Before we list their differences and advantages, we must first know and understand the three types.

Stock Trading

Stock trading is most well-known form of trading. It is a form wherein a trader buys and sells shares of a company to gain a profit. Although it seems fundamental and easy, there is a lot more to it. For example, one might scout a growing company to buy shares and then hold for profit or sell early as they speculate on a drop in the value of the claims. As these shares and stocks are heavily dependent on the state of the companies along with different factors involving economies, this makes them. Hence, you need to have an ample amount of knowledge before you can effectively and efficiently turn a profit.

FX Trading

The second one to consider would be forex trading, or FX trading, or foreign currency and exchange trading. It is the act of trading one's own money for another for various reasons, most commonly commerce. The forex market was reported to have reached a trading volume of 6.6 trillion dollars in 2019 and is projected to grow even more in the years to come. Forex is used by market players to diversify portfolios, hedge against foreign currency and interest rate risk, and speculate on geopolitical events, among other things. The forex market is one sure way of getting into trading with a little ease and a small amount of effort compared to stock trading. Those with backgrounds and knowledge of international geopolitical landscapes are most likely to capitalize and have an easier time.

Cryptocurrency

The last one to consider would be cryptocurrency, or the latest decentralized form of the market. Unlike stocks or forex, it is not governed by a single authority or government. Unlike traditional paper or coin currencies, the value you have when you engage in cryptocurrency trading is only digital and stored in wallets that are also digital until you are ready to sell. The transaction isn't deemed complete until it's validated and put on the blockchain via a process known as mining. New cryptocurrency tokens are frequently produced in this manner.

So, considering the data and information we have on all three, here are the things you need to note most about the different types before you choose which is best suited for you. Stock trading is for you if you want a more stable and dependable kind of trading where you can study specific trends and are familiar with companies. If you are someone with a lot of geopolitical knowledge that extends to the popular countries and you are more suited for that kind of knowledge, then forex trading is for you. However, the cryptocurrency trading scene is more for you if you value decentralization and substantial market fluctuations.

Whatever you choose, it is essential to note that all three types carry their own risks, and it is inevitable that at some point, you will lose money. That is why it is essential to study and be aware of the risks you are going to take before getting into them.