Blockchain are safe for transactions because after the addition of block to the end of a blockchain, the alteration of the content is usually a difficult task unless there is a general agreement to do so (this act is not common) . In addition, blockchain can be used in elections for voting i.e modernized voting, through this, electoral manipulation is removed.
Moreover, blockchain also has some disadvantages which includes:-
- Technology Cost
- Limited Speed
- Illegal Activities i.e activities of hackers to hijack.
Let's look at one or two of the advantages;
- The banking of the unbanked.
- Secured Transactions.
The research on Cryptocurrency won't be complete without looking up for some examples which includes Bitcoin, dOgecoin, etherum
Bitcoin:- this is a digitalized currency which does not have a single administrator but operate through the means of decentralization. This is the most common one.
FOREX trading which is also known to be FX, Foreign Exchange Market or Currency Market is describe as a globally over the counter or decentralized market where currency trading are carried out. It's the largest market in the world. No physical contact or exchange is required in FOREX trading.
The exchange rate for every currency is determined by FOREX. The operations of FOREX are carried out through financial institutions (retail investors, commercial banks, and also investment banks) unlike the Cryptocurrency which does not have a central authority. FOREX TRADING also enable international trade i.e goods produced in a country can be exported to another country. Forex trading can be seen as exchange of currency done by travelers when they want to travel abroad.
The Supply and demand of buyer and sellers plays a mojar role in the determination of prices of currency. Forex trading is unique because it has a continuous operation, it uses leverage to to boost profit.
In the world, there are more than 170 currencies in which codes are assigned to them in three letters like NGN, USD, JPY, GBP, CHF, AUD, NZD and so on. Apart from USD which is mostly used in FOREX trading, we have some other ones which are used also e.g EUR (European Union) which is the second after USD, NZD (New Zealand Dollar),CAD (the Canadian Dollar), AUD (Australian Dollar), SHF (Swiss Franc), GBP (British Pound) and JPY (Japanese Yen).
Forex trading can be done in three ways which includes:
- The Future Market
- The Forward Market and;
- The Spot Market. Here, currency are swap for each other.
In forex trading, it should be noted that political situations, economy growth and development, banking regulations and level of interest rate also determine currency prices ever tho they are minor. Forex trading occurs in forex market through the use of computer network, hence, no physical structure is required.
How to start FOREX TRADING
1- Forex Learning :- this is essential because forex requires special knowledge of the trader like the knowledge of the leverage ratio in FOREX and also currency price movement drivers which differs from that of the stock market.
2- Brokage Account Set Up:- this is necessary to enable forex trading where the buying and selling takes place i.e transaction platforms.
3- Trading Strategy Creation:- this gives you the amount or level of risk you can afford and also amount you can invest. This also guides on the way to predict price movement in FOREX trading.
4- Be at the top of your numbers always:- this enables you to have sufficient cash to trade with in the future.
5- Develop an emotional equilibrium :- this tells you when to opt out for some moments in order to minimize loses.
To start FOREX TRADING, it is paramount to get familiar and also know the meaning of so terms in FOREX like the Forex account, bids, bear market, bull market, ask.
- FOREX account :- this is where currency are being traded and they can be in three forms;
Micro FOREX account - currencies worth up to $ 1,000 can be traded.
Mini FOREX account - currencies worth up to $10,000 can be traded.
Standard FOREX account - currencies worth up to $100,000 can be traded.
Bids:- this is the price a trader want to sell a currency. When demand is low, the bid price can lower than the ask price and vice versa.
Bear Market :- this occurs when the prices of all currencies drops or decreases due to financial crisis or depressed Economy i.e market down trend.
Bull Mare:- this occurs when the prices of all currencies goes up or increases i.e market uptrend.
Ask:- this is the lowest price a currency can be sold.
Pip:- which means Percentage in Point. This is the minimun point for movement of prices of currency. This could also means Price Interest in Point.
Spread :- this is gotten by deducting the bid price from the ask price. Hence, FOREX traders makes there profits through spread.
Margin:- these are money in a forex trader account which are kept separately for the purpose of trading currency.
Lot size:- this are in three forms which are standard, mini and micro. Currencies are traded on forex in lots.
Leverage :- this enables investors or traders to borrow a certain amount in order to increase profit.
In FOREX trading, charts are used in speculating which are in three forms;
1- Line charts:- they are the most popular chart used by FOREX traders. They gives or shows the trading price at close of different currencies being used by the trader.
- Bar Chart:- just like the way other bar chart are used, they are used in the representation of a time range for trading. Price information provided by bar chart are more reliable than that of line chart.
- Candlestick Chart:- they emphasis on the opening prices.
Merits of FOREX trading
Little amount can be used to start which will yield sufficient profit.
Decentralization of FOREX trading makes it more transperant.
Starting a forex trading is more easy than stock trading.
Demerits of FOREX trading
High level of volitality
High knowledge of economy situation is much required.
Lack of instrument which gives steady income.
Now, talking about Cryptocurrency trading Vs FOREX trading ; the level of transperancy in both is high and solid. Also they are both digital currency. In addition, the operation of Cryptocurrency trading is decentralized which means they don't have a single administrator but in the case of FOREX trading, the operation is controlled by financial institutions such as the commercial banks and the likes.
The amount needed to start a Cryptocurrency trading is relatively high compared to the amount needed to start FOREX TRADING.
Above all, both Cryptocurrency trading and FOREX trading are good and can be recommended to potential investors.
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