Popular currencies on Forex.
One of the main points of Forex trading is choosing the most successful trading instrument, which in this case is currency pairs.
Currency pairs are formed from two currencies; the more popular these currencies are on Forex, the higher their liquidity, which means the lower the average broker’s main commission.
Popular currencies on Forex not only have the lowest spreads, it is easier to find the necessary information on them, and a larger number of different advisors and indicators have been created for these instruments.
Exotic currencies.
You've probably often heard the saying - "Exotic currencies", islands in the distant sea, sand and palm trees immediately come to mind
, but in fact these monetary units are very rarely related to those same islands.
Exotic currencies are illiquid or little popular monetary units that have a limited circulation area or other restrictions on circulation.
Therefore, most unpopular currencies are often included in this category. For example, the Russian ruble, the Israeli Shekel, the Hong Kong dollar, the Polish zloty, the Turkish lira and some other monetary units that are little used in financial calculations can be called exotic.
How to open a Bitcoin wallet.
Before opening a Bitcoin wallet, you should decide on which device you will constantly carry out transactions with currency.
So, there are three installation options, namely on your computer, on your smartphone, or using an online service.
It is worth understanding that the most reliable wallet is the one installed on your personal computer, while the online version and the smartphone version are more susceptible to hacking.
However, when storing Bitcoin on your PC, you can become a hostage to the failure of your operating system or hardware, because if you cannot restore the wallet files, you will have to forget about the money, as in fact happens when you lose a real wallet on the street.
In order to open a Bitcoin wallet, you first need to visit the official website https://bitcoin.org.
Cryptocurrency Litecoin
Cryptocurrencies are a new stage in the evolution of electronic money.
You won’t surprise anyone anymore with various electronic payment systems such as WebMoney, Yandex Money and others.
However, all of them are under the control of the authorities, and their monetary transactions can be stopped at any time at the request of the regulator.
It is worth noting that all payment systems except cryptocurrencies have their own owner, office and full access to regulate the flow of funds.
Therefore, the very recent scandal with the Liberty Reserve payment system and its subsequent closure makes us think about the reliability of such payment systems.
Hong Kong dollar – HKD.
Hong Kong has long become a major financial center; one of the largest stock exchanges, many banks and offices of large corporations are located here.
It would be surprising if Hong Kong's currency was not in demand as a means of payment and was not freely convertible.
The Hong Kong dollar occupies a leading place in settlements in the Asian region, is actively bought and sold on the currency exchange, and has fairly high liquidity.
Currency Norwegian krone on Forex.
The Norwegian currency, despite its relative prevalence, is also traded on the stock exchange and is an excellent option for making a profit. It is especially popular among players who prefer quiet trading. Since the Krona has relatively low volatility , but a relatively stable trend.
The Norwegian currency is freely convertible, its exchange rate is not subject to artificial regulation by the state and is completely market-based.
Currency Russian ruble.
The modern version of the Russian ruble appeared not so long ago in 1993, after which there was a constant change in the appearance of banknotes and improvements in protection against counterfeiting.
This monetary unit is not a freely convertible currency, but you can easily exchange it for other world currencies in many countries around the world. The ruble is especially popular in the countries of the former USSR, this is due to close economic and ethnic ties.
Forex currency symbols.
When trading on the foreign exchange market, you will not see the usual inscriptions - euro or dollar; all entries are made with a special code consisting of three Latin letters.
This makes it possible to make records of transactions for the purchase or sale of currency as universal as possible and understandable to any trader, regardless of country of residence and language.
Below you will find the designations of the main world currencies that most often participate in exchange transactions and form currency pairs.
Currency Japanese Yen on Forex.
This currency is one of the most popular in Asia; it is also in deserved demand among buyers of goods produced in Japan, and this is by no means a small share of world trade turnover.
These are mainly payments for high-tech goods, such as computers, household appliances, and cars.
The yen is the currency of Japan, it is freely quoted on the world foreign exchange market and has high liquidity. Its exchange rate is quite unstable and is often regulated by the issuer state, which does not prevent it from taking a worthy place among the foreign exchange reserves of many Central banks. The share of the yen in gold and foreign exchange reserves is at least 4%
In what currency should you keep your money in 2022?
