Understanding of Forex vs Bitcoin Trading Differences

It should be understood that Bitcoin trading rules are different from Forex trading, although both trade you do equally with the facilities provided by Forex Brokers.

Price Fluctuations When Forex Trading is Smaller Than Bitcoin Trading.

Just look at the BTC / USD price chart. The movement is very drastic, even fluctuations in the price of hundreds of dollars in a day had happened several times. This is very different from the currency pairs generally in Forex trading. Major currency pairs such as EUR / USD, GBP / USD, and others, generally experience a change of less than one Dollar per day. This means that the potential profit in Bitcoin trading is greater than forex trading, but the risk is also much higher.

When trading Forex, you may commonly see enormous leverage, ranging from about 1: 100 to 1: 1000 or even more. However, when trading Bitcoin, it is worth noting that Forex Brokers will only provide much smaller leverage, in the range of 1: 2 to 1:20 only. This is because the risk is much greater, so regulators and Forex Brokers avoid excessive use of leverage that can worsen the situation when losses occur.

Need More Capital For Bitcoin Trading On Forex Trading.

The difference between forex vs. bitcoin trading is about price. Once it is known that Bitcoin price fluctuations are bigger, while the leverage that can be used is smaller, it can be concluded that you will need more capital for Bitcoin trading than if it is just regular Forex trading. What is the difference range? If we assume a rational capital for Forex trading between 500-1000 US Dollars, then it should be ready at least between 1000-5000 US Dollars for Bitcoin trading or even more so in order to manage a rather loose money management.

After knowing the difference between Bitcoin trading and Forex trading above, do you still want to share both? If yes, then note that to adjust the risk tolerance and Money Management is different, because the condition of the two can not be equated. It is also a good idea to apply different trading systems, because some strategies that are smoothly used on Forex trading may not work in Bitcoin trading