Quite the confusion is afoot in the financial
markets. Tighter regulation, rising inflation, energy sector disruptions,
social unrest and wars have taken a toll on the world’s economies.
Làm thế nào mà
Forex, as a means of investment, has come up on top as a global trend in 2022?
Against the backdrop of current events, the
international broker’s expert team at OctaFX has gathered some
câu trả lời.
The financial world is enduring some important shifts
and shocks right now. This has been going on for at least two and a half
years—since the start of the global coronavirus pandemic.
Now—because of the
monetary policies implemented by most national economies—inflation is spreading
and raging on every continent like a virus.
It leaves no country untouched.
Ordinary people lose their savings, funds, and the purchasing power of their
national currencies. Governments regulate as much as they can. But current
circumstances, many of which are quite unprecedented in recent memory, led to
policies restricting some financial markets. Among them—the Forex market.
Nhưng
the thing is that it is Forex investments that have gained traction recently,
having become an international trend by now.
Now that we know where we are at, we can take a look
back into the history of financial investments—specifically, how it pertains to
the Foreign Exchange market.
The plain history of making investments
Making investments goes way back. Thousands of years
ago, people of different tribes, villages, and regions found routes and means
to exchange goods of all kinds: farm animals, precious metals and rocks, or
domesticated wheat, to just name a few.
Each of these ancient transactions and
trades were investments—as capital, as trust in future trade relations, or
often as a means of survival.
The Foreign Exchange market as a hub of making
investments is almost as old—since at least the invention of the coin as an
exchange currency, so at least around 600 B.C.
It can be considered as a dynamic
basket of foreign currencies and a network of exchanges. To put it even more
bluntly, Forex represents the process of changing one currency into another.
The Foreign Exchange market is decentralised by nature. Today, it exists
completely online and utilises a vast variety of different countries,
currencies, and commodities.
Making a huge leap into the present day, Forex
experiences a significant global revival as a way of making investments. The
age of quarantine, home office and lockdowns, mass lay-offs, and blunt economic
uncertainty fueled by inflation forced many people into researching alternative
approaches to generating additional or passive income online. Forex came out on
hàng đầu.
Why did this trend emerge now?
Many factors contributed to a heightened interest in
Foreign Exchange. As we alluded to in the beginning, developments in
geopolitics, the world economy, and the aftermath of the COVID-19 pandemic
created a bundled sense of uncertainty in the financial markets.
Due to the war
in Ukraine, the E.U.’s compounded economy and its euro have significantly
weakened. This ongoing process made it possible for the U.S. dollar to catch up
to full equivalence, which has not been done since 2002, twenty years ago.
T
strong performance of the American currency made even retail raise their
attention, looking for strong opportunities to engage. Where Forex has gained
traction, other assets like stocks and real estate have weakened.
Nguyên nhân
is, again, rising instability and insecurity in the respective markets. Less
people choose to enter these for fear of miscalculation.
Commodities can be traded and invested in via Forex,
as well. Whereas crucial ones like natural gas and crude oil have constantly
risen in price. One of the aspects for crude oil to explode in value being the
OPEC countries not yielding to the U.S.’ demands in significantly upping
monthly production.
Whereas natural gas was priced at 43.99 USD in June 2020
and went up to 483.23 USD in June 2022—an increase by 998.49 per cent. Only
through Forex could one have taken advantage of a ten-fold, dramatic price
movement like this.
Forex—among the best types of investment
Since investments can be legitimate sources of
passive income, let us have a rundown of the most solid and relevant assets
that can serve as investments—especially, as they relate to Foreign Exchange.
Gói Vàng is a historically proven type
of investment—a magnificent long-term hedge against inflation, it has a strong
track record. The downside is probably its physicality: unlike with Forex, gold
needs to be stored somewhere safe and robust. The more one has, the more
storage and safety becomes an issue.
Giống như vàng, thực
bất động sản is a heavy-duty path to making an investment. The advantage is
security and relatively low price volatility. Also, the owner can rent their
real estate, by which they generate passive income in a straightforward way.
Forex does not cover these options but does have a significant advantage
elsewhere, though. The initial investment doesn’t have to be as high as it
usually needs to be, acting on the real estate market. With Forex, sums between
20 and 100 USD are usually sufficient to start participating in the Foreign
Thị trường trao đổi.
Tiền mã hóa have been the most recent
addition to the financial markets. All thanks to bitcoin, which, despite the
ongoing downtrend, did manage to convince many financial legacy
institutions—and even governments—to become investors in the past two years.
Since crypto is prominently present in the Forex domain, many of the advantages
of both worlds merge. Crypto trading has benefited from Forex-inspired security
measures like stop-loss orders and negative balance protection.
