Tuna Chain is a modular Layer 2 solution that functions on Bitcoin while also integrating with Ethereum. Learn more about how it works in this article.

 is rightfully known for its security through its use of 

 offers greater versatility. Until recently, blockchain projects had to choose between the two. Now, however, a hybrid solution is available that blends the benefits of both of these leading blockchains and takes a bold leap into the future.

 that functions on Bitcoin while also integrating with Ethereum.

) is strongly rooted in elevating the user experience (UX). Bitcoin is the most trusted cryptocurrency, largely due to the recognized strength of its security protocols. However, while it excels in security, it lacks the versatility that ultimately fosters innovation. In this regard, Ethereum is viewed as a superior blockchain. 

Tuna Chain’s modular Layer 2 solution works on Bitcoin through a 

 hybrid layer while offering Ethereum functionality. It uses 

-powered modularity to minimize transaction costs. At the same time, this modularity improves both trust and efficiency. Tuna Chain currently supports Solana, Ethereum and Bitcoin transactions. It works with Bybit, Phantom, MetaMask, UniSat Wallet and OKX Wallet.

Tuna Chain is a new project that was established by three unknown individuals, known under the names of Tuna Nigiri, Tuna Sushi and Tuna Sashimi. Each team member brings their unique experiences and knowledge with blockchain, cryptography and 

 to move Tuna Chain forward. Tuna Chain is financially supported by BSC News, Normie Capital, Serafund, ArkStream Capital, Cogitent Ventures, MH Ventures and other angel investors. After its Ocean Festival and Ocean Trio, Tuna Chain now has over 1.3 million wallets connected on the Tuna Chain Testnet, with a total 

The purpose of Tuna Chain is to bridge the gap between Bitcoin and Ethereum. Although Bitcoin’s chain boasts superlative security, it lacks the versatility that Ethereum’s 

 provides. As a hybrid Layer 2 solution, Tuna Chain’s primary goal is to blend the two. By doing so, its founders want to push the envelope on the future of blockchains and provide a better UX.

Tuna Chain’s functionality is based on three core features: the Toro native 

, Celestia-powered modularity and a hybrid ZK-OP layer. With the Toro stablecoin, users can purchase new digital assets through the overcollateralization of their BTC supply. Meanwhile, Celestia-powered modularity improves data availability, and the ZK-OP hybrid layer executes smart contracts with fast, secure transactions.

Rollup Solutions and Operational Mechanism of Bitcoin Layer 2

Layer 2 solutions similar to those found on Ethereum enhance Bitcoin's scalability, using technologies such as 

 (ZK). Tuna Chain enhances Bitcoin's transaction capacity by integrating optimistic rollup technology into its Layer 2 framework.

Securing Native Assets on Bitcoin: Leveraging Taproot's Upgrade

 upgrade into the Bitcoin network marks a significant advancement in the security of its native assets. This update incorporates advanced cryptographic techniques, such as Schnorr Signatures, MAST and Tapscript. To further secure these assets, Tuna Chain has implemented a multisignature security model and is exploring the addition of external validators to its network security protocols.

Tuna Chain processes transactions through a detailed system that begins with the precise arrangement and execution of transactions. These are then reliably recorded on 

's data availability layer and conclusively verified on the Bitcoin blockchain. Verifiers are essential to the chain's integrity, quickly producing fraudproofs to address any transaction discrepancies and ensure the network remains secure and reliable.

Tuna Chain is a next-level Layer 2 solution that moves blockchain into the future. Each of its core features provides unique benefits to support a superior UX. 

Tuna Chain uses Celestia-powered modularity to optimize its Layer 2 functionality. Specifically, this modularity is supported by Layer 2 data management that enhances trust, improves efficiency and reduces transaction fees.

