The Best Investment Options for Senior Citizens

With the incredible availability of investing today, many people, both young and senior citizens, have been looking for a way to make more money while slowly heading into retirement. Now, there are many different ways and methods to go about investing in general, like low-risk, low-return investing; retiring with a crypto portfolio; and much more. However, there’s no such thing as an ideal portfolio, yet many are looking around for a way to make the most out of their working years as a senior citizen.

To learn more about what your investment options are as you slowly head towards retirement, continue reading.

Why Should Senior Citizens Invest?

Although it’s difficult to strictly define who classifies as a senior citizen, the age group generally encompasses people who have 5-10 years left before retirement. There are many reasons why a senior citizen should invest, but the primary ones are:

• Minimizing risk
• Ensuring present and future financial stability
• Beating inflation
• Building wealth for your family and inheritance

Coupling investment with social security is also another big benefit that senior citizens have over their younger counterparts. Something that will almost certainly make your investing journey significantly better is a Senior Citizen Savings Scheme (SCSS). It’s one of the highest return portfolios a senior citizen can enjoy, and you can participate in it with a one-time deposit or fixed deposits. Some retirees have also been reaping the benefits of investing in precious metals and commodities, like gold, silver, and oil. Before going into it, consider understanding the factors that influence the price of gold.

Now, we’ve made it abundantly clear that investing is beneficial for everyone—senior citizens included. Now, let’s go over some important factors of the investment journey of a senior citizen and cover important topics like risk, retirement, and diversification.

Ideal Factors of an Investment for Senior Citizens

With their working days ending and retirement being within reach, senior citizens should have stricter criteria when it comes to putting their money into investments. Long gone are the days when one can gamble away their wealth and then be physically and mentally prepared to earn it all back. Thus, senior citizens can’t afford to risk too much, as their primary income is their monthly retirements—in most cases at least.

These are the factors that a senior citizen should look for in any investment if they’d like to retire comfortably:

• A low-risk profile
• Focusing on “value investing”—generally with dividends
• Maximizing diversification and minimizing the potential for losses

So, it’s safe to say that the ideal portfolio for a senior citizen would carry the smallest number of potential risks, and is probably based on low-risk, low-return investing. Now, there are many ways to go about such a portfolio, though it would be worth taking a look at mutual funds for senior citizens. In the paragraphs below, we’ll go over the details of an investment a senior citizen should make.

Additionally, take a look at How Much Should You Save for Retirement in the US?

Best Investments for Senior Citizens

Now with the basics out of the way, we know that senior citizens and retirees should go for something with a low-risk profile while making sure that their money is safe and their portfolio is slowly growing. Some of the best ways to go around this is investing in mutual funds for senior citizens, with index funds and ETFs being a primary focus. An example portfolio for a senior citizen should be an 80/20 portfolio, looking like this:

80% of the portfolio should consist of stable distributing or accumulating ETFs. Examples include:

• An S&P 500 ETF, like VUUA
• An All-World ETF, like IWDA
• A high-dividend ETF, like Fidelity’s FDVV.

20% of the portfolio should consist of “fixed income” assets such as bonds. For example:

• Vanguard’s Total Bond Market, i.e. BND
• Schwab 5-10 Year Corporate Bond ETF – SCHI

In recent years, there are some financial experts that take a more aggressive approach regarding investing for retirement, saying that crypto should also take a big part of an investor’s portfolio. While we can all agree that cryptos do have a bright future ahead of them, they’re generally not thought of as the safest investments, as they carry many potential risks. If you do want to include crypto in your portfolio, consider allocating no more than 10% of your money to it before understanding how cryptocurrency works.

There are some senior citizens that would also like to dabble in forex trading and take a more active approach toward building wealth for retirement. Before entering the world of forex, consider checking out our list of the top forex trading brokers.

Government Investment Schemes

If you don’t want the hassle of managing your investments yourself, you can also take a look at some of the most popular government investment schemes which are specifically designed as being one of the best investments for retirees. In addition to the SCSS we mentioned above, you should also take a look at:

• The MIS (Monthly Income Scheme) An individual account that offers a 7.3% annual return.
• The ELSS (Equity-Linked Savings Scheme) A high return scheme that offers tax-free profits.
• The NSCs (National Savings Certificate) A fixed income scheme that is primarily designed for government employees, businessmen, and business owners.

These are the available options in most US states, but you may also save some extra cash by retiring abroad.

Conclusion

In conclusion, we can safely say that senior citizens should definitely look to invest while slowly heading into retirement, or even if they are in retirement. We’ve gone over the different ways one can go about investing as a senior citizen, though we would mostly recommend sticking to the safest options possible—like ETFs, fixed income assets, and crypto in some cases. You can also consider dabbling in forex, but not without regularly having forex technical analysis by your side, as well as other important tools to help you in your journey.

Long story short, we think that the senior years of a citizen are just as good as any other ages for investing. Although their working days are over, it doesn’t mean that senior citizens shouldn’t reap the benefits that investing has to offer.

There’s no doubt that cryptocurrencies are the 21st century’s hottest topic, and they’re still on the rise. While still growing in popularity, the crypto trading market has laid the basis for new profit-making possibilities for new and experienced traders. A new concept in the crypto trading sector is Bitcoin CFD trading.

Contract for Difference (CFD) trading originally came from the stock market and has grown in popularity since then, thanks to the benefits it offers. As a result, Bitcoin CFD trading gained popularity in the crypto world.

Still, Bitcoin CFDs are a slightly more complex trading system than traditional trading, but they have their benefits. We will take a look at what a Bitcoin CFD is, how it works, and why it can be better than traditional crypto trading.

What Is Bitcoin CFD Trading?

A Bitcoin CFD is a contract-for-difference (CFD) made between the broker and the trader, enabling the trader to speculate on the future price movements of Bitcoin without having to own the cryptocurrency at any given time.

