🤝

The crypto market is still in its early stages. Regulations are being developed in various countries, but the sector still experiences scams and attacks. The Forex market is heavily regulated, so Forex traders face less risk.

Forex and crypto similarities

Despite the significant differences between Forex and cryptocurrency trading methods, there are parallels between them:

  • To start trading, you just need a computer or smartphone connected to the internet.
  • Crypto and Forex are traded in a digital environment. This means that they both rely on modern technology.
  • Both markets are risky, as asset prices are influenced by news and events.
  • Crypto and Forex rely on the laws of supply and demand, although both have different risk profiles.
  • Many forecasts that are used for Forex can be used for Bitcoin and other cryptocurrencies. For example, the MACD and RSI indicators.

Why not both?

Despite seeming similar at first, a comparison of the Forex and crypto markets shows that these are indeed completely different markets. On Olymp Trade, you can trade crypto assets along with 33 currency pairs to feel out the market for yourself. However, as for whichever of these two options you choose to trade, remember that the secret to success lies in preparation and a close study of market conditions. Try it and see what’s best for you! 💸

Choose the asset you need and trade cryptocurrencies or Forex assets with Olymp Trade!

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Risk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.