Hello Traders. We will have an unusual topic, namely, comparing stocks, forex, and cryptocurrency markets among themselves. I will tell you my opinion and experience. I myself started trading in the stock market 12 years ago, in 2008 year. After 7 years, I traded in Forex and currently have been successfully trading cryptocurrency for the last 3 years. Therefore, I have something interesting to tell you. Move on.
Comparison of cryptocurrency with stocks.
Stock trading is the oldest speculation market, which appeared in Holland in the 16th century, that is, more than 400 years ago! That time sellers and buyers gathered in a special area and actively traded. Trades could be taken several days, weeks, or even months. However, in order to increase the effectiveness of such speculations, something new had to be invented.
In order not to carry food products (fish, chicken, eggs), as well as industrial products, people remind special paper documents were invented to replace these products. Such paper documents began to be called stock shares. Later, the shares began to extend to the right to own part of a particular company, investments in it, and participation interests.
Trading stocks is a good way for day trading and as well as for investments. The main advantage of stocks is that there are almost no end-to-end movements and market manipulations. It gives you some peace of mind for your money in stocks. In addition, the stock market is the oldest, proven, and well-studied. Most conservative traders still choose to trade stocks in the short or long term.
Comparison of cryptocurrency with forex.
The forex market appeared later than stocks. Forex is the exchange and trade of one currency for another. For example, dollars are exchanged for Euro or Thai baht. The difference between the rates is constantly changing and due to this difference, the trader makes his profit. For example, today you bought $ 1 for 30 baht, and tomorrow it went up in price and you sold $ 1 for 32 baht – 2 baht is your profit.
The peak of the popularity of the forex market came in the late 20th and early 21st centuries. During this time, many central banks of the world began to actively conduct currency exchange. And later, financial regulators and brokers made forex trading available to ordinary people via the Internet and personal computers.
The advantages of forex are the high trading volume compared to stocks. News works well on Forex, stronger than on stocks, which allows many traders to trade successfully. And another important advantage of forex is a large number of programs and bots for automated trading because in the stock market bots are much less.
Advantages of the cryptocurrency over stocks and forex.
Approaching cryptocurrencies, it should be said that this is a new market that has emerged since 2010 and is constantly growing. Bitcoin, Ethereum, and other tokens are modern electronic money. With crypto, you can quickly and with a minimum commission payment for any product or service, and send it to other wallets without the participation of a bank. The simplicity, speed, and ease of use of crypto made it popular all over the world, including among investors and traders.
What are the advantages of the cryptocurrency over stocks and forex? Cryptocurrency, in particular such tokens as BNB, BAT, KAVA, and others, are essentially a means of payment, that is, electronic money. And these coins are at the same time analogs of stock shares. Cryptocurrency is both stocks and forex (money) rolled into one, a future that has already arrived.
In this regard, the cryptocurrency market now has much more trading volume than the same stocks and forex. And that’s not all – there is very high volatility here, which allows traders to make big money even without using leverage. Regarding software and bots for automated trading, many working tools have already been transferred from the Forex to the digital money market.
But there are also disadvantages to crypto. The main one is the frequent end-to-end movements in different directions, to knock out stop-losses of traders – especially in the crypto futures market. The second disadvantage is that the crypto market is very manipulative and easily controlled by the whales (large market participants). For the sake of justice, it should be canceled that there is everything the same on Forex, where some brokers interfere with the effective trading of ordinary traders.
As a conclusion of this material, I want to say that the cryptocurrency market is the most profitable, easy, and promising for both a beginner trader and a professional. For daily traders or investors. Crypto has a lot more advantages than disadvantages. And using risk and money management, you can protect yourself from end-to-end and fraudulent movements by large market participants. That’s all and see you in the next videos on botcryptotrade.com