Traders often wonder how to calculate the Bitcoin CFD margin. The most common way is as simple as knowing your current position size and leverage used. For instance, a 10% position with 3x leverage would yield you a 30% margin requirement.

Getting into the details, a CFD Bitcoin platform is a broker that offers cryptocurrency trading. The best Bitcoin brokers provide a simple and convenient way to invest in cryptocurrency with less overall risk. Unfortunately for our American readers, CFD trading is banned for all citizens from the United States.

Who Is Involved in a CFD Trade?

CFD trading allows traders to trade and invest via a preset contract with the broker. CFDs stand out from classic trading because there’s no need to open a direct position in a particular market.

There is no ownership of underlying assets when CFD trading. Instead, all the profits and losses depend on the prices you’ve made while making the closing contract, even though you don’t own the assets. Some traders believe this type of trading method to be akin to gambling, and they aren’t entirely wrong.

What Happens With a CFD Contract?

The trader and broker have a direct agreement to replicate the market conditions at the exact moment and settle the conditions among them during the closing time. CFD trading has many advantages over other trading methods that don’t have direct terms, like access to overseas markets, short positions, smaller risks, and more.

A point worth making is that a CFD trade, by itself, is quite different from a trade with traditional conditions. This is because CFD trades give both brokers and traders significantly more leverage.

Why Trade Bitcoin CFDs?

Trading Bitcoin and other crypto CFDs has its benefits. For example, you don’t have to own a crypto wallet to profit from any price movements. In simpler terms, this means that you’re circumventing all of the hassles that come from the blockchain system, like waiting for a transaction to be processed or for a miner to “mine” it (i.e., approve the transaction).

The Bitcoin CFD has two primary objectives: speculation and hedging.

Speculation

Speculation is one of the main objectives of crypto CFD trading. It means that the trader speculates on the price movements, generally in the short term. The profit and loss depend on the price movements of assets, specifically on your order’s size.

For example, if you speculate that the value of a particular asset will increase in the upcoming period, and you purchase the asset, the position is known as “going long,” which is the opposite of “shorting” an asset (speculating the price will fall).

Hedging

Hedging is a way to mitigate the risk of potentially disadvantageous price movements in your assets. It is a popular technique to boost your risk management strategy by diversifying the assets you own or taking positions in derivatives that correspond to an existing one. In this context, derivatives are securities (i.e., assets) whose movements are dependent on one or more underlying assets.

In simpler terms, hedging is paying money (the specific term is a “premium”) to back up an investment and mitigate the losses you could incur.

Through hedging, you pay a premium to get a guaranteed selling price for a defined time interval. What this means is, if the stock you invested in drops down to $0 per share in the near future, you can avoid losing 100% of your investment by selling your shares at the price you paid a premium for, regardless of the share’s current market value.

Hedging allows you to make a safe investment and reduce your losses, but it is not a win-win strategy. The premiums can quickly add up and chip away your potential gains on that particular investment. Still, most traders prefer hedging to face calculated losses on fluctuating and unpredictable price movements, especially with unpredictable markets like cryptocurrency.

Is Trading Bitcoin CFDs Profitable?

From our research and the extensive experience of millions of traders, it is quite clear that trading Bitcoin CFDs can be highly profitable. If you’re careful enough and stay up to date with the latest news and trends, you can substantially benefit from trading CFDs, whether they’re altcoins, stocks, or forex.

Although CFD trading does have the risk of big losses, the potential of gains you can extract from the price movements make it worthwhile. This is especially true if you pay attention to the market and keep track of all the price fluctuations. For more help with this, read our cryptocurrency analysis pages.

All in all, we think that trading crypto CFDs is worth a shot, and the more you learn along the way, the easier it gets for you to guarantee solid profits.

Need help with trading Bitcoin CFDs? Consider copy trading with one of the best copy trading platforms.

The forex market is the world’s largest financial arena, bigger even than the stocks and commodity markets.

So, how big is this corner of the international investment arena?

According to a 2019 Bank of International Settlements (BIS) study, trading in global forex markets surpassed $6 trillion per day in April 2019. Indeed, with the influx of new investors over the last couple of years, FX trading has become enticing for many people. This decentralized market consists of buying, selling, and trading currencies, such as USD/CAD, GBP/JPY, or EUR/CHF pairs.

This is pretty simple, right? Well, there’s a lot more that goes into trading foreign currencies.

For example, have you ever heard of the forex spot market, otherwise known as FX spot? If not, then this article is for you. We look at what FX spot is, its advantages and disadvantages, how to spot trade forex, and more.

What Is Spot Forex Trading?

Spot forex trading is a bilateral transaction to acquire one currency against selling another at the agreed-upon rate (cash rate), also known as “on the spot.”

An FX spot trade example would be the GBP/JPY (Great British Pound/Japenese Yen) currency pair trading at 153.82. The greenback is the base currency, and the loonie is the counter currency. For the forex investor, the spot price would show that 153.82 yen would be required to buy 1 British pound.

But the same idea applies throughout the spot currency market, including among the most popular contracts and largest markets in the world:

• EUR/USD
• USD/JPY
• AUD/USD
• USD/CNY
• GBP/USD
• CHF/JPY

Advantages and Disadvantages of Spot Markets

Advantages

• The forex spot market provides real-time prices
• They continue to be liquid and active markets
• Investors can accept immediate delivery
• Trading spot forex offers binary options

Disadvantages

• Spot forex trading is not a reliable vehicle for hedging
• Investors will endure two types of taxes on spot forex trading The same rules as regular commodities or the special rules listed under the Internal Revenue Code Section 988 for currencies.

How to Forex Spot Trade

Before you start going into the spot foreign exchange market guns blazing, it is first important to equip yourself with the necessary tools and tips to prepare for this highly volatile market.

