Switching from Forex to Crypto: a Brief Insight

Cryptos and Forex- With the varying options, 365/24/7 opportunities and profits to be made in the crypto sphere, many look to either switch completely or engage simultaneously in both Forex and Cryptocurrency sectors. At a first glance, both sectors seem similar but there are several fundamental differences between these two which will be discussed in this post.

As stated, the lucrative benefits of the cryptocurrency and blockchain industry has attracted interests from new entrants; with benefits which include its independence from undue government and economic influence, inflation rates, geopolitical tensions and monetary policies of central banks to benefits like huge profits and diversified options on trading pairs as in direct contrast to Forex traders. Hence, crypto serves as the perfect haven and substitute against any country-specific economic crisis or forex limitations. Both markets however posses’ similarities and differences as highlighted hereon.

High Volatility of Crypto Markets

The cryptocurrency markets boasts of a very high volatility ratio in contrast to forex volatility which is about 1% for extreme currency pairs. For the crypto markets, coin prices are subject to huge fluctuations as seen in 2017/2018; and could in some cases see huge price dips or pumps in a single day. This assertion does not in any way suggest that the crypto market is solely for high-risk traders as these daily price highs and lows provide the opportunities to enter or exit profiting trades and losses respectively. Day traders, scalpers and position traders benefit greatly from this volatility and fortunately tools/guides for making informed decisions with minimal risk are readily available.

Large Number of Trading Pairs

Cryptocurrency trading is available in a large number of trading pairs (trade currency A against currency B- BTC/USD, ETH/ADA). There are about 2000 cyptocurrencies and tokens which are all available for trading, conversion and utility on varying crypto trading platforms while the forex market offers lesser number of currency pairs.

Round-the-Clock Trading Hours

In contrast to forex markets which are open 5 days a week and closed during the weekends, the cryptocurrency market is open all through the week, 24 hours daily/all year round with no closing days or hours. However time zones affect trade volume fluctuations at different times during the day as different countries enter the market at varying hours.

Crypto Price Deterministic Factors

Monetary inflation and huge government influences do not wield power against crypto prices especially as cryptocurrencies have a definite number and volume hence they cannot be printed or added to at any time as in the case of fiat currency where governments can print more money at any time. However, cryptocurrencies are subject to their own price determinants; which include:

Community news or Rumour – these are cases where positive news or negative FUD about a particular crypto or the market, raises interests and pump in prices or triggers panic sell-off and drop in coin prices.

Demand and Supply factors – Crypto coins are essentially limited in supply hence; the rate, at which they are mined, circulated in supply and subsequently demanded takes effect on coin prices.

Mainstream Adoption – increase in public utility, interest and adoption of cryptocurrencies is sure to drive coin prices up and stands as its most important target at this time.


Forex trading is completely regulated by financial institutions hence its traders are subject to very minimal risk of being swindled or losing capital and profits. Cryptocurrency trading on the other hand is not subject to any specified regulator at this time even as a few institutions look to implement regulatory measures hence; there is potential risk of losing capital and profits as seen in cases of hacks and fraud due to cryptocurrency transactions being irreversible.

Lastly, Brokers are to Forex traders as Crypto exchanges are to Cryptocurrency traders.


NOTE: There are lots of profits to be made in both spheres, with the crypto market offering the most versatile options and instant gains in multiple cases. However do kindly note the following:

Always stick to a reputable trade platform for trading and security, guide your crypto wallets and account passes privately.

Only trade or put in capital you can afford to lose on any of these markets.

Control trade emotions like greed, panic selling and Fear of Missing out (FOMO).

Be sure to learn and understand basic concepts, skills and strategies in both markets.

Get over the get rich-quick-myth.


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Written By

CryptoEnthusiast, CryptoEducator, Angel Investor, Writing Pro and Techie