After the collapse in February 2022, the foreign exchange market gradually began to stabilize and many people breathed a sigh of relief.
But we all understand that in the current situation it is impossible to declare stability and the national currency can collapse at any moment.
Therefore, now is the time to think about protecting your savings from exchange rate risks; all that remains is to answer the question - in what currency should you store your money in 2022?
It is clear that it should not only be a fairly stable, but also a liquid currency, so that if necessary, money can be quickly exchanged or settlements made.
Swiss frank.
The Swiss franc is the currency of Switzerland, a country that is one of the largest banking and financial centers in Europe. Until 2000, banknotes were backed by more than 40% of their face value in gold.
It is for this reason that this currency has one of the highest levels of collateral and has a stable exchange rate on par with precious metals.
These indicators have made the Swiss franc one of the most attractive options for storing capital; many investors invest money in this currency to passively store their funds in the form of deposits. Not high interest rates are compensated by the growth of the exchange rate against other currencies.
Trading Bitcoins on the exchange
The young electronic currency, or as it is also called electronic gold, Bitcoin made a lot of noise after a record growth in its value and even more after its fall.
In fact, it can be classified as a certain type of security, since the monetary unit is not a currency in the classical sense of the word, and has no real backing with material values.
Its price is regulated by supply and demand according to purely market laws, and bitcoin trading takes place only online.
But the very approach to creating a payment system using Bitcoins has aroused great interest, since the system operates on a principle similar to the Internet, there is no main center and no one controls the implementation of monetary transactions.
In essence, it turns out that when you buy Bitcoins, you purchase shares of this payment system and become a co-owner; in addition, you can use a speculative trading option.
Canadian dollar.
The Canadian dollar acts as a means of payment in Canada and is freely exchanged for the national currencies of most world powers.
Recently, this currency has begun to gain more and more popularity against the backdrop of the unstable US dollar and euro.
Until recently, the Canadian dollar mainly acted as a commodity currency, the scope of which was in payments for oil and metals, of which Canada is the largest exporter.
Euro (euro) forex currency.
The single European currency or euro is one of the most popular units in the Forex market, its share in all foreign exchange transactions is more than 30%.
This popularity is due to the fact that this type of currency is quite often used in payments between different countries; it is especially popular in Europe and nearby countries.
According to statistics, the share of world trade turnover in euros is more than 27% and is constantly growing.
Classification and types of world currencies
Currencies are classified into several categories and differences that characterize the monetary unit from different aspects.
Often, the appearance of a currency can give an idea of the economic development of a country and its role in global economic life.
Currency is classified according to the following criteria:
• By origin - national or foreign.
National currency is the currency issued by a country. This is the main currency of the state, the exchange rate of which is maintained by the national bank. Foreign currency is a currency other than the national one issued by foreign banks. • Hard and soft - currencies that have a stable exchange rate or constantly change their value, the latter usually include the monetary units of developing countries.
U.S. dollar.
The American dollar is the most popular currency in the world, the bulk of all transactions carried out in the global economy take place in US dollars, the currency has simply enormous liquidity, which makes it possible to exchange it literally in any corner of the globe.
Today, there is a money supply of more than 1 trillion US dollars in cash circulation. At the same time, only 30% of this amount rotates in the United States of America.
British pound
The pound sterling, or as it is also called the “British pound,” is one of the seven most popular currencies in the world; it received such recognition because of its high reliability and exchange rate stability.
In addition to payments for goods and services, it is also actively used by traders in the Forex market.
The pound is an excellent tool for speculation and generating income from the difference in lending rates in a strategy such as a carry trade.
Liquid currencies.
This concept is especially important when trading forex, since the
success of trading largely depends on the liquidity of the currency.
Liquid currencies are those monetary units that have a constant demand and can be easily exchanged at any time for other currencies.
It is demand that is the main indicator of liquidity; the faster you can sell the monetary unit you have, the higher its liquidity.
Australian dollar
The Australian dollar is a rather exotic currency and is used in Australia and the Pacific region; in addition, this currency is widely used in payments for gold, minerals and some types of products.
This currency can be safely classified as the most popular world currency; it is in stable demand on all world exchanges.