Is FX Trading on the way out for Cryptos? | Forex Factory

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Is FX Trading on the way out for Cryptos?

  • #1
  • First Post: Jan 3, 2018 2:23pm Jan 3, 2018 2:23pm
Hey FF Members,

Here's a question I've been hearing a lot lately.

Are FX traders moving away from FX and looking to Cryptos?

Cryptos have all the hype these days and oh boy have some crazy volatility.

I personally have kept my FX trading going strong while dabbing in a bit of Cryptos and ICO's.

Would be interested to hear what you and your trading groups thoughts on this.


I personally have kept my FX trading going strong while dabbing in a bit of Cryptos and ICO's.
  • #2
  • Jan 4, 2018 11:51am Jan 4, 2018 11:51am
Quoting thepiplife
Hey FF Members, Here's a question I've been hearing a lot lately. Are FX traders moving away from FX and looking to Cryptos? Cryptos have all the hype these days and oh boy have some crazy volatility. I personally have kept my FX trading going strong while dabbing in a bit of Cryptos and ICO's. Would be interested to hear what you and your trading groups thoughts on this. I personally have kept my FX trading going strong while dabbing in a bit of Cryptos and ICO's.
Yes, absolutely. Many FX traders are moving to cripto currencies. And most of the new traders are going straight to cripto. They have no interest in normal FX.
And this is understandable. Normal FX trading sucks right now. The central banks and the market makers manipulate the prices. The volatility is too low. The carry trade is dead. The regulations become more and more invasive. (lower leverage limits, stupid rules like FIFO....etc.) While with BTC and the other big criptos it's just pure supply and demand. Plus you trade on REAL market with REAL limit orders. You can trade like market maker and you can earn the spread.
Not to mention the possibility to make huge returns. With some of the more exotic pairs you can make 100 percent return in just a few days. Without any leverage.
Also trend following tends to work on criptos because these markets are still new, there is a lot of buzz around, in the news and the market as a whole is biased to the upside. So all you have to do is: buy dips, add on breakouts and close before the panic.

Criptos (blockchain) definitely is the future of finance.
  • #3
  • Jan 4, 2018 12:09pm Jan 4, 2018 12:09pm
As you can see, here I made a comment on the topic in May 8, 2017.

BTC was just breaking above 1500, and I said "we are going to make a killing" with this market. (And we did, or some of us) Current price is 14700
Attached Image (click to enlarge)
Click to Enlarge Name: BTC.png Size: 190 KB


Unfortunately very few people paid attention to my post. The majority of participants of this forum are still stuck in the old way of thinking.

All we hear is " it's a scam" "it's a bubble".......

WHO CARES! Just buy the damn thing at low price, sell it high price and enjoy the show!

People are too afraid to try new things. As a result they miss the best opportunities.
  • #4
  • Jan 8, 2018 5:57am Jan 8, 2018 5:57am
For me personally it's not quite there yet.
Way to volatile, no regulation and it's not established enough yet.
  • #5
  • Jan 8, 2018 6:35am Jan 8, 2018 6:35am
Quoting AntiVi
For me personally it's not quite there yet. Way to volatile, no regulation and it's not established enough yet.
Hahah

There is no such thing as "too volatile"! High Volatility = good! Plus these new markets are traded without leverage. And if you feel that the risk is too high - just trade smaller size. No need to place large trades. With crypto you can trade very very small sizes. Like 100$.. or even smaller.

Regulation!? You serious? Man, governments are evil! The crypto coins are made for the very purpose to ESCAPE the regulations.

These markets are so attractive NOW, BECAUSE they are new! When they become established and mature, the opportunities will dry up.

Remember! The early bird catches the worm.

For example, if you grab some new exotic coin at $0.01 and sell at $5.01 you make 50 000% So a small risky investment of $100 can return $50 000

This is the type of opportunity we are talking about. Massive growth potential. Buy when the price is low. Sell when the word is out. (In the news).

This is the new game!
  • #6
  • Jan 8, 2018 6:54am Jan 8, 2018 6:54am
You miss XRP / USD at $0.006 last year? The current price is $2.5
Attached Image (click to enlarge)
Click to Enlarge Name: xpr.png Size: 238 KB


Don't worry! There will be many other opportunities like this in the near future.
Just keep your eyes open, and don't' be afraid to take risks.
  • #7
  • Edited 9:24am Jan 8, 2018 8:08am | Edited 9:24am
Quoting alphaomega
{quote} Hahah There is no such thing as "too volatile"! High Volatility = good! Plus these new markets are traded without leverage. And if you feel that the risk is too high - just trade smaller size. No need to place large trades. With crypto you can trade very very small sizes. Like 100$.. or even smaller. Regulation!? You serious? Man, governments are evil! The crypto coins are made for the very purpose to ESCAPE the regulations. These markets are so attractive NOW, BECAUSE they are new! When they become established and mature, the opportunities...

