Forex vs Crypto Trading: Which Is Better for You
If you’re considering stepping into active trading, two major markets often come up first: foreign exchange (forex) and cryptocurrency. Both markets offer 24-hour trading opportunities and global accessibility, but they differ significantly in structure, risk, volatility, tools, and regulation.
One key aspect to consider is portfolio diversification. Cryptocurrencies provide exposure to financial innovation and can diversify investment portfolios, offering an alternative asset class for risk management.
This article serves as a clear, educational guide to help you understand the core differences between forex and crypto trading so you can determine which market aligns best with your goals and risk profile.
You’ll learn:
- What forex and crypto trading are and how they function
- The benefits and challenges of each market
- Common beginner questions around profits, strategy, and tools
- How to avoid crypto scams
- Recommended trading platforms
- How to get started in each market step-by-step
- A comparison table to decide which is right for you
By the end, you’ll have a clear path forward—and a smart, informed strategy to begin or elevate your trading journey.
What is Forex Trading and How Does it Work?
Forex trading (short for foreign exchange trading) is buying and selling currencies against each other. The forex market is the largest and most liquid financial market in the world, with daily volumes exceeding $7 trillion.
The market is heavily regulated, with oversight bodies like the Financial Conduct Authority (FCA) ensuring a safe trading environment. Forex brokers play a crucial role in this ecosystem, offering features like high leverage, which can be attractive yet risky for retail traders.
Daily trading volumes exceeding $6 trillion illustrate the vast scale of the forex market and its advantages, such as tight spreads and ease of entry and exit for traders.
Traders speculate on whether one currency will rise or fall against another. These currency pairs include examples like:
Traders speculate on whether one currency will rise or fall against another. These currency pairs include examples like:
- EUR/USD (Euro vs U.S. Dollar)
- GBP/JPY (British Pound vs Japanese Yen)
- USD/CHF (U.S. Dollar vs Swiss Franc)
Prices fluctuate based on economic data, interest rates, inflation, central bank decisions, and geopolitical news.
Let’s say you believe the U.S. dollar will strengthen compared to the euro. You would buy the USD/EUR pair. If the dollar rises, you profit when you sell the position.
Forex trading is often leveraged, meaning small account sizes can control much larger positions. This boosts both the potential for gains and losses.
Is Forex Good for Beginners?
Yes, forex can be a great starting point for new traders. Many brokers offer:
- Demo accounts to practice
- Low starting capital requirements
- Educational tools and tutorials
- High liquidity, making it easy to enter or exit positions
However, a structured learning approach is vital. You’ll need to master:
- Technical analysis (charts, indicators)
- Fundamental analysis (economic trends, monetary policy)
- Risk management (position sizing, stop losses)
Is $100 Enough to Start Forex?
Yes, it’s possible to start trading forex with just $100, particularly if your broker offers:
- Micro lots (0.01 lot sizes)
- Low minimum deposits
- Leverage, which allows you to control larger positions with small capital
But remember: while leverage can multiply profits, it can also accelerate losses. Always trade with a defined risk plan, especially when your account is small.
What is the 90% Rule in Forex?
The so-called “90% rule” suggests that 90% of traders lose 90% of their capital within 90 days. While the exact numbers vary, the core idea is valid: most new traders fail due to:
- Lack of discipline
- Overleveraging
- Chasing trades emotionally
- Not having a trading plan
Success in forex requires consistency, patience, and risk control—not wild speculation.
Is Forex Trading a Gamble?
No, but it can become gambling if you skip the preparation. Unlike slot machines or roulette, forex is a skill-based market. Successful traders analyze trends, use data, and manage risk. If you trade impulsively or without a system, it may feel like gambling.
With proper tools, backtesting, and education, forex becomes a strategic endeavor, not a game of chance.
How Do I Start Forex Trading?
Here’s a quick roadmap:
- Choose a regulated broker (check licenses like CFTC, NFA, FCA)
- Open a demo account to practice with virtual money
- Learn key concepts: pips, lots, leverage, margin
- Study chart patterns, indicators, and price action strategies
- Fund your account with a small amount—start with micro-lots
- Use stop-loss orders to protect your capital
- Keep a trading journal to track and learn from your trades
Explore our beginner forex strategies to build your edge.
Can You Trade Forex in the US?
Yes, forex trading is legal in the US and regulated by the CFTC and NFA. Brokers must comply with strict rules, like capping leverage at 50:1 for major pairs.
How Does Cryptocurrency Trading Work?
Cryptocurrency trading involves speculating on digital assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), or Ripple (XRP). Crypto markets operate on blockchain technology and are decentralized, meaning they’re not controlled by central banks.