But there are high risks involved with
cryptocurrencies in terms of investing. Individual crypto projects can say one
thing but do another. As the Celsius network and its CEO, Alex Mashinsky, have
painfully demonstrated this summer. Most clients of their financial service
have most probably lost all their funds.
Things are a little bit different with the
algorithmic stablecoin project Terra Luna, which allegedly imploded because of
a grave, but unintended technical miscalculation of the development team.
Instances like these are extremely rare in Forex, since the currencies and
commodities traded there are historically reliable assets that are
well-equipped against sudden defaults.
Saving accounts và tiết kiệm tiền mặt have their merit in times of economic stability and
thrive. But in the age of inflation, these options can become a bottomless pit
in no time. Forex is much more mobile and flexible in that assets can be
swiftly exchanged, whereas the other two more pragmatic options are more static
in nature. Saving accounts, in particular, since the contract signed with the
bank can have many sorts of disadvantageous clauses in case of wanting to close
it prematurely.
CỔ PHIẾU
have their upsides in a bull
market, as well. Especially if you nailed an investment like, say, buying
stocks in Amazon pre-2016. Stocks actually give an individual proportional
ownership over a company—the more stocks in their possession, the more of the
company belongs to them. As for now,
though, the stock market is in a steep decline. It is hard to ascertain the
midterm outlooks or how long the downtrend will continue. The dynamic nature of
Forex, on the other hand, gives the investor many short-term options to modify
their investment portfolio on the run.
The pressure of certain governments on the whole
domain of private investment cannot be overlooked. Constant restrictions—like
the Forex industry is experiencing at the moment—while at the same time
government policies are lacking to adequately meet grave dangers like
inflation, may all lead to people losing their income and savings.
Nó không phải theo cách này
How can someone break free from this vicious circle,
take responsibility, and engage in a meaningful, productive and potentially
very lucrative investment decision? Let us take Forex as an example again.
A trustworthy and reliable broker is the first and
foremost step. Any broker with at least a decade of experience in the financial
markets (such as OctaFX, XM, eToro) is a solid pick. Attention has to be paid
to the broker’s reviews and awards. All of that should be available to research
.
In terms of achieving financial
goals, there could not be a time filled with more urgency than now. Taking the
dire economic crises raging worldwide into consideration, the investment
decisions one makes now could dramatically influence their future—for the
tốt hơn.
Quite the confusion is afoot in the financial
markets. Tighter regulation, rising inflation, energy sector disruptions,
social unrest and wars have taken a toll on the world’s economies.
Làm thế nào mà
Forex, as a means of investment, has come up on top as a global trend in 2022?
Against the backdrop of current events, the
international broker’s expert team at OctaFX has gathered some
câu trả lời.
The financial world is enduring some important shifts
and shocks right now. This has been going on for at least two and a half
years—since the start of the global coronavirus pandemic.
Now—because of the
monetary policies implemented by most national economies—inflation is spreading
and raging on every continent like a virus.
It leaves no country untouched.
Ordinary people lose their savings, funds, and the purchasing power of their
national currencies. Governments regulate as much as they can. But current
circumstances, many of which are quite unprecedented in recent memory, led to
policies restricting some financial markets. Among them—the Forex market.
Nhưng
the thing is that it is Forex investments that have gained traction recently,
having become an international trend by now.
Now that we know where we are at, we can take a look
back into the history of financial investments—specifically, how it pertains to
the Foreign Exchange market.
The plain history of making investments
Making investments goes way back. Thousands of years
ago, people of different tribes, villages, and regions found routes and means
to exchange goods of all kinds: farm animals, precious metals and rocks, or
domesticated wheat, to just name a few.
Each of these ancient transactions and
trades were investments—as capital, as trust in future trade relations, or
often as a means of survival.
The Foreign Exchange market as a hub of making
investments is almost as old—since at least the invention of the coin as an
exchange currency, so at least around 600 B.C.
It can be considered as a dynamic
basket of foreign currencies and a network of exchanges. To put it even more
bluntly, Forex represents the process of changing one currency into another.
The Foreign Exchange market is decentralised by nature. Today, it exists
completely online and utilises a vast variety of different countries,
currencies, and commodities.
Making a huge leap into the present day, Forex
experiences a significant global revival as a way of making investments. The
age of quarantine, home office and lockdowns, mass lay-offs, and blunt economic
uncertainty fueled by inflation forced many people into researching alternative
approaches to generating additional or passive income online. Forex came out on
hàng đầu.
Why did this trend emerge now?
Many factors contributed to a heightened interest in
Foreign Exchange. As we alluded to in the beginning, developments in
geopolitics, the world economy, and the aftermath of the COVID-19 pandemic
created a bundled sense of uncertainty in the financial markets.
