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January 26th news, recently many German companies, including energy supplier Badenova, housing construction company Viebrockhaus and drugstore chain Rossmann, have stated that they will no longer buy new Tesla cars because of the words and deeds of Tesla CEO Elon Musk that have caused their dissatisfaction.Xiaomi Auto: It has reached charging network cooperation with 13 operators, and more than 1.02 million charging piles have been included in the "Xiaomi Charging Map".On January 26, the National Development and Reform Commission issued the "Notice on Further Improving the Quality of Medical Security for College Students". Recently, the responsible person of the Employment Department of the National Development and Reform Commission answered reporters questions about the "Notice". The "Notice" puts forward 10 specific policy requirements from four aspects, including "expanding the coverage of basic medical insurance for college students", "consolidating and improving the level of medical security for college students", "strengthening diversified medical security for college students" and "doing a good job in the transfer and continuation of basic medical insurance relations for college students", mainly including: clarifying the task objectives of college students participation in insurance; creating convenient conditions for college students to participate in insurance; improving the incentive policy for college students to participate in insurance and pay premiums; improving the medical insurance treatment policy for college students; doing a good job in the filing management of college students medical treatment in other places; improving the medical assistance policy for college students; supporting social forces to provide precise assistance; giving full play to the role of various commercial insurances in supplementary security; doing a good job in the transfer and continuation of basic medical insurance relations for college students; and doing a good job in the connection of medical insurance benefits for college students. After the implementation of the "Notice", through the integration and coordination of various security resources, the policy "shortcomings" will be made up, and the level of medical security supply for college students will be improved, which will play a positive role in economic development and improvement of peoples livelihood security.On January 26, the central bank significantly reduced the amount of medium-term lending facilities on January 24, which attracted market attention. Industry experts said that although the scale of MLF operations has dropped significantly, the central bank has not reduced medium-term liquidity injection, but replaced MLF with large-scale reverse repurchase. At the same time, a number of monetary policy tools are still working together to ensure that the capital market remains stable before and after the Spring Festival, supporting credit injection and government bond issuance at the beginning of the year.On January 25, Societe Generale said that we expect the European Central Bank to cut its key policy rate by 25 basis points at next weeks meeting, which will reduce the deposit rate to 2.75%. The market generally expects the bank to cut interest rates again in March, when new data and forecasts will help to frame the discussion about the neutral level. This did not prevent several members of the Governing Council from expressing a preference for continuing to cut interest rates to 2% at subsequent meetings, but this may be precautionary guidance ahead of potentially disruptive US trade policies. It is also possible that, especially if the data continues to show resilience as we expect, the ECB will feel the need to move to quarterly interest rate decisions after March. This will help it better understand how the economy is developing and where the neutral may be. At present, we expect the ECB to cut interest rates again in April, with a terminal rate of 2.25%.

Cryptocurrency vs Forex Market – Similarities and Differences

Aria Thomas

Mar 23, 2022 17:27

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Cryptocurrencies have gained popularity in recent years, and many traders are wondering if they should concentrate on crypto markets instead of forex or attempt to have the best of both worlds. This essay will discuss the similarities and differences between these two asset types so you can make an educated selection.

Similarities Between Crypto Markets and Forex Markets

To begin trading, you will need a trading account as well as a current electronic gadget with a reliable internet connection. If you have expertise trading forex, you can quickly master the fundamentals of crypto trading. Charts are readily accessible, and execution is quick, allowing you to focus on your trading.

Crypto markets, like forex markets, are driven by the supply-demand balance. When there are more buyers than sellers, the price rises; when sellers outnumber buyers, the price falls. As a result, while trading crypto, you'll be able to apply traditional indicators and chart patterns.

Differences Between the Crypto and Forex Markets

While crypto trading seems to be quite similar to forex trading on the screen, there are several distinctions that will be addressed more below.

Number Of Available Instruments

Traders at Inforex generally focus on major currency pairings (EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD). Some traders choose to trade exotic currency pairings that comprise a major currency and a currency from a developing country, such as South Africa or Mexico.


