Last update 2020.08.11
Why is forex trading Better than Cryptos? Here you will know how to answer that question in a blink of an eye. Come on learn with us!
On August 18th, 2008, I was finishing my master’s degree in economics when I read the phrase “Bitcoin: a peer-to-peer ATM system“ for the first time.
I was very excited about the idea of an entire deregulated cash system.
And even more excited when I got to know that everything depended on blockchain technology to validate and record transactions. Thus, the Cryptocurrency Market was born. But is this market better than Forex?
Forex relies on currencies of strong economies, and those currencies circulate literally among Billions of people. It means that their control is very strong and that they have the National States to enforce their value. It does not happen with cryptocurrencies.
They still have very few uses as a trading pattern and circulate almost exclusively in geeky locations or financial markets.
They have no powerful authority to impose their value (we can say that they also have no one to make bad economic decisions).
These are planned features from the start. They prove a concept, but are not yet a relevant payment method.
You have probably found some BTC/USD contracts available in your home broker. Maybe other cryptocurrencies like Ethereum. All of them are tradable like any other OTC product. But they rely on a not emitted by a country currency, it is a civilian decentralized cash.
Cryptos are more speculative products than Forex
As a new type of financial product, it is still very likely to be speculative. In 2008, I could use my personal computer to collect Bitcoins overnight.
Today, even with my powerful notebook, I can’t connect to a guild of Bitcoin miners because I don’t have the minimum requirements.
If it is not more likely that new bitcoins (or other cryptos) are going to be harvested through miner, than every new demand will result in price pressure. This could be seen in the recent years with crypto prices skyrocketing.
In economics, Gresham’s law is a monetary principle stating that “bad money drives out good”.
For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation. It happens with silver coins in the USA.
It probably occurs with crypto currencies, as their prices started to climb all their possessors and keep it from circulating. It made its scarcity sensation rise, once it becomes difficult to miner, its price goes up to an upper pattern.
As you probably know by now, this price is not necessarily real, so it can make big moves in both directions.
It makes cryptography difficult to predict and susceptible to turbulence and wide price changes. It is more difficult to do the same with Forex, because it is a broader market.
Forex has more historical data to be used in forecasting
Forex trades are enormous, and they have now long series of data to be used in forecasting. That is, for example, what Wiseinvest used to train its Artificial Intelligence (AI forex system). Without them it is unlikely to accurately trade with the automated AI trading and AI forex Signals.
In cryptocurrencies there are still no long series of trades and those that do have few observations to be considered big data. This is another reason why they are still very speculative.
Probably in the future, with more encryption options and more uses for them, this type of derived asset becomes more reliable. Until then, we recommend a greater focus on Forex symbols as a main investment option.
The best way to trade forex
There are two ways to invest with our AI in forex:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker Oanda. Click here to open an account.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account and you can monitor the AI trading performance directly on our dashboard.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5 and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, in order to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a Professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on your Wiseinvest dashboard.
- Copy the signals that we will send to you via email and paste you’re your Brokerage account.
The forex signals are sent every time that our trading system powered by Artificial Intelligence (AI forex system) identifies a new trading opportunity.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate or change the leverage in your forex broker account. Learn more about leverage in forex trading clicking here.
“By 2030, some form of Crypto will become the global reserve currency but it will not be based on what exists today. Existing cryptos need to transform or will disappear. Also around 2030 or so, the first Nobel Prize in Economics will be awarded to a Cryptoeconomist.” ― Tom Golway, Planning and Managing ATM Networks.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. The forex broker Fxcm warns that 69.66% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.