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8 Best Cryptocurrencies To Invest In for

Investing / Crypto

Bangkok, Thailand - Dec 13, Physical Bitcoin pile on table.

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Cryptocurrency is digital money that isn’t managed by a central system like a government. Instead, it’s based on blockchain technology, with bitcoin being the most popular one. As digital money continues to gain traction on Wall Street, more and more options become available. There are currently almost 8, cryptocurrencies on the market.

While you can use cryptocurrency to make purchases, most people treat it as a long-term investment. However, volatility makes investing in cryptocurrency risky, so it’s important to know what you’re getting into before you buy in. These are eight top cryptocurrencies that are worthy of investment in

Top 8 Cryptocurrency Investments in

Cryptocurrency	Price	Market Cap
Bitcoin	$38,	$ billion
Ethereum	$2,	$ billion
Binance Coin	$	$ billion
Cardano	$	$ billion
Polygon	$	$ billion
Solana	$	$ billion
Avalanche	$	$ billion
Chainlink	$	$ billion
Data is accurate as of March 8,

1. Bitcoin (BTC)

Bitcoin has been around for the longest of any cryptocurrency. It’s easy to see why it’s the leader, with a price and market cap that’s much higher than any other crypto investment options.

Many businesses already accept bitcoin as payment, which makes this cryptocurrency a smart investment. Visa, for example, transacts with bitcoin. Additionally, Tesla announced in February that it had invested $ billion in it, and for a time, the company accepted it as payment for its cars — and it might again if mining it becomes more environmentally friendly. Plus, the larger banks are beginning to incorporate bitcoin transactions into their offerings.

Risks of Investing In Bitcoin

The value of bitcoin tends to fluctuate a lot. You may see the price go up or down thousands of dollars during any month. If wild fluctuations like these make you nervous, you may want to avoid bitcoin. Otherwise, as long as you keep in mind that cryptocurrency could be a smart long-term investment, these fluctuations shouldn’t be too concerning.

Another reason to reconsider investing in bitcoin is its price. With a single bitcoin costing nearly $40,, most people can’t afford to buy whole bitcoins. For investors who want to avoid buying a fraction of a bitcoin, this is a negative.

2. Ethereum (ETH)

Ethereum is different from bitcoin because it isn’t only a cryptocurrency. It’s also a network that allows developers to create their own cryptocurrency utilizing the network. While ethereum is far behind bitcoin in value, it’s also far ahead of the other competitors.

Even though it came out years after some other cryptocurrencies, it has far exceeded its place in the market because of its unique technology, and it’s currently the second-largest cryptocurrency behind bitcoin.

Risks of Investing In Ethereum

While the Ethereum platform utilizes blockchain technology, it only has one “lane” for conducting transactions. This can lead to transactions taking longer to process when the network is overloaded. Transaction fees are also high, reaching a peak of $ in May , according to CoinMarketCap.

In , a hack that took advantage of a security flaw led to the loss of more than $50 million worth of ether.

3. Binance Coin (BNB)

After years of relatively level prices, at least by cryptocurrency standards, binance coin took off at the beginning of , surging from about $38 on Jan. 1 of that year to an all-time high of $ in May. As of March 8, it has slipped back to $

Because of its performance, binance coin has proven to be one of the more stable investment options. Binance is the world’s largest cryptocurrency exchange, according to CoinMarketCap, but despite its extensive functionality and the coin’s success in Binance sub-projects, binance coin is still a highly volatile investment.

Risks of Investing In Binance Coin

What sets binance coin apart from its competitors is that it was created by a company instead of a group of tech developers. Although binance coin’s commitment to maintaining a strong blockchain has won over many skeptics, some investors remain leery of this cryptocurrency and its potential security issues.

4. Cardano (ADA)

The Cardano network has a smaller footprint, which is appealing to investors for several reasons. It takes less energy to complete a transaction on Cardano than on a larger network like Bitcoin. This means transactions are faster and cheaper. Last year, Cardano launched a “hard fork,” an upgrade that increased functionality — in this case, enabling smart contract deployment.

Cardano also claims to be more adaptable and more secure. It consistently improves its development to stay ahead of hackers.

Risks of Investing In Cardano

Even with a better network, cardano may not be able to compete with larger cryptocurrencies. Fewer adopters mean fewer developers. This isn’t appealing to most investors who want to see a high adoption rate. The platform has big plans, but there are doubts about whether it can live up to that potential.

Advice
Don’t be discouraged by fluctuations in the market. Your investment may lose money one day and make a profit the next. Instead of getting caught up in the day-to-day changes, look at the big picture.

5. Polygon (MATIC)

Polygon was created by a development team that made significant contributions to the Ethereum blockchain platform. Polygon is designed for Ethereum scaling and infrastructure development, according to CoinMarketCap. As a “layer two” solution, it expands Ethereum into a multi-chain system, improving transaction and verification speed.

Polygon has backing from the Binance and Coinbase cryptocurrency exchanges. Its token, MATIC, is used for payment services, transaction fees and as a settlement currency.

Risks of Investing In Polygon

Late last year, Polygon disclosed that it had patched a vulnerability that put about $20 million worth of its coins at risk, CoinDesk reported. A hacker discovered the exploit and notified Polygon, which had a fix in place within two days. However, black-hat hackers had already stolen over , tokens, leaving Polygon on the hook for about $ million.

6. Solana (SOL)

Solana has taken the crypto world by storm, starting in with % of the market and soaring to a top 10 cryptocurrency by market cap by September , giving its main competitor, ethereum, a run for its money. As of March , solana ranks ninth in terms of market cap, which currently sits at $ billion, according to CoinMarketCap. Its appeal lies in the speed and scalability of its network and the ease with which it can be used to create decentralized apps that run on a blockchain, Decrypt explained.

Risks of Investing In Solana

Solana has seen an astounding appreciation of nearly 4,% over the past year, and prices could drop as quickly as they grew. Reliability might also be an issue, considering Solana suffered a nearly day-long outage due to “resource exhaustion,” according to Bloomberg, as reported by CNBC.

7. Avalanche (AVAX)

Avalanche is a new “layer one” blockchain — a blockchain that improves the base protocol to make the system more scalable, as Binance described it — founded as an Ethereum competitor by Ava Labs and computer scientists at Cornell University, one of whom, professor Emin Gun Sirer, is a veteran in cryptographic research, according to CoinMarketCap. Whereas Ethereum’s nodes must all validate each transaction, Avalanche’s three individual blockchains can validate transactions independently. This makes Avalanche more scalable and better able to handle large volumes of transactions — up to 6, per second. As a result, it’s increasingly popular among Ethereum projects, U.S. News reported.

AVAX began trading in , in a hour initial coin offering. It price has fluctuated from a low of $ to a high of $ over the past year. The coin currently trades for $

Risks of Investing In Avalanche

Sirer introduced the cryptocurrency via a white paper in Its launch took place in With such a short history, avalanche doesn’t have a track record for comparison, making it a riskier investment for potential buyers.

8. Chainlink (LINK)

Chainlink uses a decentralized oracle network to facilitate secure interactions between blockchains and external data feeds, events and payment methods the developers hope will allow smart contracts to become the dominant form of digital payment, according to CoinMarketCap.

One thing working in Chainlink’s favor is a strategic partnership with Google under which Google uses Chainlink’s protocol to connect users to its cloud services, Benzinga reported. The project’s advisors include former Alphabet Chairman Eric Schmidt, DocuSign co-founder Tom Gonser and former LinkedIn CEO Jeff Weiner, according to www.oldyorkcellars.com

Risks of Investing In Chainlink

Despite its proven utility and support from major players, chainlink has experienced the same kind of volatility as other cryptocurrencies. Its price dropped from about $52 in May to just over $13 in March.

Advice
Don’t settle on any number of cryptocurrency investments without continuing to learn about the market. A new cryptocurrency network could easily climb the ranks and emerge as a leader above other platforms. As an investor, the smartest thing you can do is to stay abreast of market happenings.

Rating the Top Cryptocurrency Choices

Run a quick online search and you’ll find dozens of recommendations for how to invest in cryptocurrency. In choosing the top eight picks, the following factors were considered.

Longevity

How long has the cryptocurrency been around? New cryptocurrencies aren’t immediately ruled out, but having historical data for comparison helps you see how a company has performed up until now.

Track Record

How has the company performed during its years in business? If you see stability in prices, that’s a good sign. If you notice that the cryptocurrency is gaining traction and becoming more valuable with time, that’s even better.

Good To Know
Past performance is not indicative of future performance. At any time things can change, and an investment may perform better or worse than it has in the past.

Technology

How does the platform compare to others in terms of usability and security? The first thing you want to look for is the speed at which transactions occur. The network should be able to handle transaction traffic with ease.

You also want to make sure your investment is secure. Most cryptocurrencies use blockchain technology, making all transactions transparent and easy to track. Blockchain technology doesn’t necessarily make it harder for hackers to steal your cryptocurrency. It does make it easier to track your investment so it can be recovered instead of being lost following fraud.

Adoption Rate

How many people are investing in the cryptocurrency you’re considering? When you see a high level of adoption, that means the cryptocurrency has better liquidity. Trading, selling or spending will be easier in the future.

Final Take

There’s no question about it: Cryptocurrencies are here to stay. The question becomes, where is the best place to invest your money in the market?

As you decide which cryptocurrency is the best investment for you, here are some other things to keep in mind:

The speed at which transactions are completed
The fees associated with transacting
The ability to use your cryptocurrency for regular purchases and bank transfers

If you’re strictly looking to invest without transacting within the network, remember that cryptocurrency isn’t a get-rich-quick scheme. Instead, you should consider it a long-term investment.

GOBankingRates’ Crypto Guides

Daria Uhlig contributed to the reporting for this article.

Data is accurate as of March 8, , and subject to change.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

Источник: [www.oldyorkcellars.com]

The Safest Currencies in the World

The problem with currencies is that the safest options usually don’t offer a big reward. At least with top tier stocks you’re usually receiving a dividend. Nevertheless, let's take a look at the safest currencies in the world. There is actually one surprise currency that does have significant upside potential over the long haul.

Forward Looking Approach

Let’s remove day to day exchange rates from the equation and take a forward looking approach. The U.S. dollar is the biggest enigma to investors at the moment, but there are logical reasons for its behavior: Interest rates are likely to increase later this year. With quantitative easing coming to a close, investors are piling back into the U.S. dollar. (For more, see: 3 Factors that Drive the U.S. Dollar.)

The European Central Bank (ECB) plans on purchasing $ trillion in public and private sector bonds by This will primarily be done in the larger economies: Germany, France and Italy. Aside from Germany, the Eurozone is suffering from high unemployment, and it’s hopeful that injecting money into the economy will provide an assist. Either way, this won't help the euro against the U.S. dollar.

The Bank of Japan (BOJ) recently upped its annual purchases of government bonds to 80 trillion yen from trillion yen. The Japanese are fighting hard against deflation. Unfortunately, they’re not realizing that you can’t stop deflation, especially when you have the oldest consumers in the world. Once again, this move will not help the Japanese yen against the U.S. dollar. (For more, see: Get to Know the Major Central Banks.)

Based on the points above, we can see that the U.S. dollar is likely to appreciate (for now), and that the euro and Japanese yen would be high risk. In regards to the euro, the Swiss National Bank (SNB) recently abandoned its currency peg to the euro — a sign of no confidence.

U.S. Dollar

As far as the U.S. dollar is concerned, it looks like a great bet at the moment, but U.S. dollars are Federal Reserve notes. Now consider that the Federal Reserve has $ trillion in Treasury debt and $ trillion in mortgage-backed securities. (For more, see: Trade a Surging U.S. Dollar with These 3 ETFs.)

The U.S. dollar is currently in bull mode, and that’s likely to last for a considerable amount of time. On the other hand, while the Federal Reserve is capable of bailing everyone out, eventually, who’s going to bailout the Federal Reserve? The answer to that question might irritate you, because the answer is likely going to be you the taxpayer. That said, the United States is very good at finding ways to win and there’s no telling what creative ideas those in power will come up with next. Hopefully, a creative solution will be found. But is that something you want to bet on? Probably not.

Norway And Singapore

The Norwegian krone has been known as a safe currency, thanks in large part to Norway having no net debt. The Norwegian krone is also a standalone currency which means it’s not tied to another country’s failures. The krone hasn’t been performing well as of late due to economic data not meeting expectations and falling home prices. The latter has slowed the consumer. However, with a disciplined and responsible system in place, it should remain a good long term bet. (For more, see: Countries that Still Have the Golden AAA Credit Rating.)

Then there’s the Singapore dollar, which has been attractive to investors because Singapore is now seen as the place to hide money for tax reasons. There might be opportunity here, but since this investment wouldn’t be based on something sustainable, consider avoiding.

Then there’s that other currency referred to above, which has yet to be covered.

Gold

According to www.oldyorkcellars.com, the definition of currency is as follows: “Any form of money in actual use as a medium of exchange.” Therefore, gold applies. The best attributes for gold: can be bought and stored, easily converted to almost any currency, highly liquid, limited supply.

The problem with investing in gold today is that the U.S. dollar is in favor, which usually trades inversely to gold. Even if the stock market and/or economy tanks, gold isn’t likely to hold up because all commodities come down in a deflationary environment. If you look at our small stint of deflation during the financial crisis, you will see that gold suffered prior to the Federal Reserve stepping in. That said, once deflation is realized and accepted, opposed to just a fear, the economy should begin to bottom. It will take time (perhaps years), but this should present a great opportunity to buy gold. When organic growth returns, inflation will ramp up, which will make gold intriguing. In fact, gold could hit new highs.

The Bottom Line

A perfect currency doesn’t exist. If you want to invest in the U.S. dollar, then you’re timing better be excellent. If you want to invest in the Norwegian krone, it’s safe, but there isn’t much upside. The Singapore dollar? This could present rewards, but it’s not based on honest and sustainable policies. Gold is probably the best bet, but not at the moment. (For more, see: Popular Forex Currencies.)

Dan Moskowitz owns shares of Market Vectors Double Short Euro ETN (DRR).

Источник: [www.oldyorkcellars.com]

Making the decision to save (and doing so) is just the first step. It is important to have a strategy so that our money does not lose value while it is stored. One of the most helpful is to put savings in a stronger currency with less risk of devaluation.

For example, if you have your 'guardadito' in Mexican pesos, you may want to change them to a foreign currency such as the dollar, the euro or the yen.

According to analyst Mijaíl Zéltser, the best currency to maintain our savings in will be the euro.

The expert predicts that the European economy "will outperform the recovery of the United States" , while the fiscal programs of the United States "will exert a devaluation pressure" on the dollar. In addition, it projects a strengthening of the euro during the first half of the year to cost dollars (about 26 Mexican pesos).

"This suggests that it may be preferable to keep a part of the funds in foreign currency in euros ," the analyst told RIA Novosti .

Be careful, the euro is not infallible

Despite Zéltser's optimism about the euro, economist Vladislav Guinkó, a professor at the Russian Presidential Academy of National Economy and Public Administration, has reservations.

Guinkó warns that the eurozone still has problems in the banking sector "that arose even before the coronavirus pandemic ." These are derived from a level of public debt "significantly overburdened" , he explained to RT .

"The problem with the euro is that we cannot know how many euros will be printed, and this naturally plays an important role in any case with any product," said the economist.

In his opinion, it is not yet possible to assess the consequences of the pandemic for the countries of the region. "If a total blockade is reintroduced in several countries of the eurozone, this, of course, will have a very strong impact on the outlook for the euro," emphasizes the expert.

Therefore, the economist concludes that if the economy is closed and the European Central Bank “constantly prints money” , this will not lead “to anything good” .

Beyond the euro

While the currency of the European Union may be the safest bet, it is not the only one. According to Mikhail Zéltser, among the reserve currencies there are two that have medium-term potential: the yuan (China) and the yen (Japan).

The analyst affirms that it may also be convenient to put our savings in the currencies of the BRICS countries. In particular, it bodes a good year for the rand (South Africa) and the rupee (India, Pakistan, Indonesia and others). The ruble (Russia) could strengthen if the price of oil remains stable and above 50 dollars per barrel of Brent, and the pressure of US and European sanctions eases.

"Next year, international financial institutions will give preference to the currencies of emerging economies, especially the Russian ruble, which they place in the first places in the ratings of investment attractiveness," concluded Zéltser.

Источник: [www.oldyorkcellars.com]

Investing in Cryptocurrency Stocks

Zhiyuan Sun

Updated: March 22, , p.m.

Cryptocurrencies have quickly become the hottest investment that's gaining mainstream adoption. Markets for digital currencies such as Bitcoin (CRYPTO:BTC) were virtually unheard of back in But since then, it has grown into an industry worth more than $2 trillion and counting. This sudden surge in value and rapid evolution has created immense wealth for early crypto investors. As a result, there is huge interest in finding and investing in the next cryptocurrency unicorn.

With more than 11, different cryptocurrencies on the market -- and the world getting pushed further into the digital realm by COVID -- investing in technologies that serve as the gateway between the blockchain cyberspace and our society could be even more lucrative than trying to guess which token will become the next Bitcoin or Ethereum (CRYPTO:ETH). And there is no shortage of innovative companies trying to bridge the gap between the two worlds.

Performance table showing multiple cryptocurrencies.

Image source: Getty Images

Digital currency companies hold major potential

The original idea behind blockchain technology -- a digital ledger that automatically tracks transactions between parties and confirms ownership of a crypto asset -- was to create a borderless, peer-to-peer electronic cash payment system that's efficient and secure.

