Forex and cryptos – drawing the similarities

It’s no surprise that there are quite a lot of similarities between cryptocurrencies and regular currencies in the manner that they are traded. However, there are quite a lot of differences as well.

In this case, however, I’d like to talk about the similarities in how a Forex trader could be the ideal trader that would transfer to the crypto market.


Both cryptocurrencies and regular currencies are very sensitive to market news. The way that the similarity is drawn is that both markets have a dominant “power” among them. For FX that is the USD and for cryptos that is Bitcoin.

No matter what may happen in the market, the USD as well as BTC are always the first to experience some kind of change. Considering that they are the main features used to describe market performance, the resemblance is simply undeniable.

In fact, multiple analysts from forexbrokerlisting have mentioned the similarities between the two markets, but also warned about the dangers of taking them too seriously. For example, an FX trade is a lot different than a crypto trade. The holder doesn’t necessarily have a specific currency they are selling during an FX trade, while in the crypto world, it’s absolutely necessary.

Overall, most similarities are overshadowed by differences, but that’s a different story.

Service providers

Both of these markets require service providers for the retail market. For cryptocurrencies that is a crypto exchange, while for FX that is a Forex broker. There are similarities in this case as well.

For example, according to this FXTM overview, all brokers have a long list of currency pairs that they allow to be traded on their platforms. The same goes for crypto exchanges that have various crypto pairs that they can service traders on. Neither of them has the full house of financial instruments however, thus helping them focus on a particular point in the market.


Strategies are a very hotly debated topic among market experts, especially when it comes to comparing FX and cryptos. Multiple analysts from 55brokers have already called cryptocurrencies a completely different fruit from FX, and it’s very hard to disagree. Not all strategies work the same way for both of these assets, but there are some that do.

For example, as we mentioned the sensitivity towards the news, it’s quite obvious that the “news trading strategy” is applicable to both of these markets.

Things such as the Elliot wave theory, charting analysis and etc are also applicable, but not necessarily 100% accurate.


Although Forex and cryptocurrencies can be very similar, it’s just undeniable that they are very different as well.

In fact, it’s easier to say that they are two completely different assets with different strategies and methods for trading.

But, we can’t just discard the idea that it’s possible to see some similarities and exploit them whenever we can. Cryptos will soon grow much larger anyway, so it’s best to be prepared.

Leave a Reply

Your email address will not be published. Required fields are marked *