Have you noticed how each and every post, podcast, and video out there focus only on one form of trading? If you happened to be wondering why someone who stresses on their success only highlights a single market’s potential, you are on the right track. Also, isn’t it interesting how many traders look up what’s new and they take on a new market, completely dropping what they did before as if their shiny new toy was going to render more success despite not having learned anything before? If you have already done some forex trading, and if you browsed through whatever available material there was, you then may have also wondered how understanding other markets could help you prosper. If that is the case, or if you are here for some fresh insight, in today’s discussion we are going to take on a road less traveled and provide you with the reasons why anyone should expand their range of trading experience from the forex to the crypto market.
The topic of expansion is often conditioned by various factors. You are allowed to expand, but when your projections and beliefs go against your primary community, you are either considered to be unrealistic or you may start questioning your judgment. What so many fail to see is that true knowledge comes not only from spreading out across one market’s ecosystem but from expanding across several markets as well. The truth is that no market should ever enjoy the exclusive privilege of being the one way to go about trading.
This topic of superiority has only limited traders from using real-life opportunities to learn how to make more money. What is more, those who recognized the importance of going wide also understand the changing nature of the markets we trade. We need to look for ways to always be a part of the game because we may wake up one day to find out that the currencies we know no longer have the same meaning and importance as they did before. Therefore, by making a conscious decision to learn about other forms of trading you protect your investment and your future as a trader.
Quite interestingly, although both the fiat and the crypto markets revolve around the topic of currency, any cryptocurrency trader who ever tried to boldly copy and paste strategies onto the forex market without attempting to learn before making any decisions probably failed initially. Unlike this situation, all forex traders who shifted to the crypto market faced considerably fewer challenges in comparison to the previous scenario. Although no market is exempt from failure, which can indeed be painful and quite costly too at times, we need to understand what it is that forex traders seem to know about trading that makes such a vast difference in overall trading experience and, naturally, the related financial reward. If you are interested in the topic of cryptocurrency and you strive to become a more affluent trader, then there should not be any reasons for you not to absorb whatever you may have learned about forex and extend this knowledge and previously acquired skills to another market.
The remaining questions, quite understandably, reveal the concern where to start looking. What are the steps that forex traders use to buffer some inevitable challenges looming in the cryptocurrency market? Which factors make it easier for the individuals engrossed in the fiat market to engage in trading cryptocurrencies rather than vice versa? Even though the questions are many, to be able to answer them, we may need to address the overall climate of the two markets first. The answers are often not quantitative, but qualitative, so to provide direct and useful advice that can be transferred to a certain degree from forex to crypto trading, we need to assess the entire setting surrounding both markets. In addition, we need to comprehensively assess how these environments and differences can allow the experience with one market to serve any future involvement with the other.
What each forex trader can testify is that most fiat-driven individuals are deeply immersed in the topic of trading and devoted to the exploration of new and useful information. The blogs and videos on this topic are growing in numbers on a daily basis and the search for the best indicators is as vigorous as it has always been. The same can be said about the world of cryptocurrency, yet there is one essential difference that directly and profoundly impacts a trader’s mindset. While we can see that the two communities experience an almost identical degree of devotion to the development and the desire to grow financially, it is the nature of the traders’ involvement in these communities that make a clear distinction between them.
Unlike the fiat realm, there is an air of neediness to communicate and share one’s expectations between crypto traders. An average crypto trader would commonly turn to the community, waiting for the announcements of upcoming events. Unfortunately, this exchange of information often projects an unrealistically optimistic perspective disguised as mutual support, and the charged-up atmosphere, aside from elevated emotions, often fails to produce any lucrative outcome. As contacts and groups, we engage with professionally help shape our careers, such specific collaboration typical of the crypto market produces a distinctive trader profile, which should be the focal point of research for any forex turn crypto trader.
To further describe why the overall trading climate is so relevant for the growth of every trader, we need to think about the topic of independence. As a forex trader, you may be on the lookout for some useful tips and success stories, but you will eventually need to test these out ether in the demo or in the real world, which needless to say does not apply to the crypto market. The crypto community still consists of individuals who seem to be lacking individuality in decision-making, always watching out for the approval or reassurance from their peers. These may seem to be insignificant differences on the surface yet, from the psychological point of view, such tendencies and practices are slowly but surely building insecure traders, dependent on external ideas before daring to take any deliberate action.
Naturally, this approach can hardly help develop any strategy or pave the way for drawing necessary conclusions. Therefore, short of deduction and planning, trading cryptocurrencies often prevent those involved from developing key analytical skills. Consequently, these traders’ constant reliance on outside support and input, accompanied by a severe lack of objectivity, makes generating revenue highly implausible. Since trading essentially revolves around profit, as a forex trader, it is your task to use your tested-out methods and plan how you can benefit from the pre-existing knowledge prior to new market penetration.
If you are still thinking whether you should embark on this journey, you should bear in mind that you have the necessary means to expand yet to another market and thus ensure an even greater source of income. Due to the fact that your trading experiences allowed you to grow an independent mindset, you can make use of the analytical and planning skills you took time to develop. With this advantage, you will not only progress faster, but you will be able to secure your financial stability should any unexpected events take place in either of the markets. Finally, to answer the question of why anyone should move from forex to crypto, consider how much better and profitable your trading career could be in the future with the ease of not having to put excessive amounts of effort as a pre-condition.