Your arrogance is disgusting. You got a run - great. Enjoy.

But laughing about mentionable DISADVANTAGES cryptos are having is just disrespectful.

No regulation means no securities. Having your crpyto exchange hacked means game over. Having limitations on withdrawals or even rejections means bad luck and nothing you can do about. Your FX broker is messing up? At least you have somebody you can refer to in such a case.

Big gains are not guaranteed and past performance is nothing to take as prediction for the future. I can boast with my extremely profitable FX strategy as well, buddy. Leverage can be your friend!

But gain is not everything people are making up their minds about when thinking about risky investements.
  • #8
  • Jan 8, 2018 9:34am Jan 8, 2018 9:34am
Quoting Drolph
{quote} Your arrogance is disgusting. You got a run - great. Enjoy. But laughing about mentionable DISADVANTAGES cryptos are having is just disrespectful. No regulation means no securities. Having your crpyto exchange hacked means game over. Having limitations on withdrawals or even bad luck and nothing you can do about. Your FX broker is messing up? At least you have somebody you can refer to in such a case. Big gains are not guaranteed and past performance is nothing to take as prediction for the future. I can boast with my extremely profitable...
Arrogance ? What the hell are you talking about?

I'm just pointing the opportunities of the future. Open your eyes!

Maybe for you it's Ok to sit on the sidelines, and to watch the guy next to you while he makes millions....

But not me! I run with the winners. ALWAYS!

I did it with the stock market during the dot-com bubble.
I did it with the property market a few years ago.
I did it with the Forex market in the early 2000"s when it was possible to do arbitrage.
NOW, I'm doing it AGAIN with the crypto currencies. (Already made a small fortune with BTC).

I'm not saying all of this just because I want to brag about how great I am. This is NOT ABOUT ME!
I want YOU to make money as well.

The greatest opportunity in you life is right in front of you. Can you say NO?
This forum is totally asleep and it seems that only a few people here know what is going on right now.
  • #9
  • Jan 8, 2018 10:06am Jan 8, 2018 10:06am
Where exactly did you refer in ANY KIND to the mentioned problems cryptos have?

Who exactly tells you, that (for example) I may not be even more succesful than you are? I am doing pretty well and exclude cryptos ON PURPOSE because of the given problems.

I am happy for you or in general people beeing able to catch a big fish. But that does not make them "better" or extremely wise although it may be working for you.
You can still be successful without cryptos. Especially now, where the hype may already be over.


Btw: But not me! I run with the winners. ALWAYS! -> this is arrogance.
  • #10
  • Jan 8, 2018 4:06pm Jan 8, 2018 4:06pm
Quoting alphaomega
You miss XRP / USD at $0.006 last year? The current price is $2.5 {image} Don't worry! There will be many other opportunities like this in the near future. Just keep your eyes open, and don't' be afraid to take risks.
Are you using a penny stock approach on (possible) bubbles ?
Was diversification one of your main edges to success in the examples you have mentioned such as dot com ?
The truth is hidden from you
  • #11
  • Jan 8, 2018 6:11pm Jan 8, 2018 6:11pm
Quoting MaxenshteinD
{quote} Are you using a penny stock approach on (possible) bubbles ? Was diversification one of your main edges to success in the examples you have mentioned such as dot com ?
Yes! "Penny stock approach" is good way to describe how I trade. ( I trade penny stocks too they are super fun )
I even apply this approach in my standard day to day fx trading.

I'm not much into diversification. Instead I prefer the hit and run approach trying to ride the hottest trends. Or when possible - to sell short as soon as the mania is over.

It all comes down to the ability to recognize the current state of each bubble. This way you can take advantage of the crowd.
To a large extend you have to be contrarian to succeed in this game.

Over the years I came to the conclusion that the standard "pump and dump" model is EVERYWHERE! It is the basis of all speculation and it's the most reliable pattern. The main principles of this pattern can be applied to any market, and even in business in general.
  • #12
  • Jan 8, 2018 10:17pm Jan 8, 2018 10:17pm
Quoting thepiplife
Hey FF Members, Here's a question I've been hearing a lot lately. Are FX traders moving away from FX and looking to Cryptos? Cryptos have all the hype these days and oh boy have some crazy volatility. I personally have kept my FX trading going strong while dabbing in a bit of Cryptos and ICO's. Would be interested to hear what you and your trading groups thoughts on this. I personally have kept my FX trading going strong while dabbing in a bit of Cryptos and ICO's.
Simple answer is no.

If anything more people will move away from trading gold and start playing crypto.