Unlike traditional currencies, which are regulated and traded on formal markets, cryptocurrencies operate in a decentralized, less formalized environment, impacting their transparency and susceptibility to fraud.
You can trade:
- Crypto vs Fiat: BTC/USD, ETH/EUR, etc.
- Crypto vs Crypto: BTC/ETH, SOL/ADA, etc.
Digital currency plays a crucial role in cryptocurrency trading, serving as a form of asset that can be actively bought and sold.
Traders profit from rapid price movements driven by:
- Investor sentiment
- Technological upgrades or hacks
- Regulatory announcements
- Whale (large account) activity
- Hype cycles and social media buzz
Unlike forex, which reacts to economic data, the crypto market thrives on innovation, speculation, and sometimes, meme culture.
Is Crypto Trading Better Than Forex?
It depends on your goals and personality:
Crypto has bigger swings and potential gains, but forex offers more consistency and structure.
How Does Crypto Make You Money?
There are several ways:
- Day Trading – Buy low, sell high (or short high, buy back low)
- Swing Trading – Hold positions for days or weeks
- HODLing – Buy and hold long-term
- Staking – Earn passive income by locking coins
- Yield Farming – Lend your coins to earn interest
New opportunities like NFT flipping, token launches, and airdrops can also be lucrative, but they come with risk and hype.
Can You Make $100 a Day with Crypto?
Yes, it’s possible—especially with:
- A $10,000+ portfolio
- A strong trading system
- Volatility in the market
But keep in mind: the same conditions that make profits possible also invite steep losses. A 1% daily gain is achievable—but not guaranteed.
Can You Make $1,000 a Month with Crypto?
Yes, many traders do. For example:
- A swing trader with $20,000 may aim for 5% monthly returns
- A day trader might compound smaller profits over 20 days
It requires:
- Discipline
- Chart reading skills
- Stop-loss usage
- Knowing when not to trade
Is Crypto Trading a Good Investment?
Crypto can be rewarding, but it’s speculative. Unlike fiat currencies backed by central banks, most cryptos are driven by:
- Tech adoption
- Community interest
- Supply scarcity
If you’re a long-term believer in blockchain, crypto may be a good investment. But if you’re risk-averse, it may be better to start with forex.
Which Platform is Better for Forex Trading?
Choosing a forex trading platform depends on fees, tools, and usability. Here are three top picks:
Forex Trading Platform #1: MetaTrader 4 (MT4)
Widely used, MT4 offers robust charting, automation via Expert Advisors, and a user-friendly interface. Ideal for beginners and pros alike.
Forex Trading Platform #2: MetaTrader 5 (MT5)
MT5 builds on MT4 with more timeframes, advanced tools, and multi-asset trading. Perfect for scaling up.
Forex Trading Platform #3: cTrader
Known for its sleek design and fast execution, cTrader suits active traders needing precision and depth.
What is the Best Crypto Trading Platform?
Crypto platforms prioritize security, coin variety, and fees. Here are three standouts:
Crypto Trading Platform #1: Binance
A global leader, Binance offers hundreds of coins, low fees, and advanced trading options. Great for diverse portfolios.
Crypto Trading Platform #2: Coinbase
User-friendly and US-based, Coinbase is perfect for beginners, though fees are higher. It’s secure and regulated.
Crypto Trading Platform #3: Kraken
Kraken balances affordability, security, and advanced features, appealing to intermediate traders.
What Are the Fake Crypto Platforms?
The crypto space has been plagued by fraudulent platforms. Watch out for these types of scams:
- Fake Exchanges
- They mimic real platforms but are designed to steal deposits or lock withdrawals. Examples:
- BitKRX (South Korea)
- CBase (spoofed version of Coinbase)
- They mimic real platforms but are designed to steal deposits or lock withdrawals. Examples:
- Exit Scams / Rug Pulls
- The dev team disappears after collecting investor funds. Famous examples:
- Bitconnect
- AnubisDAO
- Squid Token (based on the Netflix show)
- The dev team disappears after collecting investor funds. Famous examples:
- Ponzi Schemes Disguised as Bots
- Scams that claim to use AI or bots to generate “guaranteed” returns:
- Mirror Trading International
- GainBitcoin
- Mining Max
- Scams that claim to use AI or bots to generate “guaranteed” returns:
- Fake Wallets & Apps
- These show up in app stores and impersonate real wallets like MetaMask or TrustWallet.
