Bitcoin has been a roller coaster ride for traders since its inception and had definitely become iconic in 2018. Some feel cheated due to the booms and busts that occurred this year, potentially scaring away investment in the upcoming year.
Those that dislike the volatility, legal implications of Bitcoin and the black market behind it, traditional investment institutions are the way to go. In particular, Forex has a promising outlook for 2019.
Volatility
Volatility is certainly present in both Bitcoin and fiat currencies and it may be taken advantage of for those who love to short. The problem with Bitcoin is that it suffers from extreme volatility that cannot be compared with government-backed currencies and the market is still in its infancy. If you don’t want to be waking up in the middle of the night, worried about another crash happening in another timezone, Forex may seem less burdensome.
When following forex news live to determine potential profit margins, you trading may seem a whole lot more predictable when trading. This is assuming that you are not trading currency pairs from volatile developing countries.
There Is Always Something New Around The Corner
Unlike established international currencies, there is constant innovation happening in the blockchain world. Bitcoin is so severely outdated that it seems illogical why the market is mostly consolidated in something so inefficient.
If a trader wants speed, There is nothing comparable to Ripple. If you want advanced smart contracts, Ethereum, NEO and several other currencies have it implemented while Bitcoin does not. It doesn’t take a genius to predict that Bitcoin may no longer be desired and another cryptocurrency will soak up the market cap.
Trading Safety
The forex market definitely has its share of shady dealers, but it isn’t comparable to what you will find in the world of Bitcoin. Fake exchanges, Bitcoin wallets, and investment services pop up all the time to steal the funds of the unsuspecting. The worst part is that the unregulated nature of cryptocurrency easily allows criminals to get away with it.
Mt. Gox was one of the most reputable exchanges during the early years of cryptocurrency trading yet it still became insolvent and lost over $500 million in customer funds. Since then, users are always leery when using exchanges and are quick to transfer their funds to a “cold wallet”
In addition to thieves, one may also use their Bitcoin fortunes due to user errors. With traditional financial accounts, funds are kept in their account and a user may contact customer support if there is an issue. With Bitcoin, simply sending funds to the wrong address, deleting a wallet file or losing your encryption password is enough to lose everything.
Accessibility
The fortunate part about Bitcoin trading is that it is without borders, time zones or restrictions. Anyone can create a wallet, whether online or offline and purchase cryptocurrency using cash, debit card or even mining it from their computer. Technically speaking, you may not even need to show your identification nor need a bank account to start trading.
Forex still requires an investor to be somewhat “on the grid” to get into. Not only are you likely to need identification and a bank account. In addition, brokers may have minimum deposit amounts that may be above your level of comfort.
Conclusion
Forex is simply a more well-established industry while Bitcoin is so young that nobody can expect predictable results in 2019. Having said that, both Forex and Bitcoin have its risks and plenty of traders have lost their savings in both markets. Take most bullish news stories with a grain of salt and do your research if you get into either.
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