Currencies better than the US dollar
For several years now, the US dollar has been losing its leading position in the foreign exchange market, as more and more countries and investors seek alternatives for storing capital.
Until recently, the euro was considered the main alternative to the dollar, but this currency has also lost some credibility due to the European Union's debt problems and the unstable economic policies of individual members of the bloc.
A logical question arises: which currencies today can be considered truly reliable and liquid, taking into account not only international recognition but also the level of government debt, the stability of the banking system, and investor confidence?
A ranking that shows the size of a country's external debt and the reasons for the stability of its currency will help you get an idea of the world's most interesting currencies.
Popular currencies on Forex.
One of the key aspects of forex trading is choosing the most effective 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, and therefore the lower the broker's commission.
Popular Forex currencies not only have the lowest spreads, but are also easier to find relevant information about. A greater number of different advisors and indicators have also been created for these instruments.
Exotic currencies.
You've probably often heard the expression "exotic currencies." Images of distant islands,
sand, and palm trees immediately come to mind, but in reality, these currencies rarely have anything to do with those islands.
Exotic currencies are illiquid or unpopular currencies with a limited circulation or other restrictions on circulation. Therefore, most unpopular currencies are often classified in this category.
Examples of exotic currencies include the Russian ruble, the Israeli shekel, the Hong Kong dollar, the Polish zloty, the Turkish lira, and some other currencies that are rarely used in financial transactions.
How to open a Bitcoin wallet.
Before opening a Bitcoin wallet, you should decide on which device you will regularly conduct transactions with the currency.
So, there are three installation options: on your computer, on your smartphone, or using an online service.
It's important to understand that the most secure wallet is the one installed on your personal computer, while the online and smartphone versions are more vulnerable to hacking.
However, storing Bitcoin on your PC can make you a hostage to a failure of your operating system or hardware, because if you can't recover your wallet files, you'll have to forget about your money, just like what happens when you lose a real wallet on the street.
To open a Bitcoin wallet, you first need to visit the official website https://bitcoin.org.
Litecoin cryptocurrency
Cryptocurrencies are the next step in the evolution of electronic money. No one is surprised anymore by various
electronic payment systems like WebMoney, Yandex Money, and others.
However, all of them are under the control of the authorities, and their financial transactions can be stopped at any time at the regulator's discretion.
It's worth noting that all payment systems, except cryptocurrencies, have their own owners, offices, and full access to regulating the flow of funds.
Therefore, the very recent scandal with the Liberty Reserve payment system and its subsequent closure raises questions about the reliability of such payment systems.
Hong Kong dollar – HKD.
Hong Kong has long been a major financial center, home to one of the largest stock exchanges, numerous banks, and offices of major corporations.
It would be surprising if Hong Kong's currency wasn't in demand as a means of payment and wasn't freely convertible.
The Hong Kong dollar is the leading currency for settlements in Asia, is actively bought and sold on the foreign exchange market, and enjoys relatively high liquidity.
Norwegian krone currency on forex.
Despite its relative prevalence, the Norwegian currency is also traded on the stock exchange and is an excellent option for profit. It is especially popular among players who prefer a more relaxed approach to trading, as the krone 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 entirely market-based.
Currency: Russian ruble.
The modern version of the Russian ruble appeared not so long ago, in 1993. Since then, the banknotes' appearance has undergone constant changes and counterfeit protection has been improved.
This currency is not freely convertible, but it can be easily exchanged for other currencies in many countries. The ruble is particularly popular in the former Soviet Union, due to close economic and ethnic ties.
Currency symbols in Forex.
When trading on the forex market, you won't encounter the usual symbols like euros or dollars. All entries are made using a special code consisting of three Latin letters.
This makes currency purchase and sale transactions as universal and understandable as possible for any trader, regardless of their country of residence or language.
Below you'll find the symbols for the major global currencies most frequently traded and forming currency pairs.
Japanese Yen currency on Forex.
This currency is one of the most popular in Asia, and it is deservedly in demand among buyers of goods produced in Japan, which accounts for a significant share of global trade turnover.
These are mainly payments for high-tech goods, such as computers, household appliances, and cars.
The yen is the currency of Japan, freely traded on the global currency market and highly liquid. Its exchange rate is quite volatile and is often regulated by the issuing government, but this does not prevent it from occupying a prominent place among the foreign exchange reserves of many central banks. The yen's share of foreign exchange reserves is at least 4%
What currency should you store your money in in 2022?
After the collapse in February 2022, the currency 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 could collapse at any moment.
Therefore, now is the time to think about protecting your savings from exchange rate risks. The only question left to answer is: what currency should you keep your money in in 2022?
It is clear that this must be not only a sufficiently stable currency, but also a liquid one, so that, if necessary, it would be possible to quickly exchange money or make a payment.
Swiss franc.
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 gold at over 40% of their face value.
It is for this reason that this currency has one of the highest levels of security 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, with many investors choosing to place their money in this currency for passive storage as deposits. The low interest rates are offset by the appreciation of the Swiss franc 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 serves as a means of payment in Canada and is freely exchangeable for the national currencies of most world powers.
Recently, this currency has begun to gain increasing popularity against the backdrop of the unstable US dollar and euro.
Until recently, the Canadian dollar served primarily as a commodity currency, used to settle accounts 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 on the forex market, accounting for more than 30% of all currency exchange transactions.
This popularity is due to the fact that this type of currency is quite often used in settlements between different countries; it is especially popular in Europe and neighboring countries.
According to statistics, the share of global 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 distinctions that characterize the monetary unit from different sides.
Often, the appearance of the currency can give an idea of the economic development of the country and its role in the global economic life.
Currency is classified according to the following features:
• By origin - national or foreign. National currency is the monetary unit issued by the country. It 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 with a stable exchange rate or constantly changing their value; the latter usually include the monetary units of developing countries.
US dollar.
The US dollar is the most sought-after currency in the world; the majority of all transactions in the global economy are conducted in US dollars. The currency has enormous liquidity, which allows it to be exchanged literally anywhere in the world.
Today, there is over $1 trillion in cash in circulation. Only 30% of this money circulates within the United States.
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 has received such recognition due to 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 instrument for speculation and profiting from the difference in lending rates in a strategy such as the carry trade.
Liquid currencies.
This concept is especially important when trading on Forex, since
the success of trading largely depends on the currency's liquidity.
Liquid currencies are those that are in constant demand and can be easily exchanged for other currencies at any time.
Demand is the primary indicator of liquidity; the faster you can sell your currency, the higher its liquidity.
Australian dollar
The Australian dollar is a rather exotic currency and is in circulation in Australia and the Pacific region. In addition, this currency is widely used in payments for gold, minerals and certain types of products.
This currency can safely be classified as one of the most popular world currencies; it enjoys stable demand on all global exchanges.
