1. What is Forex Trading?

State its Advantages and Disadvantages

In simple terms, Forex Trading is just like exchanging currency while

travelling abroad. A trader buys a currency and sells another, while
the rate of exchange keeps fluctuating based on supply and demand.

Forex is a portmanteau for foreign exchange where the currencies

are traded against each other based on the exchange rates. Forex
markets are known to be the most substantial and highly liquid asset
markets worldwide.

It is easier for the traders, especially those with limited funds, to

initiate day-to-day trading in small amounts with the virtue of Forex
Trading.

Following are the primary merits and demerits one must have a look
at for a better point of view of Forex Trading:

 Merits:

1. Transparency: The global networks of Forex containing

different time zones eradicate the possibility of
manipulation of the exchange rates by a single country,
bank or investor.
2. Limited entry barriers: Low minimum capital
requirements allow any individual with a PAN card and
an income proof to open a Forex account.
3. High technical dependency: Basic knowledge about
technical charts and trading strategies is all that one
needs to get started with Forex Trading as it doesn’t
require fundamental analysis or study of several micro
and macro-economic factors.

 Demerits:

1. Volatile Market: Geopolitical tensions make the Forex

markets highly volatile resulting in fluctuation of
currencies which make them riskier.
2. High workload: It is a difficult task to track activity
across different time zones in a 24 hour working market
which leads to delayed information and missed
opportunities.
 3. Extortionate leverage can be dangerous: Failed
market predictions could lead to magnified losses
because of high leverage levels.

2. What is Bitcoin? Can it be traded?

As its name suggests, Bitcoin is a form of electronic currency. But

unlike government-issued currencies, there’s no single entity that
issues bitcoin or is responsible for processing its transactions. It’s a
decentralized network of digital currency, which performs
transactions using encrypted addresses containing 16 characters.
Bitcoin is essentially a network of independent computers that
generate, propagate and verify monetary transactions.

Bitcoin, the primary variety of cryptocurrency both in terms of

market capitalization and dominance, was created in 2008 by Satoshi
Nakamoto as a response to the financial crisis and also the financial
world’s reliance on banks and intermediaries for all financial
transactions. Its supply is restricted to up to 21,000,000 bitcoins.

Bitcoin trading involves speculation on crypto currency price

movements. It traditionally involves buying bitcoin by exchange and
hoping for its price to fluctuate in the future. Being a global currency,
bitcoin is simpler to trade including low entry barriers.

Trading bitcoin could be a certainty with plenty of advantages and a

touch of risk involvement. All it requires is to make an account on
one of all the assorted cryptocurrency exchange platforms.