Both the cryptocurrency and Forex markets are very lucrative in nature, and if you are looking to invest in either crypto or forex, the decision might be extremely tough. Whatever you decide, the first thing you will have to do to start your career in forex or cryptocurrency trading is to leave the job you are currently doing. Forex and crypto trading can seem like a side business, whereas in actuality, it requires your undivided attention and probably weeks of research.
Now, abandon all hopes of making a quick buck with either crypto or forex, because the success rate with either one of these markets is less than 1 percent. So does that mean that there is only a very tiny chance of hitting it big with forex? Of course not. Even though you might not be the next Jeff Bezos or George Soros, you can make quite a profit by trading in either market.
However, building a fortune with either the crypto or forex market is not easy. It takes a lot of hard work, analytical thinking, understanding and using analytical software tools, solid trading psychology, time and the most important one: lots and lots of experience. To raise a lot of money with these markets, as can be seen here, is quite a bumpy road which discourages a lot many traders, some even quitting after trading for a period of 6 months consistently. Losing money like that can definitely be devastating, and it can lead to mental turmoil regarding whether you made the right decision or not, even if you have. The important thing to understand is that in order to make money, you will have to prepare yourself to lose money.
To understand more about the market, we need to understand the liquidity in each case. The first factor that any investor looks into before investing in crypto or forex markets is liquidity. The Forex market is the world’s most active market, and so it is also the world’s largest financial market; with a global average daily turnover of 5 to 6 trillion US dollars. Even though the crypto market is valued at 10 to 20 billion dollars a day, it is simply not comparable to the immense vastness of the forex market. So the forex market is easily at least 1000 times more liquid than the crypto market. Cryptocurrencies are usually subject to liquidity issues, especially if the currency being traded is a smaller cap cryptocurrency. Another advantage of liquidity is that technical analysis works best in liquid markets. The more liquid the market, the better will be the analysis results.
But does that mean that crypto trading yields no results? Of course not. The most traded cryptocurrencies like Bitcoin, Ethereum and Lite Coin offer much more liquidity than lesser traded ones.