Tuesday, December 7, 2021

Top 5 Cryptocurrencies To Invest In 2022

 

What are Cryptocurrencies?

Cryptocurrencies are virtual currencies. They cannot be counterfeited or double-spended and are secured by cryptography. Buying, selling, and transferring currencies between accounts can be performed as a transaction using cryptocurrencies. Cryptocurrencies are monitored by a network called blockchain technology.

All transactions are recorded on the blockchain network. Cryptocurrency Wallet operates as a software program. Private and public keys are essential to operate the software program. To transfer crypto coins or tokens to another person’s wallet, you partake in the process of transferring the ownership of the coins or tokens to the intended recipient by using the wallet address of that particular person. The private key is stored in your wallet. It should match the public address to which the currency is assigned.

A crypto wallet is a secure place to store your crypto and make payments using it when required. There are several different types of crypto wallets available, but the most prevalent crypto wallet types are hosted wallets, non-custodial wallets, and hardware wallets.

What are the top 5 cryptocurrencies to buy for big benefits in 2022?

The top 5 cryptocurrencies to buy now for big benefits in 2022 are as follows:

  1. Bitcoin

This is a top digital currency that can be purchased now for an individual to experience big benefits in 2022. Many major companies have started to accept payments via Bitcoin. Investors who have invested in cryptocurrencies have started to make huge profits as the price of cryptocurrencies is increasing.

 

  1. Ethereum

The capabilities of Ethereum are so dominating that it is developing potentials to outgrow Bitcoin in the following year. Crypto investors are investing in this cryptocurrency today so they can be benefited in the future. Investors who have invested in the Ethereum cryptocurrencies have started to make financial transactions and payments with this virtual currency.

 

  1. Solana

Solana is one of the top cryptocurrencies in the crypto wallets of crypto investors. Crypto wallet serves the purpose of a traditional wallet and helps to store cryptocurrency. It possesses some extra functionality that is specific to crypto. Crypto wallet enables users to send and receive digital currencies. The price of cryptocurrency is expected to have a long-term increase and a promising future in 2022.

 

  1. Polkadot

Polkadot is considered an emerging cryptocurrency. Because of the various solutions offered to crypto investors, this cryptocurrency is gaining massive growth in the near future. One of the prominent solutions provided includes bringing multiple blockchains under one unified network.

  1. Tether

Tether cryptocurrency has become the acceptable virtual currency in the financial market sector. This is considered a stable coin. This cryptocurrency tethers the value of the cryptocurrency to the price of the US dollar and is individually attached to the dollar. Hence crypto investors purchase these cryptocurrencies to invest in 2022 for acquiring profit without nerve-wracking about experiencing an enormous loss.

 

Final Words

With the recent improvements in cryptocurrency market capitalization, investing in cryptocurrencies has become an ambitious roadmap. These are clear indications that the investment adoption of cryptocurrency to diversify the portfolio will result in multifold returns in 2022. 

Monday, December 6, 2021

Powerful Gold Trading Tips for Every Trader in 2021


Gold, the yellow metal has long been considered as the king of all commodities. Many investors consider investment in this metal as an essential part of their portfolio. In this article, we will share the gold market fundamentals that you should know before trading gold. We also will share some powerful gold trading tips that will help you to generate good returns in 2021.

We always recommend you to use the services of a good broker while trading gold, stocks, or commodities. These brokers can give you some good gold signals and tips before entering the market. Gold is a fantastic commodity to start trading and one good investment option to diversify your portfolio.

What Causes Movements in Gold Prices?

Like any other market, price fluctuations in the gold market are caused due to changes in demand and supply. In times of recession, people look for safe-haven investment ideas, this causes more demand for gold. Investors rush to trade gold in order to decrease the losses caused in stock market trading or for the purpose of hedging their investment. This causes an increase in the price of gold.

Similarly, there are many reasons for the decrease in the price of gold. One major reason is the strategies and decisions taken by the central bank. In view of economic slowdowns, central banks sell off their gold reserves to boost the economy. This causes a good supply of gold in the market and that causes a downward fall in prices of gold.

Effects of Risk Aversion on Prices of Gold

The risk-on- risk off factors have a huge role to play in the prices of gold. As investors in case of a recession in the economy prefer low-risk instruments to hedge their assets. This causes a huge rush towards safe investments like gold. Risk aversion causes an increase in the prices of gold as the investors are seeking for this safe investment.

Can USD Impact Prices of Gold?

In the global economy, gold is priced as USD/Ounce. So it is very logical that the strength and weakness of the dollar will impact the prices of gold. To be specific we can say that gold prices increase when USD is sold, this is because gold becomes more expensive in this case. Alternatively, gold prices tend to decrease when USD is bought in large quantities.

