The emergence and widespread adoption of digital currencies and the evolution in digital currency markets has been driven by several opportunities in the financial market for radical innovation and entrepreneurship in financial solutions.
According to statistics, there were more than 63 million cryptocurrency wallet holders globally by the end of 2020, with more emerging digital technology that has the potential to enable social and economic growth throughout the world, including unbanked and developing countries.
While economies such as South Africa, the United States, Australia, New Zealand, and the United Kingdom are at the front of new technological optimism, with access to a range of tools to shape a better connected, sustainable global economy, with currencies that work for the future.
When evaluating and comparing the different range of markets, the forex market is still the largest financial market in the world, seeing more than $6 trillion being traded daily, however, this is slowly changing as cryptocurrencies are accepted for several reasons.
The United Kingdom’s transition from forex trading to crypto
The forex market is inherently known for being dedicated to the trading of global currencies. There are hundreds of forex trading providers that facilitate a wide range of forex currency pairs.
However, there is an increasing number of UK forex brokers that have added Bitcoin and hundreds of other cryptocurrencies to their diverse range of markets, giving forex traders a range of crypto assets that they can trade in a competitive, volatile market using a plethora of trading strategies.
Bitcoin and several other cryptocurrencies are renowned for the anonymity and decentralized valuation systems that these currencies represent. More brokers are giving retail traders access to trading forex with bitcoin, providing a transition from conventional trading in the foreign exchange market into the crypto market.
Benefits of trading crypto – a driving factor in the transition
A large advantage of trading forex with crypto is that they are not tied to central banks, making digital currencies free from central geopolitical influence. They can sometimes also be free from some macroeconomic issues like country-specific inflation and interest rates.
High leverage is another benefit to some although it can be considered risky, with many forex traders having access to leveraged trading options. Both retail investors, as well as institutional investors, have many opportunities apply leverage to their trades.
Lower deposit amounts offered in crypto trading is another factor that draws many retail investors away from the foreign exchange market along with a lower cost of trading, especially since crypto traders can be exempted from having to pay deposit/withdrawal fees.
Security and anonymity is another possible benefit as participants in the crypto markets do not always need to reveal their identity and/or other sensitive information to be able to trade. Many cryptocurrency trading providers do not need traders to verify their identity and other information to start trading.
Cryptocurrency trading offers a significant amount of trading opportunities within a trading day as a result of the high volatility that the crypto market has, and any trader can participate despite their unique trading style.
In addition to these potential benefits, crypto traders also have the option of making fiat deposits into their trading account in most major currencies including British Pounds, US Dollars, Euro, and several others.