In many ways, cryptocurrency trading is similar to forex trading. Because our cryptocurrencies are priced in US dollars, you can make predictions about whether they will appreciate or decline in value relative to the currency of your choice.

Placing a buy order on BTC/USD indicates that you think the price of Bitcoin will increase relative to the US dollar. Based on the price movement and the size of your positions, if the price increases, you will be profitable. Your account will incur losses if it declines.

Trading forex and trading cryptocurrencies differ primarily in two ways. The crypto markets are still developing and very unstable. Risk management is therefore crucial for traders who want to take part in this fast-paced trading environment.

The second significant distinction is that cryptocurrencies are unaffected by monetary inflation. Governments have complete control over the printing of fiduciary currency. The market caps of cryptocurrencies, however, are predetermined.