The cryptocurrency market and the forex market are both incredibly popular among investors. But which one is better? Let’s compare crypto vs forex trading and find out which one is more profitable in 2022.
The cryptocurrency market has seen explosive growth in recent years. BTC, the largest cryptocurrency by market cap, surged from around $1,000 in early 2017 to nearly $20,000 by the end of the year.
This rally was followed by a sharp correction in 2018, but the market has since rebounded and is once again on the rise.
In contrast, the forex market is much more stable. Major currencies like the US Dollar, Euro, and Japanese Yen tend to fluctuate only modestly over time.
Of course, there are exceptions (like when the UK voted to leave the European Union), but overall, forex markets are much less volatile than crypto markets.
So, which one is more profitable?
There are a few things to consider when trying to answer this question. First, let’s look at the fees associated with each type of trading. Second, we’ll compare the potential profits that can be made in each market. And lastly, we’ll discuss the risks involved with each type of trading.
Fees
When it comes to fees, crypto trading is typically much cheaper than forex trading. For example, Coinbase, one of the largest cryptocurrency exchanges, charges a 1.49% fee for transactions under $200. Compare this to Oanda, a popular forex broker, which charges a minimum fee of $10 per transaction.
So, if you’re looking to save on fees, crypto trading is the way to go.
Potential Profits
According to a ProFort review when it comes to potential profits, both crypto, and forex trading offer opportunities for investors to make money. However, the cryptocurrency market is much more volatile than the forex market, which means that there is greater potential for big gains (and big losses).
For example, let’s say you invested $1,000 in BTC at the beginning of 2017. By the end of the year, your investment would have been worth nearly $20,000. This represents a return of 1,900%.
In contrast, if you had invested the same $1,000 in the US Dollar, your investment would have only grown to $1,010 by the end of the year (a return of 1%).
Of course, there’s no guarantee that you would have made such a large profit in the cryptocurrency market. But the point is that there is much more potential for big gains in crypto than there is in forex.
Risks
When it comes to risks, both crypto and forex trading involve a certain amount of risk when traded at platforms such as ProFort. However, the cryptocurrency market is much more volatile and unpredictable than the forex market. This means that there is a greater potential for losses in crypto trading.
For example, let’s say you invested $1,000 in BTC at the beginning of 2018. By the end of the year, your investment would have been worth less than $3,000. This represents a loss of 70%.
In contrast, if you had invested the same $1,000 in the US Dollar, your investment would have only declined to $990 by the end of the year (a loss of 1%).
So, if you’re looking to minimize your risks, forex trading is a better option than crypto trading.
Final Thoughts
Both crypto and forex trading offer opportunities for investors to make money. However, there are a few key differences between these two types of trading.
Crypto trading is typically much cheaper than forex trading. However, the cryptocurrency market is much more volatile than the forex market, which means that there is greater potential for big gains (and big losses).
So, if you’re looking to save on fees and minimize your risks, forex trading is a better option than crypto trading. But if you’re willing to take on more risk in exchange for the potential of higher profits, then crypto trading may be right for you.