We have ultimately compared the features of both crypto and fiat currencies so far. Now that we know these vital differences, we can move onto something more practical now. Therefore, we will start looking at the negatives and positives of both crypt and forex markets.
The possible gains
Cryptocurrencies, as we said before, are notable for their extreme volatility. This is because governments do not regulate them. They also have no ties with more stable assets, like gold, at least for most. Volatility means great losses and great gains. Bitcoin and numerous other cryptocurrencies have had unpredictable rises. The main problem is that one cannot often guess where the market is going. In contrast, forex markets are stable. You will not make anywhere near the same gains, but lower losses as well. This means it is better if you want reliable, long term gains.
Also of note is the fact that cryptos are finite. People mine them, and there will only be so much in the world. This means the prices for those cryptos will start to go up. For fiat, governments can keep on printing money, so they usually lose value over time.
Crypto markets also work better over time though. If you forget some of the noise, a true value for the crypto will eventually appear. In the forex market, you are exploiting incredibly small price fluctuations, over short periods of time. This is why investing in forex is better with large sums. It allows for much greater profit in the end.
Forex markets are highly liquid. They deal in currencies after all. This means that exiting the market when you want is a hell of a lot easier. There’s bound to be someone wanting your currency. Cryptos are a bit more niche, so it can be harder to find someone to trade with. Especially if its price is crashing.