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Is Currency Trading Profitable? 4 Most Influential Currencies In The World | Gealena

Is Currency Trading Profitable? 4 Most Influential Currencies In The World

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Is Currency Trading Profitable?

Gealena – Is currency trading profitable? – There are many types of the most profitable investments that can be carried out. In addition to types of investments such as property or gold, there are also forex trading investments that are also in high demand.

For those of you who like the world of forex investing, of course, you also have to understand the types of currencies that are most influential in order to maximize your profits when investing.

Actually understanding this kind of thing, not only for the forex world but also for general knowledge. Therefore, let’s take a look at the following most influential currencies in the world.

Is Currency Trading Profitable
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Before answering your question, Is currency trading profitable? You must be familiar with the things below 

The 4 most influential currencies in the world

U.S. Dollar

Of course, the US dollar is the most influential currency in the world. US dollars can be easily found and traded. In fact, the American currency is also used as a standard reference for the value of other currencies.

In the United States, if the Dollar price does not want to fall, the Dollar must always be in a strong position with the Euro.

US dollars are used as official transactions between parts of the world, apart from gold. The US dollar is also one of the most accepted currencies by almost all central banks in all countries.

Naturally, the US dollar is often used as an investment because the price is still strong when compared to the Euro or local currencies in other countries.

It can be said, the US dollar is the king of currency because it can be accepted by various markets in the world.

This can be proven by the existence of dollarization wherein the country also uses the US dollar currency as a transaction tool, in addition to the local currency they use.

The price of this US dollar currency determines the prices of other currencies. So in forex transactions, the US dollar is also a lucrative commodity and can certainly be accepted by forex traders.

There are many advantages to America by having a currency that is used as a reference currency throughout the country.

Euro

Apart from the US dollar, the Euro is also the most influential currency, particularly in European countries.

In fact, it is said that the Euro is more expensive than the US dollar. So it is natural that the hegemony of the US dollar could be disturbed by the presence of the Euro.

The euro is the currency used by countries on the European continent. Even though it is said to be new to the world stage, the Euro has actually tied investors’ hearts.

The Euro currency is the most traded on the world level. In addition, the Euro is also said to be the second-largest reserve currency in the world after the dollar.

Many European and African countries also peg their local currency to the Euro. On the other hand, European countries are considered a group of developed countries where makes the Euro the second transaction tool after the US dollar.

Pound Sterling or Great Britain Pound

The pound sterling is one of the most influential currencies in the world at third after the US dollar and Euro. The pound sterling is the currency used in Great Britain, such as England, Wales, and Scotland.

This currency is also said to be the largest reserve currency in the world after the other currencies above. Naturally, this currency ranks third in the world.

In the world of forex trading, the pound sterling is also much sought after and traded.

You may ask, why does Britain, which is a member of the Euro, do not use the Euro currency? Britain prefers its local currency rather than the Euro because it will eliminate the existence of the pound in the world.

Japanese Yen

It is said that the yen currency is the currency that is very applicable in Asia. This currency is easily traded especially in Asia. This is because Japan has a strong economic level, especially in its export sector.

So that it is easy for business people to map the economic level of the Pan Pacific region, such as the economies in Singapore, South Korea, and even Thailand.

With this discussion, it is natural that the value of the currency mentioned above is said to be the most profitable investment.

Many viral stories that reveal dark stories when trapped in debt of up to billions of dollars due to foreign exchange (forex) trading, make us need to understand the risks of currency trading.

Don’t let the bad stories experienced by many forex entrepreneurs be experienced by you. All of your income and property, your house, your car must be sold because of a major failure in the currency trading (forex) industry.

One little step answers your question, Is currency trading profitable?

 

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Then what is forex trading, can it be used as an investment like gold and stocks? Is currency trading profitable?

Quoted from www.finchannel.com, forex trading is trading currencies from various different countries with the aim of making a profit. An example of forex trading is buying Euros, while simultaneously selling USD or EUR / USD.

Forex trading is not an activity of exchanging money in Money Changer. Transactions in Money Changer are usually due to the need to exchange currency and there is a physical exchange of money. However, forex trading is carried out online in the forex market without the exchange of physical money, with the sole purpose of making a profit.

The principle of online forex trading is to benefit from the difference between the buying and selling prices by making buying transactions when the price is low and selling transactions when the price is high. From here it will answer a few of your questions about Is currency trading profitable?

Forex market participants can be anyone, whether multinational banks, central banks, large companies, governments, financial institutions, speculators, etc. Given its global scope and actors, the forex market is very attractive and can be profitable.

Because it is so global, the forex market is said to be the market where the money is circulating the most (up to $ 4 trillion per day) and is very liquid (you can buy and sell at market prices, regardless of the amount). The forex market is also open 24 hours non-stop, from Monday to Friday.

