With the world still recovering from the initial onslaught of the coronavirus and the impact that first wave had on the global economy, we’re now looking at a second wave of cases rising across the world. The future for commodities trading and retail investments looks bleak, with a recovery still some way off. Nonetheless, there’s certainly cause for excitement in the currency markets where investors often flock when all bets are off elsewhere. Here’s what you need to know about currency trading in this unusual and tumultuous year.
Don’t Miss the Boat
When it comes to buying dollars, US government bonds, or other forms of ‘safe’ currency or commodities like gold, it’s important that you do so at the beginning of the upturn and not as the graph is already shifting. These have been seen as short-term shifts in the last few years, amounting to large gains for the early buyers, but diminishing returns for those who miss the boat and get into the race a little too late.
While the markets and currencies are shifting less dramatically, it might be worth making an investment in strong and reliable currencies, like the USD or even the Chinese Yen, before a news story or an announcement sends the markets into a period of volatility. That way, you’ll avoid missing the boat when there’s money to be made on currencies.
There’s been so much written about cryptocurrency across the last year that it’s now difficult to see the wood from the trees. Yes, it’s a worthy investment. Yes, the Bitcoin Era continues unabated. But there are also some risks to investing in Bitcoin at the wrong time, and in order to understand when to make your purchase, it’s best that you carefully read up on trusted information sites about this exciting investment option.
The one thing that must be said of crypto is that it’s currently not been accepted by national or regional actors on the global stage. With banks modernizing and distributing electronic cash that can be used and traded in increasingly intricate ways, this is something to keep an eye on. The value of crypto is unlikely to diminish, though, as there’s a strong following for the currency across the world.
So, where else should you be looking to invest in currencies in 2020 and beyond? We’ve already mentioned the Chinese Yen, which is one of the most impressive currencies and markets to have survived and indeed thrived in the era of coronavirus. Nonetheless, there are other foreign markets that you can make a spread bet on with the purchase of their currency.
To do this, you need to consider which countries around the world are going to be pushing out improvements on their by-quarter GDP in the coming months. The EU and the UK appear to be struggling, so the GBP and the EURO are unlikely to be good bets. You should look further afield, and to developing nations, for the biggest returns.
There you have it: some key tips for investing in currencies this winter, with the world still reeling from the coronavirus pandemic.