When it comes to choosing between going into forex trading or crypto trading, there are a number of things that traders must take into account before picking one over the other. While there are traders who tend to do both, a lot of traders still go the route of picking one over the other to focus on. This report takes a look at the unique offerings provided by both crypto and forex trading, as well as the benefits associated with these highly sought-after markets.
Benefits Of Forex Trading
Forex trading is one of the oldest and largest forms of trading currently available. Simply put, it is the conversion of one currency to another in a bid to make money when one currency gains or loses strength against another currency. So, a trader buys a currency, say USD, waits for it to go up or down, depending on their position, and then sells for another currency. Here are the pros of forex trading.
One of the most important things when it comes to trading any type of asset is having enough liquidity. Given that the forex market is the largest in the world, recording an estimated $6.6 trillion in daily trading volume, there is a lot of liquidity in the market. This means that there is a good depth of market across the available trading pairs.
Leverage is something that is abundant in the forex market. Forex brokers are able to give incredibly high leverage to forex currency trading pairs due to the low volatility in the market. In some cases, leverage can go as high as 30:1, allowing traders to trade larger amounts than they have in their accounts. So, using leverage, traders can open larger positions than they hold in their balances.
Photo by Marga Santoso on Unsplash
Low Trading Cost
Another important thing when it comes to forex trading is the significantly low trading costs associated with it. Forex traders tend to pay what is known as a ‘spread’ and/or a ‘commission’ of about 1 pip for each trade completed. This 1 pip translates to roughly 0.08% of the trade.
There is an abundance of trading pairs to choose from in forex trading. Traders can choose to trade across major pairs, minor pairs, or lesser-known pairs/exotic pairs. There is simply something for every trader in the market.
The stability of the forex market is also a big draw for traders. Now, the market carries its own risk, but since it is not as volatile as cryptocurrencies, there are no wide fluctuations that can quickly wipe out an entire portfolio in a matter of minutes or seconds, thanks to the large volume of trades recorded in the forex market.
Benefits of Crypto Trading
The crypto market is still relatively new but has grown rapidly in popularity among investors. The assets in the market are produced by a large variety of individuals and entities and, in some cases, are completely decentralized using blockchain technology. The pull of the crypto market towards traders gets stronger each day, and here are the reasons why.
The high volatility present in the crypto market has made it very enticing for traders who desire larger margins when it comes to trading. A lot of the assets in the crypto market are not regulated by an entity. Hence, they tend to fluctuate wildly in price. These fluctuations present an opportunity for traders to make a lot of money in a short time. However, it also significantly increases the risk of traders losing their positions in one fell swoop.
Low Barrier to Entry
Unlike forex trading, traders do not need to go through a broker to be able to trade. Instead, they can just open an account in a centralized exchange, deposit some money, and get started. Traders can also have direct access to the market through decentralized exchanges where they can deal directly with other traders without interference from a third party.
The Market Is Always Open
Cryptocurrencies do not have what is referred to as “trading hours.” Simply put, the market is always open, and traders can execute trades no matter what time or what day it is. This ‘always open’ feature is a huge pull for traders who do not wish to be restricted to certain hours or days of the week.
Picking between crypto trading and forex trading is usually up to the discretion of the trader. However, platforms such as Oanda have made forex trading easy, even for beginners. The platform offers a demo account where traders can learn and sharpen their skills before moving on to a live account.
The platform is one of the fastest and most reliable forex trading sites, featuring more than 65 popular indicators to help traders pinpoint forex price trends.
Bitcoin (BTC) Will Test $14K Mark Instead Of Skyrocketing, Analyst
Despite Bitcoin recording substantial gains in the last few days, an analyst believes it’ll nosedive to $14k. Earlier this week, BTC experienced rocky times before giving the bulls something to cheer about. Despite the coin trading above its $20k resistance, popular trader Il Capo of Crypto believes it won’t hold this position for long.
The general sentiments surrounding bitcoin are positive, and investors are optimistic that the price will continue to rise. However, there is a lot of uncertainty regarding how far the price can go up.
Analyst Sees BTC Nosediving To 14k Soon.
Il Capo of Crypto, a popular crypto swing trader with over 500k followers, shared some bearish sentiments about the coin. In his tweet on October 5th, he mentioned that Bitcoin would reach a local top between $20,400 – $20,100. After that, it’ll show bearish signs and tip over to new lows.
20500-21000 hasn’t been touched and there’s no ltf distribution. Expecting the last leg up soon. Then ltf bearish signs, and reversal to new lows (14k-16k). – Il Capo of Crypto.
As of writing, Bitcoin still hasn’t crossed the $21.4k mark and is currently trading at $20,035. It has also recorded a 1.48% decrease in value since yesterday. The market cap of the cryptocurrency stands at $383 billion.
Other Experts Think Otherwise
On October 4th – 5th, Bitcoin (BTC) demonstrated strength by surpassing the $20,000 barrier after gaining 5% on the day. Some investors speculate the market to rise to $28,000 after the move liquidated $75 million in leverage short (bear) holdings. According to Mustache, the declining channel continues to apply its pressure. However, there may be sufficient strength to challenge the upper channel trendline at $21,500.
The price movement on October 4 coincided with better circumstances for global equities markets. The S&P 500 index rose 3.1%, and the tech-heavy Nasdaq Composite climbed 3.3% over the same time period.
Surprisingly, morale rose amid job opportunities in the United States falling by 1.1 million in August. The drop was the biggest since April 2020. This indicates that the aggressive tightening of money by the U.S. Federal Reserve could end sooner than expected. Bitcoin may have broken the $20,000 barrier due to widespread optimism. However, this does not mean institutional investors are satisfied with the current price.
