Ultimately, it’s about picking the right battles.. Published · By tradingfanbois
This is one of the most common questions asked by newbie financial traders in the present day. 2017 was a breakthrough year for Bitcoin and cryptocurrencies in general. The sudden surge in the price of Bitcoin placed cryptocurrency on the radar of all individuals that like to invest their money in burgeoning, immature markets.
If you are wondering whether or not you should stick with fx trading across hundreds of forex pairs across majors, minors, exotics and metals, or sample the trading of leading cryptocurrencies like Bitcoin and emerging altcoins, we thought we’d outline the pros and cons of both forms of trading to help you make an informed decision on your trading future.
The pros and cons of cryptocurrency trading
Just in case you are entirely new to the concept of cryptocurrencies, these refer to a medium of digital assets that utilize complex algorithms and cryptography to generate and verify transactions involving these assets.
Pros of cryptocurrency trading
- Bitcoin is starting to build its own history – the leading cryptocurrencies like Bitcoin and Ethereum are only now starting to create their own piece of history in the financial markets. Use cases for these crypto coins are increasing by the day, so there will naturally be a surge in demand.
- Cryptos offer effective diversification and hedging opportunities – financial traders concerned about the value of forex pairs or government bonds can buy cryptocurrencies as an effective way to spread risk or hedge your existing trading portfolio.
- It’s the future of currencies – cryptocurrencies are actually being developed to solve real-world problems for citizens worldwide. It can guard against high inflation, capital controls and extortionate banking fees.
Cons of cryptocurrency trading
- Lack of historical data – given that cryptocurrencies are very new to trading markets, there is not enough historical data for traders to use as key support and resistance levels.
- Volatility – some financial traders like price volatility, but some might say that cryptocurrencies are too volatile and represent an almighty challenge when finding suitable entry and exit points.
- Uncertain market sentiment – although cryptos were on an uptrend in 2017, they have certainly been on a downtrend in 2018. It’s hard to know where they’ll head next.
If you care for high leveraged crypto trading, you’re probably looking for BitMEX as well, keep your cool though.
The pros and cons of forex trading
Trading fiat currencies has been a lucrative proposition for investors that know the right time to enter and exit the markets. However, there are several pitfalls too which we’ll explore below.
Pros of forex trading
- 24-hour accessibility – five days a week, forex traders can enjoy 24-hour access to all forex pairs with real-time pricing, charts and tools available for deployment.
- Market leverage – depending on the broker, some forex traders can use leverage to maximize trading profits by up to 100 times their actual trading bank.
- Unrivaled liquidity – the forex market is undoubtedly the most liquid market in financial trading; it is the easiest market to open and close trades with speed.
Cons of forex trading
- Not ideal for smaller trading banks – in truth, forex trading is largely made up of sizable hedge funds and trading groups. Given the small percentage moves on forex pairs, you need a sizable trading bank to generate respectable returns.
- Unpredictable volatility – forex markets can be just as volatile as cryptocurrencies; there are moments of extreme volatility at times, particularly surrounding political events.
In truth, there is a place for crypto and forex trading in all our trading arsenals. Ultimately, it’s about picking the right battles and knowing the right time to use them when the risk factors are on your side.
BitMEX (10% fee off) @ bit.ly/melancholic-100x
TradingView (~ 50% off in BTC) @ bit.ly/tradingview-moon
Conbase (no offer but you still click this lol) @ bit.ly/plebtier
EthFinex (NEC token rebates for MM) @ bit.ly/ethfinex
TensorCharts @ bit.ly/tensor-charts
Upcoming and current airdrops 2019
|Name||Date||How to access||Official URL||Additional Info|
|Greencoin Airdrop||Until 15 May 2019||Greencoin Team has decided to give away 500 000 GNC worth 150k USD in total. Simple social media tasks - twitter follow, medium follow etc - each pays 200 GNC each.||join||web|
|Bethereum Prize Pool||Until 1 June 2019||Bethereum, the betting platform on ETH, is giving away free bets with the chance to win prizes from a pool worth 12M Bether. Upon signup you get enough points to make your bets, and you can wager on sports and esports.||join||web|
|FanEspo Big Competition (ERC20)||Limited||The eSports platform FanEspo is giving away the total of $1.6 million of tokens in contests. Top winner's prize is over $100K worth. You need to have a FanEspo account, the tokens you get are beta but they will be transferred into real tokens upon launch. Estimated value is 1 USD per token.||details||make acct|
|BlockWage Airdrops + Bounties||Recurring||Platform for freelancers marketplace. Airdrops randomly announced via Discord, there's also the possibility of Masternodes.||join||web|
|DSTRA / $DST Discord Airdrop||Biweekly||DSTRA is PoS Scrypt Masternode coin with limited supply that will be used in DEX environment and marketplaces. There are airdrops every two weeks, users need to register via discord. Regular payouts verified.||discord||rules|
|HubrisOne Airdrop Round + Bounties||Weekly (16 weeks of airdrops, each weekly round starts on Tue)||HubrisOne is a UK financial service that offers personal and business crypto-friendly bank accounts and crypto-fiat cards. The easiest way to get the token is to download their banking app, which gives you 1000 tokens (10 USD) but there is a massive bounty campaign with weekly payouts. The work ranges from social media engagement or Bitcointalk signature to content creation, all must be properly reported. New round starts every Tuesday, but on other days they publish random airdrops on their Twitter.||airdrop, bounty||twitter (more drops)|
|BitcoinLux Bounty||From 28 March 2019||A project that requires you to install their wallet, be vigilant here. Drops coins for blog or social media shilling.||details||web|
|SiQs Bounty||As available||New smart-contract based marketplace for freelancers. Pre-alpha minimum product available, just as litepaper and wallets for Linux and Windows (sadly not paper, so be vigilant). Runs on PoS / MN. Join discord for airdrops.||discord||wallets|
|Synchrotron / $STC Airdrop #15||30 weeks of airdrops (Airdrop #15 starts 25 March 2019)||Hybrid PoW/PoS payment cryptocurrency. The team drops 72% of supply (18 MM coins) during 30 weeks of airdrop campaign; there is additional budget for bounties. The bounties are announced on discord server. Each airdrop round runs from Monday 10AM UTC to Friday 10PM UTC. Validation runs weekends and distribution Mondays. You need to download a $STC wallet.||drop rules in this thread||info|
|Cargo Coin Bounty||Weekly||Cargo Coin, a token for transport & logistics with an ICO past the soft cap by now, is having a weekly extensive bounty. It spans from simple retweets to YouTube reviews - make your bounty hunter account and pick your poison.||join||info|