If there is anything that the recent pandemic outbreak brought to light, is our jobs are not guaranteed, you might wake up one day and find yourself jobless. Secondly, with most people working from home, there are many avenues to make a bit more money than we usually do in a month. Finally, we are already well equipped and can utilize these avenues to our advantage even with our busy schedules.
Therefore, whether you are tossed into needing an extra income due to the loss of your previous job or the need to cater to the added expenses because of the pandemic, this article will outline the principal financial investments you can venture into and what they entail.
Foreign Exchange Trading
One of the ways for you to make a lucrative financial investment is by getting into the foreign exchange market. Commonly known as Forex, this is a global electronic market where international currencies are traded against each other. Even though it has no physical meeting place, the forex market is the largest financial market globally, with an average of 6.6 trillion dollars daily traded volume. Copy trading is another concept that is taking the market by storm.
Forex trading is like other securities buying and selling, but its main difference is that Forex is done in pairs. When you trade-in Forex, you sell one currency and buy its pair, and profit is made if the currency you buy moves up against the money you sold.
However, it would be best to do your due diligence before getting into this market and nail down factors such as the currency pairs in the markets, the requirement needed, and how to trade. Additionally, since there are many markets around the globe, you should learn their operation times and all the factors involved in each market.
The Stock Market
The second way you could boost your income is to invest in stocks. The stock market, also referred to as the equity market or, better yet, the share market is a financial instrument that allows one to buy into a company’s equity. The stock market is also where the seller’s issuance of shares is done to the buyer. The marketplace is operated under defined regulations for financial transactions, whether physical or otherwise.
Although the terminologies stock market and stock exchange are often used interchangeably, they both carry different meanings. While the stock market is the trading place for buyers and sellers, the stock exchange is the subset of the stock market. Thus, the stock exchange is just a part of the stock market. Therefore, a region or a country may have one or more deals that make up their respective stock market. Hence there are five leading stock exchanges globally that are often categorized by region.
It is also important to note that there are 12 different types of stocks in which you could invest in which include; Growth Stocks, Income Stocks, Value Stocks, Common Stocks, Preferred Stocks, Small-cap Stocks, Mid-cap Stocks, Large-cap Stocks, Penny Stocks, Blue-chip stocks, Cyclical Stocks, and Defensive stocks.
The other financial investment you should consider to boost your income is cryptocurrency. A cryptocurrency is a virtual currency secured by a cryptographic algorithm for security purposes. It can be used as a form of payment for goods and services online. Cryptocurrencies use a technology called blockchain, which is a decentralized technology spread across computers that record and manage transactions.
Some of the cryptocurrencies in the market are Bitcoin, Ethereum, Dogecoin, and Tether. Thus, to get into the cryptocurrency world, you will need to buy the virtual currency and wait as the price rises or falls. If it raises and you sell your virtual currency, you profit, and the opposite also applies.
As you consider which platform to get on, there is a crucial factor that you should consider. The money market is volatile and the risks involved. Therefore, before getting in any of the three, please do your diligence in learning and mastering it.