Trading forex, stocks, and crypto during a downturn By Paul Reid 02 February 2023

As 2023 gets into full swing, stock market volatility is heating up and showing a teaser of what’s coming—despite recession fears continuing to dominate headlines all over mainstream media. For traders, the questions are simple.Which asset class will yield the most favorable results? Will the stock market be too volatile? And will crypto trading make a comeback?Many traders are excited to leverage their positions and maximize their returns with 2023 volatility, but it’s going to be a double-edged sword. While some traders will hit jackpot, many will see their stock trading accounts wiped out.One alternative asset class during uncertain times is forex. The forex market (foreign exchange market) is one of the most liquid markets in the world. Such high liquidity limits the speed and depth of a market crash, but it still offers opportunities to profit from both rising and falling economies.Another popular marketplace for trading is the stock market. While the stock market can be more volatile than the forex market during a recession, it can offer much higher returns, but that attraction comes with higher risk. And like forex trading, stock traders can also use leverage to open larger positions, although leverage in trading stocks is available at much lower levels—for obvious reasons.There are also many opportunities for crypto trading over the 2023 horizon. These assets have become increasingly popular in recent years, as their prices have fluctuated widely. For some traders, these volatility swings provide an opportunity to make profits (or losses). And, leverage in trading the crypto market can yield some shocking results.