There are already over 11,000 distinct cryptocurrencies, and the number is rising. Some are regularly traded, such as Bitcoin and Ethereum, while many are just known to crypto aficionados.


In crypto markets, there are several instruments to pick from, but forex markets might sometimes face periods of quiet trading lasting days or even weeks.


Because it is hard to keep track of all cryptocurrencies, traders will have to choose a limited number of coins to keep track of. As a result, traders will continue to operate with a restricted watchlist.

Liquidity

The forex market is exceptionally liquid, with forex trading volume exceeding $6.6 trillion in 2019. You will be able to effortlessly purchase or sell your selected instrument, regardless of position size, without substantial slippage. This is a significant benefit since you will always be able to exit the deal at a price that is identical to or very near to the price shown on the screen.


This is not true for the majority of cryptocurrencies. The whole crypto market value is less than $2 trillion, with Bitcoin accounting for more than 45 percent of this amount. Because trading in most cryptocurrencies is not nearly as busy as it is in Bitcoin, traders may have difficulty exiting the deal at the targeted price.

Significant Distinction Between Coins

There is a significant difference between distinct coins due to the massive quantity of accessible cryptocurrencies. Anyone interested in trading lesser-known cryptocurrencies must first learn about their basics.

As previously said, there is no way to follow all chances in the crypto markets, therefore traders must concentrate on currencies that they are well-versed in. As a result, the size of their trading watchlist is comparable to that of a regular forex trader's watchlist.

Volatility

Cryptocurrencies are quite volatile, but forex markets are far more stable. Bitcoin, the world's top cryptocurrency, began the year at $29,000 and rose to $65,000 before falling down to $30,000 and recovering to $45,000. Smaller cryptocurrencies may make large swings in a short period of time.

Such fluctuations are uncommon in forex markets, and they usually occur in exotic pairings. In this regard, whereas forex is simpler to limit risk, the profit potential in crypto markets is greater.

Profit Potential

Crypto markets have grown in popularity because they provide chances for large gains. Risk rises in tandem with profit possibilities in trading, therefore traders should be prepared to take on more risks when trading cryptocurrencies. In reality, the value of many currencies may eventually fall to zero if the projects fail or money moves into more established coins, as is common in more mature phases of growing markets.

It should be mentioned that traders may always use leverage to boost their potential in forex trading. Leverage is a two-edged sword in that it increases risks, but traders may minimize risks by selecting the optimum level of leverage for their transactions.

Market Hours

The crypto market is open 24 hours a day, seven days a week, while the forex market is open five days a week. This is a significant change in terms of lifestyle. Forex traders may unplug from their computers and enjoy their weekends. Crypto traders should be in contact with markets at all times, since cryptocurrencies can make large changes on weekends.

While both markets are open 24 hours a day, forex market activity follows a predictable pattern due to the fact that forex trading is dominated by large institutions. In crypto markets, the situation is different since larger institutions have just lately begun to boost their engagement, and many currencies are driven by individual traders or tiny crypto investment organizations.

Security

Crypto markets are still in their early phases, and relevant rules are being implemented in a number of nations. Crypto traders must cope with counterparty risks (scams are unavoidable in rising markets) as well as hacker concerns. Recently, hackers stole $600 million from Poly Network (oddly, they have returned about half of the stolen assets at the time of writing this article).

The forex market, on the other hand, is carefully regulated, therefore forex traders face less dangers. Forex traders should still investigate their broker's history as well as the relevant rules in the nation where the broker is registered. Scams have mostly been eradicated in the forex trading business due to its maturity.

Choosing between Crypto Trading and Forex Trading

When deciding between the crypto and forex markets, traders should consider their financial objectives, available money, trading style, and lifestyle needs.

The easiest approach to make an educated decision is to experiment with both crypto and forex trading on tiny accounts. After a few months, you'll be able to tell which market is best for you.

Remember that you are not compelled to pick between crypto trading and forex trading, which means you may take advantage of the chances accessible on both markets.



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