Building A Solid Wealth Portfolio Requires Both Crypto And Forex

Crypto has provided investors with some of the best - and worst - economic forecasts we have ever seen in a commodity (yes, crypto is a commodity). From Ethereum’s shaky future thanks to political influence, through to Bitcoin’s forecast of a possible Santa bull market for Christmas 2019, there’s no denying the strong appeal of adding these to an investor’s portfolio. Forex trading, on the other hand, has to rely on enormous political shifts that affect the major currency pairs. For those who like their investment portfolios a little more edgy than mutual funds and government bonds, adding crypto and forex certainly add something new to the mix. 

Those Eggs And Those Baskets 

One of the most important investment strategies to remember is to not invest all your money (or effort) into a single investment type or portfolio. Investments carry risk, and even low-risk options can cause drastic losses. This is important to remember when opting for one investment type over another. In the case of crypto and forex, choosing one over the other suggests that one is better than the other, which is not only hard to prove, but also risky. Instead, it might be prudent to look at splitting efforts and funds in order to mitigate risk and enjoy potential returns.

Different Perspectives On Leverage 

While both carry risk, there are different risks that investors have to consider when deciding to trade forex or crypto. For instance, ConnectFX breaks down brokers by leverage offerings to provide forex traders with an opportunity to decide how much risk they’re willing to take on. In forex, this is quite a common practice, albeit it quite regulated in the U.S. Crypto, on the other hand, has only a few brokers that would offer leverage as part of their trade. For investors who want to diversify risk with the option to compare, leverage will be an exciting addition to the mix. 

Rates Of Growth Are Hard To Compare 

Extreme fluctuations and volatility can describe both forex and crypto, however, the margins are very different. It’s important for traders to ensure that they understand the rules of both trading games before investing. This is because the rules are different for every part of the investment journey, from the length of time required to see an actual difference, to trading strategies, indicators, and even exit strategies. While supply and demand govern crypto and forex, their reactions are different. 

Forex and crypto are both major components of investment portfolios, especially for those who have an appetite for risk. In this case, it’s not a question of one or the other, but rather splitting the risk.