What should a beginner choose for trading Forex, currencies, or cryptocurrency?
Very often, the outcome of a project depends on the right choice, so when starting Forex trading, you should first decide which assets you will work with.
The broker's trading platform currently offers a wide range of assets, although only currencies and cryptocurrencies are traded on Forex.
Many beginning traders are interested in what is best for a beginner to understand the essence of trading on the forex market and learn how to make money.
To make the right decision, you need to compare the advantages and disadvantages of trading currencies and their digital counterparts.
Volatility is clearly regulated in cryptocurrencies. While daily volatility rarely exceeds 1% for standard currencies, 10% volatility in cryptocurrencies is nothing to be surprised about.
This means that cryptocurrencies offer greater potential for profit, as their price can change by tens of percent in a day.
Leverage – it's rare to find a broker offering leverage for cryptocurrencies greater than 1:10.
At the same time, for standard currency pairs, the average leverage is 1:500, although there are brokers that provide leverage of 1:3000.
Therefore, if you use high leverage, you can easily equalize the volatility of currencies and cryptocurrencies.
Spread size – in this category, regular currencies clearly lead; the spread on standard currency pairs is several times smaller than on cryptocurrencies when comparing the same transaction volumes.
a 1-lot EUR/USD trade, you'll pay a spread of $10-20. If you convert 1 EUR/USD lot into Bitcoin, that's about 2 Bitcoins. Opening a 2-bitcoin buy/sell trade will cost you $120-180.
That is, one could say that trading cryptocurrency is much more expensive, but this is only at first glance; due to high volatility, the price quickly compensates for the spread paid.
Scalping – if you compare the spread size for opening trades, you can say that scalping on cryptocurrencies will cost you more.
But you can also earn many times more on cryptocurrencies, and scalping is used specifically for quick profits; otherwise, using a scalping strategy loses its meaning.
Automated trading – unfortunately, there aren't many advisors designed for cryptocurrency trading at the moment. Bitcoin advisor https://time-forex.com/sovetniki/st-bitkoin
Therefore, if you plan to completely delegate trade opening to a robot, you will have to choose traditional currencies or develop your own cryptocurrency advisor.
Personal opinion : I've been enjoying cryptocurrency trading more and more lately. Perhaps this is due to my chosen trading style.
I prefer to wait for the price to reach its low and then open a buy trade, then set a trailing stop and close the trade when a downtrend begins. If there's no doubt the price will fall, I open a sell trade.
In my opinion, trading cryptocurrencies is more interesting, but it's purely a matter of taste. To figure out what suits you best, try trading regular currency for one month and cryptocurrency for another. Perhaps this approach will help you find the right solution.
