In the last 10 years Forex trading has increased in popularity massively, with the rise of social media usage people have been chasing a rich lifestyle that ‘so called’ Forex traders portray. They appear on your news feed in private jets, Ferrari’s, yachts and luxury hotels portraying a lifestyle that has apparently come from their Forex trading. They also tell you it’s that easy that anyone can make loads of money from it, just use their simple tips and you’ll be a millionaire in no time. In more recent times cryptocurrency and NFT have become popular in a similar way, using the same luxury lifestyle to try and entice people to buy their eBook or referral code and sign up. Unfortunately as you may have guessed 99% of these are nothing more than Forex scams.
The Reality Of Forex Is Very Different
If you decide to look in to Forex for the first time you’ll see the eBooks mentioned above, you might also see YouTube showing how easy it is to spot trends and make money. A popular one is showing ‘double peak prices’, it is where you look at a graph and if the price of a certain currency shoots up and then dips a bit then shoots up again then you should buy. This is an ultra-simplistic view of trading and is just something simple that people think sounds legitimate. The actual reality of Forex trading is very different, first of all you need to learn to read the graphs, learn what everything means, what all of the terminology is and then you actually need to do the research which is phenomenally long winded. What you need to think to yourself is that top investment banks pay very clever teams of people large amounts of money to research, model and predict what will happen in a market and even then they still lose. The chances of a lonesome trader being able to outperform an investment bank just by looking at a couple of peaks on a graph is phenomenally unlikely.
Prices of currency (which you are ultimately gambling on by predicting whether they will go up or down) are determined by thousands of factors. You need to look in to everything from a countries GDP to stock market price, how individual companies are performing on that stock market, unemployment rates, housing & mortgages, borrowing levels, the list goes on! Only then can you make an informed decision as to what direction a country’s currency is going to go in.
Are NFT’s As Bad As Forex?
NFT’s are a slightly different in that you aren’t investing money in to a more unpredictable open market, you are investing in pieces in a similar way to how art collectors would do. This is more based around research in to up and coming artists and whether it is a fair price to pay. Of course, when there is a lot of publicity then it generally leads to an increase in fraud and NFT’s are no different. NFT scams are on the rise with people trying to sell fake pieces, using different forms of cryptocurrency (other than the one agreed) to pay and even creating phishing sites to steal user information. The key take away is just to be careful and research relentlessly before you invest any money.