Meanwhile, is typically valued at less than $100 billion per day, though it rose slightly above $1 trillion on two days in 2018. The price behavior of Bitcoin can be very volatile. A forex trade is simply an exchange of one currency for another at its current rate. Traders who want to take on that risk should use only a locally regulated forex brokerage. To prevent yourself from making impulse decisions when high volatility occurs, it’s very important for you to determine your limits. is that you have to determine and set a price that you’re willing to cut loss or take profit before the trade. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. A forex trade is simply an exchange of one currency for another at its current rate. Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. However, there will be a time that prices will suddenly go down. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk.bitcoin wallets In addition to these differences, experts like Investopedia recommend trading bitcoin at a regulated cryptocurrency exchange, such as Gemini Trust, rather than a traditional forex exchange, because cryptocurrency exchanges understand the market and security requirements better than forex markets. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. As mentioned, when trading Bitcoin, prices can quickly go very high or very low. On the other hand, if you don’t have any target price for taking your profits, you’ll start becoming greedy as the prices keep going up. It's the job of those banks to stabilize the value of their currencies and keep them stable. For comparison, the value of global stock trading is estimated at only a few hundred billion dollars per day. Setting a target, both buying and selling, will help you avoid acting greedy on a trade. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. That’s the number one rule to become a successful Bitcoin trader. For instance, there will be a time when the prices start going down. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies.