Smart Investments: Forex and Cryptocurrencies

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There is an ever-present need for humans to make money. The nicer things, a beautiful home, and a comfortable life all cost money. Consequently, as humans, we are always looking for ways to build our stash. One such avenue is by making smart investments characterized by risk and reward in the search for capital.

We’ll be looking at two such investment routes you can take this year.

  • Forex

Foreign exchange is the means of trading one currency for another currency for several reasons; for commerce, trading, or tourism. The Foreign Exchange Market, “Forex”, is a decentralized global marketplace for exchanging national currencies against one another. It involves all features of buying, selling, and exchanging currencies at current or defined prices.

Currencies are traded against each other as exchange rate pairs. For example, CHF/USD denotes the Swiss Franc and U.S. Dollar currency pair.

A singular aspect of this international market, as mentioned earlier, is the decentralized space for currency trading. Foreign exchange is done electronically over-the-counter (OTC). This means all transactions are through online networks among traders around the globe, as opposed to one centralized exchange.

However, trading is a very high-risk venture, and beginners need to carefully study the market before diving in. See Investopedia for more info on why you should trade Forex.

  • Cryptocurrencies

A cryptocurrency is a digital asset intended to work as a means of exchange where private coin ownership accounts are filed in a digital ledger or electronic database. The database employs strong cryptography to guard trade record entries, new digital records, and to confirm the change of coin ownership.

Cryptocurrencies face critique for several reasons, including their use for illicit activities, exchange rate volatility, and vulnerabilities of the infrastructure holding them. On the other hand, they also have been praised for their portability, divisibility, stability, and transparency.

Bitcoin remains the most widely-known and invaluable cryptocurrency. However, there are thousands of alternative cryptocurrencies with several uses and specs.

The FX Empire Editorial Board lists Bitcoin and Ethereum as the two top cryptocurrencies to invest in this year.

In conclusion, make sure to do your due diligence and conduct in-depth research into any investment option before venturing in. Don't just invest, make smart investments.

Bonne chance!

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