Forex vs Crypto: Full Breakdown & Transcript

[00:02] We are screwed. >> And Forex traders say crypto is gambling. So, which one actually makes more money? If you're starting trading today, which one should you choose?

[00:15] Let us discuss that in this video. 2019 was when I took my very first crypto futures trade. And 2024 is when I took my very [music] first Forex trade. So, I've traded both markets. I want to share my findings, which one [music] can

[00:29] make you more money, and which one is generally But first, let's narrow things down [music] so we can make a fair comparison. What are we comparing? In Forex, you are

[00:42] buying and selling currency pairs, things like EUR/USD, GBP/USD, USD/JPY, and so on. The total trading volume in the Forex The total trading volume in the Forex market is about $7 trillion

[00:57] per day. This is the biggest financial market. Forex started in 1970s, but retail traders like you and me only started participating in the early 2000s after the internet made trading accessible for

[01:13] you and I. Retail traders make up only about 4.5% of the Forex market. The rest are banks, institutions, and large financial actually buying the currencies themselves. You are simply speculating

[01:29] on the price movements. For crypto, crypto is a much broader ecosystem. There is spot trading, futures trading, airdrops, NFT, yield farming, and so many things. But for this video, we'll focus on crypto futures trading because

[01:43] that is the closest comparison to Forex trading. The average daily volume in the >> [music] >> is about $260 billion per day. You can

[01:55] >> is about $260 billion per day. You can see that this is far smaller than the 7 trillion per day in the forest market. In crypto, there are over 600 coins you can trade in the futures market. But Bitcoin and Ethereum alone accounts for

[02:09] about 60% of the trade volume. For forex, the major pairs they can trade is only about 22. And the first seven, which are the major

[02:21] And the first seven, which are the major currencies, accounts for about 60% or 60% of the entire forest market trade volume. The forest market is open 5 days volume. The forest market is open 5 days a week. Crypto is 24/7. It is open 7

[02:34] days a week. It never closes. While forex closes during the weekend. [music] For many people, this makes crypto more flexible to In forex, you usually need a broker to connect to

[02:49] the market. After opening an account, you normally download MT4 or MT5. This is where your trades are executed. In crypto, things are simpler. You [music] trade directly on the exchange. You don't need MT5 or the MT4.

[03:05] And in many cases, the trading interface in crypto exchanges is actually more advanced. You can do things like partial take profit, trailing stop losses, multiple [music] take profit targets at

[03:18] the same time. But in traditional forex trading platform, these features are >> [music] >> So, in terms of ease of use, crypto trading platforms often have the advantage. Another difference is how you

[03:31] actually place orders. In crypto, position size can be set by cost, >> [music] >> In forex,

[03:43] >> [music] >> For beginners, this can be confusing. That is actually why I built the FX crypto calculator. It helps calculate crypto calculator. It helps calculate position size for crypto, forex, and

[03:57] derive synthetic [music] indices, and it's completely free to use. Another thing I have to look at is the way trading fees are collected in forex and crypto. In forex, fees are mostly collected through [music] spread.

[04:10] The spread is the difference between the buy price and the sell price. >> The more liquid the market, the tighter the spread. For example, EUR/USD usually have a very tight [music] spread. Less liquid pairs like the AUD/NCD

[04:24] often have wider spread. [music] Spread also changes depending on time of day, market volatility, and major news events. During major news events, spread you see a very good setup at these times,

[04:42] it's just best to just avoid it because you just pay a lot more in fees. In crypto, the system is different. Instead of spreads, exchanges charge fixed trading fee when you open and close trades. Your order will be filled at the

[04:56] >> [music] >> as there is enough liquidity at that price irrespective of the time of day. Now, the biggest advantage forex has earlier, forex trades about $7 trillion per day.

[05:14] This means even extremely large trades can be absorbed by the market easily. If can be absorbed by the market easily. If someone places a $100 million trade in forex, the market barely notices what happened.

[05:28] In crypto, depending on the coin, a trade that large could move the market significantly. This makes crypto market more volatile and sometimes easier to manipulate. Forex tends to be more stable. [music] Now, just because forex

[05:43] is more stable doesn't mean it is easier to make money in forex. Crypto market move fast because they are smaller and driven more [music] by retail traders. That means crypto often gives traders a lot of opportunities. But that speed

[05:56] also means bigger risk. Forex reward patience, crypto reward speed. So, I personally trade both of them, but I focus only [music] on the major Forex pairs and the top crypto coins. Both

[06:11] market can be profitable, but they behave differently. If you prefer structure and slower movement, Forex suit you better. If you prefer volatile and fast opportunities, crypto may be better for you. But the market you

[06:26] choose matters much less than how you manage your risk. [music] The interesting thing now is that on platform like Bybit, you don't even need MT5 and the MT4 [music] anymore. Bybit now offers TradFi trading where

[06:41] you can trade Forex and metals and indices on the platform without connecting an [music] external app. This makes things really really easy. Now, >> [music] >> do you trade Forex or crypto and what is

[06:56] the biggest challenge you have [music] experienced so far? And in this video here, I talk about Forex influencer lifestyle and how many of them actually make their money. You might want to check it out if you want to understand

[07:11] why Forex influencers sometimes appear richer richer than crypto traders.