Due to the war
in Ukraine, the E.U.’s compounded economy and its euro have significantly
weakened. This ongoing process made it possible for the U.S. dollar to catch up
to full equivalence, which has not been done since 2002, twenty years ago.
T
strong performance of the American currency made even retail raise their
attention, looking for strong opportunities to engage. Where Forex has gained
traction, other assets like stocks and real estate have weakened.
Nguyên nhân
is, again, rising instability and insecurity in the respective markets. Less
people choose to enter these for fear of miscalculation.
Commodities can be traded and invested in via Forex,
as well. Whereas crucial ones like natural gas and crude oil have constantly
risen in price. One of the aspects for crude oil to explode in value being the
OPEC countries not yielding to the U.S.’ demands in significantly upping
monthly production.
Whereas natural gas was priced at 43.99 USD in June 2020
and went up to 483.23 USD in June 2022—an increase by 998.49 per cent. Only
through Forex could one have taken advantage of a ten-fold, dramatic price
movement like this.
Forex—among the best types of investment
Since investments can be legitimate sources of
passive income, let us have a rundown of the most solid and relevant assets
that can serve as investments—especially, as they relate to Foreign Exchange.
Gói Vàng is a historically proven type
of investment—a magnificent long-term hedge against inflation, it has a strong
track record. The downside is probably its physicality: unlike with Forex, gold
needs to be stored somewhere safe and robust. The more one has, the more
storage and safety becomes an issue.
Giống như vàng, thực
bất động sản is a heavy-duty path to making an investment. The advantage is
security and relatively low price volatility. Also, the owner can rent their
real estate, by which they generate passive income in a straightforward way.
Forex does not cover these options but does have a significant advantage
elsewhere, though. The initial investment doesn’t have to be as high as it
usually needs to be, acting on the real estate market. With Forex, sums between
20 and 100 USD are usually sufficient to start participating in the Foreign
Thị trường trao đổi.
Tiền mã hóa have been the most recent
addition to the financial markets. All thanks to bitcoin, which, despite the
ongoing downtrend, did manage to convince many financial legacy
institutions—and even governments—to become investors in the past two years.
Since crypto is prominently present in the Forex domain, many of the advantages
of both worlds merge. Crypto trading has benefited from Forex-inspired security
measures like stop-loss orders and negative balance protection.
But there are high risks involved with
cryptocurrencies in terms of investing. Individual crypto projects can say one
thing but do another. As the Celsius network and its CEO, Alex Mashinsky, have
painfully demonstrated this summer. Most clients of their financial service
have most probably lost all their funds.
Things are a little bit different with the
algorithmic stablecoin project Terra Luna, which allegedly imploded because of
a grave, but unintended technical miscalculation of the development team.
Instances like these are extremely rare in Forex, since the currencies and
commodities traded there are historically reliable assets that are
well-equipped against sudden defaults.
Saving accounts và tiết kiệm tiền mặt have their merit in times of economic stability and
thrive. But in the age of inflation, these options can become a bottomless pit
in no time. Forex is much more mobile and flexible in that assets can be
swiftly exchanged, whereas the other two more pragmatic options are more static
in nature. Saving accounts, in particular, since the contract signed with the
bank can have many sorts of disadvantageous clauses in case of wanting to close
it prematurely.
CỔ PHIẾU
have their upsides in a bull
market, as well. Especially if you nailed an investment like, say, buying
stocks in Amazon pre-2016. Stocks actually give an individual proportional
ownership over a company—the more stocks in their possession, the more of the
company belongs to them. As for now,
though, the stock market is in a steep decline. It is hard to ascertain the
midterm outlooks or how long the downtrend will continue. The dynamic nature of
Forex, on the other hand, gives the investor many short-term options to modify
their investment portfolio on the run.
The pressure of certain governments on the whole
domain of private investment cannot be overlooked. Constant restrictions—like
the Forex industry is experiencing at the moment—while at the same time
government policies are lacking to adequately meet grave dangers like
inflation, may all lead to people losing their income and savings.
Nó không phải theo cách này
How can someone break free from this vicious circle,
take responsibility, and engage in a meaningful, productive and potentially
very lucrative investment decision? Let us take Forex as an example again.
A trustworthy and reliable broker is the first and
foremost step. Any broker with at least a decade of experience in the financial
markets (such as OctaFX, XM, eToro) is a solid pick. Attention has to be paid
to the broker’s reviews and awards. All of that should be available to research
.
In terms of achieving financial
goals, there could not be a time filled with more urgency than now. Taking the
dire economic crises raging worldwide into consideration, the investment
decisions one makes now could dramatically influence their future—for the
tốt hơn.
