Forex Trading Disclosure
Hearing both Crypto CFD and Forex Trading would sometimes confuse inexperienced traders because they (Forex and crypto CFD) both deal with currencies. Well, there is a truth about this notion but future traders should also know that Crypto CFDs are related yet different in many ways. What we are about to disclose are some neophyte traders’ incorrect ideas about Crypto CFD trading. May we remind you that these ideas that we are about to disclose should serve as a lesson towards receiving more profit as you involve yourself in the Forex Trading Industry.
Most traders who are in the beginning of their trading career would try to work their deals via trial and error. Some traders think that wins and losses in the market is just like gambling which solely depends on gut feel,luck and risks. This is sometimes wrong. As a matter of fact, most trading coaches state that market wins belong to those who know how to analyse market flow and place their positions upon their observations instead of their feelings. I believe that this statement is true to all types of trading. Thus, this principle should motivate the traders to seek for further knowledge in order to create a good and winning strategy. If you’ve been thinking the same way, then you have to keep reading to check if your beliefs about crypto CFDs and Forex are still on the right track. Here are 5 more fallacies which you can reflect on.
1.Both Forex and Crypto CFDS require a middle man or broker
This is wrong because it is only in the FX trading where you would need such individuals. One of the greatest catches in Crypto CFD is the absence of a third person in the transaction because it obviously lessens the trader’s burden to pay for their services.
FX and Crypto CFDs use dollars in the transaction.
The currencies that are involved in Crypto CFDs differ from that of Forex. Crypto CFDs involve various coins that are saved in crypto wallets. Based on research, there are about forty million existing crypto wallets and 1,600 crypto currencies since 2016. Some samples for these coins are Bitcoin,Ethereum,Tron, Cardano or Monero.
Trading with Crypto CFDs is as safe as FXs
This idea is another fallacy. Although Crypto CFDs can provide up to a hundred fold increase in profit, the risks are undeniably greater than Forex trading. This is because FX trading is bound by regulations while Crypto CFDs aren’t. As for the period of existence, Forex trading is still more reliable because the market for such trade has been existing since time immemorial while Crypto CFDs are still new.
You can trade with FXand Crypto CFDs in anytime of the day
Though both FX and Crypto CFDs require internet connection to transact your business, their respective markets do not have the same schedules. FX markets are open 24/5 while Crypto CFD markets are open 24/4.
Since both involve currencies, FX and Crypto CFDs have the same way of earning profit.
There is a big difference between the process of acquiring profits in the two platforms. The former allows a trader to profit via rates of currencies as well as the amount between bids. Contrary to the former, Crypto CFDs provide profit to the trader by means of buying, exchange fees,holding and micro asking.
With the given facts regarding Forex and Crypto CFDs, we can therefore say that both trades are worth investing in but they have their respective risks should never be neglected.