Differences Forex And Cryptocurrency That You Must Know
For those of you who are already passing by in the world of investment would be no stranger to the term trading. Trading itself lately is always associated with two things that are booming forex trading and bitcoin trading. Trading or trading bitcoin is generally a way used to generate profits through the internet. Already many parties who wrestle work as a trading, ranging from the lay or just try, a serious individual to the already pro or so-called brokers.
Talking about forex trading and bitcoin trading , most bitcoin traders start trading from forex trading first. This is due to the new bitcoin trading emerged in 2009 long after the famous forex among the users.
Forex trading itself is trading currency (currency) from different countries. Forex stands for Foreign Exchange (currency exchange). The way forex works is to make transactions on currency pairs, for example when we buy the currency Euro (European currency) and simultaneously sell USD (American currency) or commonly abbreviated EUR / USD.
While bitcoin itself is a virtual currency (cryptocurrency) developed in 2009 by a person named Satoshi Nakamoto. The currency is almost the same as the common currency, but only available in the digital world. Bitcoin is usually stored in Bitcoin Wallet. This is the wallet that will be used to send and receive bitcoin, either using the fee or using other shipping charges.
Bitcoin itself is created by mining or minning. The minners with the help of sophisticated computers elaborate the complex mathematics to find new Bitcoin blocks and who find will be getting bitcoin rewards. The 1 block rebate is initially 50 BTC which is now 25 BTC / block. Number of bitcoin has been restricted since the first is 21 million BTC. This restriction is in place to prevent inflation.
Differences Forex (currency) and Bitcoin (cryptocurrency)
If you are first acquainted with the trading terms of bitcoin, you probably will not have trouble understanding the real trading concept. But if you are first familiar with trading through forex, maybe you will be confused when going to trading in addition to forex.
Bitcoin trading is very different from forex trading although both of them carry the theme of trading. In forex trading we recognize two terms that are Long and Short which means Long targets price rises to generate profit while short has a target when the price goes down to get profit.
In contrast to forex, the target profit bitcoin obtained as when buying and selling goods online with the term Buy and Sell. Buy is intended when minner buys bitcoin, while Sell sells bitcoin. How to calculate the profit is also very simple only the selling price minus the purchase price. So the terms Margin Call and PIP in Bitcoin trading are replaced by selling goods that generate profit or loss.
Things to consider in the sale and purchase of bitcoin is when we do the trading we have to collect as much as possible that becomes the difference between buying and selling, rather than collecting the bitcoin.
Another difference is that bitcoin prices tend to fluctuate for no reason. The good news in circulation has no effect on bitcoin prices, in fact sometimes this good news actually drops the bitcoin price or does not have any effect at all. The rise and fall of bitcoin can not be ascertained by indication of circulating information only. No bitcoin value controls, all depending on the performance of the trader because they are the ones who play the price at will.
The opposite of bitcoin, forex conditions even very dependent with all the information circulating both political, economic, disaster, war and others.Especially for countries that have advanced economies and strong like America and Japan, then the price of their currency can rise and fall due to information in circulation. It is also often considered a trader as an opportunity to trade. Simply stated, the purpose of forex trading is to gain profit from the ups and downs of currency exchange rates.
Another difference is that bitcoin is developed with the idealism that a good currency is not controlled by the government and the central bank. Governments that are believed to be controlled by people who have different intentions usually only work for personal gain so that financial decisions are always on the side of the strong. The point is that the work of bitcoin will not give the government and central bank the opportunity to intervene in its regulation.
Freedom from the rules of the central bank and the government is certainly not owned by forex because forex which is a trade using the currency between countries will be sensitive to problems arise. Even just an unknown issue comes up, the price goes up and down. Especially if the central bank and the government down to create a decision in it.