On Forex and Digital currencies
“The forex market is the largest and most liquid market in the world” says investopedia.com, and they’re not the only ones to say so. It makes sense since the Forex Market is open 24/7, no opening or closing hours, and with all of the currencies that can be traded, and the very nature of fiat currencies, there’s constant ebs and flows, fluctuations, and patterns to make a profit… or a loss. It’s extremely liquid in nature. This reason has drawn many savvy investors to the foreign currency exchange market, but it’s not the only reason.
Another enticing factor about Forex trading, is that many brokers offer a higher rate of leverage than other markets (some as high as 1:1,000). This greater leverage allows for greater amounts of return, but also greater amounts of loss, and should only be used in respect to good risk and asset management.
And if that wasn’t enough, digital currencies now offer an even larger (and again, even more risky) factor, which can bring in even larger profits or losses. More on that later. But first… what is a digital currency? Well first let’s explore the different forms of money we’ve had over the years: First, we have tangible goods (including precious metals) that have inherent value. Second, we have fiat money which is supposed to represent those assets (sadly these are often devalued over time, and we see it time and time again throughout history). Third, we have fiat money which no longer represents anything, but debt owed to whomever prints it, yet it is legal and tender to use in transactions and to be exchanged for goods and services. And within recent history we have one more form of money…
Fourth… we have the advent of digital money, (digital urrency, tokens, altcoins, etc.) the biggest and most popular of which is Bitcoin. Digitalcurrencies are created and secured on new technology called a blockchain, which has helped to spark huge inspiration and growth in the Fintech Industry. Digital currency’s price is determined by the amount of tokens in circulation, which is usually determined by a process called mining (digital of course, not physical), and also often times has a cap of how much of the currency will ever be created. There are two types of digital currencies out there: the first of which is a digital token which is not backed by anything but the trust of the users, whereas the second is the attempt to back this new concept with physical commodities. This is a new branch of industry, some companies have failed in the past, and other’s press on, learning from their mistakes. DinarDirham for example, is doing this with our new DinarCoin, and our business model is hoping to negate the mistakes of past companies. Read this article to find out more about DinarDirham’s inner workings: Dinar Dirham Special Announcement.
Now I mentioned before that Digital urrencies add a third factor of potential higher profits and losses in the Forex Market (as it stands right now that is). Some forex brokerages are allowing for Bitcoins to be used for deposits, but not in a direct pairing for a trade, but rather, only for depositing or withdrawing funds. This, essentially adds a third currency to the mix that would have otherwise not been there. As a result, this thirdly introduced currency can have unforeseen losses (even if your initial trade made you profit), or even the possibility of giving you even higher profit in addition to your trading profit. More about the intricacies of that in this article. There are many other potential benefits and risks of choosing to use your Bitcoins to fund your forex account or to make withdrawals, you’ll find those in the article link above.
Saba Capital is DinarDirham’s Forex partner. They offer an MT4 (MetaTrader 4) platform through our main page, which means you can make your own detailed analysis of the market before you trade. You’ll be able to use it and execute trades from your your Apple or Android phone or from your PC. They also allow for making deposits and withdrawals with both Bitcoins and gold-backed DNC (DinarCoins) – which means you’ll have the possibility to cash out with an additional profit or to cash out directly with digital gold. You can see the features they offer on the DinarDirham main page, on the products wheel area. This system will be able to work with DinarDirham’s new DinarDirham Wallet (the Universal Bitcoin Wallet), now in Beta.
So, is it worth partnering your valuable Bitcoins with your Forex account? That will have to be a decision each investor makes on their own. Read the resources in this articles, particularly this article explaining in detail the benefits and risks involved, and use extra caution when implementing this new strategy. If done correctly, using digital urrencies with your forex trading account can help increase your profit even more then using the maximum leverage of your broker, as an additional factor, but beware of the potential risks of doing so as well. And, by partnering with Saba Capital and DirhamDirham, you could not only store your profits on digital urrencies, but also have them backed by the worldwide gold spot price with the DNC – which you’ll also soon to be able to use with the DinarDirham Debit Card getting ready for launch. Read more about that on our Special Announcement article.