Performance of Gold During COVID-19

Generally, gold performs well during a global economic crisis. In pandemics and epidemics, investors learn how to trade gold due to the safety of the investment. The stock market in this situation falls down resulting in a shift from risky assets to safe-haven investments. During COVID-19 gold prices broke the records and reached to its maximum limit initially. But subsequently, prices came back to normal.

Final Word

Gold signals are a good option to get all the updates about this market. This will help you to plan your investment and entry and exit strategies in the market.

Friday, November 26, 2021

New Variant of The Coronavirus May be More Resistant to Vaccines

  Botswana, South Africa and many other countries have recently announced a new variant of the new coronavirus, the unusual mutation of this virus strain has attracted the attention of many scientific researchers.  Botswana health officials on the evening of November 24 local time confirmed that a new variant of the new coronavirus has been detected in the country and is being studied.  

Thomas Peacock, a virologist at Imperial College London, recently stated that the newly discovered virus strain in Botswana is named B.1.1.529 and has 32 mutations, many of which can lead to  to stronger resistance to existing resistant vaccines

We provide Best Gold Trading Signals with technical and fundamental overview.


Thursday, November 25, 2021

The Best Strategy for Gold Investors

The pursuit of gold has led to murder and mayhem, wars, and an unrelenting fascination for much of history. Gold is so important that it has become synonymous with the word "wealth." But having gold nuggets, coins, or futures contracts does not mean your portfolio value is rising, or that it's safe. Let's explore gold futures, as well as usage in an investment portfolio.

Somewhere Over the Horizon

Most of the gold supplied to the market each year goes into manufactured products, with the remainder going to private investors and monetary reserves. Gold has a long history of use as currency or as a reserve backing for other forms of money. However, the gold standard is not currently used by any government, having been replaced completely by fiat currency.


Investing in the financial markets demands the ability to change perspectives over time. If gold bars or Krugerrands (a one-ounce South African gold coin) are purchased, then the physical possession of that gold remains the same regardless of the market price. Investment is a choice to risk capital with the hope of gain. Yet ownership is for the sake of ownership, regardless of any gain in price.


Diversification of a portfolio means varying the asset classes. Stocks are one asset class. Gold is another. Owning a company's stock means owning an equity stake in a company. The value goes up or down, changes with the market, and the paper certificates can be worth nothing. The value of gold goes up and down and changes with the market but is never worth nothing. Therein lays the major difference. You may not profit from owning gold, but at least you will own a desirable tangible asset, whatever the monetary value.


Portfolio planning also takes into consideration intent. Is the intent to increase wealth or to have gold, which can at any time be traded for food or shelter? Both goals can be accomplished with knowledge of the markets. Gold held for an emergency is different than buying a futures contract or stock in a gold mining company. Holding gold against an emergency does not necessarily increase wealth. Gold can be part of one's wealth, but it can decrease in value too.


Let's compare buying gold Krugerrands to buying another physical asset, such as a home. Whether the price of the home goes up or down, you still have a home to live in and it is part of your estate. Whether the price of gold Krugerrands goes up or down, you still hold them and they are part of your estate. Now let's look at buying shares of an exchange-traded fund (ETF) like the SPDR Gold Shares GLD (NYSE: GLD) (Figure 2). If the price goes down from where you buy it, you have lost money and the paper may even become worthless if market selling action greatly overshadows buying action. That said, ETFs are backed by tangible gold reserves, but the ETF share values are sensitive to technical (supply vs. demand) dislocations.

Gold Futures


There are two ways to invest in the gold market, either buying the physical commodity gold or buying a futures contract. Buying the physical commodity gold is to have ownership. Thus, although the price will fluctuate, ownership is final. Buying a futures contract or stock is speculation, where you do not own any gold but can make a profit.


A gold futures contract is a legally binding agreement for the delivery of gold in the future at an agreed-upon price. The contracts are standardized by a futures exchange as to the quantity, quality, time, and place of delivery. Only the price is variable. The contract refers to the commodity "gold." Gold stocks are not a commodity in this sense. Stocks of gold miners or related companies offer shares, but this does not represent any form of gold ownership.


Gold bullion is any type of gold product that is sold for the gold content. The price of gold bullion, in whatever form, follows the daily spot price of gold. The gold bullion market is international. The demand is global. Gold is being traded somewhere in the world at virtually every hour of the day.


The Golden Commodity


The phrase "flight to quality" usually refers to gold, which is often called the currency of last resort. The premise is that if there is an economic collapse and paper money becomes obsolete, gold will retain value. Currency is any form of money of any country, and money is anything that can be exchanged or bartered for something else, making gold the ultimate form of money during an economic recession.