Investors can certainly invest in cryptos themselves, perhaps by buying small amounts of several different cryptocurrencies. But a better way to gain exposure to the sector is to invest in companies -- even bigger, more established companies -- that benefit from blockchain and crypto asset uptake. This is because the amount of revenue these crypto service providers derive from blockchain tech has seen explosive growth over the years.

Companies that adopt blockchain technology, especially those in finance, could then gain a huge edge over their traditional competitors in processing payments. Moreover, brokers that offer digital assets could also attract more customers than exchanges that only offer traditional assets such as stocks and bonds.

In keeping with that guidance, here are some of the best cryptocurrency stocks to consider:

Coinbase Global

Coinbase Global (NASDAQ:COIN), a top cryptocurrency trading exchange, made its IPO debut in April The company is a popular platform to purchase major cryptocurrencies such as Bitcoin, Ethereum (CRYPTO:ETH), and Cardano (CRYPTO:ADA), and it allows users to trade more than 50 altcoins.

To date, this crypto trading platform’s success has been contingent upon the increase in crypto prices -- which, in turn, has led to millions of new users creating accounts. Coinbase earns a small transaction fee every time someone places an order to buy or sell a cryptocurrency. But the company aspires to be more than just a place to trade. It also sponsors a debit card that allows consumers to spend from the balance in their digital wallet. What’s more, it launched a cloud platform for companies using and storing digital currencies.

Coinbase offers two game-changing innovations. The first is bringing the practice of asset loans -- which were previously only available to affluent investors -- to the masses. Users can pledge their Bitcoin or other cryptocurrencies as collateral on the platform and receive a low-interest loan to cover their everyday expenses. This way, investors don’t have to sell their assets when emergencies arise, allowing their principal to continue compounding while they deal with matters at hand.

The second is the rising adoption of Coinbase’s blockchain analytics by governments and financial institutions alike. Because most blockchains operate on a public ledger, the company can harness this data and monitor for illicit transactions and wallet addresses.

Suppose hackers managed to break through an individual's computer and demand ransom in the form of Bitcoin to unlock the machine. In that case, Coinbase could then match the hacker's wallet address with millions of know-your-customer (KYC) data points stored on its platform. This could help law enforcement track down the flow of funds and apprehend the cybercriminals -- building greater trust in the crypto space.

[Cryptocurrency] is a new asset class, but like real estate, there's only so much Earth. So it's defined, and therefore this moving price of the commodity is just how much, within this finite class of a commodity, this new asset class, how much people value it or want it.
David Gardner, co-founder, The Motley Fool

Square and PayPal Holdings

At the heart of every digital payment protocol is the absence of central intermediaries (and, therefore, lower costs for businesses and consumers). Thus, the next steps in business expansion for Square (NYSE:SQ) and PayPal Holdings (NASDAQ:PYPL) was to enable users to purchase and hold cryptocurrencies within a digital wallet.

In late , Square’s Cash App consumer-facing application started allowing Bitcoin trading. In and , Bitcoin was a huge revenue generator for Square, although the trading feature did little to help Square’s bottom line.

However, the company is helping to foster the use of Bitcoin among its business users (through the Square ecosystem), and it could become a top platform for transacting cryptos between companies and their customers. This is especially promising for disrupting traditional international transactions where banks often charge hefty foreign exchange fees. But for now, Cash App is mostly used for cryptocurrency trading, complete with basic banking features.

One can say similar things about PayPal’s Venmo digital wallet and peer-to-peer payments app, which unlocked crypto trading in early At the launch, Venmo supported the trading of Bitcoin, Bitcoin Cash (CRYPTO:BCH), Ethereum, and Litecoin (CRYPTO:LTC). With the most users of any peer-to-peer money movement app, Venmo could become a leading cryptocurrency platform with this new feature. It serves as a solid access point for investors who wish to buy major cryptocurrencies and then use them to purchase altcoins or access decentralized finance applications.

Canaan and Hut 8 Mining

Bitcoin mining has changed dramatically over the past few years. Nowadays, companies such as Canaan (NASDAQ:CAN) design high-powered, application-specific integrated circuit (ASIC) machines specifically for the purpose of brute force guessing the network's correct hash (passcode). Canaan's next-generation Avalon ASICs can make tens of trillions of guesses every second as to the right hash to validate blocks on the Bitcoin network, which is millions of times more powerful than AMD (NASDAQ:AMD) and Nvidia's (NASDAQ:NVDA) latest GPUs. Sales have been skyrocketing for some time due to the device's affordability and relatively low energy consumption -- meaning greater profits for miners.

Speaking of miners, one of the most popular Bitcoin mining stocks is Hut 8 Mining (NASDAQ:HUT). The company, based in Canada, commands a sizable minority stake on the overall Bitcoin network, and it generates very strong cash flows compared to revenue. Instead of selling the Bitcoins it mines on the market, Hut 8 Mining maximizes returns for shareholders by lending them out and farming yields, leading to compounded returns. Furthermore, investors can be assured that the company won't be embroiled in environmental concerns regarding the practice. Hut 8 Mining uses a mix of wind, solar, and natural gas sources for its electricity with decade-long leases, ensuring the sustainability of its operations.

Nvidia and AMD

Chipmakers Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) don’t deal with cryptocurrencies directly, but these two semiconductor companies are the leading designers of graphics processing units (GPUs). Best known for powering high-end video game graphics, GPUs now enable computing-intensive applications such as data centers, artificial intelligence, and the creation of crypto assets.

Cryptography and blockchain creation require immense computational power, and GPUs are well-suited for the job. Back in , booming cryptocurrency prices were a driving force for Nvidia’s and AMD's stock price increases as digital currency miners (people using their computers to create new units of digital assets) scrambled to purchase GPUs for the task. GPUs remain a fundamental piece of hardware for the creation and management of crypto assets. Nvidia even launched a new lineup of chips specifically for crypto mining in early

Both Nvidia and AMD recently announced acquisitions that will likely further cement their positions as leaders in chip technology. Nvidia is trying to purchase ARM Holdings, a licensor of chip architecture design for data centers and smartphones, and AMD is planning to acquire field-programmable chip leader Xilinx (NASDAQ:XLNX). Both Nvidia and AMD are poised to continue taking market share of the semiconductor industry and lead the way in developing more emerging technologies such as blockchain.

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Facebook and Shopify

Facebook (NASDAQ:FB) has long been at work developing a new cryptocurrency called Diem (formerly Libra). Diem is envisioned as a global financial payment and infrastructure platform accessible to everyone, including the nearly one-third of the global population that doesn't have bank accounts. The project has had some setbacks, including losing Visa (NYSE:V), Mastercard (NYSE:MA), and PayPal from its consortium of high-profile members. Government regulators have expressed skepticism about Diem since cryptocurrency is still largely unregulated, and some reports suggest Diem may need to be pegged to the U.S. dollar or another government-issued currency. Nevertheless, work on the project is continuing, and Facebook is reportedly revamping efforts to achieve its development goals. Diem could be released in

E-commerce infrastructure and software provider Shopify (NYSE:SHOP) allows merchants using its platform to accept cryptocurrencies as payment. It recently deepened that capability by integrating with cryptocurrency payments processor CoinPayments. In spring , Facebook Shops was announced as a new offering for small business e-commerce, with Shopify as a third-party software provider powering the new online stores. Together, Facebook and Shopify are primed to benefit if the adoption of digital assets continues among small businesses and entrepreneurs.

Robinhood Markets

Robinhood Markets (NASDAQ:HOOD) is a popular discount brokerage app that allows users to buy stocks, options, rare metals, and now, cryptocurrencies. Investors can buy and sell Bitcoin, Ethereum, and Dogecoin (CRYPTO:DOGE) commission-free on the platform 24/7. The company already holds tens of billions of crypto assets under custody, with crypto trading revenue now comprising a significant portion of overall sales.

The sky is truly the limit as Robinhood can combine its commission-free model with scaling the number of cryptocurrencies on the platform, thereby gaining a massive competitive advantage over both traditional and decentralized exchanges. What's more, the company could offer the same crypto analytics services as Coinbase to further promote trust in this roaring sector and boost its adoption.

CME Group

CME Group (NASDAQ:CME) operates the world’s largest financial derivatives exchange allowing investors to trade futures, which bet on or secure the future price of an asset, and options, which grant investors the option to sell or buy an asset in the future at a predetermined price. CME Group's exchange trades a diverse assortment of assets, including agricultural and mining products, energy, stocks, and currencies. It’s the latter that makes CME Group a crypto stock.

At the end of , CME established the first market for bitcoin futures, and, at the start of , the company created a market for options on Bitcoin futures. As of February , Ether (units of the crypto platform Ethereum) also has futures available on the exchange. Establishing an exchange for derivatives of the best-known cryptocurrencies has given Bitcoin and Ethereum some extra legitimacy and provided a way for digital currency owners (both individuals and a growing list of businesses that accept cryptocurrencies as payment) to mitigate risk from changes in cryptocurrency prices. Cryptocurrency derivatives are still a small market for CME Group, but adding more exchanges for crypto assets in the future is possible -- and even likely.

The beauty of crypto stocks

The best part about cryptocurrency stocks is that most of them are not pure plays on the industry -- giving investors the reward of ample diversification. Cryptocurrencies are quite volatile and can cause wild swings in the revenue and earnings of companies with sector exposure. However, the crypto realm is rapidly gaining mainstream adoption. In August , United Wholesale Mortgage (NYSE:UWMC), the second-largest mortgage lender in the country, announced it would accept Bitcoin as mortgage payments from its customers. Expect further momentum in crypto stocks as more and more companies join in the blockchain revolution.

Источник: [www.oldyorkcellars.com]

Best Currencies to Invest in ( Edition)

Investing is always a great way of generating additional profit. The ever-changing world we live in today gives us plenty of investment opportunities &#; stocks, real estate, commodities, gold, and even art. What about currencies though?

Olga Protska Senior Content Writer & 2D Artist

Is it worth investing in currencies? Many experts would agree that it is. However, as with any investment, there’s always a certain level of risk. The value and stability of any currency depend on a number of factors and the situation can change rapidly.

Is there a way to minimize these risks? One of the ways to be on a somewhat safer side, in this case, is to invest in several different currencies. In addition, experts suggest focusing on the most stable ones.

What is the best currency to invest in?

Based on our previous top 10 list of the most stable currencies, we’d like to share our view on the best ones to invest in.

United States Dollar

Currency code &#; USD.

US Dollar rate:
1 USD = EUR (US Dollar to Euro).

Despite the fact that the US Dollar is considered by many to be less stable, it still has the status of the world reserve currency and its popularity is beyond question.

As of , almost 90% of all Forex transactions were made in US Dollar. So it's reasonable to consider USD as one of the best currency investments.

European Euro

Currency code &#; EUR.

European Euro rate:
1 EUR = USD (European Euro to US Dollar).

The world’s second reserve currency is also considered to be one of the safest investment decisions.

Despite the complicated economic situation in some European countries, the value of this currency still remains quite high and stable.

Swiss Franc

Currency code &#; CHF.

Swiss Franc rates:
1 CHF = USD (Swiss Franc to US Dollar).
1 CHF = EUR (Swiss Franc to Euro).

One of the safest currencies to invest in, besides the US Dollar and Euro, is the Swiss Franc.

Stable market economy, high GDP, low unemployment rate, country’s focus on supporting its national currency, an extremely advanced banking system &#; all these factors make the Swiss franc an attractive investment opportunity.

Japanese Yen

Currency code &#; JPY.

Japanese Yen rates:
1 JPY = USD (Japanese Yen to US Dollar).
1 JPY = EUR (Japanese Yen to Euro).

There are good reasons to choose the Japanese yen as the currency to invest in.

First of all, the country’s inflation rates have been low for extended periods of time.

This currency is not pegged to the US Dollar or the Euro and therefore retains its purchasing power even in times of a crisis.

Good trading relationships also contribute to the liquidity of the Japanese Yen, since the local currency is involved in all transactions other than the US ones.

Swedish Krona

Currency code &#; SEK.

Swedish krona rates:
1 SEK = USD (Swedish Krona to US Dollar).
1 SEK = EUR (Swedish Krona to Euro).

Another good currency to hold long term is the Swedish Krona. The country’s policy is aimed at maintaining and supporting the current exchange rate. This way the country minimizes the risks of currency devaluation and controls the inflation rate.

Norwegian Krone

Currency code &#; NOK.

Norwegian Krone rates:
1 NOK = USD (Norwegian Krone to US Dollar).
1 NOK = EUR (Norwegian Krone to Euro).

Norway has managed to accumulate an impressive reserve fund, which helps the country to maintain its strong economy.

Just like Switzerland and Sweden, Norway focuses on supporting its national currency. This country has also shown low inflation rates over the past years.

However, Norway is extremely dependent on its exports of oil and gas. This adds a bit of a doubt when it comes down to investing in Norwegian Krone.

British Pound Sterling

Currency code &#; GBP.

British Pound Sterling rates:
1 GBP = USD (British Pound Sterling to US Dollar).
1 GBP = EUR (British Pound Sterling to Euro).

The past decade has seen a surge in popularity of the British Pound Sterling: for instance, it took third place as the world reserve currency in However, today it holds only the fourth place.

The exchange rate of the British Pound Sterling has changed greatly after the country’s decision to withdraw from the European Union. Although, even with the crisis taken into account, the exchange rate of the British Pound dropped significantly less compared to many other currencies.

Australian Dollar

Currency code &#; AUD.

Australian Dollar rates:
1 AUD = USD (Australian Dollar to US Dollar).
1 AUD = EUR (Australian Dollar to Euro).

Low unemployment rates in the country help experts recognize an investment in the Australian Dollar as economically viable and reasonable. However, the country lives off its exports of natural resources, so slight fluctuations in the currency exchange rates are still possible.

Singapore Dollar

Currency code &#; SGD.

Singapore Dollar rates:
1 SGD = USD (Singapore Dollar to US Dollar).
1 SGD = EUR (Singapore Dollar to Euro).

What makes Singapore Dollar one of the best foreign currencies to invest in? One of the main reasons is that the country’s economy has been growing steadily over the past few years. The inflation rate here is one of the lowest in the world.

Another reason why this currency is considered a good investment is that the country is a large and growing investor in the Asia-Pacific region.

Although the Singapore Dollar is far from being one of the strongest currencies, many experts are pointing out its steady growth. And this looks rather promising if you consider investing in this currency.

Investing or Trading?

We’ve just looked at currencies that might be a good investment option. But you’re probably familiar with the term “currency trading”. Is it the same as investing in currencies? Let’s figure it out.

In simple terms, trading currency means adopting a rather short-term approach towards the market, while investing involves following a long-term course.

Currency trading is done in pairs. We’ve already covered this topic in one of our earlier articles and established a list of the most traded currency pairs.

As with the most stable currencies, there isn’t just one good enough that you can buy and be % sure your investment is safe and can yield substantial profit.

Safely investing in currency implies an investment in a number of various currencies. So, what you can do is invest in a currency basket.

Invest in a currency basket, not just in one currency

Simply put, a currency basket is a portfolio consisting of several currencies. This way it’s easier to minimize the risks related to currency fluctuations. For instance, if the rate of one of the currencies decreases, and the rate of the other one increases, it reduces overall losses.

Ideally, investors are advised to have currencies in their portfolio in different proportions. The ratio of currencies in such baskets depends on personal preferences and on the specific purpose.

Types of currency baskets

Since you can build your own currency basket, you’re the one deciding which currencies to add. A few ideas to consider:

Many foreign exchange market participants prefer to build a currency basket based on emerging market currencies. The most promising ones are the Brazilian Real (BRL), Russian Ruble (RUB), Indian Rupee (INR), Chinese Renminbi (CHN), and South African Rand (ZAR);
There are also regional currency baskets. For example, those consisting of the currencies of the Gulf countries;
Narrowly targeted options are also quite popular. For instance, building a currency basket based on the currencies of the leading oil-producing countries. In this case, one needs to carefully monitor the cost of oil and calculate the prospects for the "black gold”.

What’s the point?

Currency baskets are also used in Forex trading. So, in addition to providing you with great investment opportunities, currency basket also allows you to:

Diversify risks when carrying out trading operations. Working with one currency makes it a bit difficult;
Group currency pairs that seem to have important behavioral patterns. These patterns include the relationship between oil prices and exchange rate, currency pairs correlation, etc.;
Create an effective trading strategy, which can help you generate substantial profit from currency trading. This could also help reduce the risk associated with it.

Building such a basket can significantly improve the quality of your trading experience.

So, what currency to invest in?

As you might have noticed there’s no top 10 or top 5 list of best currencies for investment. The reason is that there isn’t just one that is perfect for investing. Besides, as we’ve established earlier choosing several different currencies to invest in is the safest option.

If you want to play it safe and gain additional profit, building a currency basket based on your preferences and entering foreign exchange market with it is a reasonable choice.

Olga Protska Senior Content Writer & 2D Artist

Источник: [www.oldyorkcellars.com]

Digital currencies are continuing to make headlines. Berkshire Hathaway, the company of star investor Warren Buffett, has bought $1 billion worth of stock in a digital bank focusing on cryptocurrencies.

However, regulators and central banks remain concerned. The price of bitcoin plunged to $34, in February from $69, in November. It is now around $39, So should you join the hype or run a mile?

