Finance

Understanding The Forex Market

Trading in the forex market allows anyone to trade at fairly smaller amounts compared to financial markets. Many people are trading the forex market because there’s a higher opportunity to leverage income and make money.

Trading Forex vs. Trading Cryptos

What is the Forex market?

Forex trading is the act of buying and selling currencies to make an income. The forex or the foreign exchange market is the largest in the world and it has a daily turnover of almost five trillion USD. There is no central market place for Forex Market and this mainly differentiates it from trading stocks. Another key difference is that anyone who trades in forex can still make a profit regardless if the market is high or low and prices are declining. The forex trades 24/7 and thus traders can invest any time.

What is moving the foreign exchange market?

There are several factors that cause fluctuation in prices. Below are three factors that primarily impact the foreign exchange market.

  • Supply and demand. The primary moving factor is supply and demand. If the demand for currency pairs heightens, the seller is removed. The moment prices get to a specific threshold, they are going to bring in new sellers to the market.
  • Central bank. Another factor is the central bank because when CB announces measures that impact a certain currency, it follows that prices change. The CB attempts to manage inflation, money supply, and interest rates.
  • News reports. The market had always been influenced by market and news reports. Based on the economic calendar, there are certain news reports that caused high, medium, or low impact. Favorable news reports can increase currency value and unfavorable news reports can lower currency value.

Should you get a forex broker?

You must get a good broker and trading platform in order to trade in Forex. You will also need to have internet access to monitor your investments. A trading platform is a software application that allows you to trade in the forex market. This is made available to you by forex brokers.

Looking for a reliable forex broker? Check out Forex Brokers 2020. 

There are several factors to consider when choosing a forex broker. This includes regulation, minimum account, commissions, account fees, promotions, and platform features. There is high competition among online brokers. In order to be profitable in forex trading, choose an online forex broker tailored to your trading needs. Broker should strictly be regulated.

In any endeavor, background knowledge is important. However, with forex trading, the experience is the best teacher. A demo account is most helpful to help you learn and gain more knowledge in the forex trading industry. Also, trading in a demo account gives a feel of the real market.

Trading strategies

Having a good forex strategy is an important factor in order to ensure profitability. While there are many strategies that claim to be successful, not all are suitable for every trading situation. That’s why it is important to choose one strategy that best matches every situation. For beginners, test your skills in trading by using the demo account. The demo account allows you to discover strategies that will best work for every situation. When you are confident of the strategy you developed or existing strategies that you tested, then you can move on to a live account.

 

Posted by Laney Seward in Finance

Crypto Financing, Is It Possible?

If you have a smart business idea, you have to convince investors of your vision. In the beginning, it is often family and friends. You could be even seeking financial help from a lending club or traditional banks. Later, ideally, business angels and investors come in who provide venture capital. A time-consuming process.

The Top Crypto-Backed Loan Platforms

Now, there’s what is called crypto lending as explained by Cointelegraph. It works much like a regular loan but within the limitations of cryptocurrencies. This service connects willing lenders to seeking borrowers using online platforms. Lenders lend their Altcoins, Ether, or Bitcoins to borrowers under agreed terms and regulations.

The entrepreneur Zoe Adamovicz can imagine it all easier, faster, and cheaper. With her start-up “Neufund”, the Polish-born artist, together with her partner Marcin Rudolf, wants to create a platform on which investors can participate in start-ups using the Ethereum cryptocurrency. It is an experiment that no one can say at the moment whether it will succeed and what risks are involved for the investor. Bafin’s financial supervision is in the process of dealing with this business model.

The company is financed through venture capital. It recently mobilized $ 12 million from investors for the platform. The financiers include, for example, the investor Frank Thelen, who is known to a wider audience as a jury member of the start-up show “Höhle der Löwe”. Neufund has dubbed this process the “Initial Capital Building Mechanism” (ICBM). Supporters, therefore, commit funds that they can later invest on the platform in companies.

