In any sphere of activity there are some stereotypes, the opinion of the “crowd.” Trading in the foreign exchange market is no exception. Novice traders often come under the influence of recommendations on how to trade, and what tools to use for this. Of course, many of these tips will be very useful to newcomers to the market. Each broker offers its customers a large choice of currency pairs. But in recent years, the popularity of cryptocurrencies has been growing rapidly. In advertising texts, they are often presented as effective trade instruments to generate large income in a relatively short period of time. There is a share of the truth in this. Nevertheless, some novice traders find it difficult to choose trading instruments. So what is better for earning money on the market: currencies or cryptocurrency ?
Basic selection criteria
To make the right decision, you need to compare the pros and cons of each of the options. First of all, it is necessary to take into account the fact that the value of spreads in the most popular currency pairs are significantly smaller compared to cryptocurrencies. This is especially important for those traders who prefer scalping. However, large spreads will not prevent the trader from getting a good profile, provided that competent trade decisions are made. The second feature of cryptocurrency trading is very high market volatility. It often exceeds the volatility of even currency pairs known for their sharp movements, such as the euro/dollar and pound/dollar. This can be considered both an advantage and a disadvantage cryptocurrency market. High volatility is the possibility of quick earnings. But it also creates heightened risks. If a trader prefers to use advisers in trading, then the advantage will certainly be on the side of traditional currency pairs. Cryptocurrencies still have their own characteristics. There are very few trading robots for them. And they cannot boast of efficiency. In this regard, ordinary currency pairs will be more suitable for fans of automated trading. Comparison of profitability will be in favor of cryptocurrencies. Practice shows that the income of successful traders from Bitcoin trading significantly exceeds the profit earned from trading in national currencies. But we must always remember the high risks in cryptotrading. Instead of a large profit, you can get a no less large loss. Cryptocurrencies require increased attention to such an issue as risk reduction. Inga Fedorova 17.10.2021 Record of Currency and Cryptocurrency. What to choose? for the first time появилась forex-for-you.ru.