In this article we explain:

Related content: Is cryptocurrency a good investment?

This article contains affiliate links that can earn us revenue.*

What is bitcoin and how does it work?

The concept of digital money that you use online is not that complicated in itself. After all, most of us will be familiar with transferring money from one online bank account to another.

Cryptocurrencies like bitcoin are digital assets that operate like normal currency, but with notable differences. They use peer to peer payment methods, without the banks taking a cut with every transaction. There are no physical versions of the coins either.

Each bitcoin is created (or mined) using an encrypted code, which is a string of numbers and letters. The same equation used to create the code is can “unlock” it (like a virtual key).

Other important points about bitcoin:

Cryptocurrencies, like bitcoin, ethereum and cardano, are a form of payment that uses blockchain technology to send data in cyberspace
Each bitcoin must be mined
It is finite: only 21 million bitcoins that can be mined in total
Cryptocurrencies are “decentralised” meaning they are not regulated by a financial authority, like a government or central banks
Most platforms will allow bitcoin purchases using credit cards (bear in mind that your credit card provider will probably charge you a fee to do this)

Why has bitcoin dropped?

The price of bitcoin and several other leading cryptocurrencies suffered huge falls in December and prices have been on a downward trajectory so far in

The Fed&#;s January meeting to decide whether to raise interest rates saw crypto fall along with other stocks and shares.

The bitcoin price is around $35,, as of 24 February, according to data from Coinbase*. That&#;s a long way from the all-time high of $69, seen in November.

The recent turmoil has been caused by:

Uncertainty around rising interest rates in the US and UK, causing a sell-off in risky assets
China making cryptocurrency transactions illegal
Suggestions that Russia could ban cryptocurrency trading and mining, causing prices to plummet

There have also been threats of further regulation for cryptocurrency investments in the future.

Should I invest in bitcoin?

Bitcoin is extremely volatile. If you are willing to take the risk, first make sure you understand what you are investing in and have a crypto investment strategy.

Also make sure you aren&#;t investing simply because you have a fear of missing out. There are a number of questions you should ask yourself before getting involved:

Do I understand what I am investing in and how bitcoin and the crypto market work?
Am I happy with the level of risk?
How much more expensive is it now compared to a few months ago? If so, why am I wanting to buy a thing because its price is higher? Where else in my life do I do that?
Is there any evidence to suggest prices could rise even higher?
If I buy it now with a view to sell it for even more later, who do I think will buy it from me for that higher price and why?
If an asset is so great, why was I not interested when it was much cheaper?
Have I convinced myself that I am in some way “in the know?”

If you don’t have answers to these questions, it’s probably not a good idea to invest. If you do buy bitcoin, make sure you aren’t putting money you need on the line. Read more about cryptocurrency tips (and mistakes to avoid).

If you are new to investing and want to know more about the general principles and how to get started, check out our guide here.

Like any investment, cryptocurrency comes with risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky.

Here are some things to think about before you invest:

We definitely don&#;t recommend investing all your life savings on cryptocurrency markets
It&#;s best to see it a bit like gambling so only invest small amount of your disposable income and be prepared to lose the lot
Never invest more than you can afford to lose
If you haven&#;t got much money left at the end of each month, it&#;s best to steer clear of crypto and focus on saving your money instead
Like traditional assets, it&#;s best to treat cryptocurrency as a long-term investment to give you the best chance of making money
Cryptocurrencies are extremely volatile, subject to bull runs and market crashes

The ups and downs of bitcoin

It is hailed by fans as a market-disrupting liberation and demonised by many personal finance experts as a dangerous creation. One things for sure is that bitcoin is volatile.

Since December , bitcoin has enjoyed a theatre of dramatic ups and downs. We outline some of these here: is a bitcoin crash coming?

The problem is that the price of cryptocurrencies is not underpinned by any intrinsic value. It is determined by one thing: confidence, says Mark Northway, investment manager at Sparrows Capital.

So if you decide to invest, be prepared for a bumpy ride.

Can you lose all your money in bitcoin?

Yes you certainly can. Crypto is very risky and not like conventional investing in the stock market.

Bitcoin&#;s value is based purely on speculation. This is different to company stocks where the share price will move depending on how the business is performing.

Important: cryptocurrencies are unregulated by the UK watchdog, the Financial Conduct Authority. Crypto platforms are only regulated for anti-money laundering purposes.

There are three main ways to lose all you money with bitcoin:

The value plummetsand you sell: crypto is volatile with its price determined by sentiment. Though technically you only lose money if you sell an investment for less than you bought it for. This is known as “crystallising your losses”.
Your memory: experts estimate 20 per cent of all cryptocurrency has either been forgotten about or lost with a current value of around $billion, according to Crypto data firm Chainalysis
Cyber crime: hackers and scammers are thought to steal around $10million worth of cryptocurrency every day, according to Atlas VPN

Some people choose to take their holdings offline and store it in a physical device called a cold wallet, otherwise known as a hardware wallet or cold storage that is similar to a USB stick. While this protects from online attacks you risk losing your holdings.

As with any investment, do your due diligence and don’t pin all your hopes on one company or one cryptocurrency.

Spread your money around so you spread the risk and only invest what you can afford to lose.

This image has an empty alt attribute; its file name is www.oldyorkcellars.com

How to make money by investing in bitcoin

Like any investment, making money depends on what price you buy and sell an asset for. If you sell when its price is higher than you bought it for, you will make money.

If you sell for a lower price than you bought it for, you will lose money.

For example, if you had invested in bitcoin at the start of:

and sold on 31 December , you would have made a % profit
and sold on 31 December , you would have made a 73% loss

Bitcoin is extremely volatile so the trick is not to panic and crystallise your losses by selling when its value inevitably falls. This is the same with all investments.

Ways to invest in bitcoin

Buying the coins (or unit of a coin) on a cryptocurrency exchange is the most common way of investing in bitcoin.

But there are other options:

Buy shares in bitcoin-related companies

You could invest in cryptocurrency exchanges or even buy shares in companies that are accepting bitcoin as payment.

Bitcoin ETFs

You could invest in a bitcoin exchange traded fund ETF. This copies the price of the digital currency, allowing you to buy into the fund without actually trading bitcoin itself.

Invest in blockchain technology companies

You could invest in the blockchain network (the system for recording information about crypto). For example, tech platform Solana claims to be the fastest blockchain in the world.

Bitcoin funds

Several investment companies are launching bitcoin funds.

It will still be volatile, but it could be easier to sell your investment and get your money back than investing directly.

There are also funds that have some exposure to bitcoin as well as traditional assets like shares and bonds.

Bitcoin options

These are a form of financial derivative that gives you the right to buy or sell bitcoin at a set price (known as a strike price) before a certain date of expiry.

Unlike buying bitcoin cryptocurrency outright, bitcoin options enable you to take a speculative position (up or down) on the future direction of a market price.

You would buy a call option if you believe the market price would increase:

If your prediction was correct and the market price increased above the bitcoin option’s strike price, you’d be able to buy bitcoin at the pre-specified price. How far the bitcoin price rose past the strike price determines how much profit you’d make.
If your prediction was wrong and the price of bitcoin fell, you could let the options contract expire and only lose the premium you paid to open the trade.

Read aboutLewis, who taught himself about cryptocurrency and made £8, in less than a year after setting up an account with trading platform eToro.

Is bitcoin bad for the environment?

The digital currency uses as much power as the Netherlands every year, with just 30 countries using more energy, according to researchers from the University of Cambridge.

Computers that mine bitcoin use up to 1% of the world’s electricity supply.

While some of bitcoin’s consumption is renewable (an estimated 39%), fossil fuels are still being used to power the mining and servicing of the digital currency.

This is why electric car manufacturer Tesla has stopped accepting crypto payments, causing bitcoin to fall. Find out more in our Guide to eco-friendly cryptocurrencies.

What are the fees when buying bitcoin?

If you want to buy and sell bitcoin, there are usually fees to pay, such as:

Transaction fees
Deposit fees
Withdrawal fees
Trading fees
Escrow fees

These usually cost a few percent of the total transaction value.

Do financial institutions support bitcoin?

Governments, regulators and companies are looking closely at bitcoin and other cryptocurrencies.

Companies adopting bitcoin include:

Investment companies that are showing an interest include:

The world’s largest asset manager, BlackRock, opened two of its funds to the possibility of investing in bitcoin futures
UK based Ruffer Investment Management added bitcoin to its multi-asset portfolios before pulling out five months later with a $B profit
In , one of the world&#;s biggest index providers, S&P Dow Jones Indices announced it would launch indexing services in for over of the top traded cryptocurrencies.

The Bank of England has been exploring the possibility of its own central bank-backed digital currencies. This has been dubbed as &#;britcoin&#;. Other central banks like the Federal Reserve have been doing the same.

As more institutional investors get on board with crypto assets for capital gains, this could help to calm dramatic price moves.

Crypto friendly banks UK

Most of the UK&#;s major banks now let you move money between a regulated crypto exchange and your bank account.

However, some banks are more cautious than others. For example, Starling Bank had imposed a temporary suspension on outbound faster payments to cryptocurrency exchanges in order to protect customers.

The banks are continually weighing up the risks. Some make it easier for customers to move money to and from crypto exchanges.

What is Binance and can I still use it in the UK?

The UK financial watchdog has blacklisted cryptocurrency exchange Binance and banned it from carrying out any regulated activity over concerns about its money laundering controls.

The regulator has also ordered the company to stop any form of advertising in the UK.

Binance isn&#;t based in the UK, so the British regulator doesn&#;t have the power to stop investors from buying and selling cryptocurrency using the exchange. However exchanges do have to register with the FCA to operate in the UK and are monitored for money-laundering.

This is a clear warning that investors should be very cautious.

Why are regulators concerned?

The FCA has also warned investors to be wary about companies that promise high returns from cryptocurrency. The nature of investment means that there is never a guarantee of making money.

In January the FCA banned the sale of complex derivatives that speculate on cryptocurrency movements.

This means that financial services can&#;t offer retail customers contracts for difference, spreadbet options, futures and exchange traded notes that focus on digital currencies.

China&#;s crypto ban

Trading cryptocurrency in China has been illegal since , in what Beijing says is an attempt to stop money-laundering. People could still trade online however on foreign exchanges.

At the end of September , China&#;s central bank went a step further by banning bitcoin transactions and basically making cryptocurrency illegal. The central bank warned that cryptocurrency &#;seriously endangers the safety of people&#;s assets&#;, which knocked thousands of dollars off the price of bitcoin.

Banks and payment firms are banned from providing cryptocurrency transaction services. In May , three state-backed organisations announced there would be no protection for consumers if they lost any money from crypto trading.

The following month, banks and payment platforms were told to stop facilitating transactions while bans were issued on crypto &#;mining&#;.

Amazon to accept bitcoin as payment?

If the rumours are true, the technology company could accept bitcoin payments sooner rather than later which could drive the price of the cryptocurrency upwards.

This comes after Amazon posted a job advert looking to hire someone to develop its digital currency strategy.

Amazon isn&#;t the only tech giant to be branching into cryptocurrency; there are rumours circulating that Apple will use some of its large cash reserves to invest in bitcoin.

&#;Given the huge volatility and that the use case of crypto currencies is far from proven, traders should only dabble with money they can afford to lose.’’
Susannah Streeter
Senior Investment and Markets Analyst, Hargreaves Lansdown

Is there a less risky way of investing in crypto?

“Stablecoins” could be a less risky way of investing in cryptocurrency, according to Gavin Brown, associate professor in financial technology at the University of Liverpool.

Brown points to tether, the largest stablecoin, backed by one dollar per coin. It topped the $50bn mark on 26 April but he warns that potential investors shouldn&#;t necessarily see tether as the next big thing.

&#;In theory it won&#;t ever be worth more than a dollar. But it&#;s potentially an interesting option for any varied portfolio and it could be a slice of stability if [other] things start to suffer.&#;

The stablecoin has not been without controversy either &#; being fined by the New York Attorney General and banned from the state the year.

Источник: [www.oldyorkcellars.com]

Making the decision to save (and doing so) is just the first step. It is important to have a strategy so that our money does not lose value while what is the best currency to invest in right now is stored. One of the most helpful is to put savings in a stronger currency with less risk of devaluation.

For example, if you have your 'guardadito' in Mexican pesos, you may want to change them to a foreign currency such as the dollar, the euro or the yen.

According to analyst Mijaíl Zéltser, the best currency to maintain our savings in will be the euro.

The expert predicts that the European economy "will outperform the recovery of the United States"while the fiscal programs of the United States "will exert a devaluation pressure" on the dollar. In addition, it projects a strengthening of the euro during the first half of the year to cost dollars (about 26 Mexican pesos).

"This suggests that it may be preferable to keep a part of the funds in foreign currency in euros ," the analyst told RIA Novosti .

Be careful, the euro is not infallible

Despite Zéltser's optimism about the euro, economist Vladislav Guinkó, a professor at the Russian Presidential Academy of National Economy and Public Administration, has reservations.

"The problem with the euro is that we cannot know how many euros will be printed, and this naturally plays an important role in any case with any product," said the economist.

Therefore, the economist concludes that if the economy is closed and the European Central Bank “constantly prints money”this will not lead “to anything good” .

Beyond the euro

Источник: [www.oldyorkcellars.com]

Best Currencies to Invest in ( Edition)

Investing is always a great way of generating additional profit. The ever-changing world we live in today gives us plenty of investment opportunities &#; stocks, real estate, commodities, gold, and even art. What about currencies though?

Olga Protska Senior Content Writer & 2D Artist

What is the best currency to invest in?

Based on our previous top 10 list of the most stable currencies, we’d like to share our view on the best ones to invest in.

United States Dollar

Currency code &#; USD.

US Dollar rate:
1 USD = EUR (US Dollar to Euro).

Despite the fact that the US Dollar is considered by many to be less stable, it still has the status of the world reserve currency and its popularity is beyond question.

As ofalmost 90% of all Forex transactions were made in US Dollar. So it's what is the best currency to invest in right now to consider USD as one of the best currency investments.

European Euro

Currency code &#; EUR.

European Euro rate:
1 EUR = USD (European Euro to US Dollar).

The world’s second reserve currency is also considered to be one of the safest investment decisions.

Despite the complicated economic situation in some European countries, the value of this currency still remains quite high and stable.

Swiss Franc

Currency code &#; CHF.

Swiss Franc rates:
1 CHF = USD (Swiss Franc to US Dollar).
1 CHF = EUR (Swiss Franc to Euro).

One of the safest currencies to invest in, besides the US Dollar and Euro, is the Swiss Franc.

Japanese Yen

Currency code &#; JPY.

Japanese Yen rates:
1 JPY = USD (Japanese Yen to US Dollar).
1 JPY = EUR (Japanese Yen to Euro).

There are good reasons to choose the Japanese yen as the currency to invest in.

First of all, the country’s inflation rates have been low for extended periods of time.

This currency is not pegged to the US Dollar or the Euro and therefore retains its purchasing power even in times of a crisis.

Good trading relationships also contribute to the liquidity of the Japanese Yen, since the local currency is involved in all transactions other than the US ones.

Swedish Krona

Currency code &#; SEK.

Swedish krona rates:
1 SEK = USD (Swedish Krona to US Dollar).
1 SEK = EUR (Swedish Krona to Euro).

Norwegian Krone

Currency code &#; NOK.

Norwegian Krone rates:
1 NOK = USD (Norwegian Krone to US Dollar).
1 NOK = EUR (Norwegian Krone to Euro).

Norway has managed to accumulate an impressive reserve fund, make money song helps the country to maintain its strong economy.

Just like Switzerland and Sweden, Norway focuses on supporting its national currency. This country has also shown low inflation rates over the past years.

However, Norway is extremely dependent on its exports of oil and gas. This adds a bit of a doubt when it comes down to investing in Norwegian Krone.

British Pound Sterling

Currency code &#; GBP.

British Pound Sterling rates:
1 GBP = USD (British Pound Sterling to US Dollar).
1 GBP = EUR (British Pound Sterling bitcoin investors forum 18 Euro).

The past decade has seen a surge in popularity of the British Pound Sterling: for instance, what is the best currency to invest in right now took third place as the world reserve currency in However, today it holds only the fourth place.

Australian Dollar

Currency code &#; AUD.

Australian Dollar rates:
1 AUD = USD (Australian Dollar to US Dollar).
1 AUD = EUR (Australian Dollar to Euro).

Singapore Dollar

Currency code &#; SGD.

Singapore Dollar rates:
1 SGD = USD (Singapore Dollar to US Dollar).
1 SGD geld verdienen mit umfragen steuer EUR (Singapore Dollar to Euro).

Another reason why this currency is considered a good investment is that the country is a large and growing investor in the Asia-Pacific region.

Investing or Trading?

We’ve just looked at currencies that might be a good investment option, what is the best currency to invest in right now. But you’re probably familiar with the term “currency trading”. Is it the same as investing in currencies? Let’s figure it out.

In simple terms, trading currency means adopting a rather short-term approach towards the market, while investing involves following a long-term course.

Currency trading is done in pairs. We’ve already covered this topic in one of our earlier articles and established a list of the most traded currency pairs.

As with the most stable currencies, there isn’t just one good enough that you can buy and be % sure your investment is safe and can yield substantial profit.

Safely investing in currency implies an investment in a number of various currencies, what is the best currency to invest in right now. So, what you can do is invest in a currency basket.