The ZK-OP Layer is Tuna Chain’s hybrid Layer 2. This layer utilizes a dual-phase architecture that integrates Ethereum’s benefits with those of Bitcoin. By doing so, it empowers smart contracts and accelerates secure transactions.

 is a grand opening event celebrating Tuna Chain’s launch. During this grand opening, the first round of TUN tokens will be distributed. Distribution cap for this initial release is based on 

 growth driven by the community, and could range between 2% and 21%. The token supply increases by 2% as each new milestone is achieved.

, the setup experience for new community members, consists of Calm Waters, Whimsical Tides and Majestic Depths. With Calm Waters, new users can receive 60 points for following Tuna Chain on social media and linking their wallet. Additional points are available by referring friends to Tuna Chain. Whimsical Tides, the testnet phase, is still in development along with Majestic Depths.

In the first quarter of 2024, Tuna Chain successfully completed several milestones, including the launch of the Tuna Testnet — Alpha, Ocean Trio Points campaign, Ocean Festival (which highlights the TVL) and the rollout of the TunaChain Explorer. 

Moving into Q2 2024, progress is ongoing with significant developments. Tuna Chain’s team is currently deploying an optimistic rollup (OP)-based Mainnet, establishing a native bridge from Bitcoin to the Tuna Mainnet, launching a Mainnet decentralized exchange (

), and developing a modular data availability (DA) layer.

Tuna Chain functions with three primary tokens: TORO, TUNA and WOOG. Each serves a different and integral role.

TORO, Tuna Chain’s native stablecoin, helps users transform their BTC into their choice of high-yield digital assets. This is accomplished seamlessly and with full transactional stability. The user doesn’t need to liquidate the BTC to complete the transaction.

 of Tuna Chain, is used for various purposes, such as revenue generation, funding builders and contributors, benefiting token holders, incentivizing users and community members, and promoting community engagement within the Tuna Chain ecosystem.

TUNA has a total token supply of 210,000,000.

 token that acts as the primary ticket into the Tuna Chain ecosystem. Only 200 of 1,000 available WOOG tokens were distributed at the BRC-20 Launchpad event. The remaining WOOG will be distributed only when they’re activated by external forces.

Looking to get your hands on the TUNA token? Bybit will soon offer it via our 

In the meantime, you can also purchase TUNA through 

WOOG tokens grant access to the Tuna Chain ecosystem. Of the total supply of 1,000 tokens, only 200 are currently scheduled to be released. These tokens are exclusively available through the 

. There’s a purchase limit of one WOOG token. While 800 WOOG tokens will remain, they’re sealed, and their release isn’t scheduled. You must have an active Bybit account with a funded wallet to participate in the event. 

TUNA tokens play a fundamental role in governance of the Tuna Chain’s unique hybrid Layer 2 chain, designed to deliver the benefits offered by both Bitcoin and Ethereum. Tuna Chain is presented as the future of blockchain, and is poised to change the blockchain landscape in exciting ways, which could place a premium on TUNA tokens. 

As an investment, TUNA should be purchased conscientiously because the value of the tokens will decrease when additional tokens are released, even for a short period of time. In addition, all cryptocurrencies are speculative in nature, with a risk of partial or complete loss. Therefore, 

 cryptocurrencies before making an investment.

Tuna Chain is a hybrid Layer 2 solution that provides a much-needed service in the blockchain world. By bridging the gap between Bitcoin and Ethereum, it allows users to enjoy the best of both worlds. In doing so, it has the potential to move the dial forward significantly in blockchain technology. Moving forward, Tuna Chain is a platform worthy of attention.

Intermediate

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Tuna Chain (TUNA): Reinventing Bitcoin With a ZK-OP Approach

Notable Ethereum Spot ETF applications have come from high-profile issuers that received approval for Bitcoin Spot ETFs earlier this year. Learn more here.

The cryptocurrency landscape could be on the brink of a major shake-up as several Ethereum spot exchange-traded fund (

) applications await regulatory approval. These financial instruments promise to bridge the gap between traditional investment markets and the fast-growing world of digital assets, offering investors a regulated and accessible means for gaining exposure to 

This article explores the top pending Ethereum Spot ETF applications, exploring their significance, potential impact on the market and implications for the broader adoption of cryptocurrencies.

