Every investor is on the verge of losing money if poor decisions are made when making investment decisions. It is wise to invest in something you really understand, so that you will understand the nature of that business.

These days’ people are finding the financial market as their harvest field. This market is made up of different sectors, there is the Forex market, the stock market, the crypto market etc. We are going to look at the stock market and the crypto market and see why it is good to invest in crypto.

What is Stock Market?

This is a market place were shares of companies, securities, ETFs etc. are traded. When a company is established the second step is to be listed on the stock exchange. With this step the company will be able to raise additional capital to sustain or expand their business through offering their shares to the public.

Risks involved in trading shares

When the in business is setup the motive will be to make profits but there are certain risks involved and some of them are not that easy to overcome and the business might succumb to these.

• Political Factors – Politics plays a role in the business Economics, imagine country A has no good relation with country B and country A has businesses in country B its obvious country A’s business will be sabotaged. Certain rules and regulations will be set just to make these businesses suffer.
• Economic Factors – Every country has its economical polices. The government can set austerity measures which affect the businesses e.g. monetary policy, trade regulations and tax rates.
• Natural Factors – These are factors which just come naturally and cannot be stopped. Imagine you run a hospitality business and there is news from the whether department that a volcano will erupt near the area where you operate your business do you thing clients will keep on coming?

They will eventually stop and you will lose your business and this means the shares of that company will fall and the investors will lose money.

Crypto currency the Safe Haven

In times of crises investors always want a mighty savior to safeguard their fortune. Whenever something loses value something will gain value simultaneously. So when the stock market is bleeding and on its knees the crypto market will be soaring

What makes crypto safe?

It is decentralized and it is not tied up to anything related to the economy. It relies on the computer code and is safe from the government and sabotage as it is not controlled by anyone so it is a good investment. You will always relax and fear nothing if your money is invested in the crypto market.