3 Ways to Make Money Trading Online

If you are looking to make some extra money, you’re not alone. After all, as Justine Crowley explained in her piece on inflation, it is becoming a worldwide problem. From grocery stores to prices for basic services, everything seems to be costing more. Fortunately, there are numerous ways to overcome this economic hurdle. Thanks to the convenience and reach of the internet, virtually anyone with a stable connection can start making money online. Aside from the usual online earning options like e-commerce, much profit today can be made by day trading in stocks, foreign exchange, or cryptocurrency. In fact, CNBC notes that day trading has become so promising that new activity has increased dramatically in just a year. Of those who can optimize trading, analysts estimate that they can see up to a 40% chance of returns.

If you also want to take advantage of trading online, here are more details on the three ways you can do this:

Stocks

By buying stocks, you're purchasing a portion of a publicly traded company. The goal of stock trading is to wait for the price of that company to go up, so you can sell your piece of ownership for profit. A beginner's guide to stocks by Investopedia cites how investing in the stock market is the most common way for starting traders to gain experience. However, as with all markets, the stock market is prone to volatility. There's always a chance that your stock will depreciate, resulting in a loss for you.

If you're interested in trading in stocks, all you need to do is sign up to an online stock broker platform, then you can start trading. Be sure to do your research on relevant companies and market patterns before making your first purchase.

Foreign exchange

The foreign exchange (forex) market is another ideal trading ground for beginners. While it's also volatile, the values of the currencies involved will never drop below zero, making it less risky compared to the stock market. Plus, it's open 24/5, so it's more easily accessible. However, you should note that major banks and financial institutions also take part in forex trading and these entities often have more insider market information and power over the market than the average trader. Consequently, individual traders are often forced to adapt to market movements brought about by said entities, with no power to influence the market themselves.

Much like with stock trading, you'll need to sign up to an online broker platform to start trading in forex. Once you've set up your account, do your research on current geopolitical events and popular currencies as these facts will inform your forex trading strategy. Fortunately, FXCM demonstrates that forex trading demos are a handy resource that help mitigate risks before you make any real trades. Through these mock accounts, new traders can roll out strategies and study market movements without actually using any real-life assets. With a well-planned strategy, forex trading can be a highly profitable venture.

Cryptocurrencies

A fairly new investment option, cryptocurrencies are digital currencies that aren't backed by the government. Bitcoin is a popular example, along with Litecoin and Ethereum. The crypto market is known for its wild fluctuations, making it much more volatile than both the stock and forex markets. That said, it presents a high risk, high reward opportunity for traders.

However, a post about crypto on Bloomberg warns that investing in these digital products can be extremely risky. For one, the high volatility makes it difficult for starting traders to make a profit. Aside from that, there's still no legal regulation surrounding cryptocurrencies, so traders won't be covered by any safety nets.

If you'd like to try your hand at trading in the crypto market, you'll have to access a crypto investing platform. You'll also have to search for a crypto exchange service that can convert your digital currency into fiat currency, so that you can reap the rewards of your investing.

In this technologically advanced age, you can make a profit from the comfort of your own home. You just need the skills to do it right. Now, all your financial goals can be accomplished remotely from almost anywhere at any time.