Cryptocurrency in India is still quite in its nascent stages. And while it is gaining a bit more prominence with each passing day, it is still new in the range of investment and trading opportunities available in the country.
Another very liquid and active market - particularly for traders - is the forex market. Investors and traders are often interested to know how these markets compare. So, if you’re someone who is looking to get started with forex and cryptocurrency trading in India, let’s get into the details of the cryptocurrency vs forex trading debate and see what the similarities and the differences between the two trading practices and markets are.
Cryptocurrency trading in India involves buying and selling digital assets called cryptocurrencies. Examples of cryptocurrencies include Bitcoin, Ethereum and Litecoin among others. You will need a digital wallet and a verified account to trade in cryptocurrencies.
Forex trading is the practice of buying and selling foreign exchange or currencies. The forex market is a decentralized over-the-counter (OTC) market. To trade in foreign exchange, you need a trading account, and you’re all set to get started.
Trading forex and crypto in India both have some points of similarities between them. Understanding these similarities can help you better comprehend the two markets. Take a look at how they are so alike.
1. The prices of both commodities and forex are determined by market forces like supply and demand.
2. Both cryptocurrency trading and forex trading require a good understanding of the respective markets.
3. The trades in the two markets are both easy to execute, making them suitable for beginner traders as well.
4. You can trade in crypto and in forex online.
Despite the similarities we saw in the previous section, forex trading online and currency trading in India both have several points of difference. Here are some of them.
1. The crypto market is relatively newer, while forex trading has been in practice for much longer, ever since we have had different national currencies.
2. Trading in cryptocurrencies comes with a higher degree of risk than forex trading.
3. The crypto market is also not as regulated as the forex market is, because the former is newer than the latter.
4. Trading in forex is easier in India, because you can simply open a trading account and get started.
Now that you know how cryptocurrency trading and forex trading compare, you’ll find forex online trading much easier to understand. Trading in currencies and foreign exchange can add some much-needed diversification in your portfolio.
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