Best Coins to Invest – Investing is always a great way to generate additional profit. The ever-changing world provides us with many opportunities; stocks, real estate, commodities, gold, and art. But what about coins?
Is it worth investing in coins? Many experts would say yes. However, as with any investment, there is always some level of risk. The value and constancy of any currency depend on many factors, and the situation can change quickly.
Is there a way to minimize the possibilities? One of the ways to be somewhat on the safer side, in this case, is by investing in different currencies. Additionally, experts suggest focusing on the most stable ones.
What is the Best Currency to Invest?
Based on our previous top 10 lists of the most stable coins, we would like to share our views on the best ones to invest in.
Currency code: USD.
US dollar rate:
1 USD = 0.88 EUR (US dollar to Euro).
Even though the US dollar is considered by far to be less stable, it still maintains the status of the world’s reserve currency, and its popularity is unquestionable.
By 2019, almost 90% of all Forex transactions are ready in US dollars. That is why it is reasonable to add this coin to the list of your investment opportunities.
Currency code: EUR.
1 EUR = 1.13 USD (euro to US dollar).
The world’s second fall-back currency is also considered one of the safest investment decisions.
Despite the difficult economic situation in some European countries, the value of this currency continues to remain fairly low and stable.
Currency code: CHF.
Swiss franc rate:
1 CHF = 1.09 USD (Swiss franc to US dollar).
1 CHF = 0.96 EUR (Swiss franc to euro).
Besides the US dollar, one of the safest currencies to invest in is the Swiss franc.
A stable market economy, a high GDP, a low unemployment rate, the country’s focus on supporting its national currency, an extremely advanced banking system; All of these factors make the Swiss franc an attractive investment opportunity.
Currency code: JPY.
Japanese yen rate:
1 JPY = 0.0088 USD (Japanese yen to US dollar).
1 JPY = 0.0077 EUR (Japanese yen to Euro).
There are good options for the Japanese yen as the currency to invest in.
First, the country’s inflation has been low for long periods.
This currency is not attached to the US dollar or the Euro and therefore maintains its purchasing power even in times of crisis.
Good terms of trade also contribute to the liquidity of the Japanese yen since the local currency participates in all transactions other than those of the United States.
Currency code: SEK.
Swedish krona rate:
1 SEK = 0.108 USD (Swedish krona to US dollar).
1 SEK = 0.095 EUR (Swedish krona to euro).
Another one of the best currencies to invest in is the Swedish krona. The country’s policy seeks to maintain and support the current exchange rate. In this way, the country minimizes the currency devaluation risks and controls the inflation rate.
The Norwegian Crown
Currency code: NOK.
Norwegian krone rate:
1 NOK = 0.111 USD (Norwegian krone to US dollar).
1 NOK = 0.098 EUR (Norwegian krone to euro).
Norway has assembled a special reserve fund, which helps the country keep its economy strong.
Like Switzerland and Sweden, Norway’s efforts to support its national currency. The country has also shown a low rate of inflation in recent years.
However, Norway is extremely dependent on its oil and gas exports. It adds a bit of doubt when investing in the Norwegian krone.
Currency code: GBP.
British pound rate:
1 GBP = 1.35 USD (British pound to US dollar).
1 GBP = 1.19 EUR (pound sterling to euro).
The last decade has realised an increase in the popularity of the British pound. For example, it took third place as a world reserve in 2006. However, today it maintains fourth place.
The pound sterling exchange rate has changed tremendously following the country’s decision to leave the European Union. Although even taking into account the crisis of 2008, the exchange rate of the pound sterling fell significantly less compared to many other currencies.
Currency code: AUD.
Australian dollar rate:
1 AUD = 0.71 USD (US dollar to Australian dollar).
1 AUD = 0.63 EUR (US dollar to Euro).
A low unemployment rate in the country helps experts recognize an investment in the Australian dollar as economically feasible and reasonable. However, the country lives by its natural resource exports, so slight fluctuations in the exchange rate are still possible.
Currency code: SGD.
Singapore dollar rate:
1 SGD = 0.74 USD (Singapore dollar near US dollar).
1 SGD = 0.66 EUR (Singapore dollar near Euro).
What makes the Singapore dollar one of the best currencies to invest in? One of the chief causes is that the country’s economy has been growing steadily for the past few years. The increase rate here is one of the lowest in the world.
The alternative reason why this coin is considered a good investment is that the country is a big investor in the Asia-Pacific region.
Although the Singapore dollar is far from one of the strongest currencies, many experts point to strong growth. And this looks quite promising if you consider investing in this coin.
Investment or Trading?
We have just seen the coins that could be a good investment option. But, you are probably familiar with the term “forex trading”. Is it similar to investing in currencies? Let’s find out.
In simple terms, forex trading means taking a short-term approach to the market, while investing involves following a long-term course.
Forex trading is done in pairs. We have already covered this topic in our previous articles and have established a list of the most traded currency pairs.
As with most stable coins, there is no one that you can buy and be 100% sure your investment is safe and will make a profit.
A safe investment in a currency implies an investment in several different currencies. So what you might do is invest in a basket of currencies.
Invest in a basket of currencies, not just one currency
In simple words, a currency basket is a portfolio of various currencies. It is easier to minimize the risks related to currency fluctuations. For example, if the rate of one of the currencies decreases, and the rate of another of the currencies increases, the overall losses are reduced.
Ideally, investors advise holding 5-7 currencies in their portfolios in varying proportions. The ratio of coins in such baskets depends on personal preference and specific goals.
Types of Currency Baskets
Since you can create your basket of currencies, you are the one who decides which currencies to add. A couple of ideas to consider:
- Many forex market participants prefer to create a basket of currencies based on emerging market currencies. The most promising are the Brazilian real (BRL), Russian ruble (RUB), Indian rupee (INR), Chinese renminbi (CHN), and South African rand (ZAR).
- There are also baskets of regional currencies. For example, those that consist of coins of the countries part of the Gulf.
- Options with narrow targets are also quite popular. For example, create a basket of currencies based on the leading oil-producing countries. In this case, one desires to monitor the cost of oil carefully and calculate the prospects for “black gold”.