Cryptocurrency trading is a big thing now. With more cryptos emerging all the time, as well as famous figures advertising specific coins, a lot of individuals become interested in cryptos and want to trade these magical tokens. However, people who get started with crypto trading may not know that there are various alternatives to cryptocurrency trading.
Trading comes in various types. As such, traders from all over the world have a lot of options to pick from so they can develop their trading style. If crypto trading on crypto exchanges is not for you but you still want to be a trader, there are other alternatives you should consider.
Here are 5 alternatives to crypto trading.
- Forex Trading
Forex trading is the most popular trading type alongside crypto trading. It involves purchasing and selling currency pairs. Usually, people trade the currencies in pairs, such as USD/JPY, EUR/USD, USD/CAD, and many others. The EUR/USD one has the most liquidity.
What makes forex trading so great is the fact that the markets are always open. This way, traders can perform trades at any time of the day.
Also, various brokers make forex trading possible. People can pick between larger, more popular brokers or freshly established ones. You can look up the review of SimpleFX, eToro, Saxo Capital Markets, and many others to choose the ideal broker.
- Commodity Trading
Commodity trading involves trading commodities, such as metals, livestock, meat, energy, or agricultural ones. People interested in commodity trading can choose from metals like silver, gold, platinum, and copper. In terms of livestock and meat, they can choose pork bellies, feeder cattle, live cattle, and lean hogs. When it comes to agricultural commodities, people have options such as wheat, rice, soybeans, corn, coffee, cocoa, sugar, and cotton. Lastly, individuals can go for energy commodities like heating oil, gasoline, natural gas, and crude oil.
- Derivative Trading
Derivatives are contracts that take their value from underlying assets. These assets could be indices, currencies, stocks, or other things.
With derivative trading, people can buy and sell derivatives in a stock market. The trader has the option of betting on the price movement in the underlying assets’ future. These price movements are more volatile compared to the assets.
- Equity Trading
With equity trading, people can purchase and sell company stocks or shares on the financial market. They are also known as equities.
- Momentum Trading
This is perhaps one of the easiest trading types. With these trades, people try to predict the momentum of a stock to exit or enter at the proper time. If a stock tumbles, the trader will buy low so they can sell high, but if the stock is at risk of breaking, the trader exits.
There are many alternatives to crypto trading. So, if you want to become a trader but you’re not keen on cryptocurrencies, you can always go for one of the other options. Forex trading, equity trading, derivative trading, and commodity trading can be just as profitable if you know what you are doing, so try them out.