How Forex and Crypto is taking off post-Covid-19: What the future holds


The Covid-19 pandemic and the ensuing lockdowns have had a significant impact on the global economy and several markets including Forex and Crypto trading. Observations have revealed that foreign exchange rates were affected negatively due to the effect of Covid-19 cases in particular countries, and in the medium-term did hurt the financial sentiments towards certain economies such as the US and China. This brought volatility back to the Forex market. In the middle of the second wave in 2021, the currency markets continued showing signs of risk aversion and light effects are likely to continue in 2022 as well. 

Global markets are gradually transforming to positive

But with the global GDP showing signs of reaching 6% in 2022, recovery is progressively on the way. The USD, though showing interim fluctuations, is regaining its spot as a reliable currency instrument. Currency pairs such as EUR/USD, USD/JPY, and GBP/USD are believed to dominate the 2022 Forex markets, with inflation rates, currency liquidity and the Covid-19 impact the only variables to watch out for. No wonder that there are about 10 million Forex traders in the world today, with over 3.2 million traders from Asia.

On the other hand, When the world largest Cryptocurrency Bitcoin’s value rose 300% during the pandemic to reach USD 30,000 by December 2020, it outperformed gold as an instrument by a factor of 10. It became the latest “digital gold” for investors. Its rally continued in 2021 till the market crashed following China’s tightening of crypto mining. Overall, even with the corrections seen in the last few months, crypto markets are still at USD 949-billion strong, despite weak global cues due to sharp inflation and interest rate hikes. 

While few wonder about the crypto market bouncing back big-time soon, most seasoned experts believe that by year-end the good times will return. Cryptocurrency is being increasingly recognised for its utility and purpose, and when regulations are announced by the government, they will drive the growth further in India. As of 2021, global crypto ownership rates stand at an average of 3.9%, with more than 300 million crypto users and the numbers are set to rise to a billion by the end of December 2022. 

The investment instruments of the Future

The growing popularity of Forex trading is indicative of the fact that investors have faith and know that the market will flourish in the long run. The Forex market is a particularly complex, quick-paced one since the world’s leading institutions are leveraging it. Hence, while your investments can earn you big money, it is very essential to have a high-quality broker/trader who will provide expert advice, and a variety of tools and services for a safe passage through this market. 

While investors in the cryptocurrency market understand its untold potential to wealth generation at a rate unmatched by any other investment instrument, they may be bothered by the market’s highly speculative nature. If they have to find their feet in the cryptocurrency markets and get a strong hold of it, they too will need a trustworthy trader/broker who will guide them with expert advice and industry tips.

The Youth is rising on its feet

If you want to become a successful individual trader in these two markets who will make a profit from your investment strategy, and looking for a full-time career, it’s important to consider your options and learn to trade like a pro. While the market conditions are not ideal now, it’s good to remember that they’ll never be ideal. 

The young generation is tech-savvy, and has digital avenues to study online to know that both Forex and Crypto trading require a certain amount of patience and calm. If you don’t lose your head at every turn and hold on to your investments in a logical fashion, you will always end up making money – quite a lot of it. Hence, many young people and others too are turning to these two trading styles as a full-time employment. The pandemic may have impacted the financial sector in the short term but not their spirits. And neither should it. All they need is an expert trading broker by their side, and they can learn to sail through the motions of these markets. 



Views expressed above are the author’s own.


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