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 rises toward 1.0700 after Germany PMI data
EUR/USD gains traction and rises toward 1.0700 in the early European session on Monday. HCOB Composite PMI in Germany improved to 50.5 in April from 47.7 in March, providing a boost to the Euro. Focus shifts Eurozone and US PMI readings.
GBP/USD regains 1.2350 ahead of UK PMIs
GBP/USD is recovering ground above 1.2350 in the European session, as the US Dollar comes under fresh selling pressure on improving risk sentiment. The further upside in the pair could be capped, as traders await the UK PMI reports for fresh trading impetus.
Japanese Yen struggles to lure buyers amid divergent BoJ-Fed policy expectations
The Japanese Yen draws some support from the possibility of a government intervention. The divergent BoJ-Fed expectations and easing Middle East tensions cap the safe-haven JPY. Traders also seem reluctant ahead of the key US macro data and BoJ meeting later this week.
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany PMI data
EUR/USD gains traction and rises toward 1.0700 in the early European session on Monday. HCOB Composite PMI in Germany improved to 50.5 in April from 47.7 in March, providing a boost to the Euro. Focus shifts Eurozone and US PMI readings.
GBP/USD regains 1.2350 ahead of UK PMIs
GBP/USD is recovering ground above 1.2350 in the European session, as the US Dollar comes under fresh selling pressure on improving risk sentiment. The further upside in the pair could be capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.
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