Invest in a currency basket, not just in one currency

Simply put, what is the best currency to invest in right now, a currency basket is a portfolio consisting of several currencies. This way it’s easier to minimize the risks related to currency fluctuations. For instance, if the rate of one of the currencies decreases, and the rate of the other one increases, it reduces overall losses.

Ideally, investors are advised to have currencies in their portfolio in different proportions. The ratio of currencies in such baskets depends on personal preferences and on the specific purpose.

Types of currency baskets

Since you can build your own currency basket, you’re the one deciding which currencies to add. A few ideas to consider:

Many foreign exchange market participants prefer to build a currency basket based on emerging market currencies. The most promising ones are the Brazilian Real (BRL), Russian Ruble (RUB), Indian Rupee (INR), Chinese Renminbi (CHN), what is the best currency to invest in right now, and South African Rand (ZAR);
There are also regional currency baskets. For example, those consisting of the currencies of the Gulf countries;
Narrowly targeted options are also quite popular. For instance, building a currency basket based on the currencies of the leading oil-producing countries. In this case, one needs to carefully monitor the cost of oil and calculate the prospects for the "black gold”.

What’s the point?

Currency baskets are also used in Forex trading. So, in addition to providing you with great investment opportunities, currency basket also allows you to:

Diversify risks when carrying out trading operations. Working with one currency makes it a bit difficult;
Group currency pairs that seem to have important behavioral patterns. These patterns include the relationship between oil prices and skills money making guide rate, currency pairs correlation, etc.;
Create an effective trading strategy, which can help you generate substantial profit from currency trading. This could also help reduce the risk associated with it.

Building such a basket can significantly improve the quality of your trading experience.

So, what currency to invest in?

As you might have noticed there’s no top 10 or top 5 list of best currencies for investment. The reason is that there isn’t just one that is perfect for investing. Besides, as earn a lot of money jobs established earlier choosing several different currencies to invest in is the safest option.

If you want to play it safe and gain additional profit, building a currency basket based on your preferences and entering foreign exchange market with it is a reasonable choice.

Olga Protska Senior Content Writer & 2D Artist

Источник: [www.oldyorkcellars.com]

The Top 8 Most Tradable Currencies

Although the foreign exchange market is often billed as a banker's game, currencies can sometimes be a great way to diversify a portfolio that might have hit a bit of a rut. It's a market that can also offer tremendous opportunities when other global forums enter the doldrums.

As a result, where is the best place to invest my money right now uk a little bit about forex, and the fundamentals behind it, can make significant additions to any trader, investor, or portfolio manager's arsenal. Let's take a look at eight currencies every trader or investor should know, what is the best currency to invest in right now, along with the central banks of their respective nations.

Key Takeaways

The U.S. dollar is the home denomination of the world's largest economy, sometimes referred to as the greenback.
The European Central Bank holds the right to issue euro banknotes as it sees fit, while policymakers can interject at times of bank or system failures.
The Bank of Japan governs monetary policy as well as currency issuance, money market operations, and data/economic analysis.
The Bank of England has a Court of Directors or governing body appointed by the Crown. It also has a Monetary Policy Committee headed by the governor of the bank.
The Swiss franc, the Canadian dollar, the Australian and New Zealand dollars, and the South African rand round out the list of top tradable currencies.

1. U.S. Dollar (USD)

Central Bank: Federal Reserve (Fed)
Current Interest Rate: www.oldyorkcellars.com

The Almighty Dollar

Created in by the Federal Reserve Act, the Federal Reserve System—also called the Fed—is the central banking body of the U.S. The system is itself headed by a chair and board of governors, with most of the focus being placed on the branch known as the Federal Open Market Committee (FOMC). The FOMC supervises open market operations as well as the monetary policy or interest rates.

The current committee is comprised of five of the 12 current Federal Reserve Bank presidents and seven members of the Federal Reserve Board, with the Federal Reserve Bank of New York president always serving on the committee. Even though there are 12 voting members, non-members—including additional Fed Bank presidents—are invited to share their views on the current economic situation when the committee meets every six weeks.

Sometimes referred to as the greenback, the U.S. dollar (USD) is the home denomination of the world's largest economy, the United States. As with any currency, the dollar is supported by economic fundamentals, including gross domestic product (GDP), and manufacturing and employment reports.

However, the U.S. dollar is also widely influenced by the central bank and any announcements about interest rate policy. The U.S. dollar is a benchmark that trades against other major currencies, especially the euro, Japanese yen, and British pound.

Although the foreign exchange market is often billed as a banker's game, currencies can sometimes be great diversification for a portfolio that might have hit a bit of a rut.

2. European Euro (EUR)

Central Bank: European Central Bank (ECB)
Current Interest Rate: www.oldyorkcellars.com

The Dollar's Nemesis

Headquartered what is the best currency to invest in right now, the European Central Bank is the central bank of the 19 member countries of the eurozone. In a similar fashion to the FOMC, the ECB has a main body responsible for making monetary policy decisions, what is the best currency to invest in right now, the Executive Board, which is composed of four members plus a president and vice-president.

The policy heads of the ECB are chosen with the consideration that four of the what is the best currency to invest in right now are reserved for four of the five largest economies in the system, which include Germany, France, Italy, Spain, and the Netherlands. This is to ensure that the largest economies are always represented in the case of a change in administration. The board meets almost every week.

In addition to having jurisdiction over monetary policy, the ECB also holds the right to issue banknotes as it sees fit. Similar to the Federal Reserve, policymakers can interject at times of bank or system failures. The ECB differs from the Fed in an important area: Instead of maximizing employment and maintaining the stability of long-term interest rates, the ECB works towards a prime principle of price stability, with secondary commitments to general economic policies. As a result, policymakers will turn their focus to consumer inflation in making key interest rate decisions.

Although the monetary body is somewhat complex, the currency is not. Against the U.S. dollar, the euro (EUR) tends to be a slower currency compared to its colleagues (i.e., the British pound or Australian dollar). On an average day, the base currency can trade between 70 and 80 pips—or percentages in point—with more volatile swings averaging slightly more, at pips wide per day.

Another trading consideration is time. Because the FX market is open 24/7, forex traders must strategically set FX trading schedules. Trading in the euro-based pairs can be seen during the overlap of London and U.S. sessions—which occurs from 8 a.m. through noon EST.

3. Japanese Yen (JPY).

Central Bank: Bank of Japan (BoJ)
Current Interest Rate: www.oldyorkcellars.com

Technically Complex, Fundamentally Simple

Established as far back asthe Bank of Japan serves as the central bank to the world's third-largest economy. It governs monetary policy as well as currency issuance, money market operations, and data/economic analysis. The main monetary Policy Board tends to work toward economic stability, constantly exchanging views with the reigning administration, while simultaneously working toward its own independence and transparency. Meeting about monetary policy 8 times a year, what is the best currency to invest in right now, the governor leads a team of nine policy members, including two appointed deputy governors.

The Japanese yen (JPY) tends to trade under the identity of a carry trade component. Offering a low-interest rate, the currency is pitted against higher-yielding currencies, especially the New Zealand and Best short term investment options australia dollars and the British pound. As a result, the underlying tends to be very erratic, pushing FX traders to take technical perspectives on a longer-term basis. Average daily ranges are in the region of 70 to pips, with extremes well over pips. To trade this currency with a little bit of a bite, focus on the crossover of London and U.S. hours (8 a.m. to noon EST).

Top 6 Most Tradable Currencies

4. British Pound (GBP)

Central Bank: Bank of England (BoE)
Current Interest Rate: www.oldyorkcellars.com

The Queen's Currency

As the central bank of the United Kingdom, the Bank of England serves as the monetary equivalent of the What is the best currency to invest in right now Reserve System. In the same fashion, the Court of Directors is a governing body appointed by the Crown, made up of five executive members and as many as nine others, including the chair and deputy chair. There is also a Monetary Policy Committee (MPC), headed by the governor of the bank and made up of nine members, four of whom are appointed by the Chancellor of Exchequer.

Announcing policy at least eight times a year, the MPC decides on interest rates and broader monetary policy, with primary considerations of total price stability in the economy. As such, the MPC also has a benchmark of consumer price inflation set at 2%. If this benchmark is compromised, what is the best currency to invest in right now, the governor has the responsibility to notify the Chancellor of Exchequer through a letter, one of which came in as the U.K. Consumer Euromoney investor relations Index (CPI) rose sharply to %. The release of this letter tends to be a harbinger to markets, as it increases the probability of contractionary monetary policy.

A little bit more volatile than the euro, the British pound (GBP)—also sometimes referred to as pound sterling or cable—tends to trade a wider range through the day. With swings that can encompass to pips, it isn't unusual to see the pound trade as narrowly as 20 www.oldyorkcellars.com in notable cross currencies tend to give this major a volatile nature, with traders focusing on pairs like the British pound/Japanese yen and the British pound/Swiss franc. As a result, the currency can be seen as most volatile through both London and U.S. sessions, with minimal movements during Asian hours (8 p.m. to 4 a.m. EST).

5. Swiss Franc (CHF)

Central Bank: Swiss National Bank (SNB)
Current Interest Rate: www.oldyorkcellars.com

A Banker's Currency

Different from all other major central banks, the Swiss National Bank is viewed as a governing body with private and public ownership. This belief stems from the fact that the Swiss National Bank is technically a corporation under special regulation. As a result, a little over half of the governing body is owned by the sovereign cantons or states of Switzerland and other public institutions. It is this arrangement that emphasizes the economic and financial stability policies dictated by the governing board of the SNB. Smaller than most governing bodies, monetary policy decisions are created by three major bank heads who meet on a quarterly basis. The Governing Board creates the band (plus or minus 50 basis points) of where the interest rate will reside.

The Euro and Swiss Franc have an interesting relationship. Similar to the euro, the Swiss franc (CHF) hardly makes significant moves in any of the individual sessions. As a result, look for this particular currency to trade in the average daily range of 45 pips per day. High-frequency volume for this currency is usually pitted for the London session (3 a.m. to noon EST).

6. Canadian Dollar (CAD)

Central Bank: Bank of Canada (BoC)
Current Interest Rate: www.oldyorkcellars.com

The Loonie

Established by the Bank of Canada Act ofthe Bank of Canada serves as the central bank called upon to focus on the goals of low and stable inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt. Acting independently, Canada's central bank draws similarities with the Swiss National Bank because it is sometimes treated as a corporation, with the minister of finance directly holding shares. Despite the proximity of the government's interests, it is the governor's responsibility to promote price stability at an arm's length from the current administration, while simultaneously considering the government's concerns. With an inflationary benchmark of 2%, what is the best currency to invest in right now, the BoC has tended to remain a shade more hawkish rather than accommodative when it comes to any deviations in prices.

Keeping in touch with major currencies, the Canadian dollar (CAD), also called the loonie, tends to trade in similar daily ranges of 50 to pips. Many currency prices and commodities move together, and one unique aspect of the CAD is its relationship with crude oil. The country remains a major exporter of the commodity, and as a result, plenty of traders and investors use this currency as either a hedge against current commodity positions or pure speculation, tracing signals from the oil market.

7. Australian/New Zealand Dollar (AUD/NZD)

Central Bank: Reserve Bank of Australia / Reserve Bank of New Zealand (RBA/RBNZ)
Current Interest Rate: www.oldyorkcellars.com and www.oldyorkcellars.com

Always a Carry Favorite

Offering one of the higher interest rates in the major global markets, the Reserve Bank of Australia has always upheld price stability and economic strength as cornerstones of its long-term plan. Headed by the governor, the bank's board is made up of six members-at-large, in addition to a deputy governor and the Secretary to the Treasury. Together, they work toward to target inflation between 2% and 3%, while meeting eleven times throughout the year. In a similar fashion, the Reserve Bank of New Zealand looks to promote inflation targeting, hoping to maintain a foundation for prices.

Both currencies have been the focus of carry traders, as the Australian and New Zealand dollars (AUD and NZD) offer the highest yields of the seven major currencies available on most platforms. As a result, volatility can be experienced in these pairs if a deleveraging effect takes place. Otherwise, the currencies tend to trade in similar averages of 70 to 80 pips. Both currencies also maintain relationships with commodities, most notably silver and gold.

8. South African Rand (ZAR)

Central Bank: South African Reserve Bank (SARB)
Current Interest Rate: www.oldyorkcellars.com

Emerging Opportunity

Previously modeled on the United Kingdom's Bank of England, the South African Reserve Bank stands as the monetary authority when it comes to South Africa. Taking on major responsibilities similar to those of other central banks, the SARB is also known as a creditor in certain situations, a clearing bank, and major custodian of gold, what is the best currency to invest in right now. Above all else, the central bank is in charge of the achievement and maintenance of price stability. This also includes intervention in the foreign exchange markets when the situation arises.

Interestingly enough, the South African Reserve Bank remains a wholly-owned private entity with more than shareholders who are regulated by owning less than 1% of the what is the best currency to invest in right now number of outstanding shares. This is to ensure that the interests of the economy precede those of any private individual. To maintain this policy, the governor and member board head the bank's activities and work toward monetary goals. The board meets regularly during the year.

Seen as relatively volatile, the average daily range of the South African Rand (ZAR) can be as high as several thousand pips. But don't let the wide daily range fool you. When translated into dollar pips, the movements are equivalent to an average day in the British pound, making the currency a great pair to trade against the U.S. dollar—especially when taking into consideration the carry potential.

Traders also consider the currency's relationship to gold and platinum. With the economy being a world leader when it comes to exports of both metals, it is only natural to see a correlation similar to that between the CAD and crude oil. As a result, consider the commodities markets in creating opportunities when economic data is scant.

The Bottom Line

As financial markets continue to evolve and grow globally, foreign exchange and currencies will play an increasingly large role in day-to-day transactions. Notional volumes for the market sector are already averaging over $6 trillion per day. As a result, whether a conversion for physical trade or a simple portfolio diversification play, currencies continue to offer more opportunities to both retail and institutional investors.

Источник: [www.oldyorkcellars.com]

The Safest Currencies in the World

The problem with currencies is that the safest options usually don’t offer a big reward. At least with top tier stocks what is the best currency to invest in right now usually receiving a dividend. Nevertheless, let's take a look at the safest currencies in the world. There is actually one surprise currency that does have significant upside potential over the long haul.

Forward Looking Approach

The Bank of Japan (BOJ) recently upped its annual purchases of government bonds to 80 trillion yen from trillion yen. The Japanese are fighting hard against deflation. Unfortunately, they’re not realizing that you can’t stop deflation, especially when you have the oldest consumers in the world. Once again, this move will not help the Japanese yen against the U.S. dollar, what is the best currency to invest in right now. (For more, see: Get to Know the Major Central Banks.)

U.S. Dollar

The U.S. dollar is currently in bull mode, and that’s likely to last for a considerable amount of time. On the other hand, while the Federal Reserve is capable of bailing everyone out, eventually, who’s going to bailout the Federal Reserve? The answer to that question might best blog sites to make money 2022 you, because the answer is likely going to be you the taxpayer. That said, the United States is very good at finding ways to win and there’s no telling what creative ideas those in power will come up with next. Hopefully, a creative solution will be found. But is that something you want to bet on? Probably not.

Norway And Singapore

Then there’s that other currency referred to above, which has yet to be covered.

Gold

That last point is especially important because it separates gold from all the fiat currencies (not backed by a physical commodity) around the world. Many people want to go back to the gold standard, but others will argue that the gold standard didn’t work either. The truth is that no system is fool proof. While the gold standard had its short-term fluctuations (expected), it lasted for well over a century as well best tech companies to invest in right now periods of time prior to the 19th century. (For more, see: How Can I Invest in gold?) bitcoin investing for beginners questions and answers The problem with investing in gold today is that the U.S. dollar is in favor, which usually trades inversely to gold. Even if the stock market and/or economy tanks, gold isn’t likely to hold up because all commodities come down in a deflationary environment. If you look at our small stint of deflation during the financial crisis, you will see that gold suffered prior to the Federal Reserve stepping in. That said, once deflation is realized and accepted, opposed to just a fear, the economy should begin to bottom. It will take time (perhaps years), but this should present a great opportunity to buy gold. When organic growth returns, inflation will ramp up, which will make gold intriguing. In fact, gold could hit new highs.

The Bottom Line

A perfect currency doesn’t exist. If you want to invest in the U.S. dollar, then you’re timing better be excellent. If you want to invest in the Norwegian krone, it’s safe, but there isn’t much upside. The Singapore dollar? This could what is the best currency to invest in right now rewards, but it’s not based on honest and sustainable policies. Gold is probably the best bet, what is the best currency to invest in right now, but not at the moment. (For more, see: Popular Forex What is the best currency to invest in right now

Dan Moskowitz owns shares of Market Vectors Double Short Euro ETN (DRR).