- Too-Good-To-Be-True “Prop Firms”
- Some firms claim you can trade crypto for them with no screening or rules, promising big payouts and zero accountability. If they’re not transparent or can’t name founders, stay away.
- Some firms claim you can trade crypto for them with no screening or rules, promising big payouts and zero accountability. If they’re not transparent or can’t name founders, stay away.
Rule of Thumb:
If a platform:
- Promises guaranteed profits
- Requires you to recruit others
- Doesn’t clearly name its founders or show verifiable results
Examples of infamous scams: Bitconnect, PlusToken, and various “rug pull” projects. Stick to exchanges with transparent leadership, regulatory oversight, and a long track record.
Curious about firms that help you trade crypto with company capital? Check out our list of prop firms trading crypto.
Which is Better, Forex or Cryptocurrency?
Let’s summarize the battle:
So, which is better to trade? It depends on you:
- Choose forex if you prefer structure, economic analysis, and measured returns. Both forex and crypto trading allow participants to potentially profit from changes in currency exchange rates, known as currency movements.
- Choose crypto if you enjoy volatility, tech trends, and rapid-fire trades. Financial institutions play a significant role in both markets, influencing market dynamics and currency transactions. Understanding market sentiment, which can be affected by news, economic events, and geopolitical developments, is essential for traders to make informed decisions and capitalize on price movements.
Some traders do both, hedging slow forex weeks with active crypto moves, speculating on the fluctuations in price without taking ownership of the actual assets.
Personality Fit: Which Trading Style Suits You?
- Are you risk-averse? Go with forex.
- Do you love tech and fast action? Try crypto.
- Prefer passive income? Explore staking and DeFi.
- Want predictable returns over hype? Stick to major currency pairs.
Advanced Comparison: Forex vs Crypto for Different Types of Traders
1. Day Traders
Forex: Day traders in forex rely on small, consistent movements—often 10 to 50 pips per trade. They depend on economic reports like Non-Farm Payrolls, CPI, and interest rate decisions. Liquidity is strong, and spreads are tight.
Crypto: Crypto day traders can experience 5–10% swings within hours. However, slippage and lower liquidity in altcoins make order execution tricky. They often rely on momentum, news catalysts, or social media sentiment.
Verdict: If you value consistency and structure, forex wins. If you like adrenaline and volatility, crypto is more rewarding.
2. Swing Traders
Forex: Swing trading in forex is ideal due to regular chart patterns and technical levels. Swing traders typically hold positions 2–10 days. They benefit from predictable macroeconomic cycles and trend-following systems.
Crypto: Swing trading crypto can be rewarding, but unpredictable overnight moves and news (like an exchange hack or regulation ban) can invalidate a setup quickly. Risk/reward ratios can be huge, but so can the downside.
Verdict: Forex is more stable. Crypto is riskier but offers exponential gains when the trade goes right.
3. Automated and Algo Traders
Forex: Platforms like MT4, MT5, and cTrader make forex a haven for algorithmic traders. Countless back-tested strategies and Expert Advisors (EAs) exist, and liquidity helps bots execute efficiently.
Crypto: Crypto trading bots are newer. Platforms like 3Commas, Pionex, and Cryptohopper support automation, but data quality and market fragmentation can reduce effectiveness.
Verdict: Forex has the edge in automation, although crypto is catching up.
4. Prop Traders
Forex: Prop firms such as Maverick Currencies, TopstepFX, and FTMO offer capital to forex traders who can prove consistency. These traders often follow strict risk management, making them less likely to blow up.
Crypto: A few prop firms (like Maven, Lux Trading, and Funding Pips) now offer crypto funding. But due to extreme volatility, many restrict trading to majors only (BTC, ETH) or require tight drawdown rules.
Verdict: Forex is currently better structured for funded accounts. Crypto is still evolving.
Real-World Trader Perspectives
Let’s hear from real traders navigating both markets:
“I trade forex for steady income and crypto for moonshots. Forex pays the bills—crypto builds my wealth.”
— Nate M., prop trader and swing trader
“I blew three crypto accounts before I learned discipline. Now I use stop-losses religiously and treat it like a business.”
— Amanda T., crypto day trader
“My forex algo generates 2–3% a month consistently. Crypto bots? Still experimenting. Too much slippage for now.”
— Alex R., algo trader
These examples show how traders can leverage each market’s strengths depending on their strategy and emotional resilience.
The Psychological Game: Emotional Differences Between Forex and Crypto
Fear and Greed
- Forex traders battle boredom, overtrading, and confirmation bias. Emotions often arise from economic news surprises.
- Crypto traders face FOMO (Fear of Missing Out) and sudden panic during flash crashes or Twitter rumors.
