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Updated:March 10, 2025

Forex Trading vs. Crypto Trading: Which One to Choose?

Reading Time:4min
Victor Jacobson
Written byVictor Jacobson

Financial markets offer numerous opportunities for earning, and two of the most popular options are Forex trading and cryptocurrency trading. Both have unique features, benefits, and risks. Let's explore their differences and find out which one might suit you best.

What are Forex and Crypto Trading?

Forex Trading involves buying and selling currency pairs on the interbank currency market. Traders profit from fluctuations in exchange rates of currencies such as EUR/USD, GBP/JPY, and others. The daily trading volume of the Forex market is approximately $6.6 trillion.

Crypto Trading involves trading digital assets like Bitcoin (BTC), Ethereum (ETH), and altcoins. This market is blockchain-based and operates 24/7. The average daily trading volume of the cryptocurrency market usually ranges from $50 billion to $100 billion.

Main Differences

Criterion Forex Trading Crypto Trading
Trading Hours 24/5 (weekdays) 24/7 (non-stop)
Volatility Moderate High
Liquidity High Depends on asset
Regulation Strict Weak (in most countries)
Analysis Tools Technical and fundamental analysis Primarily technical analysis
Leverage Up to 1:500 Usually up to 1:100

Volatility and Risks

Forex is a more predictable market, especially with major currency pairs. Cryptocurrencies, however, can experience drastic price fluctuations within a day, making trading riskier but potentially more profitable.

Regulation and Security

Forex trading is tightly regulated by authorities such as SEC, FCA, CySEC, etc., making it relatively safe for investors. The crypto market is less regulated, exposing traders to risks like fraud and cyberattacks.

Where Do Traders Trade?

Forex trading is conducted through brokers such as XM, FXTM, RoboForex, Exness, and others. Traders use platforms like MetaTrader 4, MetaTrader 5, and cTrader to access the currency market, analyze charts, place orders, and manage trades.

Crypto trading takes place on cryptocurrency exchanges like Binance, Bybit, Kraken, Coinbase, OKX. Traders deal with spot markets, derivatives, futures, and margin trading. Exchanges provide trading interfaces and APIs for automated trading.

Which Platforms Are Used in Forex and Crypto Markets?

Popular platforms in the Forex market include:

  • MetaTrader 4 (MT4) – user-friendly platform for technical analysis and currency trading.
  • MetaTrader 5 (MT5) – advanced version of MT4 with more instruments and markets.
  • cTrader – a platform offering superior order execution and professional interface.

Platforms in the crypto market include:

  • Crypto exchange terminals – Binance, Bybit, OKX, etc.
  • TradingView – widely-used platform for analysis and charting.
  • Coinigy – allows trading on multiple exchanges simultaneously.

Forex traders commonly trade the following currency pairs:

  • EUR/USD – most liquid, representing Euro to U.S. Dollar.
  • GBP/USD – British Pound to U.S. Dollar, known for higher volatility.
  • USD/JPY – U.S. Dollar to Japanese Yen, popular among conservative traders.
  • AUD/USD – Australian Dollar to U.S. Dollar, influenced by commodity prices.
  • USD/CAD – U.S. Dollar to Canadian Dollar, correlated with oil markets.

These pairs offer high liquidity and low spreads, appealing to traders.

Crypto traders typically engage with these assets:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Binance Coin (BNB)
  • XRP (XRP)
  • Solana (SOL)

These cryptocurrencies have high liquidity and trader interest.

Can You Trade Crypto Through Brokers?

Yes, some Forex brokers offer crypto trading via CFDs (contracts for difference). Popular brokers include eToro, RoboForex, XM.

Which One to Choose?

  • Forex trading suits those who prefer stability and a regulated environment.
  • Crypto trading appeals to those comfortable with high volatility and risks.

Which market are you trading? 🚀