Differences Between - The NFT Market and Forex - The Redditch Standard

Differences Between - The NFT Market and Forex

Redditch Editorial 4th Oct, 2022   0

THE technological innovations of the last decade created a new environment in which trading is completely digitalized, and on top of that, a new range of digital securities has become available for trading.

So, not only do today you have an opportunity to trade everything from stocks to futures or even engage in forex trading, but also you have even more chances to learn about the financial markets and online trading.

In addition to the digital opportunities for online trading, there are also innovative assets like cryptocurrencies which have been marketed for the last couple of years as unique securities.

That said, they do require a different approach from trading stocks or other traditional assets. For this reason, we will compare two very different markets, the NFT market, and the forex market.




What is NFT

Since NFT emerged on the crypto market in 2015 it became clear that it has the potential to transform multiple traditional sectors – real estate, music, fine art, and even the public sector.

NFTs are, in a nutshell, non-fungible tokens on Ethereum’s blockchain network (although there are other blockchain networks that have developed NFTs as well).


They are designed as a way to prove the ownership of certain items.

The main difference between traditional assets and NFTs is that each NFT is designed as a unique token, hence a non-fungible part – and cannot be replaced with other NFTs.

But, the real reason why most investors are interested in NFTs is the opportunities for high ROI. The global NFT market was valued at $15.70 billion in 2021, and it is expected to reach $122.43 billion by 2028.

NFTs are mainly used for fine art collections nowadays as a way to directly connect sellers and buyers and allow them to support their favorite artists.

So, NFT can be everything from artwork, video games, GIFs, stickers, articles, videos, and music. The potential for generating high ROI is another reason for the hype around NFTs.

 

Online Forex Market

Day trading and forex are considered quite volatile in the world of online trading, but they also provide many opportunities for high ROI.

Fortunately, there are trading sites like https://tradingplatforms.com/uk/day-trading/ where you can find trading platforms with great features and educational resources for beginners.

Forex trading is also a decentralized market that is mainly conducted on different trading sites over the counter or on the internet. It involves trading one currency pair for another.

The exchange rate actually it’s based on the supply and the demand.

It is also considered a volatile market, but not on the same scale as cryptocurrencies and NFT markets.

The factors which impact the forex market and major currency pairs are well-known.

Beyond the market supply and demand, the forex market is also affected by the decisions of the central bank policy, demand for certain currencies, interest rates, economic growth, and other factors.

So, it’s really important to stay up to date with the latest trends and to be able to make quick decisions that will ultimately impact your profit.

In a nutshell, in the forex market, the Forex traders earn money based on the difference between the bid price, which is the price at which your broker is willing to buy the base currency, and in exchange price for the quote currency.

Decentralized NFT Marketplace

The NFT marketplace is fully decentralized because it is based on blockchain technology. It is completely distributed, and there isn’t one dedicated marketplace where you can trade NFTS that range from art work to GIFs and video games.

However, some NFTs marketplace specializes in certain digital assets.

That said, before you start trading, it’s important to take a look at the project you want to support, and it’s possible to compare its previous price movements.

But at the end of the day, keep in mind that quite volatile, and the factors which impact the market demand to supply will impact the price of NFT.

Also, if there is significant support for certain influencers in the market, this can boost their own value of certain NFTS.

For example, one tweet of Elon Musk was valued at around $1,000,000.

Summary

In conclusion, the forex and NFTs markets are vastly different but both require good financial knowledge in order for you to make decisions that are suitable for your financial goals and portfolio.

However, NFTs represent a new market and they became popular with the latest bull cycle in 2021.

Since then, the market has entered a bear market phase, and it is safe to say that we are yet to see how the market will develop in the future.

In terms of the forex market, we are more knowledgeable about the factors which can impact the bull cycle and lead to a spike or decline.

The market is also decentralized, but if you invest in your knowledge and work to improve your skills, you will be able to make good decisions quickly.

That said, keep in mind that regardless of the market you choose to trade in, there are no guarantees for your success.

Reader Travel

Check out all of the latest reader travel offers to get your hands on some free gifts.

Announcements

Weddings, Birthdays, Bereavements, Thank you notices, Marriages and more.

Subscribe

Receive a weekly update to your inbox by signing up to our weekly newsletter.

Recruitment

Find a career you'll love with our free career finder website.