Making Money Online_ Should you trade Forex or Crypto
- 22 Nov 2019
If you’re considering investing your money into something profitable, both forex and crypto have their positives. Here’s what you need to know.
Forex TradingIt used to be that trading currencies were seen as only something that investment bankers could do, but the internet has changed everything. Now, anybody can get involved in the foreign currency investment game, and there are many benefits. These include:
- Unlimited potential: It’s hard to ignore the fact that forex traders have access to potential profits without limit. The forex market is made up of the world’s financial resources, so you can make trade after trade and never have to worry about running out of options.
- Leverage: This can be both a benefit and a concern. Forex trading means that you can gain a leverage of 50:1, which means that a $2 trade can potentially yield you %100. Of course, this also exposes you to risks.
- High Liquidity: There are more people involved in buying and selling currency than any other alternative market, so large amounts of currency can be traded at any time. Unlike the stock market, no investor can influence the forex market simply because they have more money.
- Global Predictions: Many people find forex trading easier than other investments because global events can have predictable effects on currency rates. Smart forex traders can read a news article and make more informed decisions about what to buy and what to sell, so the more time that you put into forex the easier it will be to profit.
Cryptocurrency TradingMuch more of a newcomer, it’s hard to avoid the impact of crypto. With recognised names like Bitcoin and Etherium, crypto has been the subject of more than a few headlines, but investing your money in cryptocurrency means knowing more about what it is and how Bitcoin trading works. However, there are plenty of advantages. These include:
- The Finite Supply: There is only so much cryptocurrency in the world, and that leads to increased demand and regular increases in value.
- Speed: While forex markets can move quickly, so too can crypto, and because there are no fees, there are lower costs per transaction as well.
- High Profits: Get your trading right and you could win big. If you had invested $1000 in Bitcoin in 2013, it was worth an incredible $400,000 in 2018. Of course, with higher rewards come risks, so it’s important that you know what you are doing.
Whether you opt for forex or bitcoin, you need to be engaged in your investment. You need to understand the risks so that you can balance them, and you need to learn as much as possible about how the trading process works. However, with such unlimited potential for financial gains, trading in both traditional currency and cryptocurrency could be the key to a much more exciting bank balance.