There are a huge number of ways to make money online nowadays. You can do it sitting at home on the couch, at a table in a cafe or even in parallel with the main work. In general, anywhere, you just need an internet-connected computer or a smartphone.
Trading in the financial markets can be one of the most promising and profitable types of such earnings. Why? Let’s figure it out in this article.
What is Online Trading?
It is an opportunity to make money on fluctuations in the price of various financial assets. Simply put, you buy, for example, a currency and wait for it to rise in value. Or, conversely, you sell in the expectation of a fall in the rate. This is the basic principle of trading. But brokers offer more than just currency trading, which is a huge advantage. For example, working with a brokerage company like NordFX, you can trade a wide variety of asset types. For example, stocks, oil and gold, stock indices and even cryptocurrencies. Such a rich selection allows you to significantly diversify your earning opportunities. Moreover, you can earn not only on the growth, but also on the fall in the price of any of these assets.
Currency and Cryptocurrency Trading: Features
Let’s say you have chosen currency trading. What should you pay attention to? First, on the fact that all currencies are in pairs on Forex. That is, you do not just buy, for example, euros, but you automatically sell another currency in return. Basically, it all looks like in a standard exchange office. The thing is that you do not need to have all these currencies in stock, the broker will automatically convert funds from your trading account.
For example, when buying a EUR/USD currency pair, you purchase euros and sell US dollars. When selling the same currency pair, you, on the contrary, sell euros and buy US dollars. On Forex, all currency pairs are divided into major ones, for example, GBP/USD (British pound/US dollar) or USD/JPY (US dollar/Japanese yen) and cross rates (in such pairs, currency exchange is performed directly, bypassing the US dollar), for example, EUR/GBP (Euro/British Pound) or NZD/CAD (New Zealand Dollar/Canadian Dollar). Apart from this, there are also exotic pairs in which rare currencies are present, such as the African rand, for example, or the Norwegian krone. In total, 33 currency pairs are available for NordFX clients to conduct transactions.
In addition, you can make transactions with digital currencies. The principle of trading here is the same as in Forex. Trading operations can be carried out with any of 11 cryptocurrency pairs, including the leading cryptocurrencies against the US dollar: BTC/USD (Bitcoin), ETH/USD (Ethereum), LTH/USD (Litecoin), EOS/USD (Eos), XRP/USD (Ripple), etc.