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Each tradable instrument offers a unique trading experience, which is why it’s important to know which instrument is best for you. Continue reading our Forex vs crypto guide to discover which instrument you should trade and why you should trade with CAPEX – the best online broker for CFD trading.
Having the option to invest in several markets allows you to diversify your trades and potentially reduce the risk of loss. Here at CAPEX, you can invest in over 2,100 instruments through CFDs, whether you’re interested in stocks, Forex, commodities, or crypto. Plus, we offer a demo account for each instrument you can trade on our platform, where you can experience and practise trading before you invest any capital in actuality.
Signing up on a trading platform that is user-friendly can make your trading experience a whole lot better. Here at CAPEX, we offer our traders two trading platforms – MetaTrader 5 and CAPEX WebTrader. Both of our trading platforms are highly intuitive and have a simple user interface, plus you’ll find integrated tools on both platforms that are designed to support traders as they invest—our aim is to provide users with a smooth and efficient trading experience.
Forex refers to the foreign exchange, which is a decentralised market that deals with the exchange rates of currencies across the globe. While there are several reasons for someone to exchange currencies, Forex traders make a profit from the volatility of various currencies.
For instance, if USD is expected to increase in value whereas GBP is not, the trader will exchange GBP for USD. If their speculation is correct and the USD does rise in value, they’ll end up in profit. Some brokers also offer high leverage on Forex, allowing traders to make more significant investments.
Important political developments
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Trading Forex has some benefits over crypto:
However, it also has a few drawbacks:
Here at CAPEX, we offer CFDs on Forex along with numerous learning tools to reduce the risk of investing. For instance, you can sign up on our Forex demo account to learn to trade and practice trading strategies.
Cryptocurrencies refer to digital currencies that rely on a decentralised system known as the blockchain. The first cryptocurrency was Bitcoin, which was introduced nearly a decade ago by an anonymous man who’s identified as Satoshi Nakamoto.
Ever since Bitcoin’s inauguration and massive success as an investment, several cryptocurrencies have emerged, including Ethereum, Litecoin, and Dogecoin. While cryptocurrencies are highly volatile in nature, crypto traders can use this volatility to make a profit.
Most crypto trading happens on crypto exchange platforms, and some brokerage firms offer crypto trading services as well. Here at CAPEX, we offer CFDs on several crypto instruments, including Bitcoin, Ethereum, Cardano, Stellar, Chainlink, and Litecoin.
Crypto trading has some advantages over Forex:
Nevertheless, it also has a few disadvantages:
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Trading Forex and crypto are quite similar because you’re exchanging currencies in order to make a profit; however, the main difference is that Forex trading is done with fiat currencies, and the Forex market is decentralised; whereas crypto trading refers to the exchange of digital currencies that aren’t decentralised by an authority or financial body and rely on blockchain technology.
Another difference is that the crypto market is more volatile because there are more factors that can affect a cryptocurrency, including crypto news and happenings such as a tweet or message from Elon Musk. On the other hand, the factors that affect a fiat currency are mostly economic, environmental, or political. Plus, cryptocurrencies don’t have any underlying value; and instead, they obtain value through adoption.
Here at CAPEX, we offer traders over 55 currency pairs and over 20 crypto instruments that can be traded through CFDs.
No instrument is better than the other; rather, each financial instrument has its own pros and cons. When it comes to choosing which instrument is right for you, it comes down to what you’re looking for as a trader.
If you don’t mind trading with higher risk and want to invest in a highly volatile market, crypto trading might be the right option for you. Meanwhile, if you want to trade with slightly lower risk and don’t mind limited trading options, then Forex trading is simpler and might suit your trading needs.
You can hop on to our crypto demo account or Forex demo account to experience each instrument and decide which one suits your trading needs better. Or, if you want to diversify your trades and would like to invest in both of these instruments, you can do so with ease on CAPEX.com.
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While CFDs are high-risk instruments, there are a number of tips and tricks through which you can invest in them securely and profitably. For instance:
The broker that you choose to trade with plays an essential role in shaping your trading experience. Make sure that the broker you choose to trade with is registered and licensed with a tier-1 financial authority and offers sufficient learning tools.
Here at CAPEX, we are licensed and regulated under Cyprus Securities and Exchange Commission (CySEC), which is a tier-1 financial authority. Also, we at CAPEX are licenced and regulated by the Seychelles Financial Services Authority (FSA), the Financial Sector Conduct Authority (FSCA) and the ADGM Financial Services Regulatory Authority (FSRA). Plus, we offer our traders several learning tools, including an online trading school and a CFD demo trading account.
Trading on a demo account feature is an effective way to highlight where you stand in terms of trading knowledge and allows you to further polish your trading skills. It also helps traders understand the risks involved with trading a specific instrument. Here at CAPEX, we offer excellent demo accounts for each type of trading account we offer on our actual trading platform. You can sign up on our demo account for free and experience trading with zero risks.
An effective way to reduce the risk of loss is through diversifying your trades. Even if one of your trades doesn’t end up well, you can cover up the loss through another investment that might have been profitable. Here at CAPEX, we offer over 2,100 tradable instruments, allowing traders to diversify their trade and broaden their trading portfolio.
Ask any expert trader how they reached their current trading level, and the answer will always be the same – ongoing learning. When it comes to investing, the more you know, the better you invest. Here at CAPEX, we offer several learning tools to allow our traders to continuously learn and benefit from that knowledge as they continue to trade. This includes an online trading school, trading dictionary, and expert trading blog.
The last thing you want to do is get excited and invest all of your capital into an instrument. This can be an extremely risky move because the chances of facing loss can also be pretty high. The best thing to do is make smaller investments and grow those investments slowly and gradually as you gain expertise in a market. Plus, we suggest that you invest in markets that you’re familiar with or make yourself familiar with markets that you want to invest in.
RegisterRegister an account on CAPEX.com and start trading.
VerifySend over your documents and verify your account.
DepositLogin into your CAPEX.com account and deposit money.
TradeStart trading with CFD’s and over 2100 other instruments.
Signing up for an account with CAPEX is extremely easy. All you need to do is jump onto our sign-up page and enter a few basic details such as your email address, name, and age. Then we’ll ask you to complete your registration by providing a few more essential details, including your salary and taxation information.
The last step is an assessment that is designed to assess your trading skills. We then place each trader onto our platform according to their trading experience. Once you’ve completed the sign-up process, your account will be set up and verified in no time. You can then invest as little or as much as you want in numerous markets.
While choosing which instrument to invest in can be challenging at first, it all comes down to analysing the differences, similarities, pros, and cons of each instrument; then deciding which instrument aligns with your investment goals the best.
If you’re looking for an instrument that is simple to trade but offers lesser trading options and is moderately risky, then Forex trading would suit you. Alternatively, if you want to invest in a highly volatile market and don’t mind risk as long as there’s a chance of high returns, then crypto trading would suit you.
However, if you’re still confused, you can hop on to our demo account feature and experience trading both of these instruments to decide which one suits your trading needs better. You can even invest in both of these instruments through CFDs with us at CAPEX. So, sign up with us now and experience trading on over 55 Forex pairs and 20 crypto instruments today.