Forex there is some confusion about it gamble or not. I spoke to a potential new client yesterday, who makes 'a bit' of money doing forex trades in his own name. He does not put it through the business and claimed that he did not pay tax on it as it was classed as 'gambling'. I suppose materiality comes in to it, but surely, if he is making money on it, it is like.

Forex there is some confusion about it gamble or not

Is Forex trading gambling?

Forex there is some confusion about it gamble or not. They participated in a calculated gambling and won. Not all participants actually won, though! Remember the dot-com bubble? There were shit-coms; now there are some shit-coins. Stocking of crypto can be either investment or gambling depending on whether the investor conducted necessary analysis before investing.

Forex there is some confusion about it gamble or not


Never take financial advice from random people on the Internet. Do your own due diligence. Investment in disruptive technologies is somewhat a speculative operation in that the investor believes in something that hasn't yet been proven to indeed change the existing ecosystem.

Investment in blockchain technology can, quite symmetrically, be compared to the investment in consumer Internet in the early 90s. By then, it hadn't been realized how Internet could revolutionize communications. Those who believed in technology and invested on it made fortune. They participated in a calculated gambling and won.

Not all participants actually won, though! Remember the dot-com bubble? There were shit-coms ; now there are some shit-coins. Stocking of crypto can be either investment or gambling depending on whether the investor conducted necessary analysis before investing. Though crypto market is abnormally volatile, traditional investment strategies must still rule the game.

As each of the reasons is influenced by others, small changes create big fluctuations in market. Apart from having just enough cash on hand to handle recurring transactions and short-term spending, holding cash as part of a long-term investment is in fact a bad idea.

Cash in a long-term investment portfolio should be minimized because its value will likely be eroded by inflation. In addition, to become financially independent and attain goals, we need to invest in some way or other. Consider the the below points, among other, before investing on cryptos.

A good thing to remember when taking the advice above and I'm a believer in taking advice Investing is not however. If anyone is interested in learning how to trade crypto I've traded on Forex for over 8 years and recently moved to Cryptos. I can comfortably state that Cryptos are much easier to trade and invest than Fiat.

That stated , please remember that the best trades are not from looking for a 5 minute scalp, but rather swing trades, lasting between months. Take Steemit for example: Decentralized Social Media Platform that resolves the following pain-points of: Decentralized so your information is not hoarded for sale to others. Freedom to express who you are as a person and be rewarded. Entry level into the crypto world and investing. Environment that encourages interaction rather than alienation and cross-recruiting 6.

Short term trades are definitely not the best trades. How could they be? Good points about Steemit! I have a very long term view on Steem. I doubt the best things have even been thought of yet. Cryptos are definitely more enjoyable to trade than Forex I think. And in the long run, it's better to have crypto knowledge than forex. And to circle back to the first point Crypto allows you to compound these gains perfectly I always like to invest in cryptos that i use myself.

I think that way you can get an honest look at the technology. Great read by the way! You have completed some achievement on Steemit and have been rewarded with new badge s:. Award for the number of posts published. Click on any badge to view your own Board of Honnor on SteemitBoard.

For more information about SteemitBoard, click here. If you no longer want to receive notifications, reply to this comment with the word STOP. By upvoting this notification, you can help all Steemit users. The former is a decentralized VPN, and the latter is a decentralized cloud. Both cryptos have a purpose in the future as our privacy on the internet continues to be invaded more and more Volatile crypto market Everyone is aware of it; some of the reasons include: Novelty Cryptos are still something of a novelty.

Value is established without people thinking twice. A big number of investors just follow the crowd. Downward pressure from mining: Due to mining profitability and many other reasons miners switch between coin resulting in a fluctuation of supply and price. Are there reasons to hold a coin? Or would you be better off exchanging it for another? Such pressure actually depends on what is happening to the coin.

Investment in crypto and things to consider before investing Apart from having just enough cash on hand to handle recurring transactions and short-term spending, holding cash as part of a long-term investment is in fact a bad idea. Invest in what you believe Do you believe in blockchain technology?

Blockchains are secure databases by design. The concept was introduced in by Satoshi Nakamoto, and then implemented for the first time in as part of the digital bitcoin currency; the blockchain serves as the public ledger for all bitcoin transactions. By using a blockchain system, bitcoin was the first digital currency to solve the double spending problem unlike physical coins or tokens, electronic files can be duplicated and spent twice without the use of an authoritative body or central server.

This technology can wipe out existing financial system. Understand the crypto Not all blockchain based currency is worth investing. By understanding I do not mean being able to run a newly released coin's cli-interface or something. I mean the economics, knowing details about the crypto - whitepaper, development team, developer fee, pre-mined coins, ICO Initial Coin Offering , emission rate, coins usage and much more info.

You can spend hundreds of hours on just one coin. Would I use the crypto myself? This is an excellent point to test usefulness of a crypto. Would other users use the crypto? Value comes from how widely a currency is used, accepted and can be exchanged. Others need to have demand for the crypocurrency. Incentives for investment Do you cash lying under bed? Or do you need to borrow to invest in crypto? Borrowing and then investing financial asset is called carry trading. Consider risk and rewards.

Wait for the right moment Pick a few cryptos, study them and evaluate them. Pick cryptos that you think are undervalued. Evaluate in terms of value, not market price Accept mistakes Find out reasons why your investment depreciating. If you find valid reasons, release that assets. Diversify This is probably rule 1. Have a portfolio consisting of coins based on varying technology and aimed at varying applications. Authors get paid when people like you upvote their post. I'm hoping to provide some more useful stuff.

Usability is what a coin derives value from. This was a solid read. Thanks for your insights! Glad you liked it: You have completed some achievement on Steemit and have been rewarded with new badge s: Award for the number of posts published Click on any badge to view your own Board of Honnor on SteemitBoard. For more information about SteemitBoard, click here If you no longer want to receive notifications, reply to this comment with the word STOP By upvoting this notification, you can help all Steemit users.

Solid content, looking forward to follow!


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