What Is an Ethereum Spot ETF Application?

An Ethereum Spot ETF application is a filing submitted to regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), to list an exchange-traded fund that tracks the price of Ether (ETH), allowing investors to gain exposure to the cryptocurrency without directly holding it.

How Does an Ethereum Spot ETF Application Work?

An Ethereum Spot ETF application is a formal request by a financial institution to gain regulatory approval to offer a financial product that tracks the price of Ether (ETH), the second-largest cryptocurrency and the token of the Ethereum network, in real time. 

Investors can participate in the ETF by purchasing shares through their brokerage accounts. This way, they can gain exposure to Ether's price movements without the complexities associated with directly buying or holding the cryptocurrency. The ETF provider assumes responsibility for securely holding the Ether, managing the fund's day-to-day operations and ensuring ongoing compliance with regulatory requirements.

Current Ethereum Spot ETF Application Landscape

, Fidelity, VanEck and ARK 21Shares have all thrown their hats into the ring by submitting applications to the SEC for approval. These particular issuers have previously applied to run Bitcoin Spot ETFs that are currently approved and trading.

However, the SEC has pushed back on the recent Ethereum Spot ETF applications, prolonging the decision-making process. They've also sought public feedback in order to gauge whether the arguments supporting the approval of Bitcoin Spot ETFs are applicable to Ethereum Spot ETFs as well.

Anticipation has continued to build with the approach of the final deadlines for the SEC's decisions, set for between May 23 and Jul 5, 2024 for various applicants. The SEC's review process involves assessing factors such as the potential for market manipulation and the resemblance between Ethereum spot and futures exchange-traded products.

The outcome of these applications holds significant weight, as it could shape the future landscape of cryptocurrency investment vehicles and play an important role in driving broader adoption of Ethereum within traditional financial markets. Investors and observers alike are closely monitoring these developments, recognizing their potential to influence the trajectory of both Ethereum and the wider crypto market.

Top High-Profile Ethereum Spot ETF Applications

Several high-profile financial institutions have applied for Ethereum Spot ETFs, reflecting a growing interest in cryptocurrency investment products. Following is a list of some notable contenders.

BlackRock, a global investment giant and the world’s largest asset manager, submitted its 

 Ethereum Trust, in November 2023. However, the SEC postponed its decision to late January 2024 and again to March. The SEC is currently seeking public comment on the application, particularly concerning Ethereum’s susceptibility to fraud, and has delayed its decision until Jun 11, 2024.

Franklin Templeton, another major player in the investment world, 

 for an Ethereum Spot ETF in February 2024, making it the latest contender to join several other firms in the race. The SEC has delayed the deadline to June 2024 to rule on the firm’s application. If approved, the fund will be listed on the Chicago Board Options Exchange as Franklin Ethereum ETF.

Known for its ETFs and mutual funds, investment management firm VanEck has expressed doubts about the SEC's approval of its Ethereum Spot ETF application, 

 in July 2021. Although the SEC’s decision is expected in May 2024, VanEck’s CEO has voiced his skepticism of approval by the May 23, 2024 deadline, citing the regulators' ominous silence. Notably, VanEck holds the distinction of being the first investment management firm to file an ETH Spot ETF application in the United States.

21Shares specializes in cryptocurrency exchange-traded products (

), while ARK Invest focuses on thematic investing. The two firms 

 for the ARK 21Shares Ethereum ETF in September 2023, with the SEC expected to decide by May 24, 2024. The application has been 

 to include a cash-creation model, and has proposed plans to stake a portion of the ETF’s Ether for generating additional income.

A global asset manager focused on cryptocurrencies, Hashdex 

 with the SEC in September 2023 to list and trade shares of the 

 its decision on the application, with a verdict expected by late May 2024.