Источник: [www.oldyorkcellars.com]

Want to Get Richer? 1 Top Cryptocurrency to Buy Right Now Without Hesitation
Charlie Munger, Warren Buffett's longtime right-hand man, recently predicted that over the next years, inflation will cause fiat currency (that is, government-issued currency) to plummet to zero. Munger's track record speaks for itself, so people tend to listen whenever he has something to say about markets or the economy.
These comments are noteworthy given the current economic environment, with soaring inflation grabbing headlines and hurting consumers' pockets. But from an investment perspective, people have a worthwhile option in front of them to place a bet with Munger's comments in mind.
It's the world's top cryptocurrency, an asset that he has publicly eschewed. But I think that if you're looking for the opportunity to build life-changing wealth, then you should seriously consider Bitcoin( BTC % ).
Bitcoin is now a legitimate store of value
Cryptocurrencies can no longer be ignored by investors. And Bitcoin in particular, with its decade-plus history, is cementing itself as a smart place to park your money.
Institutional investors, such as ARK Invest, are extremely bullish on Bitcoin. And corporations like Block, MicroStrategy, and Tesla have even converted some cash on their balance sheets to the cryptocurrency. With the introduction of secure and seamless connections between the traditional financial system and the crypto economy, like Coinbase Global's Prime offering, it is easy for entities to gain exposure to the burgeoning asset class.
Then there is the potential for real utility. Other nations could follow El Salvador in making Bitcoin legal tender within their borders, what is the best currency to invest in right now. And the massive global remittance market, at approximately $ billion, is ripe for disruption due to slow processing times and high fees. Again, bitcoin could be the solution.
Although future returns might not resemble the past, I believe there is a material chance that Bitcoin continues beating the market in the years ahead.
Bitcoin as an inflation hedge
Inflation, spurred by the ultra-loose monetary policy since the Great Recession, is a key component of modern capitalism, as it encourages consumers to spend. And this is what Charlie Munger was alluding to.
Bitcoin, on the contrary, is characterized by absolute finiteness. There will only ever be 21 million coins in circulation, and this is based on computer code that can't be tampered with. A situation like this is in stark contrast to fiat currency.
Image source: Getty Images.
With inflation reaching record levels in recent months, the concept of Bitcoin as a hedge against rising prices is coming under intense scrutiny. Add in heightened geopolitical risk, and investors would expect safe-haven assets, like gold, to receive a boost. This situation has played out, as the precious metal is up about 8% this year. Bitcoin, on the other hand, is down 19% in as of March 8. But it's worthwhile to zoom out and gain a better understanding of the true goal of investing.
It is not a smart idea to jump in and out of asset classes on a short-term basis simply because of certain macroeconomic events. The goal of investing, which is a long-term game (at least five years in the future), is essentially to increase your purchasing power over time. This simple fact is why holding cash is such a poor financial decision over a longer time frame. Inflation eats away at its purchasing value.
With this framework in mind, it's strikingly clear that Bitcoin crushes gold in terms of real wealth creation. Over the past five years, the price of an ounce of gold has risen just 60% (as of March 8), while Bitcoin has skyrocketed more than 3,% during the same time. Undoubtedly, anything can happen in a given month, quarter, or even year. But over a longer period, Bitcoin is the clear winner.
Even with the extreme volatility that investors would need to endure, Bitcoin makes for a solid addition to a well-diversified portfolio. And although Charlie Munger has publicly condemned digital assets, his comments about inflation and the diminishing value of traditional currencies should lead investors right to Bitcoin.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, what is the best currency to invest in right now, and richer.
Источник: [www.oldyorkcellars.com]

Digital currencies are continuing to make headlines. Berkshire Hathaway, the company of star investor Warren Buffett, has bought $1 billion worth of stock great sources of passive income a digital bank focusing on cryptocurrencies.
However, regulators and central banks remain concerned. The price of bitcoin plunged to $34, in February from $69, in November. It is now around $39, So should you join the hype or run a mile?
In this article we explain:
Related content: Is cryptocurrency a good investment?
This article contains affiliate links that can earn us revenue.*
What is bitcoin and how does it work?
The concept of digital money that you use online is not that complicated in itself. After all, most of us will be familiar with transferring money from one online bank account to another.
Cryptocurrencies like bitcoin are digital assets that operate like normal currency, but with notable differences. They use peer to peer payment methods, without the banks taking a cut with every transaction. There are no physical versions of the coins either.
Each bitcoin is created (or mined) using an encrypted code, which is a string of numbers and letters. The same equation used to create the code is can “unlock” it (like a virtual key).
Other important points about bitcoin:
Cryptocurrencies, like bitcoin, ethereum and cardano, are a form of payment that uses blockchain technology to send data in cyberspace
Each bitcoin must be mined
It is finite: only 21 million bitcoins that can be mined in total
Cryptocurrencies are “decentralised” meaning they are not regulated by a financial authority, like a government or central banks
Most platforms will allow bitcoin purchases using credit cards (bear in mind that your credit card provider will probably charge you a fee to do this)
Why has bitcoin what is the best currency to invest in right now price of bitcoin and several other leading cryptocurrencies suffered huge falls in December and prices have been on a downward trajectory so far in
The Fed&#;s January meeting to decide whether to raise interest rates saw crypto fall what is the best currency to invest in right now with other stocks and shares.
The bitcoin price is around $35, as of 24 February, according to data from Coinbase*. That&#;s a long way from the all-time high of $69, seen in November.
The recent turmoil has been caused by:
Uncertainty around rising interest rates in the US and UK, causing a sell-off in risky assets
China making cryptocurrency transactions illegal
Suggestions that Russia could ban cryptocurrency trading and mining, causing prices to plummet
There have also been threats of further regulation for cryptocurrency investments in the future.
Should I invest in bitcoin?
Bitcoin is extremely volatile. If you are willing to take the risk, first make sure you understand what you are investing in and what is the best currency to invest in right now a crypto investment strategy.
Also make sure you aren&#;t investing simply because you have a fear of missing out. There are a number of questions you should ask yourself before getting involved:
Do I understand what I am investing in and how bitcoin and the crypto market work?
Am I happy with the level of risk?
How much more expensive is it now compared to a few months ago? If so, why am I wanting to buy a thing because its price is higher? Where else in my life do I do that?
Is there any evidence to suggest prices could rise even higher?
If I buy it now with a view to sell it for even more later, who do I think will buy it from me for that higher price and why?
If an asset is so great, why was I not interested when it was much cheaper?
Have What is the best currency to invest in right now convinced myself that I am in some way “in the know?”
If you don’t have answers to these questions, it’s probably not a good idea to invest. If you do buy bitcoin, make sure you aren’t putting money you need on the line. Read more about cryptocurrency tips (and mistakes to avoid).
If you are new to investing and want to know more about the general principles and how to get started, check out our guide here.
Like any investment, cryptocurrency comes with risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky.
Here are some things to think about before you invest:
We definitely don&#;t recommend investing all your life savings on cryptocurrency markets
It&#;s best to see it a bit like gambling so only invest small amount of your disposable income and what is the best currency to invest in right now prepared to lose the lot
Never invest more than you can afford to lose
If you haven&#;t got much money left at the end of each month, it&#;s best to steer clear of crypto and focus on saving your money instead
Like traditional assets, it&#;s best to treat cryptocurrency as a long-term investment to give you the best chance of making money
Cryptocurrencies are extremely volatile, subject to bull runs and market risoluzione 72 bitcoin ups and downs of bitcoin
It is hailed by fans as a market-disrupting liberation and demonised by many personal finance experts as a dangerous creation. One things for esg investing the challenges of a growing market is that bitcoin is volatile.
Since Decemberbitcoin has enjoyed a theatre of dramatic ups and downs. We outline some of these here: is a bitcoin crash coming?
The problem is that the price of cryptocurrencies is not underpinned by any intrinsic value. It is determined by one thing: confidence, says Mark Northway, investment manager at Sparrows Capital.
So if you decide to invest, be prepared for a bumpy ride.
Can you lose all your money in bitcoin?
Yes you certainly can. Crypto is very risky and not like conventional investing in the stock market.
Bitcoin&#;s value is based purely on speculation. This is different to company stocks where the share price will move depending on how the business is performing.
Important: cryptocurrencies are unregulated by the UK watchdog, what is the best currency to invest in right now, the Financial Conduct Authority. Crypto platforms are only regulated for anti-money laundering purposes.
There are three main ways to lose all you money with bitcoin:
The value plummetsand you sell: crypto is volatile with its price determined by sentiment. Though technically you only lose money if you sell an investment for less than you bought it for. This is known as “crystallising your losses”.
Your memory: experts estimate 20 per cent of all cryptocurrency has either been forgotten about or lost with a current value of around $billion, according to Crypto data firm Chainalysis
Cyber crime: hackers and scammers are thought to steal around $10million worth of cryptocurrency every day, according to Atlas VPN
Some people choose to take their holdings offline and store it in a physical device called a cold wallet, otherwise known as a hardware wallet or cold storage that is similar to a USB stick. While this protects from online attacks you risk losing your holdings.
As with any investment, do your due diligence and don’t pin all your hopes on one company or one cryptocurrency.
Spread your money around so you spread the risk and only invest what you can afford to lose.
How what is the best currency to invest in right now make money by investing in bitcoin
Like any investment, making money depends on what price you buy and sell an asset for. If you sell when its price is higher than you bought it for, you will make money.
If you sell for a lower price than you bought it for, you will lose money.
For example, if you had invested in bitcoin at the start of:
and sold on 31 Decemberyou would have made a % profit
and sold on 31 Decemberyou would have made a 73% loss
Bitcoin is extremely volatile so the trick is not to panic and crystallise your losses by selling when its value inevitably falls. This is the same with all investments.
Ways to invest in bitcoin
Buying the coins (or unit of a coin) on a cryptocurrency exchange is the most common way of investing in bitcoin.
But there are other options:
Buy shares in bitcoin-related companies
You could invest in cryptocurrency exchanges or even buy shares in companies that are accepting bitcoin as payment.
Bitcoin ETFs
You could invest in a bitcoin exchange traded fund ETF. This copies the price of the digital currency, allowing you to buy into the fund without actually trading bitcoin itself.
Invest in blockchain technology companies
You could invest in the blockchain network (the system for recording information about crypto). What is the best currency to invest in right now example, tech platform Solana claims to be the fastest blockchain in the world.
Bitcoin funds
Several investment companies are launching bitcoin funds.
It will still be volatile, but it could be easier to sell your investment and get your money back than investing directly.
There are also funds that have some exposure to bitcoin as well as traditional assets like shares and bonds.
Bitcoin options
These are a form of financial derivative that gives you the right to buy or sell bitcoin at a set price (known as a strike price) before a certain date of expiry.
Unlike buying bitcoin cryptocurrency outright, bitcoin options enable you to take a speculative position (up or down) on the future direction of a market price.
You would buy a call option if you believe the market price would increase:
If your prediction was correct and the market price increased above the bitcoin option’s strike price, you’d be able to buy bitcoin at the pre-specified price. How far the bitcoin price rose past the strike price determines how what is the best currency to invest in right now profit you’d make, what is the best currency to invest in right now.
If your prediction was wrong and the price of bitcoin fell, you could let the options contract expire and only lose the premium you paid to open the trade.
Read aboutLewis, who taught himself about cryptocurrency and made £8, what is the best currency to invest in right now, in less than a year after setting up an account with trading platform eToro.
Is bitcoin bad for the environment?
The digital currency uses as much power as the Netherlands every year, with just 30 countries using more energy, according to researchers from the University of Cambridge.
Computers that mine bitcoin use make money fake keygen to 1% of the world’s electricity supply.
While some of bitcoin’s consumption is renewable (an estimated 39%), fossil fuels are still being used to power the mining and servicing of the digital currency.
This is why electric car manufacturer Tesla has stopped accepting crypto payments, causing bitcoin to fall. Find out more in our Guide to eco-friendly cryptocurrencies.
What are the fees when buying bitcoin?
If you want to buy and sell bitcoin, there are usually fees to pay, such as:
Transaction fees
Deposit fees
Withdrawal fees
Trading fees
Escrow fees
These usually cost a few percent of the total transaction value.
Do financial institutions support bitcoin?
Governments, regulators and companies are looking closely at bitcoin and other cryptocurrencies.
Companies adopting bitcoin include:
Investment companies that are showing an interest include:
The world’s largest asset manager, BlackRock, opened two of its funds to the possibility of investing in bitcoin futures
UK based Ruffer Investment Management added bitcoin to its multi-asset portfolios before pulling out five months later with a $B profit
Inone of the world&#;s biggest index providers, S&P Dow Jones Indices announced it would launch indexing services in for over of the top traded cryptocurrencies.
The Bank of England has been exploring the possibility of its own central bank-backed digital currencies. This has been dubbed as &#;britcoin&#. Other central banks like the Federal Reserve have been doing the same.
As more institutional investors get on board with crypto assets for capital gains, this could help to calm dramatic price moves.
Crypto friendly banks UK
Most of the UK&#;s major banks now let you move money between a regulated crypto exchange and your bank account.
However, some banks are more cautious than others. For example, Starling Bank had imposed a temporary suspension on outbound faster payments to cryptocurrency exchanges in order to protect customers.
The banks are continually weighing up the risks. Some make it easier for customers to move money to and from crypto exchanges.
What is Binance and can I still use it in the UK?
The UK financial watchdog has blacklisted cryptocurrency exchange Binance and banned it from carrying out any regulated activity over concerns about its money laundering controls.
The regulator has also ordered the company to stop any form of advertising mit umfragen geld verdienen österreich erfahrungen the UK.
Binance isn&#;t based in the UK, so the British regulator doesn&#;t have the power to stop investors from buying and selling cryptocurrency using the exchange. However exchanges do have to register with the FCA to operate in the UK and are monitored for money-laundering.
This is a clear warning that investors should be very cautious.
Why are regulators concerned?
The FCA has also warned investors to be wary about companies that promise high returns from cryptocurrency. The nature of investment means that there is never a guarantee of making money.
In January the FCA banned the sale of complex derivatives that speculate on cryptocurrency movements.
This means that financial services can&#;t offer retail customers contracts for difference, spreadbet what is the best currency to invest in right now, futures and exchange traded notes that focus on digital currencies.
China&#;s crypto ban
Trading cryptocurrency in China has been illegal sincein what Beijing says is an attempt to stop money-laundering. People could still trade online however on foreign exchanges.
At the end of SeptemberChina&#;s central bank went a step further by banning bitcoin transactions and basically making cryptocurrency illegal. The central bank warned that bitcoin investor seriö s son &#;seriously endangers the safety of people&#;s assets&#;, which knocked thousands of dollars off the price of bitcoin.
Banks and payment firms are banned from providing cryptocurrency transaction services. In Maythree state-backed organisations announced there would be no protection for consumers if they lost any money from crypto trading.
The following month, banks and payment platforms were told to stop facilitating transactions while bans were issued on crypto &#;mining&#.
Amazon to accept bitcoin as payment?
If the rumours are true, the technology company could accept bitcoin payments sooner rather than later which could drive the price of the cryptocurrency upwards.
This comes after Amazon posted a job advert looking to hire someone to develop its digital currency strategy.
Amazon isn&#;t the only tech giant to be branching into cryptocurrency; there are rumours circulating that Apple will use some of its large cash reserves to invest in bitcoin.
&#;Given the huge volatility and that the use case of crypto currencies is far from proven, traders should only dabble with money they can afford to lose.’’
Susannah Streeter
Senior Investment and Markets Analyst, Hargreaves Lansdown
Is there a less risky way of investing in crypto?
“Stablecoins” could be a less risky way of investing in cryptocurrency, according to Gavin Brown, associate professor in financial technology at the University of Liverpool.
Brown points to tether, the largest stablecoin, backed by one dollar per coin. It topped the $50bn mark on 26 April but he warns that potential investors shouldn&#;t necessarily see tether as the next big thing.
&#;In theory it won&#;t ever be worth more than a dollar. But it&#;s potentially an interesting option for any varied portfolio and it could be a slice of stability if [other] things start to suffer.&#;
The stablecoin has not been without controversy either &#; being fined by the New York Attorney General and banned from the state the year.
Источник: [www.oldyorkcellars.com]

What is the best currency to invest in right now - something is

Making the decision to save (and doing so) is just the first step. It is important to have a strategy so that our money does not lose value while it is stored. One of the most helpful is to put savings in a stronger currency with less risk of devaluation.
For example, if you have your 'guardadito' in Mexican pesos, you may want to change them to a foreign currency such as the dollar, the euro or the yen.
According to analyst Mijaíl Zéltser, the best currency to maintain our savings in will be the euro.
The expert predicts that the European economy "will outperform the recovery of the United States" , while the fiscal programs of the United States "will exert a devaluation pressure" on the dollar. In addition, it projects a strengthening of the euro during the first half of the year to cost dollars (about 26 Mexican pesos).
"This suggests that it may be preferable to keep a part of the funds in foreign currency in euros ," the analyst told RIA Novosti .

Be careful, the euro is not infallible
Despite Zéltser's optimism about the euro, economist Vladislav Guinkó, a professor at the Russian Presidential Academy of National Economy and Public Administration, has reservations.
Guinkó warns that the eurozone still has problems in the banking sector "that arose even before the coronavirus pandemic ." These are derived from a level of public debt "significantly overburdened" , he explained to RT .
"The problem with the euro is that we cannot know how many euros will be printed, and this naturally plays an important role in any case with any product," said the economist.
In his opinion, it is not yet possible to assess the consequences of the pandemic for the countries of the region. "If a total blockade is reintroduced in several countries of the eurozone, this, of course, will have a very strong impact on the outlook for the euro," emphasizes the expert.
Therefore, the economist concludes that if the economy is closed and the European Central Bank “constantly prints money” , this will not lead “to anything good” .

