Among the most important criteria to take into consideration when trading are the liquidity and trading volume of any asset you want to invest in. Assets with sufficient liquidity will ensure that you’ll be able to close your position and exit the market whenever you want to. This aspect of trading is especially important for day traders and scalpers, whose strategies revolve around making gains as quickly as possible.
With that in mind, here are 3 of the top assets that many traders are focusing on this year.
Cryptocurrency: Bitcoin
Bitcoin, the world’s first cryptocurrency, has dominated the landscape since its launch in 2009, becoming by far the most important crypto by market capitalization. Every day, Bitcoin attracts more traders who want to take advantage of its notoriously large price movements.
After skyrocketing in 2017, Bitcoin prices plunged last year, before rising again this year. Earlier this month, Bitcoin gained more than 20% in just a few hours, which has increased investors’ interest. According to data from Coinbase, Bitcoin prices are up more than 23% since the beginning of the month.
Currency pair: GBP/EUR
Many analysts are concerned over the impact of Brexit – if it happens – the long-term uncertainty it could create for the EU and what it might mean for Britain’s economy. Last week, the European Union agreed to extend the Brexit deadline until October 31st with a review in June. The UK will now also take part in the European elections in May.
This week, the pound to euro exchange rate climbed while investors digested last week’s new developments. Many traders believe that recent losses for this currency pair don’t provide an accurate picture of its potential and expect it to rise.
Commodity: Oil
At the bginning of April, oil registered its sixth straight week of gains. This week, however, oil prices dropped. Growing concern that Russia might not agree to extend production cuts is weighing heavily on prices.
As reported by CNBC, “Russian Finance Minister Anton Siluanov said over the weekend that Russia and OPEC may decide to boost production to fight for market share with the United States, but this would push oil as low as $40 per barrel”.
Bottom line
Professional, regulated and reliable online brokers allow you to trade a wide range of assets, enabling you to diversify your investment portfolio. To include the assets discussed above in your trading strategy, remember to take advantage of volatility by closely monitoring their price movements.
