Beginners find their way to the financial markets in search of additional income, which would ensure freedom from the shouting of bosses and life without need.
The electronic trading organized by stock exchanges through brokerage companies and the Internet made a true revolution, making speculations available in the markets for stocks, commodities, currencies, and derivatives. Anyone who owns a personal computer or a smartphone with an access to the World Wide Web could become a trader in a few clicks.
Fame came to the Forex market due to a low initial deposit. Many forex brokers offered to open an account in three minutes with a minimum deposit.
Comfortable conditions on Forex accounts provide access to the whole variety of financial assets: stocks, stock indices, goods, and currencies.
The crypto currency brought about the second revolution in the opportunities of passive earning. The algorithm for its creation involves mining, real income is brought by online calculations that allow you to obtain electronic coins.
Bitcoin exchanges, plastic cards, and exchange points allow miners to exchange crypto treasures without any problems.
Miners are rewarded for confirming transactions (Bitcoin transfers) by providing their computer as a server for the distributed network of the payment system that contains the register of all payments from the launch. A new payment is distributed among all the miners, and in the case of confirmation, it is synchronized with the existing registry. The support is rewarded by a commission, which is already included in payment.
The computational algorithm running on the computer is built into the system, confirming the transactions and simultaneously mining the crypto currency. The received commissions and the extracted funds are transferred to the user's electronic wallet.
Comparative analysis
Financial costs of Forex:
A cent account allows you to start trading with $10. This amount is quite enough to implement a strategy without high risk and not go broke from a series of losing trades.
Financial markets are bound by the principle: invest more - get more, therefore the optimal investment will amount to $1,000, maximum - $10,000.
Financial costs of mining:
Each new user reduces the overall reward of the miners, and each mined coin increases the complexity of mining (computer resources). The payment for the block of transactions, which started at 50 coins, now costs 12.5 bitcoins. Bitcoin mining at home will require at least a stable connection to the Internet, electricity and a powerful computer. Another option is to obtain other crypto currencies or join the cloud-mining communities.
The minimum costs for cloud mining will be around $30, the optimal solution for home mining - from $3,000, maximum - some $5000.
Forex Training:
According to the statistics of open tenders held by various stock exchanges, brokers, and prop-trading companies, the share of traders with a positive financial result reaches 40%. Statistics of the accounts of ordinary clients shows the figure of 5%. This indicates a frivolous approach to Forex but does not say anything about the complexity of training.
Diverse and profitable Forex trading strategies are your confidence in trading. Organized as an app for a smartphone, they are ready-made examples, where you can learn and earn simultaneously.
Forex has existed for more than 40 years, stock markets – for 4 centuries. There is no point reinventing the wheel in industries where there are a lot of proven solutions. There are only three qualities required from the trader - concentration, attention, and assiduity.
Learning to mine:
Mastering mining is much simpler than trading on Forex, it is similar to learning to work with software at the user level. At Github, you can get free software and recommendations, and cloud mining will help create a complete mining configuration, for example, Giga Watt.
Forex potential:
There are three ways to increase earnings from currency speculation on Forex:
1. Reinvestment of profit
2. Increasing the deposit by investing own funds
3. Attracting third-party investors.
A trader with a trading system that brings a stable profit can attract an infinite number of investors through social trading.
Mining potential:
Crypto currency mining is finite in terms of resources, if you do not determine points on the Laffer curve based on feasibility/cost ratio, you will begin to suffer losses.
The transition to mining another type of crypto-currency is fraught with risks: if the demand for altcoins is low and the cost does not grow, it will eventually lead to losses.
Conclusion:
As the saying runs: a bird in the hand is worth two in the bush. In our case, a bird is Forex. Start trading, or investing operations, you can invest into the crypto-currencies as well. You can spend a few years for testing and, eventually, choosing the best trading strategy but it will help you to attain financial independence for the rest of your life. Remember that Forex and stock exchanges will remain forever.
Recent bitcoin crisis has shown that crypto currency transactions can be displayed and confirmed outside the system of blockchain (SegWit). It means that the metal produced by miners will eventually become useless and expensive scrap metal.
No one can predict what will be the exchange rate between the bitcoin and the USD when the crypto-currency market experiences the first financial crisis; especially, knowing the fact that even in case of the slightest negative situation the prices fall by 50% or more.
RISKS DISCLOSURE FOR OPERATIONS WITH FOREIGN CURRENCY AND DERIVATIVES This short warning, being an addition to the General Business Terms, is not intended to mention all risks and other important aspects of operations with foreign currency and derivatives. Considering the risks, you should not settle transactions of the aforementioned products if you are not aware of the nature of the contracts you enter into, the legal aspects of such relations within the context of such contracts, or the degree of your exposure to risk. Operations with foreign currency and derivatives are connected with a high level of risk, therefore it is not suitable for many people. You have to thoroughly evaluate to what extent such operations are suitable for you, taking into consideration your experience, aims, financial resources and other important factors.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.