For one thing, when you are engaged in forex trading, you are embarking upon this journey by anticipating that a base currency will strengthen against the quote currency. You might be long on the pound against the loonie, or you may be short the yen against the U.S. dollar.

Here’s how to trade forex spots:

Buying and Selling Currency Pairs

You are trading a currency pair: buying one currency and selling another with the expectation that the base will strengthen against the quote.

When you are buying a spot in the FX market, you anticipate that the base currency will gain against the quote. So, for example, if the EUR/USD is trading at 1.21, with a buy price of 1.2110 and a selling price of 1.1990, you would execute a transaction at 1.2110 because you believe the euro will strengthen against the dollar.

On the other hand, selling a spot pair means you believe the quote currency will advance against the base. As another instance, if the USD/CAD is trading at 1.2500, with a buy price of 1.2510 and a selling price of 1.2490, you would sell at 1.2490 because you think the loonie will climb against the buck.

Trading “On the Spot”

When you are trading “on the spot,” you do so with constant real-time pricing. Forwards and options are also based on the spot price.

You can trade more than 80 pairs, including the major, minor, emerging, and exotic pairs.

It should be noted that there are narrower spreads, but you will face overnight funding charges. And, when you are trading on the margin, you could lose more than your initial deposit.

When to Trade

Weekday trading hours are from 4 p.m. EST on Sunday to 5:15 p.m. EST on Friday. Weekend trading hours are from 3 a.m. EST on Saturday to 3:40 p.m. EST on Sunday. The weekend trading hours only apply to EUR/USD, USD/JPY, and GBP/USD pairs.

For more help on the best time to trade forex, read our free forex trading signals.

Spot Forex Trading Advice

A common mistake that novice forex traders will make is not monitoring the spreads. A wider spread indicates a large gap between the two prices, meaning high volatility and low liquidity. A lower spread spotlights low volatility and high liquidity.

For instance, based on market data, the two currency pairs with the lowest spreads are the EUR/USD and the GBP/USD.

Here are a few other things to remember when executing your next forex spot transaction:

• Create a plan, identify your forex spot trading strategies, and stick to it.
• Use a free demo account before using real money to familiarize yourself with this market.
• Incorporate fundamental analysis into your regimen to find patterns and forecast potential trends.
• Set a limit on how much you want to invest and take it easy. Remember, slow and steady wins the race.
• Be objective and never trade based on emotion.

For more info, see our weekly forex forecast.

How to Become a Spot Forex Trader

Interested and intrigued in the world of USD/ZAR, TRY/JPY, and AUD/RUB?

The first thing you need to do is pick a forex broker, open a trading account, and then begin using the website’s forex trading platform to execute trades. Many first-time investors will use spread betting or a Contract for Difference (CFD) account since they only require a small deposit to start a position.

After this, you open your position and monitor the FX pair you are trading, which includes combing through market events, reading the news, and studying technical analysis. Many of these trading platforms provide their clients with a wide range of free tools, resources, and indicators to improve their trading decisions.

Ultimately, anyone can trade FX. While it is not for the faint of heart, you can enjoy exceptional success in this area as long as you are always learning and updating your knowledge. This is an enormous industry with tremendous volatility and liquidity, so equipping yourself with the necessary mechanisms will improve your chances of profiting from an FX pair.

Cryptocurrency has become one of the hottest topics in the modern-day world, and there’s no doubt that Bitcoin sits on top as the king of the market. The surge of overnight millionaires due to Bitcoin’s boom in recent years gives much credit to the popularity of cryptocurrency and the blockchain system in general.

Almost all cryptos have seen substantial growth in recent years, managing to break previous records year by year. Despite the setbacks we’ve seen, many investors have attained massive profits and wealth from Bitcoin trading. Although the cryptocurrency market has seen significant hitches, the fact is that cryptocurrency is here to stay for a long time.

Most people have developed a certain image in their minds for cryptocurrency. What crypto trading intends to offer can excite pretty much anyone. However, it’s worth mentioning that the cryptocurrency market is incredibly volatile. In its current shape, some investors regard crypto as a mere speculative asset. Still, there are ways you can generate incredible profits by trading crypto on MT4. Continue reading to learn more.

What Is MT4?

MT4 is a multi-platform trading software that allows investors and traders to exchange assets, like fiat currency pairs, commodities, stocks, or even cryptocurrencies, as long as they have a broker—see our top brokers for forex trading.

This trading platform has been around for over a decade now and is one of the most widespread and regularly used trading platforms for online trading. Of course, MT4 is being used by the most popular exchanges for cryptocurrency trading, too. Before we get into crypto on MT4, let’s take a look into what it has to offer.

Wondering what the difference is between this and MT5? Read our MT4 vs. MT5 review.

Popularity of MT4

MT4 is widely considered as the standard trading platform that brokers all over the internet use. For instance, Binance, Coinbase, and Avatrade are some of the best crypto brokers for MT4. The platform has been constantly evolving and improved by its developers, making it one of the simplest and most incredibly effective trading platforms. With just a few simple clicks, you can access vital information like charts, indicators, prices, and more. For more info, read our review of AvaTrade.

The reliability of the MT4 trading platform gives much credit to its popularity. Experience has shown that the platform is highly optimized and designed to accommodate low-power and slow internet connections, keeping it reliable under almost all circumstances – especially when you need it the most.

Keep in mind that MT4 is also an incredibly versatile trading platform with cross-platform support. In simpler terms, you can access all the vital tools and information you need from any device, including desktop and mobile.

Advantages of MT4

• User-friendly and easy to use
• Supports multiple devices
• Wide range of markets you can start trading in, though it depends on the broker
• Offers a demo account
• Variety of analytical tools that can lock in the most accurate and calculated trades
• Supports copy trading through the MQL5 platform
• Allows margin trading (trading with more money than you own)

What Is Bitcoin Trading?

