Online trading and Coronavirus: bitcoin and currency alerts
The health emergency returns to hit Europe heavily, with a winter that promises to be really problematic. The numbers on infections and deaths are increasing in all EU countries and in the United States with strong repercussions on the financial markets, despite the rise mainly due to the approach of the Pfizer-Biontech vaccine , followed by the agreement with the European Union for the production in 2021 of over 200 million doses.
That was enough to bring back the VIX index, an indicator that measures the volatility of the markets, from 40 to 23 points, with the main world stock exchanges celebrating and moving upwards. However, the uncertainties on the global economy continue to keep the attention of investors high, although the ECB and the Fed have confirmed their intention to continue in 2021 with the activity of Quantitative Easing combined with interest rates at historic lows .
Meanwhile, the interest of traders in Forex and cryptocurrencies is rising , with the currency market returning to investment strategies thanks to the high volatility of this period. In the same way, the development of Bitcoin does not seem to want to stop, a trend that is also favoring other cryptocurrencies such as Ethereum, Litecoin and Bitcoin Cash. On the other hand, the fall in the price of gold continues , falling after the announcement of the American vaccine, while oil is recovering due to a possible recovery of the economy in 2021.
The trends of the moment for online trading
In 2020, online trading underwent strong growth, favored by the low yields of government bonds and the main savings instruments, following the trend that began in 2019 with the increase of over 80% of authorized brokers according to Consob data. Italians are investing more and more independently , managing their capital personally, taking advantage of the greater accessibility and simplicity guaranteed by online trading.
In any case, it is also necessary to invest in professional training , starting from reading economic and financial news and studying free resources, such as the guide that explains how to trade online proposed by the specialized site BorsaInside.com . In particular, to invest in an informed way, it is necessary to learn technical and fundamental analysis, to learn how to make reliable forecasts and correctly interpret the indications coming from the financial markets.
The volatility dictated by the Covid-19 pandemic is leading many traders to prefer short-term trades, an approach that allows them to take advantage of price fluctuations without excessively exposing themselves to long-term risks. However, the imperative remains the diversification of investments, a useful method to minimize risks , always setting stop losses to control positions more efficiently.
The boom of cryptocurrencies and the exploit of Bitcoin
If Forex is confirmed as the most popular sector by independent traders at the moment, cryptocurrencies are an increasingly present asset within the portfolios of private investors and major international funds. Obviously, it is also possible to buy cryptocurrencies , with the aim of making long-term investments and betting on rising prices , orienting oneself with advice on how to buy bitcoin according to meteofinance to get the opinion of experts before moving.
In this case, the options available are mainly two, contact a cryptocurrency broker or a specialized exchange, in both cases also activating a digital wallet and relying on professionals for the protection of the cryptographic keys to access the wallet. Without a doubt, buying Bitcoin is not a very simple operation, however, ongoing financial speculation is increasing investment opportunities.
The surge in the price of the most important cryptocurrencies is making them extremely interesting assets , obviously considering all the risks inherent in this type of investment. It is no coincidence that cryptocurrencies are increasingly present in investment funds, with thematic portfolios built exclusively on cryptocurrencies and several international hedge funds that have replaced these assets with oil and gold contracts.
What to expect from the financial markets in the coming months
Most traders are waiting for signals from the financial markets , indications that remain quite uncertain at the moment, although central bank policies are ensuring some stability. It is evident that the event that can change the cards is the arrival of an effective vaccine , in particular the mass vaccination of the population to ensure the recovery of the world economy and the return to pre-crisis growth rates.
Being able to identify the right moment will be a real challenge for private and institutional investors, however it is undeniable how traders who know how to anticipate trends will be able to have a considerable competitive advantage. Just think of the historically low prices of airlines, some banks and energy companies, prices that could skyrocket with the resumption of industrial production and consumption .
Meanwhile, there is no shortage of opportunities, thanks to the possibility of speculating on short-term volatility through CFDs and online trading, however for the long term it will be necessary to focus on the sustainability of investments . In this case, many managers are using ESG criteria as an evaluation parameter, paying greater attention to ethical, environmental and social aspects in the analysis of listed companies in which to invest, strengthening the solidity of the portfolio to pass unscathed any crises that could break out before the arrival of the vaccine.
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The article Trading online and Coronavirus: alerts on bitcoin and currencies comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/trading-online-e-coronavirus-alert-su-bitcoin-e-valute/ on Sun, 29 Nov 2020 09:03:29 +0000.