Crypto trading alongside stock trading and Forex has become a very popular occupation for several reasons. First of all, people managed to earn quite a lot of money from them, as well as, they are convenient.
If we take a look at the statistics, in the past ten years, trading has taken the world by storm. Some people even engage in all 3 of them. But it is generally better to be specialized in one particular field.
Generally, stock traders tend to be better at crypto trading, than people in Forex. In this article, we will try to explain why it is so, even though trading strategies and tools are almost identical.
Influence of a particular person
The first thing that comes to our mind is an action from a particular person. According to 55brokers, it is the determining factor in the difference. Stocks and cryptos can potentially change dramatically due to an individual person. For instance, if one of the most prominent entrepreneurs nowadays, Elon Musk tweets something directly affects the Tesla stock price. We can call it the power of a person, who enjoys great authority. The same happens with cryptocurrencies as one influential person could change the whole market. For example, if Vitalik Buterin the co-found of Ethereum says something about it – everything is affected.
With Forex trading that is most definitely not the case. The foreign exchange market, the largest market in the world, is only affected by the economy, politics, and supply/demand. It is very hard to manipulate with just one man’s announcement. Everything is more complicated here.
Take the FBS copy trade as an example – it is not unique only for Forex trading. Traders have some difficulties when they move to crypto trading, having realized that this is not typical for the latter. So in some cases, particular things could also become problematic.
We have mentioned that political news or the situation worldwide has a direct impact on Forex trading. When Forex traders decide to move to crypto trading they immediately notice this difference. Crypto trading allows individuals even in undeveloped countries without nearby banking institutions to use and trade cryptocurrencies. Specific news or occurrences does not influence crypto trading, thereby FX users have problems when they decide to change their occupation.
Besides these factors, if we rely on the statistics and surveys provided by various websites, they declare that those who were involved in the stock market had more desirable results in crypto than ones in FX. Interestingly, this fact was unnoticed for a long time and the reasons vary all the time.
It does not matter which type of trading we are talking about – crypto, stocks or Forex – each of them has its own advantages and disadvantages. While stock traders have more success in crypto trading, than their FX counterparts it is still very personal. And everything is strongly based on knowledge, intuition, and hard work.