To answer your question Is currency trading profitable ?. Apart from its various advantages, forex trading is like a double-edged sword. Forex trading can make us rich, but it can also instantly erode our capital. That is why forex trading carries a high risk.

“High-Risk High-Return”

The greatest risk comes from the price movement itself. If you can analyze market conditions and make transaction arrangements appropriately, then you can get profit. However, if wrong, the loss will be borne.

Then can foreign exchange (forex) be an investment instrument?

If you want to make the foreign exchange a safe investment, then forex trading is not an option. To make forex an investment, you need to save money with a value that tends to be stable, such as United States Dollars (USD) or British Pounds, or Euros.

You can buy foreign currency at a bank or money changer for a certain price and save it, then sell it when the price is high.

This explanation will begin to answer your question Is currency trading profitable? Ok, we continue.

Here are a number of things you need to pay attention to when investing in foreign exchange.

Buy foreign exchange in an official place

You can get foreign currency through a bank or money changer that is licensed and authorized. As much as possible avoid buying foreign currency from individuals because of the risk of fraud.

Understand the most frequently used foreign exchange investment terms

In contrast to other investments such as stocks or mutual funds, there are not many terms often used in foreign exchange investments. At least you have to understand what the selling rate and buying rate are.

When buying foreign currency at a bank or at a money changer, you will get two exchange rates or two foreign exchange prices which they usually place on their electronic bulletin board or company website.

There’s no need to be confused. The selling rate means the price charged when you buy foreign currency at a bank or money changer. Whereas the buying rate is the opposite, the price offered by the bank or money changer when you sell or exchange foreign currency for the currency in the country where you sell it.

Choose the bank or money changer that offers the best price

To take advantage of your benefits from investing in foreign currency, choose a bank or money changer that offers the most attractive selling and buying rates. For that, you need to do some research before selling your foreign currency.

When buying foreign currency, choose a bank or money changer that offers the cheapest selling rate compared to others. Meanwhile, when releasing your foreign currency, choose a bank or money changer that provides the highest buying rate.

Global Info: Currency Trading, 10 Best Full Explanations before Starting

Is Currency Trading Profitable
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Pay attention to how you store foreign exchange

As with gold, you need a safe storage area and the most important thing is to maintain the condition of the foreign exchange you have, which is usually in the form of banknotes. Because it is made of paper, if it is stored for too long in a bad place, the condition can turn out to be crumpled or fold.

Keep in mind, banks or money changers only accept a paper currency that is in good condition. Cracked, folded, or torn banknotes may no longer be of value to banks or money changers, even though they can still be used for buying and selling transactions abroad or for sellers who accept foreign currency.

Therefore, avoid storing foreign currency in your wallet. Another way you can save your foreign currency is to use a Safe Deposit Box (SDB) provided by a number of large banks.

However, to use these facilities, you need to pay rent per year with prices that vary depending on the size of the box used. This method is safer but relatively expensive to store small amounts of forex.

In addition, limit your foreign currency retention period to no more than 12 months. In addition to maintaining the condition of banknotes held, this also needs to be done because it is rather difficult to predict foreign exchange rates for more than 12 months.

Keep up with economic news in the media

next to answer your question, Is currency trading profitable ?. You need to know the right time to sell and buy foreign exchange. For that, you need to always follow the latest economic news delivered by trusted media. The price of foreign exchange is highly dependent on the economic conditions of a country.

When there is an economic slowdown in the United States, foreign exchange will have a higher price because the value of the Dollar also weakens. Economic downturn tends to occur due to unpopular government economic policies, such as rising fuel prices, foreign debt, the effects of the economic slowdown in other countries with close economic ties to the United States, and a number of other macroeconomic reasons.

Conversely, if the rupiah strengthens, the value of foreign exchange will decrease. The strengthening of the rupiah occurs when the government has sound economic policies, the ability of the government to control inflation, and the strengthening of the economy in other countries that have strategic relations with the United States. Changes in the selling or buying price of foreign currency can also be caused by economic and political conditions in the country of origin of the money itself.

A number of economic news that can help you to carry out analysis or make predictions of foreign exchange rate conditions for the next few months. That way, you can sell or buy foreign exchange at a favorable time.

Limit your foreign exchange trading

Although profitable, excessive foreign exchange trading can affect economic conditions in a country. It should be remembered, the main cause of the economic crisis that occurred in America was due to the massive foreign exchange trading carried out in various countries and its impact was able to spread and collapse the United States economy.

The United States Government through the State-Owned Bank has a policy mechanism to control the circulation and trading of foreign exchange. This is done solely to maintain the inflation rate and the overall economic condition of the country.

Your question Is currency trading profitable? answered already? If there are still questions that need to be asked, please submit them in the comments column. We are happy to answer your questions Is currency trading profitable?

Happy Currency Trading

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