# Why Cryptocurrency trading will surpass Forex Trading in 2023 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-28 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Why Cryptocurrency Trading Could Surpass Forex by 2023 Meta Description: Discover why many believe cryptocurrency trading could overtake forex trading by 2023 due to market liquidity, volatility, access, and regulation. Find out URL: https://financedigest.com/why-cryptocurrency-trading-will-surpass-forex-trading-in-2023html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/financial-reportzkuaodo-1736837750446-compressed.jpg) ## Overview Forex trading has always been a lucrative activity that attracts millions of participants whether for international business or speculative trading to draw in profits. Since cryptocurrencies emerged and became popular, cryptocurrency trading has increased significantly in recent years. While the forex market experiences more than $6 trillion in trading volume daily, crypto trading is not far behind in becoming a large financial market, which could even surpass forex trading. This is especially the case if there is increased interest as [digital assets are adopted by countries around the world](https://www.financedigest.com/be-the-digital-eyes-and-ears-of-your-business-from-anywhere-in-the-world.html "Be the digital eyes and ears of your business – from anywhere in the world!") in legal tenders to make them official currencies. The cryptocurrency [market is rapidly increasing as more cryptocurrency projects](https://www.financedigest.com/warewashing-professional-equipment-market-is-projected-to-reach-us-6-94-bn-by-2027.html "Warewashing Professional Equipment Market is Projected to Reach US$ 6.94 Bn by 2027") introduce new digital assets. However, when compared to other financial markets, cryptocurrency trading still has some drawbacks namely a lack of regulation, the threats of cyber-attacks, belief from central banks that cryptocurrencies are not sustainable options for investment, and the sheer number of scandals and scams that surround the crypto market says Madelien van Der Merwe from [Forexrecommend.com](https://www.forexrecommend.com/) Despite these factors, there are several reasons that many believe that cryptocurrency could surpass [forex trading](https://www.financedigest.com/how-to-trade-forex-and-succeed-as-an-individual.html "How to Trade Forex and Succeed as an Individual") by 2023, and in this article, we will explore each of these reasons. ## Market Liquidity [Market liquidity refers to the ease with which a financial instrument](https://www.financedigest.com/artificial-intelligence-ai-to-catalyze-the-cell-analysis-instruments-market.html "Artificial Intelligence (AI) to catalyze the Cell Analysis Instruments Market") such as a currency pair, can be bought or sold and converted into cash, without changing the market price of that asset. In the forex market, liquidity is determined by the demand of a [currency pair while crypto](https://www.financedigest.com/how-to-use-algorithms-to-save-time-and-make-money-when-trading-currency-crypto-shares-etc.html "How to use algorithms to save time and make money when trading (currency, crypto, shares etc)") assets may be liquid, but far less so than fiat currencies. However, this could change rapidly as blockchain technology becomes more widespread in everyday life such as the [financial sectors](https://www.financedigest.com/how-can-the-financial-sector-safely-use-the-iot.html "How can the financial sector safely use the IoT?"), healthcare, supply chain, and others. ## Market Volatility Digital [currencies are inherently known to be more volatile than forex](https://www.financedigest.com/forex-trading-how-to-trade-currencies-for-profit.html "Forex Trading: How to Trade Currencies for Profit") pairs. They also move in narrower bands instead of experiencing large shifts in a single [trading session or trading day](https://www.financedigest.com/stocks-fall-treasury-yields-rise-upon-final-2022-trading-day.html "Stocks fall, Treasury yields rise upon final 2022 trading day"). However, [forex major pairs move within these narrow bands in the same way because they are traded](https://www.financedigest.com/10-fundamental-forex-trading-tips-for-beginners.html "10 Fundamental Forex Trading Tips for Beginners") more frequently than other currencies. Cryptocurrencies can show significant moves of 100 pips, even more, in a trading session. This bodes well for active traders who employ [day trading strategies](https://www.financedigest.com/investing-in-a-first-party-data-strategy-can-save-the-day-for-retailers.html "Investing in a first-party data strategy can save the day for retailers") such as scalping. ## Market Access Forex has always been known as the easiest market to participate in, with hundreds of forex brokers that offer a wide range of currency pairs that can be traded through a [trading platform](https://www.financedigest.com/stock-trading-platforms-for-beginners.html "Stock Trading Platforms for Beginners"). However, currency markets are facing competition as there are many crypto trading exchanges and [platforms](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust") that offer a wide range of crypto assets. This offers crypto traders the perfect avenue where they can [buy and sell crypto assets at lower costs](https://www.financedigest.com/blessing-or-burden-what-else-could-you-buy-for-the-cost-of-your-timeshare.html "Blessing or burden? What else could you buy for the cost of your timeshare?") than they would have traded forex for. ## Regulation There is no central authority that rules over either cryptocurrencies or forex, and therefore [regulation may be an issue in both markets](https://www.financedigest.com/gecko-governance-launches-compliance-solution-for-ico-market-following-approval-by-isle-of-man-regulator.html "GECKO Governance Launches Compliance Solution For ICO Market Following Approval by Isle of Man Regulator"). However, there are many well-regulated forex brokers and crypto exchanges that offer [trading instruments across both markets](https://www.financedigest.com/the-benefits-of-social-trading-in-a-volatile-market.html "The benefits of social trading in a volatile market"). Forex is an [over-the-counter (OTC)](https://support.kraken.com/hc/en-us/articles/360021967711-Introducing-the-Kraken-OTC-Desk) market where central banks carry out a significant portion of daily forex trade, which means that this market must be regulated by various market regulators. To combat the lack of regulation in the crypto market, crypto [traders are urged to only use well-regulated brokers](https://www.financedigest.com/how-choosing-a-compliant-broker-benefits-traders.html "How Choosing a Compliant Broker Benefits Traders") and exchanges when they trade crypto assets. **This is a Sponsored Feature** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---