Forex Vs Crypto Currency Trading - Which is more profitable and Why?

in #cryptocurrency7 years ago

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Have you ever heard of forex trading most of us including me are from forex or stock market trading background and now we are here because we believe in the power of crypto currency.

Let's overview one of the top point why crypto currency trading is better then forex trading.

Base currency.

All of us in any way need profit in our local currency to spend.

Being forex trader majority of the investors have base currency in either USDs or in their local currency.
Are national currencies worth holding as an investment?
NO probably not.
Because of their value is under command by national inflation and interest rates policies and almost doesn't fluctuate much in terms or profitablity but national inflation or in other words the prices of daily essentials are increasing day by day. So if you hold your national currency for 10 years it's value only will deprecate.

On the other hand Crypto currency traders need to select their base currency in form of either Bitcoin or ether or any other known currency. So even if your trades goes in loss you are always in profit in terms of your local currency.
For example I invested 2000$ and bought 0.15 Bitcoin for crypto trading, now I opened a trade and bought Ethereum using my Bitcoin, suddenly Ethereum price started falling and Bitcoin value start increasing , I sold my ethereum to Bitcoin and got 0.10 Bitcoin back but as Bitcoin value was increasing against USD now my Bitcoin 0.10 are worth more then 2000$.

Please note that the formula is not applied to short term or day traders because if the market is in corrective phase all the currencies may show red for longer period but if you are long or at least medium term trader who intent to hold their trade for a month at least then this theory applies almost perfectly.

Thanks for Reading.

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Need to know also for me

Good blog friend
Which do you think will prevail in the coming years?

Crypto Currency is real future, that's for sure

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