Beyond the euro
While the currency of the European Union may be the safest bet, it is not the only one. According to Mikhail Zéltser, among the reserve currencies there are two that have medium-term potential: the yuan (China) and the yen (Japan).
The analyst affirms that it may also be convenient to put our savings in the currencies of the BRICS countries. In particular, it bodes a good year for the rand (South Africa) and the rupee (India, Pakistan, Indonesia and others). The ruble (Russia) could strengthen if the price of oil remains stable and above 50 dollars per barrel of Brent, and the pressure of US and European sanctions eases.
"Next year, international financial institutions will give preference to the currencies of emerging economies, especially the Russian ruble, which they place in the first places in the ratings of investment attractiveness," concluded Zéltser.
Источник: [www.oldyorkcellars.com]

Digital currencies are continuing to make headlines. Berkshire Hathaway, the company of star investor Warren Buffett, has bought $1 billion worth of stock in a digital bank focusing on cryptocurrencies.
However, regulators and central banks remain concerned. The price of bitcoin plunged to $34, in February from $69, in November. It is now around $39, So should you join the hype or run a mile?
In this article we explain:
Related content: Is cryptocurrency a good investment?
This article contains affiliate links that can earn us revenue.*
What is bitcoin and how does it work?
The concept of digital money that you use online is not that complicated in itself. After all, most of us will be familiar with transferring money from one online bank account to another.
Cryptocurrencies like bitcoin are digital assets that operate like normal currency, but with notable differences. They use peer to peer payment methods, without the banks taking a cut with every transaction. There are no physical versions of the coins either.
Each bitcoin is created (or mined) using an encrypted code, which is a string of numbers and letters. The same equation used to create the code is can “unlock” it (like a virtual key).
Other important points about bitcoin:
Cryptocurrencies, like bitcoin, ethereum and cardano, are a form of payment that uses blockchain technology to send data in cyberspace
Each bitcoin must be mined
It is finite: only 21 million bitcoins that can be mined in total
Cryptocurrencies are “decentralised” meaning they are not regulated by a financial authority, like a government or central banks
Most platforms will allow bitcoin purchases using credit cards (bear in mind that your credit card provider will probably charge you a fee to do this)
Why has bitcoin dropped?
The price of bitcoin and several other leading cryptocurrencies suffered huge falls in December and prices have been on a downward trajectory so far in
The Fed&#;s January meeting to decide whether to raise interest rates saw crypto fall along with other stocks and shares.
The bitcoin price is around $35,, as of 24 February, according to data from Coinbase*. That&#;s a long way from the all-time high of $69, seen in November.
The recent turmoil has been caused by:
Uncertainty around rising interest rates in the US and UK, causing a sell-off in risky assets
China making cryptocurrency transactions illegal
Suggestions that Russia could ban cryptocurrency trading and mining, causing prices to plummet
There have also been threats of further regulation for cryptocurrency investments in the future.
Should I invest in bitcoin?
Bitcoin is extremely volatile. If you are willing to take the risk, first make sure you understand what you are investing in and have a crypto investment strategy.
Also make sure you aren&#;t investing simply because you have a fear of missing out. There are a number of questions you should ask yourself before getting involved:
Do I understand what I am investing in and how bitcoin and the crypto market work?
Am I happy with the level of risk?
How much more expensive is it now compared to a few months ago? If so, why am I wanting to buy a thing because its price is higher? Where else in my life do I do that?
Is there any evidence to suggest prices could rise even higher?
If I buy it now with a view to sell it for even more later, who do I think will buy it from me for that higher price and why?
If an asset is so great, why was I not interested when it was much cheaper?
Have I convinced myself that I am in some way “in the know?”
If you don’t have answers to these questions, it’s probably not a good idea to invest. If you do buy bitcoin, make sure you aren’t putting money you need on the line. Read more about cryptocurrency tips (and mistakes to avoid).
If you are new to investing and want to know more about the general principles and how to get started, check out our guide here.
Like any investment, cryptocurrency comes with risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky.
Here are some things to think about before you invest:
We definitely don&#;t recommend investing all your life savings on cryptocurrency markets
It&#;s best to see it a bit like gambling so only invest small amount of your disposable income and be prepared to lose the lot
Never invest more than you can afford to lose
If you haven&#;t got much money left at the end of each month, it&#;s best to steer clear of crypto and focus on saving your money instead
Like traditional assets, it&#;s best to treat cryptocurrency as a long-term investment to give you the best chance of making money
Cryptocurrencies are extremely volatile, subject to bull runs and market crashes
The ups and downs of bitcoin
It is hailed by fans as a market-disrupting liberation and demonised by many personal finance experts as a dangerous creation. One things for sure is that bitcoin is volatile.
Since December , bitcoin has enjoyed a theatre of dramatic ups and downs. We outline some of these here: is a bitcoin crash coming?
The problem is that the price of cryptocurrencies is not underpinned by any intrinsic value. It is determined by one thing: confidence, says Mark Northway, investment manager at Sparrows Capital.
So if you decide to invest, be prepared for a bumpy ride.
Can you lose all your money in bitcoin?
Yes you certainly can. Crypto is very risky and not like conventional investing in the stock market.
Bitcoin&#;s value is based purely on speculation. This is different to company stocks where the share price will move depending on how the business is performing.
Important: cryptocurrencies are unregulated by the UK watchdog, the Financial Conduct Authority. Crypto platforms are only regulated for anti-money laundering purposes.
There are three main ways to lose all you money with bitcoin:
The value plummetsand you sell: crypto is volatile with its price determined by sentiment. Though technically you only lose money if you sell an investment for less than you bought it for. This is known as “crystallising your losses”.
Your memory: experts estimate 20 per cent of all cryptocurrency has either been forgotten about or lost with a current value of around $billion, according to Crypto data firm Chainalysis
Cyber crime: hackers and scammers are thought to steal around $10million worth of cryptocurrency every day, according to Atlas VPN
Some people choose to take their holdings offline and store it in a physical device called a cold wallet, otherwise known as a hardware wallet or cold storage that is similar to a USB stick. While this protects from online attacks you risk losing your holdings.
As with any investment, do your due diligence and don’t pin all your hopes on one company or one cryptocurrency.
Spread your money around so you spread the risk and only invest what you can afford to lose.
How to make money by investing in bitcoin
Like any investment, making money depends on what price you buy and sell an asset for. If you sell when its price is higher than you bought it for, you will make money.
If you sell for a lower price than you bought it for, you will lose money.
For example, if you had invested in bitcoin at the start of:
and sold on 31 December , you would have made a % profit
and sold on 31 December , you would have made a 73% loss
Bitcoin is extremely volatile so the trick is not to panic and crystallise your losses by selling when its value inevitably falls. This is the same with all investments.
Ways to invest in bitcoin
Buying the coins (or unit of a coin) on a cryptocurrency exchange is the most common way of investing in bitcoin.
But there are other options:
Buy shares in bitcoin-related companies
You could invest in cryptocurrency exchanges or even buy shares in companies that are accepting bitcoin as payment.
Bitcoin ETFs
You could invest in a bitcoin exchange traded fund ETF. This copies the price of the digital currency, allowing you to buy into the fund without actually trading bitcoin itself.
Invest in blockchain technology companies
You could invest in the blockchain network (the system for recording information about crypto). For example, tech platform Solana claims to be the fastest blockchain in the world.
Bitcoin funds
Several investment companies are launching bitcoin funds.
It will still be volatile, but it could be easier to sell your investment and get your money back than investing directly.
There are also funds that have some exposure to bitcoin as well as traditional assets like shares and bonds.
Bitcoin options
These are a form of financial derivative that gives you the right to buy or sell bitcoin at a set price (known as a strike price) before a certain date of expiry.
Unlike buying bitcoin cryptocurrency outright, bitcoin options enable you to take a speculative position (up or down) on the future direction of a market price.
You would buy a call option if you believe the market price would increase:
If your prediction was correct and the market price increased above the bitcoin option’s strike price, you’d be able to buy bitcoin at the pre-specified price. How far the bitcoin price rose past the strike price determines how much profit you’d make.
If your prediction was wrong and the price of bitcoin fell, you could let the options contract expire and only lose the premium you paid to open the trade.
Read aboutLewis, who taught himself about cryptocurrency and made £8, in less than a year after setting up an account with trading platform eToro.
Is bitcoin bad for the environment?
The digital currency uses as much power as the Netherlands every year, with just 30 countries using more energy, according to researchers from the University of Cambridge.
Computers that mine bitcoin use up to 1% of the world’s electricity supply.
While some of bitcoin’s consumption is renewable (an estimated 39%), fossil fuels are still being used to power the mining and servicing of the digital currency.
This is why electric car manufacturer Tesla has stopped accepting crypto payments, causing bitcoin to fall. Find out more in our Guide to eco-friendly cryptocurrencies.
What are the fees when buying bitcoin?
If you want to buy and sell bitcoin, there are usually fees to pay, such as:
Transaction fees
Deposit fees
Withdrawal fees
Trading fees
Escrow fees
These usually cost a few percent of the total transaction value.
Do financial institutions support bitcoin?
Governments, regulators and companies are looking closely at bitcoin and other cryptocurrencies.
Companies adopting bitcoin include:
Investment companies that are showing an interest include:
The world’s largest asset manager, BlackRock, opened two of its funds to the possibility of investing in bitcoin futures
UK based Ruffer Investment Management added bitcoin to its multi-asset portfolios before pulling out five months later with a $B profit
In , one of the world&#;s biggest index providers, S&P Dow Jones Indices announced it would launch indexing services in for over of the top traded cryptocurrencies.
The Bank of England has been exploring the possibility of its own central bank-backed digital currencies. This has been dubbed as &#;britcoin&#;. Other central banks like the Federal Reserve have been doing the same.
As more institutional investors get on board with crypto assets for capital gains, this could help to calm dramatic price moves.
Crypto friendly banks UK
Most of the UK&#;s major banks now let you move money between a regulated crypto exchange and your bank account.
However, some banks are more cautious than others. For example, Starling Bank had imposed a temporary suspension on outbound faster payments to cryptocurrency exchanges in order to protect customers.
The banks are continually weighing up the risks. Some make it easier for customers to move money to and from crypto exchanges.
What is Binance and can I still use it in the UK?
The UK financial watchdog has blacklisted cryptocurrency exchange Binance and banned it from carrying out any regulated activity over concerns about its money laundering controls.
The regulator has also ordered the company to stop any form of advertising in the UK.
Binance isn&#;t based in the UK, so the British regulator doesn&#;t have the power to stop investors from buying and selling cryptocurrency using the exchange. However exchanges do have to register with the FCA to operate in the UK and are monitored for money-laundering.
This is a clear warning that investors should be very cautious.
Why are regulators concerned?
The FCA has also warned investors to be wary about companies that promise high returns from cryptocurrency. The nature of investment means that there is never a guarantee of making money.
In January the FCA banned the sale of complex derivatives that speculate on cryptocurrency movements.
This means that financial services can&#;t offer retail customers contracts for difference, spreadbet options, futures and exchange traded notes that focus on digital currencies.
China&#;s crypto ban
Trading cryptocurrency in China has been illegal since , in what Beijing says is an attempt to stop money-laundering. People could still trade online however on foreign exchanges.
At the end of September , China&#;s central bank went a step further by banning bitcoin transactions and basically making cryptocurrency illegal. The central bank warned that cryptocurrency &#;seriously endangers the safety of people&#;s assets&#;, which knocked thousands of dollars off the price of bitcoin.
Banks and payment firms are banned from providing cryptocurrency transaction services. In May , three state-backed organisations announced there would be no protection for consumers if they lost any money from crypto trading.
The following month, banks and payment platforms were told to stop facilitating transactions while bans were issued on crypto &#;mining&#;.
Amazon to accept bitcoin as payment?
If the rumours are true, the technology company could accept bitcoin payments sooner rather than later which could drive the price of the cryptocurrency upwards.
This comes after Amazon posted a job advert looking to hire someone to develop its digital currency strategy.
Amazon isn&#;t the only tech giant to be branching into cryptocurrency; there are rumours circulating that Apple will use some of its large cash reserves to invest in bitcoin.
&#;Given the huge volatility and that the use case of crypto currencies is far from proven, traders should only dabble with money they can afford to lose.’’
Susannah Streeter
Senior Investment and Markets Analyst, Hargreaves Lansdown
Is there a less risky way of investing in crypto?
“Stablecoins” could be a less risky way of investing in cryptocurrency, according to Gavin Brown, associate professor in financial technology at the University of Liverpool.
Brown points to tether, the largest stablecoin, backed by one dollar per coin. It topped the $50bn mark on 26 April but he warns that potential investors shouldn&#;t necessarily see tether as the next big thing.
&#;In theory it won&#;t ever be worth more than a dollar. But it&#;s potentially an interesting option for any varied portfolio and it could be a slice of stability if [other] things start to suffer.&#;
The stablecoin has not been without controversy either &#; being fined by the New York Attorney General and banned from the state the year.
Источник: [www.oldyorkcellars.com]

Want to Get Richer? 1 Top Cryptocurrency to Buy Right Now Without Hesitation
Charlie Munger, Warren Buffett's longtime right-hand man, recently predicted that over the next years, inflation will cause fiat currency (that is, government-issued currency) to plummet to zero. Munger's track record speaks for itself, so people tend to listen whenever he has something to say about markets or the economy.
These comments are noteworthy given the current economic environment, with soaring inflation grabbing headlines and hurting consumers' pockets. But from an investment perspective, people have a worthwhile option in front of them to place a bet with Munger's comments in mind.
It's the world's top cryptocurrency, an asset that he has publicly eschewed. But I think that if you're looking for the opportunity to build life-changing wealth, then you should seriously consider Bitcoin( BTC % ).
Bitcoin is now a legitimate store of value
Cryptocurrencies can no longer be ignored by investors. And Bitcoin in particular, with its decade-plus history, is cementing itself as a smart place to park your money.
Institutional investors, such as ARK Invest, are extremely bullish on Bitcoin. And corporations like Block, MicroStrategy, and Tesla have even converted some cash on their balance sheets to the cryptocurrency. With the introduction of secure and seamless connections between the traditional financial system and the crypto economy, like Coinbase Global's Prime offering, it is easy for entities to gain exposure to the burgeoning asset class.
Then there is the potential for real utility. Other nations could follow El Salvador in making Bitcoin legal tender within their borders. And the massive global remittance market, at approximately $ billion, is ripe for disruption due to slow processing times and high fees. Again, bitcoin could be the solution.
Although future returns might not resemble the past, I believe there is a material chance that Bitcoin continues beating the market in the years ahead.
Bitcoin as an inflation hedge
Inflation, spurred by the ultra-loose monetary policy since the Great Recession, is a key component of modern capitalism, as it encourages consumers to spend. And this is what Charlie Munger was alluding to.
Bitcoin, on the contrary, is characterized by absolute finiteness. There will only ever be 21 million coins in circulation, and this is based on computer code that can't be tampered with. A situation like this is in stark contrast to fiat currency.
Image source: Getty Images.
With inflation reaching record levels in recent months, the concept of Bitcoin as a hedge against rising prices is coming under intense scrutiny. Add in heightened geopolitical risk, and investors would expect safe-haven assets, like gold, to receive a boost. This situation has played out, as the precious metal is up about 8% this year. Bitcoin, on the other hand, is down 19% in as of March 8. But it's worthwhile to zoom out and gain a better understanding of the true goal of investing.
It is not a smart idea to jump in and out of asset classes on a short-term basis simply because of certain macroeconomic events. The goal of investing, which is a long-term game (at least five years in the future), is essentially to increase your purchasing power over time. This simple fact is why holding cash is such a poor financial decision over a longer time frame. Inflation eats away at its purchasing value.
With this framework in mind, it's strikingly clear that Bitcoin crushes gold in terms of real wealth creation. Over the past five years, the price of an ounce of gold has risen just 60% (as of March 8), while Bitcoin has skyrocketed more than 3,% during the same time. Undoubtedly, anything can happen in a given month, quarter, or even year. But over a longer period, Bitcoin is the clear winner.
Even with the extreme volatility that investors would need to endure, Bitcoin makes for a solid addition to a well-diversified portfolio. And although Charlie Munger has publicly condemned digital assets, his comments about inflation and the diminishing value of traditional currencies should lead investors right to Bitcoin.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
Источник: [www.oldyorkcellars.com]

Currency Investing — How to Do It, Pros &#; Cons of Trading Different Types
Investing is an important part of preparing for your financial future. Many people invest in securities like stocks, bonds, mutual funds, and exchange-traded funds (ETFs), but there are many investment choices beyond those most popular ones.
You can also invest in currency. Investing in currencies is quite different from other types of investments, which makes it an option for people who want to diversify their portfolios.
However, the differences also mean you’ll have to take the time to understand investing in currencies before you get started.
What Are Currencies?
Currencies are the money used by different countries to handle transactions. For example, the currency of the United States is the dollar. Many countries of the European Union use the euro as their currency. Japan has the yen, Switzerland has the franc, and the U.K. has the pound.