Bitcoin is a decentralized virtual currency (cryptocurrency) that doesn’t belong to any central bank. It can be traded between different individuals without the need for a governing intermediary.

Bitcoin trading refers to the process of buying and selling Bitcoin through a trading platform and tracking its price movements to generate a profit. Bitcoin stands as the most popular cryptocurrency and, to this day, holds a significant share in the crypto market. The following are the pros and cons of Bitcoin trading:

Advantages

• Incredibly high liquidity
• The blockchain system allows for user anonymity and transparency
• Independent of any central authority
• Potential for high profits

Disadvantages

• High volatility
• Not regulated by a government body

How to Trade Bitcoin on MT4

Educating yourself on Bitcoin and doing prior research on what it’s all about is critical to Bitcoin trading. Once you’ve covered the basics and are ready to trade Bitcoin on MT4, here are the key factors to consider before you start your trading venture.

Choose the Right MT4 Broker

Make sure to take a peek at the commission rates, fees, and banking costs of a broker before you select it for trading with crypto. An important thing to consider is the complexity of the broker. For example, less experienced traders might not benefit from starting their trading journey through a complicated broker designed for experts.

Open an Account

Open a live or demo account on the website of the broker of your choice and start placing trades. Demo accounts are particularly helpful to get a realistic trading experience through accurately simulated price movements. Consider sticking to our list of the best bitcoin brokers to have a solid experience with your first steps in the crypto world.

Try to Place Accurate Trades

It is recommended to familiarize yourself with the key trading terms, like leverage, lot sizes, margin, etc. Although theory could be boring, this knowledge is crucial to improving your overall trading experience. If you’re attentive enough, you can use the benefits and tools a broker has to offer in your favor to generate solid profits.

For more help placing accurate trades, read our Bitcoin forecasts.

The Final Verdict: Is Trading Bitcoin on MT4 Worth It?

Thanks to the huge developments in trading platforms’ tools, it’s possible for traders to make the best out of their crypto trading experience with the help of research.

As a result, making substantial profits with Bitcoin trading is not far from reality, but it requires practice. Even though the first steps could look difficult, nothing beats experience. As we mentioned before, many experts recommend sticking to a consistent strategy as critical to having a sound trading experience.

For more info about Bitcoin trading strategies, read Day Trading Bitcoin for Beginners: Strategies, Best Brokers and More or Bitcoin CFD Trading: What It Is and How It Works.

MT4 offers great analytical tools to help you strategize and research behaviors before placing your trades in the crypto market. It offers a simple look packed full of vital information, making it highly convenient to utilize it for Bitcoin trading. Trading Bitcoin through MT4 has been made easy with readily available trading tools and multi-device support, allowing you to lock your trades on the go anywhere and anytime.

Online trading, once widely regarded as a difficult feat, has now become easily accessible all over the internet. One section of the online trading world is forex trading, which has been around for many decades now and is still increasing in popularity year by year. Online forex trading has allowed for ample opportunities and a means of steadily growing wealth for many traders worldwide, with the assistance of the best forex trading platforms.

The idea of making huge profits and turnovers through forex trading is something that excites everyone, and rightfully so as it’s not an incredibly difficult feat. Of course, forex trading is not easy – it requires effort and devotion to learning the basics, spending time researching the market, and staying up to date with world trends.

In this article, we’ll be looking into the best way to learn to trade forex so that you can take your first steps on the markets and start generating profits. Let’s get right into it.

What Is Forex Trading?

At the core level, forex trading is as straightforward as purchasing a currency pair at its current price and selling it at a higher one for profit. Although the core of forex is simple, generating profit is much more complicated.

To trade in the forex market, you buy one national currency (or even a cryptocurrency) with another, both of which make a currency pair. An important aspect to consider when learning about forex trading is “liquidity,” a currency pair’s ability to be bought and sold without creating a major impact on its exchange rate. Understanding the theory behind forex liquidity is beneficial to comprehend the behavior and trends of the market.

Benefits of Forex Trading

• Ability to quickly turn your trades into cash thanks to high liquidity
• Open 24 hours a day, 5 days a week, unlike stocks that are only available for a specific time of day
• Offers leverage, meaning you can trade with significantly more money than you own
• The market is incredibly volatile, meaning that you can always win big profits

Moreover, the forex brokers we recommend have low transaction costs, quick banking, and small commission fees, which are other features that can make your forex trading experience better. Consider viewing our list and finding the best forex broker for you.

Step-By-Step Guide to Trading Forex

Now that the basics are behind us, let’s quickly take a look at how to learn forex trading step-by-step:

1. Open an account You can open a forex demo account with real-life data to lock in your trades and exercise. A practice account offers you an accurate trading experience with simulated price movements.
2. Research The next important step is researching which currency pair you want to trade in. Many options are available on the forex market, though sticking with the major pairs is usually the safest option for beginners.
3. Make a strategy Use your research to learn how to trade in the forex market successfully and strategize accordingly. Decide on whether you buy or sell based on the research you’ve performed. For more info about an alternative strategy, read Spot Forex Trading: What It Is and How It Works.
4. Lock your trade Once you’re ready, lock in your trade and observe the behavior of price movements. Applying risk-management strategies is critical to maintaining optimum profits and experience.
5. Reflect Close your trade and reflect on your decisions. The key to success is to constantly evolve and learn from past experiences.

Need some help on choosing the right currency pairs for forex trading? Read our weekly forex forecast for expert insights.

Researching Forex Trading – 5 Things to Keep In Mind

Getting a firm grip on the basics and educating yourself on how forex trades work is critical to becoming a successful forex trader. Let’s take a look at some things every forex trader should know and research to be successful.

1. Have a Specific Goal

It is critical to have a specific goal in mind before you set out on your trading journey. Devote time and effort to learn forex trading and develop a strategy that aligns with your ambitions.

