Forex trading surged during the pandemic. The rise of cryptocurrencies attracted many individuals into crypto trading, which has also increased their exposure to the Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term market.
What is contributing to the higher interest in forex trading is technology. As forex trading is becoming more accessible via mobile applications, younger traders are showing interest in the market.
In Nigeria for example there has been a 46% increase in female forex traders in recent years. Crypto trading in Nigeria is mainly used by businesses rather than by speculators despite actions by the central bank to restrict cryptocurrencies. Nigerians use peer-to-peer platforms to covert their cryptos to fiat currencies.
In the UK there has been a 23% increase between 2020 and 2021. It has been estimated that at least 33,000 have traded forex for the first time. In Asia there has been a surge in demand for cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
Read this Term and NFTs.
Terra Luna
The decimation of UST and Luna will have a significant impact despite the proposed fork. Crypto traders may reduce their exposure to cryptocurrencies and turn to traditional instruments instead including stocks and forex.
Crypto ETFs may benefit additional attraction for cryptocurrency exposure rather than spot trading.
In order for traditional brokers to adapt to the digital era, creativity and innovation is required. Brokers that fail to adapt risk being left behind. The first alarm bell is consistent decline in monthly/quarterly trading volumes.
Below are several topics to consider for penetrating the Asian markets.
Advertising in the Crypto Space
The Asian market is very interested in the metaverse. JPMorgan was the first US investment bank to realize the opportunity that is offered in the virtual worlds.
Kookmin Bank (South Korean payment provider) made its presence in the metaverse, offering 1-1 consultation services to potential clients. HSBC and Sokin are also among the financial services institutions to dive into the metaverse.
Among the benefits of entering the metaverse is branding. Thousands of potential clients may be acquainted with the broker and have the ability to offer customer services in the virtual platform.
There are many metaverse platforms available in today’s markets that appeal to either Asia, Europe and US markets. Choosing the appropriate platform that may provide the best results in terms of conversions does require a strategy.
Investing in DeFi Projects
Many financial services have setup institutional funds for investing in DeFi projects at their early stages. To target a specific market, some DeFi projects are designed for the Asian market.
By partnering with a popular DeFi project, the brand name of the broker will be listed in the project’s website. Binance is very successful in doing so but forex brokers have yet to shoe their presence in the DeFi sector.
Brand reputation is crucial in today’s markets as competition rises. There are numerous sectors within DeFi that may allow to the broker to reach its target audience.
Forming partnerships with DeFi projects may also contribute the brand’s reputation and offerings.
The Benefits of Forex Trading Vs. Crypto
The Foreign Exchange market has been around for many years as opposed to cryptocurrencies. The forex trading volumes are significantly higher.
At the time of this writing we are witnessing a large sell-off in the top cryptos such as Bitcoin and Ethereum. While it is true profits may be earned in perpetual contracts, the selling pressure may cause traders to diversify their portfolio.
Some may prefer NFTs but an opportunity for forex trading may be presented. In forex trading there is no ‘contract tax’ for buying and selling, no rugpulls, no concern with the project being discontinued, some form of insurance in an event the broker halts its operations (only regulated brokers) etc.
Collaborating with Known NFT Artists
The Asian market is highly interested in NFTs according to recent studies. A forex broker that wishes to maintain its stand in today’s markets must consider collaborating with known NFT artists.
Fortunately, certain NFT artists are more popular in Asia than in Europe for example. Geotargeting the audience may therefore be achieved by researching the artists’ popularity per region.
The benefits of partnering with a reputable artist is significant PR. The NFTs can be distributed to clients that meets a criteria that is set by the broker.
Carry Trading Vs. Staking
As central banks scramble to contain inflationary pressures, higher interest rates will bring back traditional carry trading strategies in the Forex market. Until recently interest rates remained near zero, which almost eliminated the attractiveness of carry trading.
Staking cryptocurrencies requires locking the tokens for a certain period of time. In forex, traders may liquidate their positions at any time without being subject to a ‘sell tax.’
Highlighting the benefits of carry trading may appeal to Asian investors and traders.
The above of are some of the steps forex brokers must consider implementing in order to remain above the water in 2022. Integrating financial blockchain technology into traditional platforms may be the future of online trading.
Artificial intelligence trading tool that is based on blockchain technologies is among the features that may appeal to numerous forex traders in the years to come.