Grayscale is the world’s largest digital currency asset manager, with a range of investment products that provides exposure to cryptocurrencies and the digital currency asset class. The firm 

 its Grayscale Ethereum Trust into an Ether Spot ETF in October 2023. The SEC extended the review period, setting a new deadline for June 2024. 

Invesco, an investment management firm, has partnered with Galaxy Digital, a diversified financial services firm, to create a 

 for an Ethereum Spot ETF to be named the Invesco Galaxy Ethereum ETF. The SEC's decision, expected in December 2023, has been 

Fidelity Investments is a major financial services corporation with a global presence and millions of customers. Fidelity first filed for an Ethereum Spot ETF in November 2023. It later 

 its application in March 2024 to include ETH staking, which would allow investors to earn additional income from staking rewards. The SEC has set a deadline of May 23, 2024 to approve or deny the application.

What Could Happen If an Ethereum Spot ETF Application Is Approved?

The approval of an Ethereum Spot ETF application holds significant implications for the cryptocurrency market.

Approval of an Ethereum Spot ETF could mark a significant milestone for the crypto market. It would greatly improve Ethereum's accessibility, bolster market confidence and potentially drive up Ether’s price. In addition, such an approval would represent a new milestone in cryptocurrency adoption, providing investors with a regulated and easy avenue for investing in Ethereum. Nevertheless, regulatory hurdles and market volatility are variables that could influence the timing and magnitude of the approval of the pending applications.

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An Overview of the Top Pending Ethereum Spot ETF Applications

Stripe is reentering the cryptocurrency market by allowing merchants to accept payments in USD Coin (USDC) on Ethereum, Solana, and Polygon networks

The SPX index is down 0.46%, influenced by disappointing economic data indicating a slowdown and persistent inflation, along with poor earnings from companies such as Meta Platforms and IBM. The broader cryptocurrency market is up, with Bitcoin and Ether rising by 1.12% and 1.45%, respectively in the past 24 hours.

Today’s outperformer is W, which jumped 16.1% after Wormhole launches Native Token Transfers for seamless W token interoperability across blockchains.

Wormhole (W), launched in 2020, is a cross-chain protocol that facilitates communication and token transfers across over 30 blockchain networks. Originally a crypto bridge between Solana and Ethereum, it has expanded to include features like the Portal token bridge and messaging protocols, serving as a comprehensive platform for cross-chain interactions. Wormhole has launched Native Token Transfers (NTT) to enable seamless transfers of the W token across blockchains like Solana and Ethereum without needing liquidity pools. This innovation supports Wormhole's introduction of a multichain governance system and W staking, enhancing the token's functionality and security across diverse ecosystems. NTT marks a key step in Wormhole's roadmap, advancing its commitment to interoperability and decentralized, flexible token usage.

Check Out the Latest Prices, Charts, and Data of 

Stripe is reentering the cryptocurrency market by allowing merchants to accept payments in USD Coin (USDC) on Ethereum, Solana, and Polygon networks starting this summer. Originally, Stripe accepted Bitcoin in 2014 but discontinued this option in 2018 due to increasing costs. The new initiative will support USDC transactions that are automatically converted to fiat currency for merchants, aiming to enhance global payment accessibility, particularly for those without traditional banking facilities. This marks Stripe's continued interest in the evolving potential of cryptocurrencies.

Bitcoin's price showed volatility near $64,000, influenced by reduced ETF inflows and a market tug-of-war. U.S. inflows slowed, ending a streak for BlackRock’s iShares Bitcoin Trust. Meanwhile, Morgan Stanley may soon enable direct broker recommendations for Bitcoin ETFs, potentially increasing demand. In contrast to U.S. regulatory hesitations, Hong Kong is launching three spot BTC ETFs. Despite these fluctuations, Fidelity Digital Assets remains optimistic, citing an increase in smaller Bitcoin wallets as a positive indicator of broader adoption.

The Aethir Cloud Drop campaign features an airdrop that is accessible through various activities, including purchasing Aethir Checker nodes, engaging on social media, participating in quizzes, referring friends, and being part of certain NFT/token communities. Eligibility for the airdrop is determined by a badge and quest system. More details are provided on their website and Twitter page.