2. Learn the Best Times for Forex Trading

The forex market is constantly moving, and it remains volatile throughout the working day and week. As a beginner, knowing the best time to enter the market can be highly beneficial when trading forex. For instance, due to the large time zone difference, the market on the far east side of the world is active when the market on the far west is losing momentum. For a guide, the US/London markets are open from 8 am to noon EST, which is the best time for trading opportunities.

3. Choose the Right Broker

Choosing your forex broker according to your trading style and needs could significantly impact your trading experience. Newer traders might face difficulties trying to trade through complex brokers designed for experts. Thus, consider sticking to our recommendations for the best beginner brokers to have a great trading experience.

If trading forex on your own is a daunting prospect, consider the benefits of copy trading with one of the best copy trading platforms.

4. Develop a Risk Management Strategy

Try your best to maintain a positive risk management strategy to keep you ready for whatever might follow under the market’s volatility and fluctuation. Knowing when to close trades and when to buy them is vital to a smooth experience and for understanding the risk involved.

If you need some extra help, consider utilizing free and reliable forex signals.

5. Know That You’ll Always Have More to Learn

Be prepared to learn and educate yourself every step of the way as there is no one who doesn’t have room to improve, even the experts. This includes trading methods, tools, market behaviors, and staying updated with the latest trends and news. This is one of the essentials of being a good forex trader as you’re slowly transitioning to an intermediate level.

Becoming a Forex Trader

One can conclude that nothing beats experience, especially when it comes to online trading. In this aspect specifically, forex trading is no different from other types of trading (i.e., stocks or crypto). Setting your goals before locking in trades and following a consistent trading strategy is crucial when trading with currency pairs.

It’s worth mentioning that new traders and beginners would need to devote their time and resources to educating themselves on the expansive world of forex. Making money through forex trading is not for everyone, but if you put the effort into getting a firm grip over the basics, you can turn substantial profits from calculated risks and carefully placed trades.

The global financial markets can suck you down the rabbit hole, especially when zero-commission trading is at your fingertips. First, you may have started trading meme stocks on Robinhood. After your quick profits, you turned your attention to puts and options. Nowadays, you are interested in forex and crypto trading.

The global forex market trades approximately $6 trillion per session, making it the most volatile and liquid segment of the international marketplace. Meanwhile, from Bitcoin to Ethereum to Dogecoin, cryptocurrencies maintain a market capitalization of roughly $2 trillion.

But what if you merged the world of crypto and forex trading?

Well, you would have Bitcoin forex trading! Can you trade crypto on forex and sign up for a crypto forex trading platform? Yes, and yes. So, let’s get acquainted with this innovative world.

What Is Bitcoin?

Bitcoin is a peer-to-peer decentralized virtual currency free of a central bank or governmental oversight. Cryptography and P2P software support the digital token, while a public ledger maintains a list of all Bitcoin transactions worldwide.

Cryptocurrency trading has become immensely popular in recent years, facilitated by the many trading platforms making it easy and affordable. For investors searching for quick profits, Bitcoin trading is great because of its enormous liquidity and vast volumes.

What Is Forex?

Forex involves buying one currency and selling another currency at the same time. Investors are actively speculating on how currencies will perform during a single session, throughout the week, or the year ahead. Be it the USD/CAD or the EUR/CHF currency pairs, you can trade forex 24 hours a day and 5 days a week.

Can You Trade Cryptocurrency With Forex?

For the most part, investors can trade crypto on forex.

Depending on the Bitcoin forex brokers, crypto assets will be offered as a Contract for Difference (CFD) derivative or a physical asset.

Your location could also be a hurdle since CFDs are prohibited in the United States, and the financial product is highly regulated in the United Kingdom. That said, investors have plenty of options elsewhere. So, for example, non-American and non-British users can access crypto CFDs on forex.com.

Some other exchanges you can consider joining:

• eToro
• Henyep Capital Markets (HYCM)
• Swissquote
• Saxo Bank
• AvaTrade

Benefits of Trading Forex With Bitcoin

• Strong security In an age of identity theft and data breaches, trading forex with Bitcoin does not require you to disclose your bank account or share credit card details. This is a pretty big deal, considering it cuts costs and improves financial security.
• Small deposit amount Investors can initiate their trade with a small sum of $25, depending on the crypto forex trading entity, of course.
• Low trading costs Many Bitcoin forex brokers have slashed their fees to attract new clients to their platforms.
• Global Market Although there are regulatory hurdles to overcome in the United States and the United Kingdom, trading forex with Bitcoin is an international affair. Someone from New Zealand could execute a trade through a broker situated in Canada with no added difficulty.

Risks of Trading Forex With Bitcoin

• Volatility Volatility in the cryptocurrency realm could be a blessing for investors, or it could be a drawback. That said, when you are trading forex with Bitcoin, the enormous level of volatility could negatively affect a trader since an unregulated broker could slap the lowest possible rates on inexperienced traders. Afraid of falling victim to volatility? Read our free daily forex signals.
• Exchange rates Bitcoin and other cryptocurrencies trade on many different exchanges, so the exchange rates could vary across the landscape of even the best Bitcoin brokers. Therefore, it is imperative that investors understand what the best forex brokers will be utilizing to monitor Bitcoin exchange rates.
• Expecting the unexpected Cryptocurrency and forex are different asset classes, and each possesses its own type of valuation system. As a result, by blending the two investment vehicles, you are potentially setting yourself up for unforeseen circumstances. This is especially true when you consider that crypto is still relatively new. While you can never really know where the forex market might go with 100% certainty, you can certainly predict future forex forecasts.
• Leverage A growing number of forex brokers are choosing to extend to clients leverage for Bitcoin trades. For experienced traders, this is a positive tool to have at your disposal. However, for neophytes, this appealing perk could lead to massive losses. Caution is crucial!

Legal Implications of Trading Bitcoin With Forex

The legal implications will vary based on where you live.

