Crypto or Forex – What you should invest in? – Vestigo Finance

Investing in cryptocurrency or Forex is no longer the exclusive right of blockchain enthusiasts and wolves of Wall Street. The number of ordinary citizens who are investing is increasing every day, and almost everyone today has at least one cryptocurrency in their digital wallet. Of course, like any other investment, there are no firm guarantees that you will get rich, but with a little bit of research, you can find the right investment strategy and slowly see the gains. 

You are thinking about where to invest – in crypto or Forex. And truly, there is no correct answer to that question. Both options have their characteristics, opportunities, and weaknesses. When it comes to the crypto vs Forex debate, it’s not about gains, but rather liquidity and volatility. Forex has more liquidity, while cryptocurrency is known for being more volatile, which means that a higher reward comes with higher danger.

Cryptocurrencies – the money of the future

We can’t deny that cryptocurrencies can be used to make a lot of money. Today, everyone is jealous of people who purchased bitcoin (BTC) when it was trading for less than $1. Many of them became millionaires when they chose the perfect timing to sell the bitcoin and take the “real” cash. On the other hand, the market of cryptocurrencies is very volatile, unstable, and by the time, many new cryptocurrencies appeared on the market. They are digitally-encrypted, and not controlled by any government or national bank, so they are decentralized and independent.

One of the main advantages of trading cryptocurrencies is anonymity. Also, you are able to buy or sell cryptocurrency at any time of night and day, as it is a market that operates 24/7, globally. The choice is huge – at the moment, there are over 4,000 currencies in the market. The most famous is, of course, Bitcoin, followed by Litecoin, Ethereum, Ripple, and many other currencies, with new ones appearing periodically.

Internet is full of information regarding trading cryptocurrencies, and this is the market that changes at a fast pace. Hence, you might want to do your own research before you decide to invest in cryptocurrency. We prepared some tips for you, so you can be ready to start your investment journey and avoid the most common mistakes that beginners make.

bitcoin

Forex – the traditional way

If the idea of investing in digital money is not appealing to you, then Forex – foreign exchange- is the best option for you. After all, it is the world’s largest financial market. Generally, for Forex trading, you need to have a reputable broker. A regulated Forex broker in Dubai will help you develop your trading plan and reach your investment goals. If you are not ready to invest yet – there is no need to worry! You can open the demo account and see if Forex trade is the right choice for you. 

Forex trade is not anonymous, and brokers have to follow KYC (“know your customer”) standards and regulation, which includes the collection of your personal data. Also, the trade is limited to trading hours in specific countries. All major financial institutions, banks, businesses, and retail investors participate in the Forex market and are an integral part of it.

However, it does not mean that Forex trade is risk-free. It is just more regulated than the crypto-market because the main currencies are under the control of the national or central banks of different countries. Hence, the currency pairs from stable countries are not so speculative and volatile. For example, the US dollar or euro is quite stable and with small fluctuations, but smaller risk also means smaller gains. So, for the beginning, you might want to try investing in those stable currency pairs, until you develop your strategies for further investments. 

Before you invest a large amount of money, make sure you know at least the basics of those markets. Be aware of potential risks, and we advise you not to put all your eggs in one basket. The best option would be diversifying your investments. We wish you good luck, a quick return of investment, and significant gains.

trader

Go to top

SOURCE Vestigo Finance

Leave a comment

Your email address will not be published. Required fields are marked *