Cryptocurrencies have a reputation for being extremely volatile, while major price swings in the forex market are less frequent. RISK WARNING All investments entail risks and may result in both profits and losses. In particular, trading leveraged derivative products such as Foreign Exchange Forex and Contracts for Difference CFDs carries a high level of risk to your capital.

All these derivative products, many of which are leveraged, may not be appropriate for all investors. The effect of leverage is that both gains and losses are magnified. The prices of leveraged derivative products may change to your disadvantage very quickly, it is possible for you to lose more than your invested capital and you may be required to make further payments. It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance.

It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. Before deciding to invest in any financial product, you should carefully consider your investment objectives, trading knowledge and experience and affordability. You should seek independent professional financial advice if you do not understand the risks involved.

You should only trade in Forex and CFDs if you have sufficient knowledge and experience of the risks involved in trading such products and if you are dealing with money that you can afford to lose. This website, including the information and materials contained in it, is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

The cryptocurrency market is different in this regard. Particularly when you move away from Bitcoin and some of the other major coins, there is quite a big gap in the liquidity between the different altcoins. As a result, the bid and ask spread can be quite significant.

When trading cryptocurrency you need a good trading strategy otherwise you end up overpaying because of the wide spread. If you decide to get into the market at that point, you have a dilemma. You can either rush your way in and hit the lowest ask, paying a big spread, or you jump ahead of the highest bidder and hope to get filled, but if the market keeps moving up all the way, you get left out which can lead to miss out on a trade. On the Forex market, a trader can get instant fill.

In the crypto market, you can also move the market against you if there is a low level of liquidity and you panic and dump your bag. This means that a trader will need to fine-tune the order process with cryptocurrencies a lot more then is needed when trading Forex. Unlike Forex currencies, cryptocurrencies have virtually no safety net in place to protect you. In Forex, the regulatory bodies have put in place deposit protections against the risk of your FX broker becoming insolvent.

Moreover, cryptocurrency exchanges and wallets have been prone to hacking, which means that your funds will be stolen, and while this is not common with all wallets, it does raise security concerns in the investment space.

Forex trading is well regulated across the globe, while cryptocurrency trading still remains completely unregulated and very opaque.

This can have severe ramifications into how these markets move and can affect your way of trading as we pointed in the above paragraphs. The two most important things that have a big impact on your ability to properly trade any market of that matter are liquidity and volatility. An introduction to Forex trading tradeforexsa. Disclaimer: This article should not be taken as, and is not intended to provide, investment advice.

Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer. Image courtesy of Pexels.

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Trade Responsibly. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. There are two major differences between cryptocurrency trading and forex trading. They are — the time available to trade and the market volatility.

Cryptocurrencies have a reputation for being extremely volatile, while major price swings in the forex market are less frequent. RISK WARNING All investments entail risks and may result in both profits and losses. In particular, trading leveraged derivative products such as Foreign Exchange Forex and Contracts for Difference CFDs carries a high level of risk to your capital.

All these derivative products, many of which are leveraged, may not be appropriate for all investors. The effect of leverage is that both gains and losses are magnified. The prices of leveraged derivative products may change to your disadvantage very quickly, it is possible for you to lose more than your invested capital and you may be required to make further payments.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us.

Before deciding to invest in any financial product, you should carefully consider your investment objectives, trading knowledge and experience and affordability. You should seek independent professional financial advice if you do not understand the risks involved. You should only trade in Forex and CFDs if you have sufficient knowledge and experience of the risks involved in trading such products and if you are dealing with money that you can afford to lose.

This website, including the information and materials contained in it, is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Terms and conditions between exchanges can vary, sometimes quite a lot. Is Ethereum a Good Investment? The cryptocurrency market is different in this regard. The high volatility means you can gain large profits if you do things right but it also means chances of high losses.

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