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Dynamics of Forex Trading vs Crypto Trading
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rypto-trading
Dynamics of Forex Vs Crypto Trading Due to the
decentralisation of markets since 1970, the
trading scenarios have also changed. Today, we
hear new terms in trade markets that are foreign
exchange aka forex trading and cryptocurrency
trading. What is Forex Forex Trading? The term
Forex is broadly named as Foreign Exchange, i.e.
it is a market for the exchange of foreign
currencies. And Forex Trading employs buying,
selling, exchanging, determining the current
prices of any currency in the global
market. What makes a Forex Market? Forex markets
consist of Big financial firms like international
banks, big insurance companies, and large
economic shareholders at a global level like the
World Bank and IMF. Here in Forex Trading, the
banks work as a dealer who deals in foreign
currencies exchange. The currency trading rates
and prices are determined by the interest rates
of different countries where the Forex market
also serves as the arbitrator in maintaining
the sovereignty of the currencies of different
countries. Here, the currency trading can be
understood by a simple example suppose
India want to import oil from the US, then it
will have to pay the money in American Dollars to
the USA even when it deploys its internal
transactions in INR only. So here, the role of
Foreign Exchange Market comes into play as it
maintains the respectful floating value of
Indias currency in international markets.
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So with the above example, it can be said that
currencies exchange and trade happens in
currency pairs, e.g., EUR to USD or USD to
JYN. How to Trade in Forex For beginners, it is
a mind-blowing question, but here is the best way
to trade in the Forex market. As a beginner, one
thing has to understand that there are a variety
of things to trade in the Forex Market like
commodities, currencies, energy, metals CFDs,
stocks, and indices etc. One has to choose
judiciously among these. The Process of
Investing in Forex Starts with getting a licensed
broker who can help us trade in the market. Here
is one of the top brokers who are available to
help you invest in foreign exchange
markets. With the help of these market leaders,
you can invest your money in trade. Besides, all
the above-mentioned assets, the most preferred
one by small investors are trading in foreign
currencies where they can earn or get benefited
by two methods, i.e. either earning interest
difference between two currencies or making money
by a change in exchange rates. Forex trading
can be started from home The best way is to buy
the currency with a higher rate of interest
shorten it with a currency which has a lower rate
of interest. Forex Trading Strategies If someone
wants to churn maximum profit out of small or
medium investments, he/she has to deploy the
best F orex trading strategies that work for
him/her. Here are some simple investing
strategies that could be followed Price Action
Trading The trading is speculated by time
indicator. i.e. the investment is made on taking
into consideration the previous economic
activity. Range Trading Strategy This strategy
is employed with oscillators like commodity
channel index, stochastic, relative strength
index etc. Trend Trading Strategy This strategy
is also somewhat like price action trading. By
analysing short to medium time spans trends,
multiple time frame economic fluctuation, one
can quickly get the idea of where to
enter. Position Trading In this strategy rather
than short and medium-term variations, long term
scenario like weeks, months or years are taken
into consideration. This strategy can be used in
both Forex and Stocks. Day Trading Strategy This
strategy works best for those who want to invest
and get the output on the same day whatsoever.
This t rading strategy, trading time ranges from
minutes to hours only. Carry Trade Strategy The
most used and favourable for both beginners and
expert investors as one can easily get profit
from the difference in interest rates of
different currencies by investing in low yielding
and landing into high yielding currency rates.
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Forex Trading Platforms With the advancement of
the Internet, the best trading software is Meta
Trader 4, developed by MetaQuotes
Corporation. Now as you have gone through the
Forex Trade, its terms and techniques to invest
and trade, one can see that there is a growing
trend in searching about the prospect
of investing in Cryptocurrency past 2009. What
is Cryptocurrency? Cryptocurrency is a synonym of
pseudo currency, i.e. one cannot see it as paper
currency. The ownership information is saved in a
computer database in the form of
strong cryptography. The ledger in which the
information is saved is also known as a
blockchain. You must have heard of a term
Bitcoin. This was earlier released as an open
source- software which later on turned into
Cryptocurrency. How to Trade Cryptocurrency? As
stated earlier Cryptocurrency is a pseudo
currency, so before planning to trade in it, one
would have to have a digital wallet and an
exchange to trade. Now there are primarily two
types of wallets, e.g., owned and custodian
(works as a banker too.) Wallets are further
categorised as online, offline, Android, hardware
and desktop wallet. These wallets stores
different or same type of bitcoins depending on
their design technology. With the help of these
wallets, one can buy, store, sell or
exchange Cryptocurrency. Cryptocurrency Trading
Strategy For Beginners As the Cryptocurrency is
highly volatile, one has to be very careful
before investing. So here are some simple
techniques to follow before start
investing. Long term Holding Due to the
volatility of the Cryptocurrency, this method is
not recommended by experts, as this currency has
witnessed major tops and falls from its
inception. In this method, one has to be a
bitcoin and hold it for months or years to get
the desired gain, but that is not always fruitful
as some may end withdrawing at low turnout even
after years of holding. D ay Trading This
strategy is used to get the actual benefit of
investing in Cryptocurrency as one can get
desired output by investing multiple time in a
day trade and get small positive yields that sum
into a big bonanza. Scalping This is the most
practised technique in Cryptocurrency investing.
This technique is somewhat like day trading. The
only difference is that it turns out to be
fruitful only when it is played on high volume.
One can extract the profitable turnout by
investing significant volume and measuring minute
to minute market fluctuations.
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• Swing trading This strategy is considered as
  ideal for beginners as this
• incorporates slightly long time investment
  holding compared to day trading and scalping
  like for around one week. One can get 10-20 per
  cent growth within one trade cycle, even with
  small or medium investment.
• Bitcoin trading platforms There are several
  bitcoins trading exchanges, e.g., Kraken,
  Binance etc.
• Conclusion Forex Vs Crypto Trading
• After discussing the whole about Forex Trade and
  B itCoin Trade, we have reached on the
  conclusion.
• There has been some pros and cons of each trading
  system which are shown one by one down below.
• Pros of Forex Trading
• 1. It is centralised, so no one has to worry
  about the system glitch. The invested money is
  not lost into any black hole instead, everything
  is on record.
• Cons of Forex Trading
• One will have to make prior speculations the
  risk to yield calculations before
• investing in it as this market is less volatile
  compared to the cryptocurrency trading market
  and its fluctuation depends on past trends.
• Pros of BitCoin Trading
• Easy to invest, and one can start with a small
  chunk of money and draw substantially huge
  returns.