Me personally I could never work out gold so no chance of me playing crypto but best of luck to those who do
  • #13
  • Jan 8, 2018 11:06pm Jan 8, 2018 11:06pm
Cryptos are the new "Binary Options"
  • #14
  • Jan 9, 2018 5:13am Jan 9, 2018 5:13am
Quoting Mingary
Cryptos are the new "Binary Options"
A great opportunity for "gurus" offering signals by the way
The truth is hidden from you
  • #15
  • Jan 9, 2018 5:22am Jan 9, 2018 5:22am
Quoting MaxenshteinD
{quote} A great opportunity for "gurus" offering signals by the way
Indeed, this is what it's all about.
"Gurus" and all, are always looking to offer "new products" to the gullible herd.
  • #16
  • Jan 9, 2018 5:33am Jan 9, 2018 5:33am
Quoting alphaomega
{quote} Yes! "Penny stock approach" is good way to describe how I trade. ( I trade penny stocks too they are super fun ) I even apply this approach in my standard day to day fx trading. I'm not much into diversification. Instead I prefer the hit and run approach trying to ride the hottest trends. Or when possible - to sell short as soon as the mania is over. It all comes down to the ability to recognize the current state of each bubble. This way you can take advantage of the crowd. To a large extend you have to be contrarian to succeed...
Hmmm, now I can't unsee the "pump and dump" cycles going on in charts. I will try to quantify it in to waves I guess. They usually look like an S shape. Thanks for the answer)
The truth is hidden from you
  • #17
  • Jan 9, 2018 6:34am Jan 9, 2018 6:34am
Quoting Mingary
Cryptos are the new "Binary Options"
Not exactly.

Binary options are simply a online gambling game with predetermined odds against the player.

Cryptos (blockchain) is new technology which is a real game changer in the world of finance, and contracts.

What most people don't understand is that, the coins of today are not the coins of tomorrow. What we see right now is just the early stage of a very large trend (bubble?). Most likely 99% of the coins today will disappear in the future.

The real leaders in this industry do not exist yet.

How many of you remember the tech bubble in the year 1999 ?

How many of these super innovative internet companies still exist today?

Only a few. This is the situation with blockchain today. There will be many MANY new coins. And some of these coins will become the real leaders. They will surpass everything we see today.

My prediction is that in the future, all businesses will issue their own coin. And these coins will serve double purpose. They will be like stocks and currency at the same time.
If you want to shop in particular chain store you will have to buy their coin first.
  • #18
  • Jan 9, 2018 9:08pm Jan 9, 2018 9:08pm
Quoting alphaomega
{quote} Not exactly. Binary options are simply a online gambling game with predetermined odds against the player. Cryptos (blockchain) is new technology which is a real game changer in the world of finance, and contracts. What most people don't understand is that, the coins of today are not the coins of tomorrow. What we see right now is just the early stage of a very large trend (bubble?). Most likely 99% of the coins today will disappear in the future. The real leaders in this industry do not exist yet. How many of you remember the tech bubble...
If you want to shop in particular chain store you will have to buy their coin first.............and what will you use to purchase their coins.....euros?dollars? As far as I am concerned until my wages and my loans are paid in crypto's then this is all hysteria that will die a natural death. Just takes time
  • #19
  • Jan 9, 2018 9:49pm Jan 9, 2018 9:49pm
Alphaomega this is certainly an interesting conversation on FX versus Cryptos. How can you let me in on your cryptos insights? I'm down and looking for the way to go up. I believe that 7 or more years of cryptos is time enough for it to be taken or considered seriously. Please, let me in on a few tips if you can. I truly admire your courage.
  • #20
  • Jan 12, 2018 11:30am Jan 12, 2018 11:30am
Quoting alphaomega
{quote} Not exactly. Binary options are simply a online gambling game with predetermined odds against the player. Cryptos (blockchain) is new technology which is a real game changer in the world of finance, and contracts. What most people don't understand is that, the coins of today are not the coins of tomorrow. What we see right now is just the early stage of a very large trend (bubble?). Most likely 99% of the coins today will disappear in the future. The real leaders in this industry do not exist yet. How many of you remember the tech bubble...
Interesting view there on each company offering their own coin. I think this trend is exciting now with all the new money pouring into Crypto and companies able to raise money on nothing other than an idea/whitepaper.

I think there will be a crash and it will hurt for a lot of people however that is where the leaders in blockchain will emerge. The companies/coins that have been able to deliver on what they've promised. Everything else will become worthless.

I think that there will need to be some sort of universal coin/s as needing to buy a coin for each company sounds a bit of a leap for the average consumer.

Coins may become the future stocks of companies with smart contracts paying out dividends however this will likely become less exciting when regulation kicks in and people think, well what was wrong with the stock market??

There's a wave now and it's an exciting ride, just make sure you know when to jump off your board or you'll be whitewashed.

All IMO of course.

Updated thoughts on the above topic:

That being said, I don't think the forex industry is dead. There is familiarity in it that people like, regulation, more predictable volatility etc. The pros will stick around and continue being consistent with their trading and profits, the people that think they're going to make 100% daily profits on forex will move to crypto and will lose there money regardless of where they trade.
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