Beginner

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Stripe Reintroduces Crypto Payments with USDC Support on Multiple Blockchain Networks

Merlin Starter (MSTAR) is an IDO launchpad and accelerator dedicated to supporting Layer 2 projects for Bitcoin native asset applications.

Over the last couple of years, projects aiming to develop the wider Bitcoin (

) crypto ecosystem have been gaining more attention in the crypto industry, taking some focus away from 

-based initiatives. With the arrival of projects such as 

, one might even say that the Bitcoin ecosystem is experiencing a kind of innovative development that characterized Ethereum's heyday between 2015 and 2020.

Among the projects driving this phenomenon are Merlin Chain (MERL) and its integral Merlin Starter (MSTAR). Merlin Chain is a Bitcoin Layer 2 (L2) platform committed to supporting utilization and enhanced liquidity for Bitcoin native assets, while Merlin Starter, a Bitcoin-focused 

 and L2 project accelerator, is a core part of the wider Merlin ecosystem,

 (MSTAR) is an IDO launchpad and Layer 2 accelerator dedicated to supporting promising Bitcoin-focused decentralized projects.

 It's an integral part of the L2 Merlin Chain (MERL), designed to facilitate a seamless flow of Bitcoin native assets across various protocols in the Bitcoin ecosystem. Merlin Starter aims to support projects dedicated to enhancing the circulation and liquidity of Bitcoin native assets, both on Merlin Chain and across a variety of Bitcoin-focused protocols and networks.

Founded in 2023, the Merlin project launched its operations in early 2024, with Merlin Starter's native MSTAR token debuting in mid-April 2024.

Merlin Starter is made up of two main components — an 

 launchpad and a Bitcoin Layer 2 project accelerator. Additionally, the 

 NFT collection is a critical element within the project's ecosystem.

The IDO launchpad on Merlin Starter facilitates the launch of projects dedicated to native asset issuance, enhanced 

 and free asset circulation for the Bitcoin ecosystem. It's the first native launchpad of the Merlin platform. The launchpad also supports new projects that explore cross-chain functionality and focus on enabling Bitcoin native assets across different platforms.

As of late April 2024, the launchpad is still in the early stages of its operation, but already lists a couple of initial projects that it’s helped to launch. The most recent of these is Sparkle (FCFS), a gamified astrology app.

The Merlin Starter launchpad offers a number of different token launch modes, including 

, oversubscription lotteries and allocations based on preset weightings. A variety of token standards are supported, including the highly popular 

 and ERC-20 as well as the less common BRC-420, ERC-404 and Atomicals (ARC-20). Standards supporting cross-chain assets may also be available. 

Merlin Starter’s IDO launchpad also features an insurance protocol that helps protect investors from either 7-day or 14-day loss.

While the Merlin Starter IDO launchpad is dedicated to facilitating the launch of new tokens, its accelerator is an initiative aimed at providing consultancy and support to L2 apps and protocols at the pre-launch stage, as well as in the critical post-launch period.

Via the accelerator, the Merlin Starter team offers multidisciplinary consultancy services in areas such as technical support, marketing strategies and initiatives, human resources and 

Merlin's Spellbook is an NFT collection issued by Merlin Starter. Spellbook NFTs grant holders eligibility for a 20,000,000 MSTAR token airdrop, should they choose to stake the NFT. Staking a Spellbook NFT in exchange for MSTAR locks the NFT, and the NFT is subsequently burned. As an NFT staker, you may also qualify (depending upon random selection) for IDO whitelist entries.

At the center of the wider Merlin ecosystem, Merlin Chain is an L2 platform dedicated to enabling cross-chain applications utilizing Bitcoin native assets. Although it operates as a dedicated Bitcoin L2 network, Merlin Chain also offers 

 (EVM) compatibility in order to better support cross-chain use cases.

 network, which allows it to achieve significant scalability and cost efficiencies. The average block time on the chain is less than one second, while the average transaction fee is measured in tiny fractions of a cent.