Market Hours Impact Emotion
- Forex operates 24/5. You can sleep on weekends without worry.
- Crypto is 24/7, meaning price can crash while you’re sleeping. This leads to anxiety and screen addiction.
Community Influence
- Forex communities are often technical and professional.
- Crypto communities are more emotionally charged and tribal. Shilling and hype are common.
Understanding your emotional triggers is key. If you’re easily swayed by hype or anxious with volatility, start with forex to build discipline.
Tax Implications: Forex vs Crypto
Forex
- Typically taxed as ordinary income or capital gains, depending on whether you’re a trader or investor.
- U.S. traders often fall under Section 988 or Section 1256, which offer partial tax advantages.
Crypto
- Considered property by the IRS.
- Every trade is a taxable event—even crypto-to-crypto.
- You must track cost basis, holding period, and report capital gains/losses.
Tip: Use tools like Koinly, CoinTracking, or TurboTax Crypto to simplify crypto taxes.
Bottom Line: Forex is easier to track. Crypto requires meticulous accounting.
Regulation and Safety
Forex
- Regulated by agencies like:
- NFA/CFTC (USA)
- FCA (UK)
- ASIC (Australia)
- NFA/CFTC (USA)
- Brokers must segregate client funds and offer protection like negative balance protection.
Crypto
- Mostly unregulated or lightly regulated.
- Exchanges can go bankrupt (e.g., FTX, Mt. Gox).
- Some use offshore registration with little investor protection.
Key Advice: Never keep more funds than needed on a crypto exchange. Always use hardware wallets for long-term storage.
Final Checklist: Which Market is Right for You?
How Do I Start Forex Trading? (Step-by-Step)
Getting started in forex can be simple—but starting the right way makes all the difference. Here’s your roadmap to begin trading currencies:
Step 1: Choose a Reputable Forex Broker
Look for brokers that are regulated by top-tier authorities like:
- CFTC/NFA (U.S.)
- FCA (UK)
- ASIC (Australia)
- CySEC (Europe)
Make sure they offer tight spreads, strong customer support, and a user-friendly platform.
Step 2: Open a Demo Account
Before risking real money, practice in a demo account. This simulates live market conditions with virtual funds. Focus on execution, chart reading, and refining your strategy.
Step 3: Learn the Basics
Study essential forex concepts such as:
- Pips
- Lots (standard, mini, micro)
- Leverage & margin
- Currency pairs and cross pairs
- News events & how they impact currencies
Check out this curated resource to build your foundation:
Step 4: Choose Your Trading Platform
The most popular forex platforms include:
- MetaTrader 4 (MT4) – classic and reliable
- MetaTrader 5 (MT5) – newer version, more features
- cTrader – sleek UI, excellent execution
Step 5: Develop a Trading Plan
Every successful trader has a written plan that covers:
- Entry and exit rules
- Position sizing
- Risk per trade (max 1–2%)
- Daily max drawdown
- Trade journaling habits
Step 6: Fund Your Account and Start Small
Use a small deposit (e.g. $500–$2,000) to begin. Start with micro-lots to manage risk as you gain confidence and consistency.
Getting Started: Resources and Tools
For Forex
- Free Demo Accounts: OANDA, IG Markets
- Top Platforms: MetaTrader 4, MetaTrader 5, cTrader
- Education: BabyPips.com, Investopedia Forex Guide
For Crypto
- Secure Wallets: Ledger, Trezor, MetaMask (for Ethereum-based tokens)
- Best Exchanges: Binance, Kraken, Coinbase Pro
- News Sources: CoinDesk, CryptoSlate, The Block
Final Thoughts: Why Not Both?
Many smart traders today are multi-market traders. They use:
- Forex for consistency and cash flow
- Crypto for growth and innovation exposure
Just like a smart investor diversifies across stocks, bonds, and real estate, a trader can diversify across strategies and markets to balance reward and risk.
Want Help Choosing Your Trading Path?
At Maverick Currencies, we train and fund traders in both forex and crypto. You can:
- Trade our capital
- Get personal coaching
- Learn proven risk management
- Join a community of professional traders
Ready to Start Trading? Let Maverick Guide You
Whether you’re drawn to forex’s structured foundation or crypto’s bold potential, your success will depend on education, discipline, and the right environment.
At Maverick Currencies, we offer:
- Funding for skilled traders
- Training and mentorship
- Risk management systems
- Access to crypto and forex markets
Want to start trading with our capital, not just yours? Book a free call today and see how we help traders like you turn market opportunities into consistent income.
