Table of Contents
Online trading and investment is something that naturally appeals to people, you can be sat at home on your phone and trade thousands of pounds at the touch of a button with the possibility of making many more thousands in return. Unfortunately for the majority of people it doesn’t work out this way so before going any further it is important to mention that you should never invest anything unless you can afford to lose it. This isn’t only because you might not make a good investment but also because there is a rapidly increasing number of scams including Forex scams and Crypto fraud.
Cryptocurrency Trading
Trading cryptocurrency online really shot to prominence when BitCoin started to become well known, the price of it rocketed and people were reading every day about how someone had just made £200,000 from a £1,000 investment in it. By the time the general public started to buy it however it had peaked and started to decline so people lost quite a lot of money. On the back of this many other forms of cryptocurrency started up like Ethereum. There was a stage a couple of years ago when there were a new ICO (Initial Coin Offering) almost daily. It is possible to make money in this trading arena but it can be a bit more difficult as the majority of coins aren’t tied intrinsically to anything in the same way that traditional currency is. Traditional currency changes depending how a country is performing compared to others, its GDP, its debt level and many other factors.
Forex Trading
This has been around a bit longer than cryptocurrency and is effectively the online version of trading traditional currency. As we mentioned in the crypto section above, this is more predictable and is tied to a countries performance therefore you can do a lot of research and make more assured trades. If for example you noticed that America was on the verge of another financial crisis due to the amount of people defaulting on mortgages then you could place a trade to say that the Dollar will go down again the Euro. As Forex has been around longer it is also worth noting that there are a considerable number of Forex trading scams around so always beware of people selling you eBooks on how to make millions or potential phishing scams on websites.
NFT’s (Non-Fungible Tokens)
This is the newest form of online trading and something you will see many sports start and celebrities investing in. It is a biproduct of the cryptocurrency revolution. In its simplest terms an NFT is a digital item that you purchase using cryptocurrency, you then own that digital item using its own unique ‘fingerprint’. The most common form of NFT is digital art. This could be a signed version of the first tweet sent out on Twitter, it could be art by Damien Hirst or a cartoon by the creator of The Simpsons. You purchase it, you own it and then you can sell it again in an auction style meaning you could see the value of your art increase depending on whether it was a good investment at the time you bought it.