In the U.S., CFD products are banned. In multiple jurisdictions, Bitcoin is not considered a security but rather a commodity. Great Britain’s Financial Conduct Authority (FCA) prohibited bitcoin CFDs in January 2021.

Meanwhile, alternative forex brokers have been adding Bitcoin and the myriad of other cryptos onto their platforms, but the legal effects are a bit cloudy since they are not Bitcoin-based, and you can trade other currencies.

Should You Trade Bitcoin With Forex?

Trading Bitcoin with forex is always a risk, as are all decentralized virtual currencies.

Be it security concerns or intense volatility, there are many risks to trading Bitcoin. When you add forex to the mix, the probability of coming into danger increases. Therefore, it is imperative to always consider your risks, perform a cost-benefit analysis, and do your due diligence. By doing this, you can ensure that you can effectively manage and avoid risk.

By minimizing your exposure to financial peril, you can almost guarantee that you will not fall victim to large losses and manage to turn a handsome profit. Trading Bitcoin with forex can be incredibly lucrative, so long as you know what you are doing.

As a practice, day trading is adored by millions of traders worldwide thanks to the quick trade results you can get, as well as the potential flow of substantial profit. Not just that—the thrill of day trading lies in the volatility of the highs and lows of a trade during the 24-hour timespan.

Some volatile stocks, namely currency pairs, cryptos, and specific stocks, can move an astonishing 500+ pips on a single day with ease. It’s perfectly reasonable to understand why day trading, specifically with cryptocurrency, is growing in popularity everywhere.

However, let’s not forget that high volatility also means drastically increased risk. These types of assets, like BTC and ETH, for example, can easily blow up your trading account if you fail to manage risk appropriately. It’s vital to grab a good hold over the basics and keep a general know-how of advanced technicalities involved in day trading. Continue reading to learn more.

What Is Day Trading?

Simply put, day trading is a type of trading where traders buy or sell an asset for a short period (typically 24 hours) to catch some profit on quick market movement and take a fair share from the market. Unlike swing trading, day trading does not involve long-term predictions, and the trader either makes a profit or a loss by the end of the day.

Steps to Begin Day Trading With Bitcoin

Since Bitcoin is widely popular among day traders, most brokers offer crypto pairs to trade, making it quite simple to start crypto day trading. That being said, due to the volatility in question, it is highly recommended to go with a broker that makes your trading more manageable, not confusing you with hidden commissions and an excessive spread.

You should consider the following points when choosing a broker for cryptocurrency day trading:

Spread

The spread is the difference between the sell rate and the buy rate for a specific trading pair (market rates). Basically, the broker deducts the spread from your account as a commission for providing you with the opportunity to trade on their platform. At most platforms, the spread increases with volatility, and therefore, it’s recommended to select a broker that offers a minimal spread, especially since cryptos are highly volatile.

Commissions

Just like spreads, commissions are a direct deduction from your profit, and they might be fixed or variable depending on the broker in question. For example, for every trade that you execute, you could be deducted a fixed—let’s say $5—or dynamic amount that reflects your lot size, leverage, and profit, among other factors.

Convenient Banking and Flexibility in Withdrawals and Deposits

Trading requires a lot of energy and dedication, especially day trading, where you have to regularly analyze charts for your favorite assets. If you don’t trade at a flexible platform, it will

negatively affect your performance. Imagine spending hours and hours on getting a profit, only to have your dreams crushed by the withdrawal time needed.

So, with the main points put aside, let’s take a peek at what you should look for in a broker to start cryptocurrency day trading.

Best Brokers for Cryptocurrency Day Trading

Currently, there exist plenty of brokers offering great cryptocurrency day trading opportunities and prospects for just about everyone. For instance, Plus500 and eToro are known for being reputable cryptocurrency brokers and providing a flexible trading environment with low spreads, which is great considering that most of the brokers out there usually charge large sums.

It’s also worth mentioning that the best Bitcoin brokers do not charge hidden commissions and have a robust deposit and withdrawal system in place. In this context, AvaTrade is a great trading platform suitable for beginner and intermediate traders alike.

Next, it is vital to understand how risk management works in cryptocurrency day trading. Here are our two cents on how to manage risk effectively:

• Start small Being a newbie, you don’t need to start with a lot to trade cryptos. Start with the minimum required, and once you are confident in yourself, you can take a step further and deposit larger amounts of money into your account.
• Listen to the market Another piece of advice is to follow the overall market sentiment. Although it’s not always right, nor does it guarantee a profit, it’s often regarded as one of the least risky indicators to follow.
• Use multiple tools Consider using a wide range of apps and software tools to help you learn. This means using both simple and complex market analysis tools, some of which might be available at cryptocurrency exchanges.

Useful Tips

Here are some helpful tips you can use before locking in your first trade.

As a first note, we’d like to make sure you learn the rules of technical analysis and decide your strategy. There are a lot of strategies that you can apply to ace cryptocurrency day trading. Some are:

• Demand and supply zones Where traders expect intense price action on specific market zones.
• Patterns Learn to identify patterns on the chart like ascending or descending triangles and channels.
• Monthly Levels When the price hits a monthly or weekly resistance level, traders expect strong rejection and usually sell the asset. The same goes for support levels where you buy & hold a long position.
• Signals and forecasts Following and listening to forecasts of Bitcoin and other cryptocurrencies by experts can remove a lot of the stress and uncertainty.

Namely, there are a lot of day trading strategies that you can apply to cryptocurrency—the main thing is that you keep learning new ones with time and experience.