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There are dozens of currencies used throughout the world, some widely used and sought after and some used almost exclusively for small, local transactions.
Investors can buy and sell foreign currency, which lets them invest in foreign currencies.
What Determines a Currency&#;s Value?
Investing is all about buying an asset and profiting from it either by selling it for more than you paid or receiving any cash flows it produces. To make money by investing in currency, you’ll need to buy a currency at a low price and sell it at a higher one.
To be able to invest effectively, you have to understand what influences the value of currencies.
Historically, many countries used the gold standard — a promise that you could exchange a set amount of money for a set amount of gold. This helped hold currency values stable but had many drawbacks. Today, most countries have abandoned the gold standard and issue what is called fiat money or fiat currency.
Effectively, fiat money has value because the government issuing it says it does and the people who use it agree on its value. Part of its value is also derived from the fact that governments demand tax payments in the currency.
The value of a fiat currency is based on many factors, most of which relate to supply and demand.
For example, a country with high inflation will likely see the value of its currency drop compared to other currencies, as inflation reduces its purchasing power.
Higher interest rates tend to result in higher currency values as investors who hold the currency can earn greater returns. Lower interest rates correlate with lower currency value.
Factors like political stability and government debt also play a role. Unstable governments with high levels of debt may see price volatility or see the value of their currencies drop as people lose faith in the currency.
Some well-established currencies from stable countries, like the U.S. dollar or the euro, enjoy “reserve currency” status. Reserve currencies tend to be more stable than other currencies.
Many countries’ central banks keep some amount of foreign currencies in their treasuries, which they can use to weather major volatility in currency value and to pay debts they owe. Some countries with volatile currency struggle to get loans unless they agree to repay those loans using a reserve currency.
The power of a country’s economy also plays a significant role in its currency value. If a country enters a recession, the value of its money might drop.
All these value changes occur in relation to the value of other currencies. If multiple countries experience a recession at the same time, the value of their currencies relative to each other might not change much.
In short, currency values depend on many factors and it can be hard to keep track of all of them. Before you start investing in foreign currencies, make sure you have a basic understanding of the global economy and current events because they can play a major role in shifting currency values.
Why Invest in Currencies?
There are many reasons you might consider investing in currencies.
One is diversification. Building a diversified portfolio is one of the most popular ways to reduce investment risk. If you hold different stocks instead of just one stock, you won’t feel the pain as badly if one of the companies you own goes bankrupt.
However, there is still some level of correlation between similar assets. If the stock market as a whole drops, it’s likely all the stocks you own will lose value to some extent. Holding a different asset class, such as bonds or currency, provides additional diversification in your portfolio.
Another reason some people turn to currency investing is that there’s a low barrier to entry. Although there are ways to start investing in stocks, bonds, and mutual funds with a small amount of capital, you often need to have hundreds or a few thousand dollars before you can start with a traditional brokerage.
With forex — short for foreign exchange, or the trading of foreign currencies — you can start with much smaller amounts of money, making it easier for people who don’t have the money for traditional investments to try their hand at investing.
A more utilitarian reason to invest in a currency is if you’re planning to vacation or move to a new country. You can spend the time before you move trying to buy that country’s currency at a low price.
This lets you save money and have funds available in the native currency when you arrive. With proper planning, you’ll pay much less for the same amount of money compared to exchanging your dollars when you step off the plane.
Pro tip: Have you considered hiring a financial advisor but don’t want to pay the high fees? Enter Vanguard Personal Advisor Services. When you sign up you’ll work closely with an advisor to create a custom investment plan that can help you meet your financial goals. Read our Vanguard Personal Advisor Services review.
Types of Currency Trading
There are two primary types of currency trades that retail investors can use when making forex transactions: spot trades and futures contracts.
Spot Trading
Spot trading is the simplest type of transaction. You and another party agree to exchange two currencies and the price at which to make the exchange, then complete the trade immediately.
It’s much like going to the store to buy something or selling something to another person at a yard sale.
This is the simplest way to invest in currency. You buy when you think the price is low and sell when you think the price is high.
Futures Trading
A futures contract is an agreement to buy or sell something at a set price on a set future date. When that date comes, the two parties in the contract complete the transaction.
This lets you lock in the price of a transaction ahead of time, which can be helpful if you know you’ll need to make the transaction and want to know exactly how much it will cost.
Futures also lets investors make bets about how the value of currencies will change.
Consider this example. On January 1, $ is currently trading for 80 pounds. You might buy a futures contract agreeing to pay someone U.S. dollars in exchange for 75 pounds on April 1.
With this contract, you’re betting that the value of the dollar will decrease and that the value of the pound will increase. On April 1, you must complete the transaction, so if you bet wrong, you’ll pay more for the pounds than you would have paid on the open market. If you bet right, you’ll buy pounds at a discount.
Futures contracts are traded on an exchange and can be bought and sold through a broker like E*Trade.
The party buying the contract has to pay a premium to the party selling the contract. Typically, the premium is very small compared to the amount of currency involved in the contract. You might spend $10 for a contract that involves trading thousands or tens of thousands of dollars for another currency.
This makes futures popular among people who want to leverage their portfolio because you can get involved in large transactions with small amounts of cash. However, this also makes them highly volatile and risky because small changes in currency values can result in big changes in the value of a futures contract.
You also have to be careful to close your futures positions before the expiration date of a contract comes. If you’re holding the contract on its expiration date you’ll be obligated to fulfill the transaction, whether you have the funds to do so or not.
How to Invest in Currencies
If you’ve decided forex trading is right for you, this is how you can get started.
Choose a Brokerage
First, you need to decide which brokerage you want to work with. There are many brokers that let you trade in the forex market, but they’re not all equal.
Look at factors like the commissions and fees charged by each broker, account minimums, and the research tools and trading platform each offers. Try to choose the broker that charges the least for the type of trading you want to do. If you plan to trade on margin, don’t forget to account for the cost of borrowing money as well.
If there are a few different brokers that look similar, check to see whether any of them offer sign-up bonuses. You might be able to get some extra cash to jump-start your trading.
Once you’ve chosen a brokerage, you’ll have to fund your account. Remember that, like all investing, foreign exchange is subject to risk, so only deposit money you’re willing to lose.
Currency Pairings
After you’ve opened an account at a brokerage, you have to think about the currencies you want to trade. These are commonly called currency pairings.
Like all investing, currency exchange relies on knowledge and research, so it’s often better to focus on just a few currency pairings instead of trying to trade dozens of different currencies at once.
Typically, you’ll see price quotes for currency pairs listed like “GBP/USD = ” This means 1 British pound can be exchanged for US$ Conversely, “USD/GBP = ” means you can trade one U.S. dollar for British pounds.
Not all currencies are traded frequently. Major world currencies like the U.S. dollar, Canadian dollar, British pound, euro, Japanese yen, Australian dollar, and Swiss franc are among the most frequently traded.
Because the U.S. dollar is the world’s top reserve currency, accounting for almost 60% of all currency reserves according to the International Monetary Fund, the U.S. dollar is involved in all the major currency pairings.
Minor currency pairs, which are pairs involving two currencies other than the U.S. dollar, experience less volume. That means the market is less liquid and the bid-ask spread — the difference between the highest price someone is willing to buy at and the lowest price someone is willing to sell at — may be higher.
The most liquid and widely traded minor currency pairs are those that involve major currencies, like the euro and the pound.
Finally, there are exotic currency pairs, which involve a major world currency and one from an emerging market. These can be highly illiquid and volatile, making them risky to invest in.
Foreign Exchange vs. Cryptocurrencies
If you’re interested in trading foreign currencies, there’s a good chance you’ve also thought about investing in cryptocurrencies. The concept is similar because of the ways in which cryptocurrencies act like digital currencies you can buy and sell using your local currency.
However, the forex markets and cryptocurrency markets are very different, and it’s important to understand those differences.
One major difference is simply age. Major world currencies have been around for centuries. Bitcoin, one of the oldest cryptocurrencies, is just over a decade old. The forex market is much more established and better understood than cryptocurrencies.
Cryptocurrency is also more volatile than the currency market, which can make it even riskier than investing in foreign currencies.
While there are similarities between forex and investing in cryptocurrencies, you should treat them as different types of investments that require their own due diligence and research.
Pros of Investing in Currencies
There are a lot of advantages to investing in currencies that might draw you into the market.
1. High Liquidity
The foreign exchange market is one of the largest markets in the world by volume. According to the Bank for International Settlements, more than $6 trillion changed hands in foreign exchange markets each day in
With that much volume, as long as you’re trading a major currency pair, you’ll have no trouble placing orders and getting them fulfilled quickly.
2. Hour Markets
In the United States, the stock market is typically open from am to 4pm Eastern time on weekdays but closed on weekends and holidays. There are premarket and aftermarket trading hours, but the volume traded outside normal hours is quite low.
By contrast, the foreign exchange market operates almost 24/7 year-round. The volume traded on the forex market might be lower on holidays or during certain times of the day, but you’ll almost always be able to place orders.
3. Low Costs
Forex trading usually has very low costs. According to Ally Bank, most brokerages don’t charge commissions for forex trades. Instead, transaction costs are built into the bid-ask spread, and brokers are compensated in this way.
If you’re trading stocks or options, some brokers charge commissions that can eat away at your returns. This makes forex comparatively attractive to people who want to avoid fees.
4. Leverage
Most brokers that offer forex trading let their customers trade using borrowed money, called margin. Depending on how much margin your broker allows, you could invest multiple times the amount of money you actually deposit to your account.
According to Ally Bank, you can leverage up to in the forex market if you find a willing broker. This is compared to just in the stock market, typically. That means with a $1, deposit, you could trade up to $50, worth of currency, which could greatly accelerate your gains—if your trades go your way.
Cons of Investing in Currencies
There are drawbacks to investing in currencies that you should be aware of before you get started.
1. Leverage
Just as leverage is an advantage of forex, letting you earn larger returns with a smaller amount of money, leverage greatly elevates the risk of forex investing.
Consider this scenario: You deposit $1, to your account and borrow $19, on margin. You trade the $20, for euros, hoping that the euro will rise against the dollar.
Imagine the euro drops instead, losing 3% of its value compared to the dollar. When you sell your euros for dollars, you’ll only get $19, back, for a loss of $ — more than half of your initial deposit. If you hadn’t used leverage, you would only have lost $
If you leveraged off your $1, deposit, you would have traded $50, for euros. When you turned those euros back into dollars at a 3% loss, you would get back $48, You’ll have lost your entire $1, investment and owe a $ debt to your brokerage.
2. Volatility
Foreign currencies can be highly volatile. In a single day, there can be large swings in the exchange rate between any two currencies.
For example, according to Bloomberg, in the past, the value of the Australian dollar has changed by nearly 2% in a single day.
This is especially true for minor and exotic currency pairings.
For example, according to DailyFX, the exchange rate of the U.S. dollar and the South African rand has moved as much as 25% in a bit over a month.
This volatility creates opportunities for savvy investors to buy low and sell high multiple times in a short period, but it creates just as many opportunities to accidentally buy at a high point and lose money.
Such swings can also make it hard for investors to hold on to a position as they see its value change rapidly.
3. No Cash Flow or Intrinsic Value
Unlike assets like bonds and stocks, currencies don’t pay dividends, produce a cash flow, or have an intrinsic value, such as representing ownership in a company. You don’t gain any benefit from holding a currency for the long-term, other than the chance that it will continue to appreciate in value.
This makes foreign currency suitable for people who want to make frequent trades but makes it less appealing to buy-and-hold and other hands-off investors.
Final Word
The foreign exchange market gives everyday investors access to large amounts of leverage and the opportunity to make — or lose — a lot of money by trading different currencies.
Active investors who want a market that’s almost always open and ideal for active trading will enjoy investing in foreign currencies. People who have a passive investing style will probably want to pass on foreign currency investing.
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Источник: [www.oldyorkcellars.com]

Best Currencies to Invest in ( Edition)
Investing is always a great way of generating additional profit. The ever-changing world we live in today gives us plenty of investment opportunities &#; stocks, real estate, commodities, gold, and even art. What about currencies though?
Olga Protska Senior Content Writer & 2D Artist
Is it worth investing in currencies? Many experts would agree that it is. However, as with any investment, there’s always a certain level of risk. The value and stability of any currency depend on a number of factors and the situation can change rapidly.
Is there a way to minimize these risks? One of the ways to be on a somewhat safer side, in this case, is to invest in several different currencies. In addition, experts suggest focusing on the most stable ones.
What is the best currency to invest in?
Based on our previous top 10 list of the most stable currencies, we’d like to share our view on the best ones to invest in.
United States Dollar
Currency code &#; USD.
US Dollar rate:
1 USD = EUR (US Dollar to Euro).
Despite the fact that the US Dollar is considered by many to be less stable, it still has the status of the world reserve currency and its popularity is beyond question.
As of , almost 90% of all Forex transactions were made in US Dollar. So it's reasonable to consider USD as one of the best currency investments.
European Euro
Currency code &#; EUR.
European Euro rate:
1 EUR = USD (European Euro to US Dollar).
The world’s second reserve currency is also considered to be one of the safest investment decisions.
Despite the complicated economic situation in some European countries, the value of this currency still remains quite high and stable.
Swiss Franc
Currency code &#; CHF.
Swiss Franc rates:
1 CHF = USD (Swiss Franc to US Dollar).
1 CHF = EUR (Swiss Franc to Euro).
One of the safest currencies to invest in, besides the US Dollar and Euro, is the Swiss Franc.
Stable market economy, high GDP, low unemployment rate, country’s focus on supporting its national currency, an extremely advanced banking system &#; all these factors make the Swiss franc an attractive investment opportunity.
Japanese Yen
Currency code &#; JPY.
Japanese Yen rates:
1 JPY = USD (Japanese Yen to US Dollar).
1 JPY = EUR (Japanese Yen to Euro).
There are good reasons to choose the Japanese yen as the currency to invest in.
First of all, the country’s inflation rates have been low for extended periods of time.
This currency is not pegged to the US Dollar or the Euro and therefore retains its purchasing power even in times of a crisis.
Good trading relationships also contribute to the liquidity of the Japanese Yen, since the local currency is involved in all transactions other than the US ones.
Swedish Krona
Currency code &#; SEK.
Swedish krona rates:
1 SEK = USD (Swedish Krona to US Dollar).
1 SEK = EUR (Swedish Krona to Euro).
Another good currency to hold long term is the Swedish Krona. The country’s policy is aimed at maintaining and supporting the current exchange rate. This way the country minimizes the risks of currency devaluation and controls the inflation rate.
Norwegian Krone
Currency code &#; NOK.
Norwegian Krone rates:
1 NOK = USD (Norwegian Krone to US Dollar).
1 NOK = EUR (Norwegian Krone to Euro).
Norway has managed to accumulate an impressive reserve fund, which helps the country to maintain its strong economy.
Just like Switzerland and Sweden, Norway focuses on supporting its national currency. This country has also shown low inflation rates over the past years.
However, Norway is extremely dependent on its exports of oil and gas. This adds a bit of a doubt when it comes down to investing in Norwegian Krone.
British Pound Sterling
Currency code &#; GBP.
British Pound Sterling rates:
1 GBP = USD (British Pound Sterling to US Dollar).
1 GBP = EUR (British Pound Sterling to Euro).
The past decade has seen a surge in popularity of the British Pound Sterling: for instance, it took third place as the world reserve currency in However, today it holds only the fourth place.
The exchange rate of the British Pound Sterling has changed greatly after the country’s decision to withdraw from the European Union. Although, even with the crisis taken into account, the exchange rate of the British Pound dropped significantly less compared to many other currencies.
Australian Dollar
Currency code &#; AUD.
Australian Dollar rates:
1 AUD = USD (Australian Dollar to US Dollar).
1 AUD = EUR (Australian Dollar to Euro).
Low unemployment rates in the country help experts recognize an investment in the Australian Dollar as economically viable and reasonable. However, the country lives off its exports of natural resources, so slight fluctuations in the currency exchange rates are still possible.
Singapore Dollar
Currency code &#; SGD.
Singapore Dollar rates:
1 SGD = USD (Singapore Dollar to US Dollar).
1 SGD = EUR (Singapore Dollar to Euro).
What makes Singapore Dollar one of the best foreign currencies to invest in? One of the main reasons is that the country’s economy has been growing steadily over the past few years. The inflation rate here is one of the lowest in the world.
Another reason why this currency is considered a good investment is that the country is a large and growing investor in the Asia-Pacific region.
Although the Singapore Dollar is far from being one of the strongest currencies, many experts are pointing out its steady growth. And this looks rather promising if you consider investing in this currency.
Investing or Trading?
We’ve just looked at currencies that might be a good investment option. But you’re probably familiar with the term “currency trading”. Is it the same as investing in currencies? Let’s figure it out.
In simple terms, trading currency means adopting a rather short-term approach towards the market, while investing involves following a long-term course.
Currency trading is done in pairs. We’ve already covered this topic in one of our earlier articles and established a list of the most traded currency pairs.
As with the most stable currencies, there isn’t just one good enough that you can buy and be % sure your investment is safe and can yield substantial profit.
Safely investing in currency implies an investment in a number of various currencies. So, what you can do is invest in a currency basket.
Invest in a currency basket, not just in one currency
Simply put, a currency basket is a portfolio consisting of several currencies. This way it’s easier to minimize the risks related to currency fluctuations. For instance, if the rate of one of the currencies decreases, and the rate of the other one increases, it reduces overall losses.
Ideally, investors are advised to have currencies in their portfolio in different proportions. The ratio of currencies in such baskets depends on personal preferences and on the specific purpose.
Types of currency baskets
Since you can build your own currency basket, you’re the one deciding which currencies to add. A few ideas to consider:
Many foreign exchange market participants prefer to build a currency basket based on emerging market currencies. The most promising ones are the Brazilian Real (BRL), Russian Ruble (RUB), Indian Rupee (INR), Chinese Renminbi (CHN), and South African Rand (ZAR);
There are also regional currency baskets. For example, those consisting of the currencies of the Gulf countries;
Narrowly targeted options are also quite popular. For instance, building a currency basket based on the currencies of the leading oil-producing countries. In this case, one needs to carefully monitor the cost of oil and calculate the prospects for the "black gold”.
What’s the point?
Currency baskets are also used in Forex trading. So, in addition to providing you with great investment opportunities, currency basket also allows you to:
Diversify risks when carrying out trading operations. Working with one currency makes it a bit difficult;
Group currency pairs that seem to have important behavioral patterns. These patterns include the relationship between oil prices and exchange rate, currency pairs correlation, etc.;
Create an effective trading strategy, which can help you generate substantial profit from currency trading. This could also help reduce the risk associated with it.
Building such a basket can significantly improve the quality of your trading experience.
So, what currency to invest in?
As you might have noticed there’s no top 10 or top 5 list of best currencies for investment. The reason is that there isn’t just one that is perfect for investing. Besides, as we’ve established earlier choosing several different currencies to invest in is the safest option.
If you want to play it safe and gain additional profit, building a currency basket based on your preferences and entering foreign exchange market with it is a reasonable choice.
Olga Protska Senior Content Writer & 2D Artist
Источник: [www.oldyorkcellars.com]