If the desire is to have a commodity as an alternative medium of exchange, buy gold bullion. Foreign currencies do not replace gold because no country is on the gold standard. A purchase may require more or less gold, depending on demand, but gold is usually acceptable.


Gold stocks are not redeemed for gold. Gold futures contracts are seldom redeemed for gold. Buying into a gold fund or index does not mean you have possession of the commodity gold. Buying foreign currencies is not a substitute for the commodity gold.


Ownership of gold is accomplished only by purchasing gold bullion. Gold bullion is any type of gold product that is sold for the gold content. It can be gold coins, gold bars, or gold jewelry.


Trading Gold and Inflation


Money and gold may seem the same, and they can all be an equally acceptable currency, but they are different. Money is anything accepted as payment. Currency is often country-specific and is represented by paper notes issued by the government. It is money but it is not gold. Gold (as well as silver) is money and a medium of exchange. Gold can be a currency, but it is also more than that, as it is a tangible asset and the only investment not monetized by debt.


Gold and Currencies


The foreign exchange market (forex or FX) refers to the market for currencies. The foreign exchange market does not imply any representation of gold. It is plainly one country's currency against another. Fiat money is redeemable for nothing, while gold always retains its monetary status.


We provide Best Gold Trading Signals with technical and fundamental overview.


 

Wednesday, November 24, 2021

The Fed will raise rates for the first time in July 2022

 The Fed will raise rates for the first time in July 2022, the second time in November, and twice a year after that – Goldman Sachs


 “Chairman Powell and Governor Brainard have similar views on monetary policy,” Goldman Sachs (GS) in their latest analyst report welcomed US President Joe Biden's decision to nominate  Mr. Jerome Powell serves as Fed Chair for a second term and Richard Clarida for Vice Chairman.


 “Both believe that the current increase in inflation reflects transient (but not necessarily short-lived) factors, while stressing that the FOMC will use its tools to maintain  price stability if needed,” the US-based bank added.


 The GS also said, "Powell and Brainard have also highlighted that they look at a range of indicators to gauge progress in the Fed's broad and inclusive employment target, although Powell indicated in November.  that the goal of full employment may not be the same as pre-pandemic conditions."

We provide Best Gold Trading Signals with technical and fundamental overview.


Tuesday, November 23, 2021

9 Tips for Trading Gold XAU/USD

As forex traders seek out stable investments that can hedge against inflation, market instability, and other geopolitical factors affecting currency prices, gold has grown in popularity over the past few years. Traders can use gold as a way to hedge against other investments, or as a safe haven that provides consistency over time and is more resistant to dramatic swings in valuation than many other currencies are.


XAU/USD is one of a number of gold pairings forex brokers now offer, making it easier than ever to incorporate gold as part of your forex trading strategy. The stability of gold prices over time also makes it an important asset during inflationary periods such as the one we’re seeing today. 


As the COVID-19 pandemic shakes the global economy, foreign governments and savvy forex traders are moving more of their money into gold as a safeguard against losses resulting from inflation. Economic practices such as printing more money can weaken global currencies, depreciating their value in relation to stable assets such as gold. 


Gold’s stability is owed largely to its relatively fixed global volume, which can’t be dramatically increased in the same way that governments can print more paper currency. If you’re eager to make better use of gold and capitalize on potential profit opportunities, here are nine trading tips to keep in mind.




Day-Trade with the New York Close in Mind


Gold is a nearly 24-hour market, but peak liquidity is typically found during New York trading hours. Whether you should target trades during or after New York trading hours depends on your goals. 


Whereas trades during peak activity offer high liquidity and low volatility, making them good targets for safe-haven positions, off-hours trading can provide the extra volatility needed to execute scalping strategies. At the same time, this extra volatility increases the relative risk of any trade.


  1. Simplify Analysis by Targeting Previous Highs and Lows


Because XAU/USD tends to trade in a range, one of the easiest strategies is to identify buy or sell opportunities within previous highs and lows for the trading pair. Traders can open a position on gold when it’s trending up, for example, and target a previous high as their sell price, or vice versa.


Because gold is a relatively stable asset, it’s likely to reach these previous highs or lows over time. Note that this isn’t a good strategy for day trading, because it can take time for these targets to be hit, and range-bound strategies typically don’t offer quick profit opportunities like momentum strategies do. Still, it’s a relatively low-risk strategy designed to generate some profit off reliable XAU/USD price movement.


  1. Consider Geopolitical Implications on Currencies


When political or economic uncertainty creates concerns about currency prices, gold can be a stable safe haven that protects your liquid assets. 


Gold tends to be strongly correlated to the U.S. dollar, as well as other stable currencies such as Japan’s yen, and opening a position with XAU/USD can be a reliable means of protecting your assets from unpredictable situations affecting other forex markets.


