Are Cryptocurrency Assets Taking Over The Forex And Stock Markets?

Ever since the emergence of decentralized money and blockchain transactions, the global consciousness of the cryptocurrency market has continued to grow among investors. In recent years, most investors seem willing to choose investments in cryptocurrency assets due to several reasons, than to choose investments in the traditional forex and stock markets. Therefore, in terms of financial trading, one may be poised to question if crypto assets have taken over the global market as we used to know it.


Market Value of Crypto Assets

According to an article published on Quartz, the current market value of the world’s cryptocurrencies surpassed $1 trillion in the early weeks of January, making it on course to becoming the world’s most valuable asset.  Presently, Bitcoin and other cryptocurrencies are trading at an all-time high. For instance, the market value of Bitcoin reached $40,000 in January, after plummeting in March last year because of the effects of the coronavirus pandemic. On the other hand, the Forex market is still the largest in the world, and there are investors currently participating in the market, and those still willing to join. Also, the stock market does not seem to be crashing anytime soon, so far as companies still exist and operate.

Why Investors Are More Attracted To Cryptocurrency

However, the crypto assets will continue to attract more investors than the other two because of factors such as the increased chances of making profits in the crypto market than trading forex or buying shares. Undoubtedly, crypto assets are more volatile. Therefore, it is easier to make profits off investments in them.

Additionally, the increasing digitization of every area of human lives is more favorable to cryptocurrency. Crypto assets are more technologically-inclined than forex or stocks. The software algorithms used to create coins and tokens make them more versatile for serving other financial purposes. For example, the algorithm used in the creation of the Ethereum and Tezos allows them to be used for completing smart contracts; Bitcoin and Litecoin are used for value storage; coins like Moreno and Zcash are used for private or anonymous transactions;  and Ripple is best used for international and cross-border payments.

Besides, cryptocurrency exchanges facilitate the easier trade of crypto assets than Forex and stock brokerages. The former operates on a 24/7 and 365-day basis, while stock and forex markets operate on weekdays. This means that investors and traders in crypto markets have more chances of making profits because the market is still open to trade.

Finally, when dealing in cryptocurrency, traders do not necessarily need a crypto platform to open a wallet or need a very huge capital for investment. This is unlike Forex and stock markets, where traders must go through a Forex broker or invest with a specific amount of money—making them feel that they do not have total control of their investment.

Despite all the trends moving towards the relevance of cryptocurrency, it cannot be outrightly stated that crypto assets are more relevant than forex and stock. The similarities cutting across these markets make them suitable for traders to invest in. Therefore, there are no boundaries in investments.


Bill Adams has been into currency trading for over five years. After taking a short course about Forex and cryptocurrency, he decided to put his knowledge to good use as a writer for Tenkofx. TenkoFX was founded in 2012 and has been highly valued by professional traders over these years.

Interesting Related Article: “Will Cryptocurrency Become a Mainstream Payment Option in 2021?