(MENAFN- MENAFN.COM)
When you think of investing, stocks and shares are likely to be the first things that come to mind. Owning part of a company and earning yourself a slice of the profit via dividends.
However, they’re not the only thing you can invest in, and one of the alternatives you can invest in is currency, and now more than ever. But like stocks and shares, prices rise and fall so it’s all about buying low, selling high, and making a tasty profit. But you have to assess the risks before you go down this avenue because there is always that chance you could lose all your money.
Traditional Currencies
So it may sound strange investing in traditional currencies, but it is possible. Much like shares, you just purchase a particular currency, and this can be done both online or at a physical location like a travel exchange bureau. The idea is to buy when a currency is at its lowest, and wait for it to rise, cashing out before it starts to drop again.
So, for example, currently the exchange rate for GBP to USD is £0.77 for $1.00. However, it has been much better in the past before the world saw a global recession. In fact, it was at that point where you could get $2.00 for every £1.00 you invested. Then when the financial crisis hit, this all went up in the air and the value of GBP fell and left people losing a lot of money.
But, there are ways around losing money by just swapping between two currencies, and it does become more complicated. Because you may get something along the lines where the GBP/EUR exchange rate may not be great, but USD/EUR could be high. So you purchase USD with GBP, then use your new USD to purchase the EUR instead. Allowing you to get the best value for money.
It’s one reason why when you bet with some sports betting websites, you may have different currencies for your deposits and withdrawals. It may not seem that big a difference, you normally don’t lose or gain too much because of it. But it’s a way the sportsbook sites make money even when they’re paying you out, because they can make money from the exchange rates. Minimising their losses. And this is why we recommend, if investing in sports events, do it at the top sportsbooks websites.
Another additional advantage when investing in sports betting is the bonuses that we can get in the different sportsbooks. If we want to invest in these bonuses, it can be done by different payment methods and also using different currencies.
Cryptocurrencies
Cryptocurrencies are now where it is, and people can make a lot of money on these, but they are again not risk-free. But unlike traditional currencies, the rewards can be much greater.
One of the biggest and most well-known cryptocurrencies is Bitcoin. An online currency that people mine using computers, that work on formulas and collecting data. And its popularity has seen people making a lot of money from investing, but the rise and falls of its value can be so extreme, and change so often, you can make or lose a lot of money before you even blink.
When first introduced in 2009, Bitcoin was worth almost less than nothing, but in 2010 the currency saw its value rise from $0.0008 to $0.08 for a single Bitcoin. Still not worth a lot, but it’s a massive increase in terms of it’s value. However, it was 2017 where Bitcoin took the headlines when it’s value hit a high of around $20,000 for 1 Bitcoin. Since then, it has fluctuated a fair amount but now averages between $7,000 and $9,000, with peaks and troughs appearing now and again. But it always seems to settle around that price range again.
For those who invested early, they made a lot of money. For those who invested late and at the peak value for the cryptocurrency, they lost a lot, and probably are holding on in the hope it rises that high once again.
This has caused many more cryptocurrencies to pop up since then, so it’s careful to be wary of what you’re investing in. Because the market has almost become flooded, and whilst nothing has hit the heights of Bitcoin, you can find some gems such as Ethereum which has seen some nice price rises.
Money matters
I think it’s safe to say that we've proven money still matters, and when it comes to investing in currencies, there are a few ways to go about it. But it is important to repeat again, it’s not risk-free and there is a chance you can lose a lot. So make sure your money matters by researching and monitoring currencies to see what kind of things may come up that can inspect values.
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