Cryptocurrency trading provides a good opportunity to benefit from changes in asset prices. The volatility of virtual coins is fairly high, because the daily fluctuations reach several percent. That means, good profits can be achieved. Currently, you can do Cryptocurrency trading through the crypto exchange and the forex market. Let’s examine which is better.
The emergence of crypto exchanges is the effect of creating Cryptocurrency. The increasing enthusiasm of the community towards digital currencies, the number of crypto exchanges with various specialties is increasing. However, the age that is still as long as corn is the main obstacle. The lack of clarity of software and the legality status of the stock exchange, the spread of client fund theft scandals, loss of coins due to system errors, and the prohibition of operating by the government are problems that often appear on the crypto exchange. The Binance Exchange, which is an “elder” in this industry, rarely does. However, these obstacles remain.
In addition, crypto exchanges often experience technical problems with user services . Like: User verification is limited by technical errors, or suspended new user registrations. From time to time, customer service is increasingly overwhelmed in the face of hacking attacks and system errors. In fact, the crypto exchange is very vulnerable because it is the main target of hackers.
The forex industry has been operating for 20 years, and all its business activities are carried out with clear and transparent standardization, including: registration and verification of users, obtaining licenses, regulations, dispute resolution, routine reports on regulators, and so forth.
Forex brokers are subject to the legal provisions of the countries in which they register. Because the forex market has been Berita Bitcoin going on for a long time, this regulatory standard was formed by developed countries in the world.
In the UK, forex is regulated by the FSA (Financial Services Authority). This regulator was formed to anticipate fraud and crime, and provide a clear legal umbrella for clients. In Cyprus, forex regulation is handled by CySEC (Cyprus Securities and Exchange Commission). This organization was formed in 2001, and has the task of overseeing insurance and investment companies in Cyprus. At present, CySEC is one of the largest financial regulators in the world.
Volatility and Risk
Forex trading has lower volatility, so the risk is also smaller. The relatively stable value of fiat currency is also influenced by the tight regulation of the government. Many internal and external factors influence price movements, but the volatility will not be too sharp.
The crypto currency market is very volatile. Within 1 day, the price of crypto currencies can move up to 30% or more. Such sharp movements can bankrupt you in minutes. The reason is: the crypto currency market is unregulated and the price of crypto currencies depends on demand. However, the trend shows that crypto currencies are beginning to experience price declines and it will be very difficult to get profit in current conditions.
For additional information, in the past 6 months Downtren has been very clear in the crypto market . All crypto assets decrease in price by up to 90%. Many traders panic because they think the price of the crypto currency will continue to rise. Therefore, crypto currencies are not attractive to traders at this time.
However, if you still want to trade crypto currencies, you can do this through the forex market. Many brokers, one of them is JustForex , which offers trading services in various currency pairs, including Cryptocurrency. In addition, you don’t need to spend too much capital to start trading. With leverage, you can start trading with a minimal deposit.