Merlin Starter's native crypto, MSTAR, is a recently launched token (April 2024) that’s used for the following functions on the IDO launchpad:

The token's maximum and total supply is 1 billion. Supply allocation shares for MSTAR are shown in the chart below.

You can buy the MSTAR token on Bybit through a Spot pair with USDT (

). Additionally, you can join Bybit's MSTAR campaigns to grab a share of the 

The first campaign, MSTAR Community Airdrop Quest, runs through May 10, 2024, 8AM UTC. It’s offering a total prize pool of 8,900,000 MSTAR, featuring a 7,000,000 MSTAR community airdrop, a 1,000,000 MSTAR referral prize pool and an exclusive affiliate referral event with a 900,000 MSTAR prize pool. The second campaign, Token Splash, is being held through Apr 30, 2024, 9AM UTC, with a 2,800,000 MSTAR prize pool.

As a plethora of projects such as Merlin Starter look to extend Bitcoin's functionality, its blockchain is steadily moving away from a passive state of use that’s reserved for asset transfers and storage. Merlin Starter is contributing a great deal to putting Bitcoin native assets to use in various apps and protocols.

While Merlin Chain is doing the critical job of enabling the actual utilization of assets via its Layer 2 network, Merlin Starter is a pivotal endeavor aimed at supporting numerous new projects looking to make Bitcoin a more active crypto environment. The more of these projects we see, the more likely it is that Bitcoin will develop into a thriving ecosystem that could rival Ethereum’s. To achieve such a goal, Merlin Starter is exactly the catalyst the industry needs.

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Merlin Starter (MSTAR): Empowering Startups and Innovation

Trading

Crypto and forex inherit many fundamental similarities. However, their dissimilarities run the gamut from market capitalization, market participants, operations and more. Learn now.

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Over the past few years, trading in cryptocurrencies has grown, becoming more mainstream as we experience a “digital” gold rush of new technology and innovation. This rise in digital currency investment has pushed the total market valuation of cryptos to above $3 trillion.

The speculative rise in blockchain technology and its many cryptocurrencies has caught the attention of traders, who are afraid of missing out on significant gains.

This is a huge difference from forex (FX) markets, where the exchange rates between currencies hardly move. The leverage that’s applied to forex is what creates its appeal for traders.

In this article, we’ll discuss the similarities and differences between forex and crypto trading.

The Landscape of Crypto and Forex Trading

Crypto and forex trading have both commonalities and differences. Crypto trading is the buying and selling of digital assets, such as cryptocurrencies, tokens and NFTs (

). Forex trading means swapping one fiat currency for another in the hope the currency will rise in value, which the trader can then reconvert for profit.

The mechanics that drive the valuations of cryptocurrencies and fiat currencies are similar, such as supply and demand. However, the specific forces behind the supply and demand are significantly different for crypto and forex.

For example, cryptocurrencies are run on 

 involving a distributed and decentralized ledger. As a result, enormous investment is being put into this new infrastructure, with demand for cryptocurrencies going through the roof.

Forex trading — essentially, pitting one economy against another, in the hope that the value of the currency you’ve bought will increase — has been around for decades. The forces behind supply and demand in forex are large, and any significant imbalances can have a tremendous impact on the world economy.

, the basic mechanisms used to analyze price charts are the same between crypto and forex trading. However, one huge difference stands out: the volatility of crypto markets is significantly higher than that of FX.

 (ATR) indicator has been applied to the weekly closing prices for the largest cryptocurrency (Bitcoin) and the most actively traded forex pair (EUR/USD). The ATR has been standardized to determine a volatility percentage, which reflects how far the asset might move in any given week.

The chart above indicates that the forex’s ATR is between 1.1% and 1.4%, whereas that of Bitcoin ranges between 7.5% and 25%.