Bitcoin’s price is currently trading above $20,000. | BTCUSD price chart from TradingView.com
What Next For Bitcoin
It seems like Bitcoin is going through a phase where it is consolidating. There is a possibility that the price will fall back to $19,000 as the bears attempt to take control. If this happens, we might see a retest of the $14,000 level, as Il Capo of Crypto suggested. Conversely, if the bulls manage to push the price higher, we might witness another run towards the $25,000 level.
Related Reading: GMX Token, Arbitrum Favorite Get Listed On Binance, What Next?
Featured image from Pixabay and chart from TradingView.com
Ripple (XRP) Continues Positive Moves, Added Over 12% In A Week
Ripple (XRP) has been steadily climbing, adding over 12.50% in the past seven days. This is despite its ongoing case with the SEC coupled with the overall bearish market sentiments.
The bulls have managed to keep the XRP token flying high above $0.48 and are edging to break through its $0.50 resistance. XRP experienced a rocky start last week Wednesday, falling below its $0.44 floor price. However, the coin quickly gained momentum the next day, adding over 13% gains before the end of the trading day.
Ripple Closed Its Best Month In 2022
September was a good month for Ripple as it closed out the best month since the beginning of the year. In the previous week, XRP’s price on the weekly chart approached a significant resistance level at $0.56. However, it was unsuccessful in breaking through that level.
This resistance is a combination of the yellow rising line and the horizontal barrier seen in red. By the way, a weekly red candle following several consecutive green candles is not uncommon by any means.
XRP retested the $0.56 level again on the 29th but couldn’t sustain it. It finally closed the month with a $0.49 high. Upward momentum is anticipated once the price of the asset breaks and sustains a closing above $0.56. We might see this soon enough unless it drops below the $0.4 support level.
XRP’s price is currently trading at $0.4929. | Source: XRPUSD price chart from TradingView.com
XRP Holds Its End Against BTC
XRP’s over 12% weekly gain isn’t the only thing that caught our attention. The asset also held its end against Bitcoin (BTC). Although the XRP/USD exchange rate is down 0.5%, it is up 1.5% to 3% against BTC. In comparison to Bitcoin, the XRP price has increased by more than 50% over the previous three weeks. This puts XRP at levels not seen since the summer of 2021.
XRP price movement might have several causes. Of course, the primary driver is the SEC’s legal battle with Ripple, which seeks to recognize XRP as a security. Recent events seem to favor XRP and Ripple, but the final verdict is not yet out.
The second, less obvious explanation may be today’s announcement about SWIFT and CBDC tests. SWIFT successfully tested several technologies with CBDC. Financial institutions from France and Germany, including their central banks and commercial counterparts, participated in the experiments. They explored using CBDC worldwide and converting it to fiat if needed.
What Next For Ripple
Ripple is currently trading at $0.4928 and is set to retest the $0.50 resistance floor. As long as buyers outnumber sellers, this uptrend is likely to continue. However, if the price reaches a critical level of $0.44, bears may come in as they did on September 23.
Related Reading: XRP Price Could Get A 23% Boost From This Bullish Formation Breakout
The 12% weekly gain demonstrates that buyers are dedicated to taking XRP over $0.50 and $0.55. Achieving this goal will pave the way for the token to go to $0.70 soon.
Featured image from Pixabay and chart from TradingView.com
Bitcoin Blows The Highest Daily Candle Since Last 24 Days
After wading through a declining path for weeks, the crypto market and Bitcoin have suddenly entered another phase. The past few days have proved to be favorable for prices in the market. Almost all crypto assets are making impressive northward movements.
For the primary cryptocurrency, its moves to reclaim value are commendable. Bitcoin has reached the $20,000 region as it made more gains. In addition, the token finally closed a daily candle across the critical level.
Also, the altcoins are making significant progress with positive movements during the trading hours of the last few days.
Bitcoin Closes Daily Candle Above $20K
The $20K is one of the critical levels for Bitcoin. Over the past few weeks, BTC went down below this mark due to the solid bearish pull in the crypto market. But the leading crypto asset is gradually bringing back its value this week.
Bitcoin has finally closed a daily candle higher than $20,000 for the first time since September 17. This new feat strengthens the token positively, hovering between $18,000 and $24,000 for some months. Furthermore, this new position is the highest daily close for BTC in almost 24 days.
This recent price movement has stirred lots of participants in the crypto space. Many are watching to see the sustainability of BTC on this level.
At the time of writing, BTC is trading at around $20,247, indicating an increase of 0.44% over the past 24 hours. Its market cap has grown to $385.8 billion. Also, BTC’s dominance over the altcoins sits at about 40.19%, with a rise of 0.23% within the past day.
Bitcoin Surpasses The $20,000 mark l BTCUSDT on Tradingview.com
Most Altcoins Gained With GMX As Top Performer
The broader crypto market is feeling the bullish trend too. The altcoin has shown positive value reclaim within the past few days.
Most of the altcoins are in the green though some have not shown a massive increase in value over the past day. For the top 10 crypto assets by market cap, Dogecoin (DOGE) and Ripple (XRP) take the lead. They recorded about 6.2% and 3.6% gains in the values.
GMX, the native token of the GMX cryptocurrency, proved to be the top performer among the altcoins over the past 24 hours. The token amassed over 30% gain in its value. It is trading at around $55.27 at the time of press.
The performance of GMX could be in connection with the recent announcement from Binance to list the token in its innovative zone. However, EVMOS emerged as the top loser. The crypto lost more than 4% over the past day.
The impressive outplay of all the cryptocurrencies pushed the cumulative market capitalization to $960.13 billion. This figure shows an increase of about 0.34% over the past 24 hours.
Featured image from Pixabay and TradingView.com
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