The Safest Currencies in the World
The problem with currencies is that the safest options usually don’t offer a big reward. At least with top tier stocks you’re usually receiving a dividend. Nevertheless, let's take a look at the safest currencies in the world. There is actually one surprise currency that does have significant upside potential over the long haul.
Forward Looking Approach
Let’s remove day to day exchange rates from the equation and take a forward looking approach. The U.S. dollar is the biggest enigma to investors at the moment, but there are logical reasons for its behavior: Interest rates are likely to increase later this year. With quantitative easing coming to a close, investors are piling back into the U.S. dollar. (For more, see: 3 Factors that Drive the U.S. Dollar.)
The European Central Bank (ECB) plans on purchasing $ trillion in public and private sector bonds by This will primarily be done in the larger economies: Germany, France and Italy. Aside from Germany, the Eurozone is suffering from high unemployment, and it’s hopeful that injecting money into the economy will provide an assist. Either way, this won't help the euro against the U.S. dollar.
The Bank of Japan (BOJ) recently upped its annual purchases of government bonds to 80 trillion yen from trillion yen. The Japanese are fighting hard against deflation. Unfortunately, they’re not realizing that you can’t stop deflation, especially when you have the oldest consumers in the world. Once again, this move will not help the Japanese yen against the U.S. dollar. (For more, see: Get to Know the Major Central Banks.)
Based on the points above, we can see that the U.S. dollar is likely to appreciate (for now), and that the euro and Japanese yen would be high risk. In regards to the euro, the Swiss National Bank (SNB) recently abandoned its currency peg to the euro — a sign of no confidence.
U.S. Dollar
As far as the U.S. dollar is concerned, it looks like a great bet at the moment, but U.S. dollars are Federal Reserve notes. Now consider that the Federal Reserve has $ trillion in Treasury debt and $ trillion in mortgage-backed securities. (For more, see: Trade a Surging U.S. Dollar with These 3 ETFs.)
The U.S. dollar is currently in bull mode, and that’s likely to last for a considerable amount of time. On the other hand, while the Federal Reserve is capable of bailing everyone out, eventually, who’s going to bailout the Federal Reserve? The answer to that question might irritate you, because the answer is likely going to be you the taxpayer. That said, the United States is very good at finding ways to win and there’s no telling what creative ideas those in power will come up with next. Hopefully, a creative solution will be found. But is that something you want to bet on? Probably not.
Norway And Singapore
The Norwegian krone has been known as a safe currency, thanks in large part to Norway having no net debt. The Norwegian krone is also a standalone currency which means it’s not tied to another country’s failures. The krone hasn’t been performing well as of late due to economic data not meeting expectations and falling home prices. The latter has slowed the consumer. However, with a disciplined and responsible system in place, it should remain a good long term bet. (For more, see: Countries that Still Have the Golden AAA Credit Rating.)
Then there’s the Singapore dollar, which has been attractive to investors because Singapore is now seen as the place to hide money for tax reasons. There might be opportunity here, but since this investment wouldn’t be based on something sustainable, consider avoiding.
Then there’s that other currency referred to above, which has yet to be covered.
Gold
According to www.oldyorkcellars.com, the definition of currency is as follows: “Any form of money in actual use as a medium of exchange.” Therefore, gold applies. The best attributes for gold: can be bought and stored, easily converted to almost any currency, highly liquid, limited supply.
That last point is especially important because it separates gold from all the fiat currencies (not backed by a physical commodity) around the world. Many people want to go back to the gold standard, but others will argue that the gold standard didn’t work either. The truth is that no system is fool proof. While the gold standard had its short-term fluctuations (expected), it lasted for well over a century as well as periods of time prior to the 19th century. (For more, see: How Can I Invest in gold?)
The problem with investing in gold today is that the U.S. dollar is in favor, which usually trades inversely to gold. Even if the stock market and/or economy tanks, gold isn’t likely to hold up because all commodities come down in a deflationary environment. If you look at our small stint of deflation during the financial crisis, you will see that gold suffered prior to the Federal Reserve stepping in. That said, once deflation is realized and accepted, opposed to just a fear, the economy should begin to bottom. It will take time (perhaps years), but this should present a great opportunity to buy gold. When organic growth returns, inflation will ramp up, which will make gold intriguing. In fact, gold could hit new highs.
The Bottom Line
A perfect currency doesn’t exist. If you want to invest in the U.S. dollar, then you’re timing better be excellent. If you want to invest in the Norwegian krone, it’s safe, but there isn’t much upside. The Singapore dollar? This could present rewards, but it’s not based on honest and sustainable policies. Gold is probably the best bet, but not at the moment. (For more, see: Popular Forex Currencies.)
Dan Moskowitz owns shares of Market Vectors Double Short Euro ETN (DRR).
Источник: [www.oldyorkcellars.com]

The Top 8 Most Tradable Currencies
Although the foreign exchange market is often billed as a banker's game, currencies can sometimes be a great way to diversify a portfolio that might have hit a bit of a rut. It's a market that can also offer tremendous opportunities when other global forums enter the doldrums.
As a result, knowing a little bit about forex, and the fundamentals behind it, can make significant additions to any trader, investor, or portfolio manager's arsenal. Let's take a look at eight currencies every trader or investor should know, along with the central banks of their respective nations.
Key Takeaways
The U.S. dollar is the home denomination of the world's largest economy, sometimes referred to as the greenback.
The European Central Bank holds the right to issue euro banknotes as it sees fit, while policymakers can interject at times of bank or system failures.
The Bank of Japan governs monetary policy as well as currency issuance, money market operations, and data/economic analysis.
The Bank of England has a Court of Directors or governing body appointed by the Crown. It also has a Monetary Policy Committee headed by the governor of the bank.
The Swiss franc, the Canadian dollar, the Australian and New Zealand dollars, and the South African rand round out the list of top tradable currencies.
1. U.S. Dollar (USD)
Central Bank: Federal Reserve (Fed)
Current Interest Rate: www.oldyorkcellars.com
The Almighty Dollar
Created in by the Federal Reserve Act, the Federal Reserve System—also called the Fed—is the central banking body of the U.S. The system is itself headed by a chair and board of governors, with most of the focus being placed on the branch known as the Federal Open Market Committee (FOMC). The FOMC supervises open market operations as well as the monetary policy or interest rates.
The current committee is comprised of five of the 12 current Federal Reserve Bank presidents and seven members of the Federal Reserve Board, with the Federal Reserve Bank of New York president always serving on the committee. Even though there are 12 voting members, non-members—including additional Fed Bank presidents—are invited to share their views on the current economic situation when the committee meets every six weeks.
Sometimes referred to as the greenback, the U.S. dollar (USD) is the home denomination of the world's largest economy, the United States. As with any currency, the dollar is supported by economic fundamentals, including gross domestic product (GDP), and manufacturing and employment reports.
However, the U.S. dollar is also widely influenced by the central bank and any announcements about interest rate policy. The U.S. dollar is a benchmark that trades against other major currencies, especially the euro, Japanese yen, and British pound.
Although the foreign exchange market is often billed as a banker's game, currencies can sometimes be great diversification for a portfolio that might have hit a bit of a rut.
2. European Euro (EUR)
Central Bank: European Central Bank (ECB)
Current Interest Rate: www.oldyorkcellars.com
The Dollar's Nemesis
Headquartered in Frankfurt, Germany, the European Central Bank is the central bank of the 19 member countries of the eurozone. In a similar fashion to the FOMC, the ECB has a main body responsible for making monetary policy decisions, the Executive Board, which is composed of four members plus a president and vice-president.
The policy heads of the ECB are chosen with the consideration that four of the seats are reserved for four of the five largest economies in the system, which include Germany, France, Italy, Spain, and the Netherlands. This is to ensure that the largest economies are always represented in the case of a change in administration. The board meets almost every week.
In addition to having jurisdiction over monetary policy, the ECB also holds the right to issue banknotes as it sees fit. Similar to the Federal Reserve, policymakers can interject at times of bank or system failures. The ECB differs from the Fed in an important area: Instead of maximizing employment and maintaining the stability of long-term interest rates, the ECB works towards a prime principle of price stability, with secondary commitments to general economic policies. As a result, policymakers will turn their focus to consumer inflation in making key interest rate decisions.
Although the monetary body is somewhat complex, the currency is not. Against the U.S. dollar, the euro (EUR) tends to be a slower currency compared to its colleagues (i.e., the British pound or Australian dollar). On an average day, the base currency can trade between 70 and 80 pips—or percentages in point—with more volatile swings averaging slightly more, at pips wide per day.
Another trading consideration is time. Because the FX market is open 24/7, forex traders must strategically set FX trading schedules. Trading in the euro-based pairs can be seen during the overlap of London and U.S. sessions—which occurs from 8 a.m. through noon EST.
3. Japanese Yen (JPY).
Central Bank: Bank of Japan (BoJ)
Current Interest Rate: www.oldyorkcellars.com
Technically Complex, Fundamentally Simple
Established as far back as , the Bank of Japan serves as the central bank to the world's third-largest economy. It governs monetary policy as well as currency issuance, money market operations, and data/economic analysis. The main monetary Policy Board tends to work toward economic stability, constantly exchanging views with the reigning administration, while simultaneously working toward its own independence and transparency. Meeting about monetary policy 8 times a year, the governor leads a team of nine policy members, including two appointed deputy governors.
The Japanese yen (JPY) tends to trade under the identity of a carry trade component. Offering a low-interest rate, the currency is pitted against higher-yielding currencies, especially the New Zealand and Australian dollars and the British pound. As a result, the underlying tends to be very erratic, pushing FX traders to take technical perspectives on a longer-term basis. Average daily ranges are in the region of 70 to pips, with extremes well over pips. To trade this currency with a little bit of a bite, focus on the crossover of London and U.S. hours (8 a.m. to noon EST).
Top 6 Most Tradable Currencies
4. British Pound (GBP)
Central Bank: Bank of England (BoE)
Current Interest Rate: www.oldyorkcellars.com
The Queen's Currency
As the central bank of the United Kingdom, the Bank of England serves as the monetary equivalent of the Federal Reserve System. In the same fashion, the Court of Directors is a governing body appointed by the Crown, made up of five executive members and as many as nine others, including the chair and deputy chair. There is also a Monetary Policy Committee (MPC), headed by the governor of the bank and made up of nine members, four of whom are appointed by the Chancellor of Exchequer.
Announcing policy at least eight times a year, the MPC decides on interest rates and broader monetary policy, with primary considerations of total price stability in the economy. As such, the MPC also has a benchmark of consumer price inflation set at 2%. If this benchmark is compromised, the governor has the responsibility to notify the Chancellor of Exchequer through a letter, one of which came in as the U.K. Consumer Price Index (CPI) rose sharply to %. The release of this letter tends to be a harbinger to markets, as it increases the probability of contractionary monetary policy.
A little bit more volatile than the euro, the British pound (GBP)—also sometimes referred to as pound sterling or cable—tends to trade a wider range through the day. With swings that can encompass to pips, it isn't unusual to see the pound trade as narrowly as 20 www.oldyorkcellars.com in notable cross currencies tend to give this major a volatile nature, with traders focusing on pairs like the British pound/Japanese yen and the British pound/Swiss franc. As a result, the currency can be seen as most volatile through both London and U.S. sessions, with minimal movements during Asian hours (8 p.m. to 4 a.m. EST).
5. Swiss Franc (CHF)
Central Bank: Swiss National Bank (SNB)
Current Interest Rate: www.oldyorkcellars.com
A Banker's Currency
Different from all other major central banks, the Swiss National Bank is viewed as a governing body with private and public ownership. This belief stems from the fact that the Swiss National Bank is technically a corporation under special regulation. As a result, a little over half of the governing body is owned by the sovereign cantons or states of Switzerland and other public institutions. It is this arrangement that emphasizes the economic and financial stability policies dictated by the governing board of the SNB. Smaller than most governing bodies, monetary policy decisions are created by three major bank heads who meet on a quarterly basis. The Governing Board creates the band (plus or minus 50 basis points) of where the interest rate will reside.
The Euro and Swiss Franc have an interesting relationship. Similar to the euro, the Swiss franc (CHF) hardly makes significant moves in any of the individual sessions. As a result, look for this particular currency to trade in the average daily range of 45 pips per day. High-frequency volume for this currency is usually pitted for the London session (3 a.m. to noon EST).
6. Canadian Dollar (CAD)
Central Bank: Bank of Canada (BoC)
Current Interest Rate: www.oldyorkcellars.com
The Loonie
Established by the Bank of Canada Act of , the Bank of Canada serves as the central bank called upon to focus on the goals of low and stable inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt. Acting independently, Canada's central bank draws similarities with the Swiss National Bank because it is sometimes treated as a corporation, with the minister of finance directly holding shares. Despite the proximity of the government's interests, it is the governor's responsibility to promote price stability at an arm's length from the current administration, while simultaneously considering the government's concerns. With an inflationary benchmark of 2%, the BoC has tended to remain a shade more hawkish rather than accommodative when it comes to any deviations in prices.
Keeping in touch with major currencies, the Canadian dollar (CAD), also called the loonie, tends to trade in similar daily ranges of 50 to pips. Many currency prices and commodities move together, and one unique aspect of the CAD is its relationship with crude oil. The country remains a major exporter of the commodity, and as a result, plenty of traders and investors use this currency as either a hedge against current commodity positions or pure speculation, tracing signals from the oil market.
7. Australian/New Zealand Dollar (AUD/NZD)
Central Bank: Reserve Bank of Australia / Reserve Bank of New Zealand (RBA/RBNZ)
Current Interest Rate: www.oldyorkcellars.com and www.oldyorkcellars.com
Always a Carry Favorite
Offering one of the higher interest rates in the major global markets, the Reserve Bank of Australia has always upheld price stability and economic strength as cornerstones of its long-term plan. Headed by the governor, the bank's board is made up of six members-at-large, in addition to a deputy governor and the Secretary to the Treasury. Together, they work toward to target inflation between 2% and 3%, while meeting eleven times throughout the year. In a similar fashion, the Reserve Bank of New Zealand looks to promote inflation targeting, hoping to maintain a foundation for prices.
Both currencies have been the focus of carry traders, as the Australian and New Zealand dollars (AUD and NZD) offer the highest yields of the seven major currencies available on most platforms. As a result, volatility can be experienced in these pairs if a deleveraging effect takes place. Otherwise, the currencies tend to trade in similar averages of 70 to 80 pips. Both currencies also maintain relationships with commodities, most notably silver and gold.
8. South African Rand (ZAR)
Central Bank: South African Reserve Bank (SARB)
Current Interest Rate: www.oldyorkcellars.com
Emerging Opportunity
Previously modeled on the United Kingdom's Bank of England, the South African Reserve Bank stands as the monetary authority when it comes to South Africa. Taking on major responsibilities similar to those of other central banks, the SARB is also known as a creditor in certain situations, a clearing bank, and major custodian of gold. Above all else, the central bank is in charge of the achievement and maintenance of price stability. This also includes intervention in the foreign exchange markets when the situation arises.
Interestingly enough, the South African Reserve Bank remains a wholly-owned private entity with more than shareholders who are regulated by owning less than 1% of the total number of outstanding shares. This is to ensure that the interests of the economy precede those of any private individual. To maintain this policy, the governor and member board head the bank's activities and work toward monetary goals. The board meets regularly during the year.
Seen as relatively volatile, the average daily range of the South African Rand (ZAR) can be as high as several thousand pips. But don't let the wide daily range fool you. When translated into dollar pips, the movements are equivalent to an average day in the British pound, making the currency a great pair to trade against the U.S. dollar—especially when taking into consideration the carry potential.
Traders also consider the currency's relationship to gold and platinum. With the economy being a world leader when it comes to exports of both metals, it is only natural to see a correlation similar to that between the CAD and crude oil. As a result, consider the commodities markets in creating opportunities when economic data is scant.
The Bottom Line
As financial markets continue to evolve and grow globally, foreign exchange and currencies will play an increasingly large role in day-to-day transactions. Notional volumes for the market sector are already averaging over $6 trillion per day. As a result, whether a conversion for physical trade or a simple portfolio diversification play, currencies continue to offer more opportunities to both retail and institutional investors.
Источник: [www.oldyorkcellars.com]