  1. Use the Symmetrical Triangle for Analysis


The symmetrical triangle is a simple chart pattern that indicates a period of consolidation that may lead to a price breakout. Symmetrical triangles feature the convergence of two trend lines progressing at a similar slope, but in opposite directions. As consolidation takes place, price movement on the pairing grows tighter, creating a potential trading opportunity on a breakout.


Most traders use the symmetrical triangle pattern along with other technical indicators, such as liquidity or the relative strength index. When other indicators suggest a potential price breakout, the symmetrical triangle can add further confirmation and increase confidence in placing an order on XAU/USD. 


A stop-loss order can be placed just below the descending trend line after the two trend lines converge, and sell orders can be issued if the price of XAU/USD successfully breaks out.


Track Industrial, Commercial Demand for GoldIncreased market demand for gold can affect prices due to the fixed global supply of the material. Demand can come in multiple forms. Certain industries may increase their acquisitions of gold due to the material’s role in consumer projects. Both the medical and tech industries, for example, use gold in certain products and solutions.


Consumer demand for gold jewelry can also affect prices. Consider global demand in foreign markets where gold jewelry is considered both a luxury good and an investment asset.


  1. Monitor Central Bank Buying


Central banks tend to buy gold as a hedge when they’re anticipating volatility in certain currencies. Recently, for example, China and Russia made headlines for making significant investments in gold, which reflected their concern about the future price of the U.S. dollar and the euro, among other major global currencies.


When central banks start buying gold in large amounts, it tells forex traders two things. First, governments are operating out of a belief that major currency values may dip, which could encourage traders to move a greater percentage of their investments into less volatile funds.

Second, increased central bank buying typically causes an increase in the price of gold—at least in the short term. If gold prices start trending up, it could be an opportunity to turn a quick profit.


  1. Track Real Interest Rates


Gold has a well-documented correlation with real interest rates, with prices rising as interest rates decline and prices dropping as interest rates rise. The real interest rate is determined by subtracting the inflation rate from the nominal interest rate, resulting in a percentage gain or loss that takes inflation into account.


Historically, gold prices tend to rise when the real interest rate dips below 1%. By watching this interest rate as it changes over time, you can identify a strong buying opportunity—especially if you’re looking for long-term trading opportunities.


By contrast, a real interest rate above 2% likely deflates the value of gold. Many experts will recommend a sell on XAU/USD if the real interest rate reaches this threshold.


  1. Target Moving Average Crossovers

Because gold prices tend to fluctuate within a range, they will cause different moving averages to cross over on forex charts. Many traders will buy whenever a shorter-term moving average crosses a longer-term moving average. For example, if a 20-day moving average were to cross the price point for the 50-day moving average, it would signal a buy opportunity for long-term traders.


In the XAU chart below, for example, the 50-day moving average moves above the 100-day moving average in early April 2020—when the pandemic was starting to inflict significant damage on economies around the globe. Not surprisingly, this moving average crossover predicated a significant rise in the value of gold over the next few months:


The opposite is also true: If a short-term moving average were to dip below a longer-term moving average, traders using this strategy would likely sell in anticipation of continued losses.

There’s no exact science to which moving averages you should use to make these determinations, but it’s good to have a large gap between the two. The 10- and 20-day moving averages aren’t distinct enough to offer value in this scenario, for example. The 10- and 60-day moving averages, though, are a popular pairing for this strategy.


Pay Attention to Changes in Gold Production


In the past few years, gold mining hasn’t seen any dramatic shifts. It’s not necessarily related to a stagnant demand for gold: Although gold is in demand and has seen overall mining production increase over the past decade, today’s gold mining efforts face higher costs due to the challenges of accessing underground gold reserves in hard-to-reach places.


The most accessible gold reserves—at least the ones currently known—have already been mined and placed into the global supply. The remaining gold reserves represent much more expensive mining operations, which decreases profit potential for mining businesses. 


But limited production isn’t a sign that gold is poised for a decline. The opposite is true: Stable gold production could put the squeeze on global demand and lead to higher prices, especially if central banks and other common buyers of gold start seeking out this asset.


Conclusion


Although the price of gold is affected by different factors than that of typical forex currencies, many of the rules for evaluating forex currencies still apply. 

Forex traders should consider XAU/USD as a reliable safe haven for their investment activity, as well as a potential profit source if they can effectively analyze gold’s price movements and develop a trading strategy to capitalize on this opportunity.


We provide Best Gold Trading Signals with technical and fundamental overview.



Top 5 Cryptocurrencies To Invest In 2022

  What are Cryptocurrencies? Cryptocurrencies are virtual currencies. They cannot be counterfeited or double-spended and are secured by cryp...