Foreign exchange (FX or forex) is the most liquid and actively traded market in the world, with a daily trading volume of over $5 trillion. Trading forex involves predicting the movement between two currencies, such as the Euro vs US Dollar (EUR/USD), which can be affected by changes in global supply and demand.
Binary options offer fixed risks and fixed rewards, but they are not real financial assets such as forex, bonds, stocks, commodities, futures, etc. Forex trading is better than binary options trading because it provides higher returns and smaller drawdowns. Forex trading is more profitable than binary options.
Forex binary options and cryptocurrencies are popular choices when it comes to financial trading, both offering their unique features which hold different attractions to traders. While binary options are the more established of the two, it is fair to say that cryptocurrency trading has grown in popularity over more recent years.
Each come with their own set of benefits and of course, their pitfalls. To ascertain the pros and cons of both of these trading methods and which suits you the best, we have put together this guide so that you can make an informed decision as to which suits you better and what you should be considering when choosing between binary options and crypto.
Binary options could be viewed as more popular than crypto because it is undoubtedly more established. Perhaps it is easier to understand and with more knowledge and experience available out there to help you learn how to improve your trading. Cryptocurrencies are more of an unknown quantity given that they are a relatively new concept. Variety with binary options may be considered to make it more appealing.
With assets like commodities, stocks, indices and currency pairs, you can trade on lots of different assets and build up quite a healthy portfolio. In addition to the variety of assets, there are also some diverse trade types – high/low, touch/no touch, ladder options, pairs and more. With short expiry times, you can make lots of trades in a short space of time.
With crypto, while there are a few different digital assets, it isn’t quite as varied as binary. Trading depends on the sort of experience you are after. If you like the variety, then you may prefer binary; however, some people prefer the volatility of crypto and the fact that the fluctuating intraday prices can produce some healthy profits.