Trading in cryptocurrency in Africa is growing rapidly in popularity. This can be attributed to a tech-savvy population that has already quickly embraced digital payments via mobile. However, trading Forex has also seen increased growth in the country with an estimated 1,3 million traders recorded in Africa. With this growth, there are many potential traders who want to start trading but are uncertain which currency to choose in this complex environment.
This is according to INFINOX Regional Director, Danny Mawas who says that before launching into trading, it's important to do careful analysis. “Identify your personal goals, resources and risk tolerance before choosing your risk and trade management strategies. It’s also crucial to spend time researching and analysing both markets before trading.”
Firstly, he says that it is important to know the differences between the two as they are vast and can be compared to the proverbial apples and oranges. “Crypto currency trading is trading digital or virtual currencies that are secured by cryptography, the most famous example being Bitcoin. Trading takes place on relatively new decentralised platforms using blockchain technology, a system which makes it almost impossible to change, hack or cheat.”
“Forex is foreign exchange, or FX, and takes place in the largest, most liquid, well established global markets. Volumes of up to $6.6 trillion are traded daily using 150 government-backed national currencies,” Mawas explains.
When it comes to choosing what to trade, Mawas points out that it’s important to take note of the liquidity of the Forex market versus the crypto market. “For example, with Forex traders buying and selling these high volumes daily, it creates a liquid market that offers opportunities for all types of traders. Additionally, Forex instruments also provide leverage as well as plenty of trade opportunities thanks to its volatility, thus making it an easy instrument to trade.”
“The foreign exchange market allows private individuals, large institutions, governments, retail traders and more to participate,” he says. “Essentially trading Forex is less risky, more protected, regulated and stable. It enables investors to react to market movements, and is influenced by political or economic factors which prompt investors to enter or exit the market accordingly.”
“Trading crypto, however, can be more risky as there is less information and fewer case studies to predict performance,” adds Mawas “There are less established markets and although there may be a promise of larger returns there is no profit guarantee, but a long-term option for potential profit.”
Mawas explains that for those that wish to start trading Forex there are tried and tested strategies that beginner traders can consider. “A viable way to learn and kickstart your trading journey is via online community apps, such as IX Social, where traders can share knowledge, trades and experiences with like-minded traders. Users are put in the driving seat with the latest news, community trending topics, top trades of the day and the latest prices all in one place.
“Its easy-to-use functionality, coupled with an auto-copy feature that allows traders to automatically copy the top traders to receive the same results, makes it the ideal platform for beginner traders to learn and grow,” he says.
Offering his advice, Mawas says whatever currency traders decide to trade in, it is important to not let your emotions take over. “Trading based on an emotional impulse often results in traders buying and selling at inopportune times.”
“While trading offers great benefits, it is vital for traders to follow a strategy and to start simple. This will ensure their longevity, and prosperity, in the game,” concludes Mawas.Distributed by APO Group on behalf of INFINOX Capital.
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INFINOX is an award-winning and market leading online trading platform.
Founded in 2009, with the vision of delivering a customer-focused trading experience, INFINOX has been offering its clients premium service in a range of asset classes. We empower investors and help them gain access to markets so they can trade forex, stocks, indices, commodities, and futures; using our fast, efficient and reliable trading technology.
We are committed to providing our clients with outstanding service, and offer a dedicated multi-lingual support team that’s available 24 hours a day 5 days a week. Whether you’re a beginner or experienced trader, INFINOX provides the relevant tools to help you get started and improve your trading strategies. We offer instant funding options and the ability to withdraw your money swiftly.
INFINOX Capital Ltd SA is an authorized Financial Services Provider and is regulated by the Financial Services Conduct Authority under FSP No 50506 (INFINOX Capital Ltd SA acts as an intermediary for INFINOX Capital, which is Authorised and Regulated by the Securities Commission of the Bahamas).
INFINOX Capital is a registered trading name of IX Capital Group Limited, authorised and regulated by the Securities Commission of The Bahamas (‘the SCB’) under Registration Number SIA F-188.
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INFINOX is a trademark belonging to INFINOX Capital Ltd, a registered company in the United Kingdom under company number 06854853. INFINOX Capital Ltd is authorised and regulated by the Financial Conduct Authority under Registration Number 501057.
Danny Mawas, Regional Director at Infinox