WRITTEN BY: SOPHIA ANDERSON
As the world’s financial markets have grown in size, they’ve also continued to diversify, meaning that traders can now access a wider range of assets and investment vehicles than ever before.
But what are the best investment vehicles and strategies for beginners? Here are a few of the very best!
Forex (Currency) Trading
Forex is the most alluring and accessible investment vehicle for beginners, with this involving the trading of international currencies in pairs and as derivative assets.
This means that investors can speculate on the movement of one currency price against another, creating excellent flexibility for traders and enabling them to profit even in a depreciating market.
Forex trading is also highly leveraged, which means that you open and control positions that are up to 100-times larger than your initial deposit. So, while you must take steps to control the amount of leverage that you access, this makes it possible to trade forex with a relatively small amount of cash.
Stock and Indices Trading
Stocks and indices are associated assets, with the former describing the process of investing in individual business in exchange for a fixed amount of equity.
This is one of the simplest methods of investment, while it’s also ideal for beginners with a long-term outlook and an existing knowledge of specific firms or industries.
However, investing in individual assets can be volatile, with this having been borne out by the rise and fall of various exchanges through the coronavirus pandemic. This is where index trading can come into play, as this minimises volatility by allowing traders to invest in indexes that reflect the average performance of several firms in a particular market or country.
Make no mistake; indices trading is less volatile and more secure than stock trading, so it may be even more alluring to novice investors.
While some may suggest that crypto assets should be avoided in the wake of the recent bear and bull runs, the emergence of third-generation blockchains is gradually changing this perception.
While this market is inherently volatile due to a lack of tangible value or secure store of wealth, new assets such as Cardano are tackling issues like scalability and rising transaction fees and increasing the chances of mainstream adoption in the financial industry.
This represents a significant game-changer, and one that will make next-generation crypto assets increasingly viable investment assets.
These entities are also relatively accessible, with the cost of a single Cardano token recently reaching $3.
This post was written by Sophia Anderson and originated on Your Coffee Break.