In foreign exchange market, the participants can buy, exchange and sell the currencies to earn a profit. This market is made up of commercial companies, banks, central banks, hedge funds, brokers, and investors. The same way digital currency could also be traded with the aim to earn a profit and it is known as cryptocurrency market.
Liquidity and volatility- The currency market are highly liquid and it has been able to attract traders from around the globe because of this benefit. Even the cryptocurrency market is highly liquid and at the same time highly volatile too. A trader should be extra cautious while trading in the crypto market. In order to assist the trader to trade in this highly volatile market, many trading software has been introduced to the market. Bitcoin trader software is one of them and it has a unique feature of auto-pilot mode wherein the robot will work for you when you switch on the auto mode. All the benefits of this software can be read in this post.
Working hours- The currency market is open 24 hours and 5 days a week. This market does not work on weekends. As it is open 24 hours, it is convenient for people who are working and can trade in the night after the regular working hours. However, in the case of cryptocurrency, the market is open 24 hours on all 7 days. As there is no single authority to control the market and the transactions are recorded in the blockchain. There is no restriction on the time of trading. Anyone from any part of the globe can trade from any time zone on all days.
Instruments- The currency market deals with normal currencies like US dollars, Euros, etc in its market, while in the case of cryptocurrency market, market deals with digital or virtual currencies like bitcoin, litecoin, altcoin, etc. They do not have any physical existence, it is an electronic form of money.
Control- The currency market comes under a central authority or a bank whereas the cryptocurrency market does not come under any central authority. It is a decentralized market which works on peer-to-peer technology.
Whichever the market you choose to trade in, it is advisable that you should have a basic understanding of the market. Do proper research and study before taking a decision. After all, you will be dealing with your hard earned money.