Adamovicz and Marcin are experienced entrepreneurs. In 2014, they sold their self-founded Xyo app search engine to an American, listed company. It is important for the manager to differentiate herself from so-called initial coin offerings (ICO). “New discovery does not make an ICO,” she clarifies. “No euro is used by the ICBM for the company. We don’t manage this money either. ”

She doesn’t want “newfound” to be lumped together with companies that use intransparent ICOs to collect money by issuing tokens. Much can be hidden behind tokens: some companies promise to share in possible future profits, others only declare the collected money as a “donation”. “At the moment, investors who finance companies using cryptocurrencies cannot be sure whether the tokens issued will actually be used for the purposes for which they were announced,” Adamowicz describes the dilemma. This is exactly what is supposed to work differently on the “Neufund” platform.

The ten largest cryptocurrencies

There, companies can finance themselves with so-called equity token offerings (ETOs). Adamowicz wants to ensure that the investor who participates in a company on the Neufund platform also benefits from possible profits or sales proceeds. At the same time, investors have to bear possible losses. “With an ETO, the investor acquires rights to the company, which he can also assert, if necessary,” she emphasizes. This is a big difference to tokens, which are awarded in the context of an ICO.

Posted by Laney Seward in Cryptocurrency, Finance

Amidst Continuing Hacks and Scams, How Should the Cryptocurrency System Move Forward in 2020?

It is now widely recognized that the cryptocurrency financial system has become a burgeoning industry. So much so that it has become ripe with opportunities for fraudsters and hackers, as millions have become victims of cryptocurrency investment scams and cyber attacks. Apparently, the common factor that has made victims vulnerable to criminal elements is their complacency.

They see the blockchain system as having sufficient shield against the prying eyes of financial regulators and tax enforcers. Yet they also take it to mean that the entire workings of the cryptocurrency financial system is safe from the schemes devised by scammers and hackers. .

Victims tend to overlook the fact that the beginning and end of cryptocurrency transactions still require participation of banking institutions. Not unless one is a cryptocurrency miner who gets to own a unit of cryptocurrency for every block of encrypted transactions he or she adds to the blockchain system.

Purchasing cryptocurrency with real cash, is still the fastest approach to owning digital money. Mainly because it takes high-powered computers to solve complex encryptions plus a lot of hard work is involved. Now in order to have real-world value, cryptocurrencies have to be cashed out through bonafide bank accounts or central bank-accredited payment processors.

Actions Taken to Strengthen the Security of Financial Transactions Involving Cryptocurrency Exchanges

As far as The Society for Worldwide Interbank Financial Telecommunication or SWIFT is concerned, they have reacted to cyber attacks by reinforcing cybersecurity controls, and by identifying the weakest players in the SWIFT community.

Moreover, this organization of global financial telecommunication experts, makes sure that information about the modus operandi of known cyber attackers, are disseminated worldwide to prevent further occurrences of hacking incidents.

In the cryptocurrency system, which is basically a decentralized method of exchanging digital funds, whilst working outside of a central bank or a recognized administrator, members of the cryptocurrency community rely on each other in preventing scams and hacking incidents.

Cryptocurrency service providers like operators of crypto exchange platforms and digital asset custodianship, have also taken steps to prevent digital funds from being stolen. However, the fact that many crypto-related investment frauds and illegal cash-outs still happen, the use of encryption controls, of blacklisting addresses and of capping cash-out transaction, have not proven as sufficient deterrents against criminal elements and their modus operandi.

What Financial Experts Recommend to the Cryptocurrency Community in Moving Forward to 2020

Many articles written about cryptocurrency fraud suggest that it is not only the technology of the system that requires strengthening. Proponents and players in the digital currency market must acknowledge that it takes more than encryption to provide the necessary check and balances in ensuring the validity of blockchain transactions.

Improving the cryptocurrency system also requires risk management and adherence to basic financial controls. Particularly that of segregating duties, functions and roles among those who have access to the blockchain system to deflect conflicts of interests. Segregation pertains to those who have custody of customer assets, as well as from those who facilitate trading or exchanges of cryptocurrency funds.

Most important of all is to instill the importance of education or know-how among participants, before entering into cryptocurrency transactions.

Rather than have digital asset owners and potential investors rely on information provided by influencers, participants should have a clear understanding of how crypto-exchanges and fund transfers work; of the risks involved, as well as have accessible information about established institutions and organizations that can help in verifying the legitimacy of digital investment offers.

Posted by Madelina Feliks in Cryptocurrency, Finance