If you are thinking of adding investments to your portfolio and you want to choose between crypto and forex, I have something useful for you. Crypto and forex are known to be volatile investments, however, they are great if you know how to trade well. It’s not about the volatility of the investment, but how well you trade and invest. It’s more about your trading plan and strategies.
Setting your plans and strategies aside, let’s talk about the features of crypto and forex, how they differ from one another, and which is a better investment.
In terms of volatility
I said that both of these investments are volatile. However, the level of volatility differs between the two. Forex is more volatile than cryptocurrencies based on my personal experience. Many investors invest in forex only in a short period of time while crypto has a history of stability for the past years. If volatility is the issue, crypto is far better than forex. So, if you want to protect your money without getting stressed about the volatility of your investment, you better start investing in crypto first before trying a more volatile investment. To invest in Cryptocurrencies click here.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Stock Smarts Zoom Technical Analysis
Stock Smarts: Live Traning Fundamental Analysis
Stock Smarts Book Series
In terms of long-term investing
Forex is traded for some reasons such as big short-term profits, ability to leverage, and so on. However, it’s not like stocks or crypto where you can open a position and leave it for years. You can do swing trading for months, yes, but if you leave your trades open for years, you might lose all your money because of its volatility. Unlike forex, cryptocurrency is good for the long term. You can leave your money in your digital wallet and not monitor your investments for years. Since crypto has a history of being stable, you wouldn’t have to worry about your investment every day. Also, you can rely on some of crypto’s fundamentals to ensure that you are investing in the right coins and at the right time. To have a Bitcoin Wallet click here.
Minimum trade
In terms of minimum trade, forex and crypto are different as well. When you trade forex, you will encounter the terms such as lot size, risk percentage, and so on. The larger the lot size is, the higher the possible profit or loss. When you use a high lot size, you are also putting a high portion of your money at stake. The minimum trade you can make in forex is 0.01 lot size, which means that even if you only have $100 as your initial deposit, you can trade at a minimum with forex.
Your minimum trade in crypto, on the other hand, would depend on your broker. There are some that allow $50 as minimum trade. So, if you have a budget of $100, you can trade or invest in 2 crypto coins in the meantime.
So, which is better between the two? I highly suggest that if you don’t have that much experience with short-term trading, go for crypto. Use a small amount to trade in forex as you are just beginning your trading journey.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
