Cryptocurrency trading and forex trading are both lucrative ventures that are seeing millions of market participants daily. Even though the forex market is still the largest market that sees a trading volume of $6 trillion a day, crypto trading has become more popular and widespread in recent years.
LiquidityRefers to how easily an asset can be converted into cash without altering the current market price of that asset. For example, in the foreign exchange market, liquidity is determined by the currency pair being traded.
Cryptocurrencies are inherently more volatile than forex pairs, which move in narrow bands rather than experiencing significant shifts in a trading day. However, many major forex pairs move a lot within these narrow bands.
The forex market is inherently more accessible than the cryptocurrency market as forex can be traded through a broker. There is also a higher number of market participants to take the other side of the trade.