The Pros and Cons of Bitcoin Day Trading

Here are some pros and cons of cryptocurrency and Bitcoin day trading

Pros

• High volatility, meaning higher profits
• Short trades, so you will have your profit report at the end of the day
• Easy to trade with, as there are no daily economic reports by a central authority
• Able to trade forex markets with Bitcoin

Cons

• High volatility also means drastically higher risk
• Trade every day exposes you to bad market days
• You never know how much movement to expect

How to Give Yourself the Best Chance at Success

We can conclude that it is easy to start crypto or Bitcoin day trading, even with meager amounts at reliable brokers. However, before you jump into trading with real money, we recommend first creating a demo account for practice.

So, make sure to do your research, learn new tactics, and keep applying your strategies in a demo account. Then, once you are confident with what you’ve got going, start with a minimum deposit and try out your skills.

If you are a beginner, don’t try to get rich overnight and trade with rough lot sizes. Most likely, you will run empty sooner than you think. Instead, set modest and attainable targets, so you’ll trade with discipline while sticking to a plan.

Have you contracted the gold bug yet?

During every economic downturn, inflationary environment, or global event, investors develop a lust for the yellow metal, be it physical bullion or mining stocks.

Like every other asset class, professional investors use a trading strategy when investing in the gold market and locating the best gold trading brokers.

Indeed, gold technical analysis is critical to buying and selling the precious metal. So, what type of indicators should you monitor, and what kind of signals should you be on the prowl for during each session?

Let’s make like gold and shine a light on this asset.

Why Should You Trade Gold?

In a world desperate for yield, should you even hold gold?

Opinions vary among financial analysts, but it is typically recommended that precious metals should represent about 10 percent of your overall portfolio.

Investors can depend on the safety and security of gold during times of upheaval and chaos, whether it is in the global financial markets or the rest of the world.

While a stronger greenback would, in theory, impact dollar-denominated metal commodities, gold’s appeal is in its inherent value. Not only is it an investment tool, but it also possesses many uses—it is a key component in automobiles and computers.

Meanwhile, you could even generate a yield while owning gold by taking advantage of the Gold Forward Offer Rate (GOFO). This is an interest swap rate for a gold-to-dollar exchange.

Indicators to Note When Gold Trading

When trying to select a single technical indicator, it can be a challenging feat as there are so many to choose from in the gold market.

Let’s take a look at a few:

Momentum

Momentum trading is a simple enough tactic employed by traders. You monitor the velocity of price movements and enter a trade as it picks up some steam. With this strategy, you are more focused on the speed and size of price changes rather than the actual price.

Relative Strength Indicator (RSI)

Another technical indicator you can utilize, even for forex gold signals, is the relative strength indicator (RSI). This essentially conveys if an asset is oversold or undervalued.

Put simply, an RSI reading of 30 or below shows if the security is in a state of being oversold. However, in an upward trend, which is what you want when trading, the RSI will stay above 30 and routinely touch 70.

Gold Market Indicator

Every week, the Commodity Futures Trading Commission (CFTC) publishes its Commitments of Traders report, which breaks down the open interest for futures and options on futures markets among hedge funds and money managers. The report highlights if the financial markets are net buyers or net sellers of gold and other commodities (wheat, soybeans, and silver, for example).

Here is how to access the data:

• Visit CFTC.gov
• Hit “Market Reports“
• Choose “Commitments of Traders“
• View the COT reports and filter the data based on what you want

If you want a complementary resource as well, you can also integrate the Daily Sentiment Index (DSI) into your gold trading strategy. It is a reliable short-term mechanism that gauges the temperature of gold markets by spotlighting the percentage of traders going long and short.

This can also add to your scalping strategy by determining if there is a shift in sentiment unfolding in real-time.

Important Indicators of Gold Fundamentals

The first couple of months of trading in 2022 have been quite interesting, especially in relation to gold, the greenback, and U.S. Treasurys.

Indeed, many factors in the broader financial markets can contribute to gold prices, but it is not guaranteed they will have the impact they generally possess.

US Treasury yields have been soaring this year, with investors pouring into bonds amid rising interest rates. The buck has also held steady since traders are seeking shelter in traditional safe-haven instruments.

Gold is generally sensitive to a rising-rate environment because it lifts the opportunity cost of holding non-yielding bullion. A stronger greenback is also bearish for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.

However, what is fascinating is that gold is having a terrific start to 2022, despite these alternatives rising.

Meanwhile, inflation is through the roof in most advanced economies, particularly in the United States, where the consumer price index (CPI) is at a 40-year high of 7.5%. The producer price index (PPI) and the personal consumption expenditure (PCE) price index are also at multi-decade highs.

When inflation runs hot, investors try to find investment vehicles that shield their net worth and protect their purchasing power. Gold—and any tangible asset for that matter—has historically been the product consumers purchase.

Is Trading Gold Worth It?

There is a joke among the metal bulls that gold is in a 5,000-year-old bubble.

In the end, with thousands of financial products to choose from in the global marketplace, is gold an antiquated asset, or does it still provide value to the public?

Put simply, with enough expertise, time, and understanding of how gold technical analysis works—or even why gold is a critical asset—you can feel confident in owning a gold ETF or physical coinage and bars.

Gold does not erode; the precious metal maintains its value over the long term. And, in a world where monetary expansion has been astronomical, gold does not depend on other currencies to remain a valuable resource.

Gold is certainly a worthwhile investment to hold for the rest of your life.

From being used as an accessory in the fashion industry to luxury dining, gold is sought after for many reasons. In fact, this precious metal is incredibly useful for industrial applications, too, primarily thanks to its unique properties.

Besides its demand due to its uses, another factor that drives up the demand for gold is its long-term investment value. People and institutions alike see gold as a stable long-term investment—and for a good reason too. Unlike fiat currency, gold does not lose value over time, which is why it is seen as a hedge against inflation.

So, now we understand why gold has such high demand worldwide, but is global gold production enough to keep up with the demand? Well, the answer is not that simple. Gold production around the world has been stagnant for some time due to the rising costs and risks of mining.

In addition to these, there are also other factors that affect the price of gold. Let’s take a look at them in a bit more detail.