Forex trading surged during the pandemic. The rise of cryptocurrencies attracted many individuals into crypto trading, which has also increased their exposure to the Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term market.
What is contributing to the higher interest in forex trading is technology. As forex trading is becoming more accessible via mobile applications, younger traders are showing interest in the market.
In Nigeria for example there has been a 46% increase in female forex traders in recent years. Crypto trading in Nigeria is mainly used by businesses rather than by speculators despite actions by the central bank to restrict cryptocurrencies. Nigerians use peer-to-peer platforms to covert their cryptos to fiat currencies.
In the UK there has been a 23% increase between 2020 and 2021. It has been estimated that at least 33,000 have traded forex for the first time. In Asia there has been a surge in demand for cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
Read this Term and NFTs.
Terra Luna
The decimation of UST and Luna will have a significant impact despite the proposed fork. Crypto traders may reduce their exposure to cryptocurrencies and turn to traditional instruments instead including stocks and forex.
Crypto ETFs may benefit additional attraction for cryptocurrency exposure rather than spot trading.
In order for traditional brokers to adapt to the digital era, creativity and innovation is required. Brokers that fail to adapt risk being left behind. The first alarm bell is consistent decline in monthly/quarterly trading volumes.
Below are several topics to consider for penetrating the Asian markets.
Advertising in the Crypto Space
The Asian market is very interested in the metaverse. JPMorgan was the first US investment bank to realize the opportunity that is offered in the virtual worlds.
Kookmin Bank (South Korean payment provider) made its presence in the metaverse, offering 1-1 consultation services to potential clients. HSBC and Sokin are also among the financial services institutions to dive into the metaverse.
Among the benefits of entering the metaverse is branding. Thousands of potential clients may be acquainted with the broker and have the ability to offer customer services in the virtual platform.
There are many metaverse platforms available in today’s markets that appeal to either Asia, Europe and US markets. Choosing the appropriate platform that may provide the best results in terms of conversions does require a strategy.
Investing in DeFi Projects
Many financial services have setup institutional funds for investing in DeFi projects at their early stages. To target a specific market, some DeFi projects are designed for the Asian market.
By partnering with a popular DeFi project, the brand name of the broker will be listed in the project’s website. Binance is very successful in doing so but forex brokers have yet to shoe their presence in the DeFi sector.
Brand reputation is crucial in today’s markets as competition rises. There are numerous sectors within DeFi that may allow to the broker to reach its target audience.
Forming partnerships with DeFi projects may also contribute the brand’s reputation and offerings.
The Benefits of Forex Trading Vs. Crypto
The Foreign Exchange market has been around for many years as opposed to cryptocurrencies. The forex trading volumes are significantly higher.
At the time of this writing we are witnessing a large sell-off in the top cryptos such as Bitcoin and Ethereum. While it is true profits may be earned in perpetual contracts, the selling pressure may cause traders to diversify their portfolio.
Some may prefer NFTs but an opportunity for forex trading may be presented. In forex trading there is no ‘contract tax’ for buying and selling, no rugpulls, no concern with the project being discontinued, some form of insurance in an event the broker halts its operations (only regulated brokers) etc.
Collaborating with Known NFT Artists
The Asian market is highly interested in NFTs according to recent studies. A forex broker that wishes to maintain its stand in today’s markets must consider collaborating with known NFT artists.
Fortunately, certain NFT artists are more popular in Asia than in Europe for example. Geotargeting the audience may therefore be achieved by researching the artists’ popularity per region.
The benefits of partnering with a reputable artist is significant PR. The NFTs can be distributed to clients that meets a criteria that is set by the broker.
Carry Trading Vs. Staking
As central banks scramble to contain inflationary pressures, higher interest rates will bring back traditional carry trading strategies in the Forex market. Until recently interest rates remained near zero, which almost eliminated the attractiveness of carry trading.
Staking cryptocurrencies requires locking the tokens for a certain period of time. In forex, traders may liquidate their positions at any time without being subject to a ‘sell tax.’
Highlighting the benefits of carry trading may appeal to Asian investors and traders.
The above of are some of the steps forex brokers must consider implementing in order to remain above the water in 2022. Integrating financial blockchain technology into traditional platforms may be the future of online trading.
Artificial intelligence trading tool that is based on blockchain technologies is among the features that may appeal to numerous forex traders in the years to come.
Source: https://www.financemagnates.com/forex/penetrating-the-asian-markets-what-forex-brokers-must-do/