Just as cryptocurrencies help fuel various blockchain projects, forex is the fuel for the world’s economies. One of the benefits that 

 created when developing Bitcoin was a transparent ledger of ownership for the cryptocurrency. As a result, we can easily determine the size of the cryptocurrency market.

 for crypto is about $3 trillion. It took 12 years to generate the first $1 trillion combined valuations, then another 11 months to add the next $2 trillion. The total value of the crypto market is quickly accelerating higher.

It’s more difficult, on the other hand, to determine forex’s value. Economists can estimate the total value of the worldwide economy, which in 2017 was estimated to be $80 trillion. 

Every three years, the Bank for International Settlements (

) estimates the world’s trading volume in foreign exchange. The most recent report came out in 

, when BIS found that forex traded $6.6 trillion per day, up from $5.1 trillion three years earlier.

Due to the decentralized nature of crypto, it’s difficult to arrive at a conclusive figure for trading volumes, but 

Forex trading is well-established, and the systems and mechanisms for trading it has been in place for some time. Even though Bitcoin has been around for 13 years, acquiring Bitcoin has only become easy to do within the past several years.

In the early days of Bitcoin, there were miners, retail clients and some small centralized exchanges. These exchanges have now expanded to offer hundreds of cryptocurrencies.

In addition, in crypto’s early days, the ability to hold crypto custody on behalf of another party hadn’t yet been worked out. It wasn’t until 

 in August 2020 that the door opened to corporations who wanted to make cryptocurrencies a part of their treasury plans. 

This allowed a larger pool of crypto “whales” to enter into the picture. Bitcoin and Ethereum are the two primary cryptocurrencies which institutions are gobbling up.

With forex trading, banks are swapping currencies all the time, and have done so for decades as multinational corporations need to make payroll in other countries. Banks deal with each other in “yards,” which are one billion units of currency. Within the past 20 years, smaller forex dealers have figured out the technology to allow them to buy and sell currencies while netting off the exposure to bigger banks.

As you can see, one main difference between the evolution of crypto and forex trading is that crypto started off with the little retail trader in mind, while forex trading was reserved for large banks. Eventually, larger institutions were included within crypto, while the “little guy” was eventually given access to forex trading.

When trading a market, you’re always swapping one thing for something else. For example, if you’re going to buy Tesla stock, you’re likely exchanging your US dollars for TSLA.

Forex traders have a very good understanding of the swap, which is why their currencies are quoted in pairs. As an example, there are seven main currencies which traders speculate in. When you place those currencies in a matrix, you get 21 pairs (see bolded pairs).

With most FX brokers, you can log in and find a quote for an exchange rate on any of these pairs. You don’t even have to have European euros or Japanese yen in your account to make a EUR/JPY trade. By trading EUR/JPY, you’re speculating on the movement of the exchange rate for EUR against JPY.

Crypto is still within its early adoption curve. Although you can easily create your own cross rate, most crypto pairs use 

 (ETH), or the exchange’s native coin as the quote currency.

On top of that, there are over 10,000 cryptos now available. It’s simply too cumbersome to create a swap from two relatively small cryptos. Therefore, an intermediary like Bitcoin, Tether or Ethereum is used: for example, you first trade into Ethereum, then buy the coin you’re interested in.

IRS rules within the United States treat forex gains and losses differently from crypto gains and losses.

 of the IRS tax code. This means that 60% of the gains or losses are counted as long-term capital gains or losses, and the remaining 40% are counted as short-term, regardless of how long you’ve held the trade open.

Spot forex traders can opt to be taxed according to Section 988, which treats the gains or losses as ordinary income. A profitable trader will likely see more advantage in choosing the Section 1256 contract route, while a trader taking losses may experience more benefit going the Section 988 route.

Before beginning trading, forex traders must decide which route they plan to go, as they cannot change their election afterward.

With crypto, on the other hand, there is no choice in the matter. Crypto is treated as property, and it’s taxed similarly to stocks. The tax is figured when you sell the crypto and depends on how long you’ve held the position open. A trade that’s been held for 365 days or less is considered a short-term gain or loss. This short-term gain or loss is payable at the same tax rate as your ordinary income.