4 Factors Influencing the Price of Gold

1. The US Dollar

There is a strong relationship between the price of gold and the value of the US dollar. As the dollar gets stronger, the value of gold is kept stable and in check—oftentimes even falling. This is true, of course, if all the other factors that affect the price of gold remain unchanged. If this is one of the reasons why you’re looking into buying gold, you’re in for a treat—consider checking out some of the best gold trading brokers where you can purchase this precious metal with a click of a button.

In many cases, a weaker dollar results in the price of gold getting higher. This is due to the increase in demand as more gold is being purchased while the dollar weakens. This inverse dynamic between the US dollar and gold is precisely why people love to buy gold as a long-term investment. Inflation devalues all currencies over time, whereas the price of gold either remains stable or occasionally goes up.

2. Volatility in the Market

Volatile markets are one of the major factors that affect the price of gold. As the markets get less secure and investors look for more secure investment options, they turn to gold as their “safe bet.” This is because gold does not suffer negatively from a volatile market as the weakening currency only causes it to gain more value.

3. Supply and Demand

As we discussed briefly before, there is a great demand for gold. It is used in pretty much every industry, and it is irreplaceable for many of its applications. This means that there is always a high demand for this precious metal. But the real question is whether or not the supply of gold is enough to supplement its demand.

That question is quite difficult to answer as there are many variable factors. Global gold production has been stagnant for some time, and the reason for that is the lack of easy access to gold due to years and years of mining. The gold ore being mined now is more expensive than in the past, primarily due to higher costs in the mining and refining process.

4. Currency Devaluations

As currencies lose value over time, there’s a point where they’re no longer used as long-term investments. The possibility of this happening makes gold a very attractive alternative to fiat currency for long-term investment. This is primarily why gold is internationally used as a hedge against inflation, and as the demand for gold increases, so does its price.

What Will Happen to the Price of Gold in the Future?

Like all things, the future price of gold can only be predicted by looking at the current and past trends. When the markets are strong and inflation is under control, the variable and unfixed demand for gold falls.

On the other hand, the investment demand for gold may fluctuate year-to-year, so the demand for gold from the industrial sector is likely to increase. This, combined with the fact that the supply of gold is bound to slow down over time, means that the price of gold will most likely increase over the long term. Now, of course, there is always the possibility that newer technologies may allow for more efficiency in gold production, but the possibility of this happening is low.

Thinking about trading gold? Read either the Best Indicators for Gold Trading or our Beginner’s Guide to Gold CFD Trading.

If you live outside the United States, you might be interested in adopting a CFD trading strategy.

But what is a CFD anyway?

A contract for difference (CFD) is an investment strategy that involves trading on the price movement of stocks, commodities, cryptocurrencies, and forex without actually owning these assets.

And, if you have become intrigued by the gold commodity, you can combine CFD and gold trading in the same way that you can combine Bitcoin and CFD trading. Read on to learn how.

Step-By-Step Guide to Gold CFD Trading

So, where do you begin when you want to learn how to trade gold? This is a step-by-step breakdown of the process of becoming acquainted with investing in gold stock.

1. Familiarize Yourself With Gold

There are many ways to trade the precious metal, from physical ownership of bullion to buying gold exchange-traded funds (ETFs) to tapping the futures market. There are many investment vehicles to utilize for your gold trading endeavors.

It’s also crucial to understand the factors that affect the price of gold.

2. Create a Gold Trading CFD Account

After you have equipped yourself with the knowledge of gold CFD trading, you then need to select a broker and create an account. You want a broker that offers competitive fees, a terrific trading platform, and helpful customer service. To help you decide, read through our list of the best gold brokers.

3. Practice with a Demo Account

When you are searching for the best brokerage account, you should also find a website that affords you the opportunity of using a demo account. These are practice accounts that do not use real money but rather allow you to test the market.

3. Find Your Indicator

Do you have a strategy going into gold? Whether you are day trading or picking your spots for a long-term hold in the stock market, you need to participate in technical analysis and chart studying. The Relative Strength Index (RSI), reverse candlestick formation, and the exponential moving average (EMA) are some of the gold trading indicators you can use.

4. Be Patient

Be it your XAU stock holding or your push into Barrick Gold, too many investors—especially the younger ones—are too emotional. While you are putting your hard-earned dollars and cents into the stock market, you need to be confident and casual about the entire process.

Tips and Advice for Gold Trading CFDs

So, now that you are convinced that you need to add some gold symbols into your trading portfolio, what are some technical things you need to know?

Know When to Pick Your Spots

Typically, if you are day trading gold options or spot gold, you want to do so when there is plenty of activity. Therefore, based on volume data, the best time to trade the price of gold is between noon and 8 pm London Time. For many investors, this might be pre-market or after-hours, so you might need to adjust your trading practices.

Now, if you are looking to accomplish the Trading 101 endeavor of buying low and selling high, you might want to think about the month of March. According to trading data since 1975, the gold price typically falls in March, followed by April.

Also, if you are day trading CFD gold, your best timeframe is between 9:30 am and 11:30 am. This is the period with most price activity, particularly for day traders.

Pay Attention to the News

The news avenues you should pay attention to are:

• The Federal Reserve holding its monthly Federal Open Market Committee (FOMC) policy meeting
• The latest U.S. inflation data
• Mining companies warning about a supply deficit
• A military conflict that could have devastating consequences
• A weaker U.S. dollar and Treasury yields

It is all these little things that add up and can make a crucial difference in how you trade gold CFDs.

Is Trading Gold CFDs Profitable?

From gold ETFs to gold CFDs, trading the yellow metal is one of the most profitable investment endeavors to embark upon.

Indeed, gold is not only a safe-haven asset, but it is also a terrific mechanism to generate short-term profits. As long as you know how and when to trade the precious metal, it can be a worthwhile pursuit for your portfolio.