by Emma Smith
In a study held back in April of this year, the Bank for International Settlements (BIS) found out that many people had transitioned to cashless payments to reduce the chances of transmitting the coronavirus using cash. The sudden rise in demand for cashless payments was expected to accelerate the pace at which the world transitions to digital payments, thus modernizing the financial industry.
And this isn’t the first time a global crisis has catalyzed some major changes. Back in the 1930s, after the great depression, the devastation of the event quickened the pace at which the international gold standard was abandoned with emphasis on strengthening labor unions and expanding social welfare.
Even the recent financial crisis back in 2008 saw the birth of strict regulation within the banking industry, ensuring they don’t ever pose such a huge risk to the world economy. And now, there is another transition with Covid-19 as consumers look for better ways to replace cash, including the use of crypto, credit, and mobile payments.
Trading platforms and brokers have witnessed a surge in users who see coins like Bitcoin as better stores of value amid the rout witnessed with traditional assets like gold. Others have seen an opportunity to make something extra, especially during the lockdown period, where many lost their jobs. Crypto has offered many a chance to make some income thanks to the ease of access.
To profit from coins like Ripple, all one needs is an internet network and a device that can access the internet. Then they can access trading platforms like PrimeXBT, where even beginners can trade with ease thanks to a plethora of educational resources to learn the craft. Incredibly, on the platform, you don’t have to own the assets and here you will trade futures contracts for the assets and profit whenever the prices go up or down.
( Also Read: What Is Digital Banking: Definitions, Beneﬁts, and the Future )
Also, answers to any questions you may have concerning trading, like how to trade Ripple with PrimeXBT? can be found on the comprehensive FAQ section or by reaching out to customer support.
The shift in Trading Strategies
When it comes to trading post-Covid-19, one has to employ different strategies, given that there has been a shift. According to economists, shifts occur when the “demand and supply” curve moves in a different direction abruptly. This calls for a rethink of the trading strategy to accommodate new market conditions.
The pandemic has seen a shift in how people work with more preference for remote work. Even now, with the easing of restrictions and social distancing rules, companies are open to allowing their employees to work remotely, thereby saving huge office space bills and other unnecessary costs.
Every aspect of our lives has been impacted, from how people shop to every economic interaction. The change has been a bit abrupt for some traders since the switch to home-based trading activities was compromised to a degree by poor telecommunication networks.
With isolation, the absence of the trading climate that exists on a trading floor that influences trading strategies like key market players’ actions brings a new set of challenges that need to be adapted to if they are to profit from the markets.
To adapt to changing needs and combat challenges, trading platforms must continue being innovative, distributing risks, and integrating external and internal systems. There is a need for massive investments in new technologies like AI, AR, Pricing engines, algorithmic systems, and research and development, making the trading experience better amid the disruption.
In the current state of things, there is money to be made by trading on systems, technologies, and innovations that are aimed to bring back a balance to the markets. Major currencies like the USD, EUR, JYP, and CAD are being traded as investors pull their resources from unstable regions with high volatility, emphasizing low-risk opportunities. Currently, developed economies are a trader’s best bet even though there are plenty of opportunities for savvy traders within developing economies.
Where Opportunities Lie
Industries that have had it bad over the period include travel, hotels, and restaurants, and the smart trader has known to stay away from them. But, as work goes on around the clock to find a vaccine for the virus, pharmaceutical stocks seem promising, at least in the near future.
Traders have also had to abandon long term trading strategies in favor of short term ones to rebuild their portfolios. Trading penny stocks have also been rising as traders try to make something off the market and earn their keep.
However, since reopening assets like gold and even oil prices have bounced back. But with the pandemic still looming around, the world might as well get used to a new normal. It’s only the traders that keep their eyes open on new rising opportunities that stand to benefit from the markets.
It’s the trading platforms that make it easier for these traders to make money and access different markets easily that stand to benefit the most. That said, online brokers are better off diversifying their offering to include digital assets, which seem quite popular at these times if they are to have and maintain a competitive edge over their rivals. PrimeXBT is a good example of a platform already leading in this direction.