If, on the other hand, the crypto has been held for 366 days or more, then it’s considered a long-term gain or loss. Typically, you’ll pay less tax on a long-term gain than on a short-term gain because the rates are generally lower.

The big difference between forex and crypto when it comes to taxes is that forex traders have to choose ahead of time how they want their gains and losses treated, while all crypto trade is treated the same.

It’s widely known within the forex trading community that the majority of traders lose money. Depending on the quarter, typically between 25–35% of the traders produce at least $1 more in their account through the course of that quarter. This means that 65–75% of traders don’t — and therefore lose money.

A large contributing factor in the traders’ losses is leverage. Leverage is a financial tool that can magnify losses and gains. Therefore, when large amounts of leverage are used, the market only needs to move a little against the trader’s position to trigger a margin call — which wipes out a significant portion of their trading account. Generally speaking, less than 10× leverage allows traders enough breathing room to withstand sharp changes in pricing.

With the advent of high-speed computing and the decentralized nature of both forex and crypto, 

 can exist between two different dealers or exchanges. In arbitrage, a trader will buy at one venue and then sell at another, realizing the difference between the prices at the two venues.

The smaller price movements in forex trading allow dealers to offer deeper levels of liquidity. This is part of the reason why forex trades about $6.6 trillion daily, while crypto trading is estimated at between $100 billion to $200 billion daily and as high as $516 billion in May 2021.This places the liquidity within the forex market at 12 to 60 times greater than that in the crypto market.

Both markets are large. With more liquidity, it’s easier to get into and out of large positions.

Crypto trading is inherently more volatile than forex trading. As a result, a higher margin is generally required (the more volatile the product is). Therefore, you typically see higher leveraged amounts available in forex trading than in crypto trading.

Both forex and crypto trade around the clock to meet the needs of investors and traders across the globe. As a result, both types of exchanges have offices scattered around the world to service local clients.

Forex trades 24 hours per day, 5 days a week, from Monday morning in Wellington, New Zealand to Friday afternoon in New York City. Some forex brokers offer trading over the weekend, but usually, you’re simply transacting against your broker in those situations.

Crypto, on the other hand, never sleeps. In addition to trading 24 hours per day, crypto trades a full seven days per week. At any time of any day, you can buy and sell crypto with your exchange.

. Brokers then fatten the spreads to generate their own pricing feeds.

The crypto market was created based on the amount of liquidity being offered by participants at each of the locations. As a result, the crypto exchange you’re using to trade large amounts might not have enough crypto to transact at the time you want to purchase.

, and a CEX is a centralized exchange. The main difference between the two is that with a 

 you have complete control over the private keys to your crypto, while a CEX maintains control over your funds.

The trading volume on DEXs is quite small compared to their CEX counterparts, but it’s been growing over time. Currently, nearly $6 billion is traded each day on DEXs.

Is Forex Safer than Crypto from a Regulatory Perspective? 

Forex trading may be considered a little safer than crypto. Unlike forex, the crypto market has no central authority, and is highly volatile; hence, it’s prone to wild market swings.

Additionally, the crypto market is less liquid and has lower trading volumes, making it more difficult to get into and out of large trades.

For these reasons, forex traders are generally offered more leverage, allowing them to make larger trades.

Is Forex More Beginner-Friendly than Crypto Trading?

Market newbies need to become familiar with the lingo specific to that market, the risks they’ll generally be exposed to, and the platforms from which to trade.

For beginning traders, both forex and crypto use terms that can be intimidating. Understanding those terms can take a little time. The risks are slightly different between forex and crypto. With forex, the risk of too much leverage is the main reason traders lose. Within crypto markets, the volatile conditions are generally what hurt traders.

Forex vs. Crypto Trading: Which Should You Choose?

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Grab Up to 5,000 USDT in Rewards