By ForexNewsNow

Financial markets in the post-Soviet space improved drastically. With the development of technology and the Internet, a lot of people started trading various instruments from stocks to crypto. Actually the former is considered to be the most popular instrument in most of those countries, but gold and crypto are also rampant. In this article, we will talk about them.

Crypto

Estonia, as well as Russia, are at the forefront of crypto innovations in the post-Soviet space. Also, Belarus became the first country in the space to launch a cryptocurrency exchange.

The exchange accepts Bitcoin and Ethereum, as well as fiat money and a lot of people started trading.

Tokenized assets for raw materials, stocks, indices linked to the base market value of traditional financial assets are also traded on the exchange. It is possible to make money using Visa and Mastercard bank cards issued by any banks, including foreign ones.

Crypto is a very popular instrument in Russia and Estonia as well. As trading is evolving gradually, people use Bitcoin and Ethereum for the most part to earn some money. Other countries are still emerging, however, crypto has not gained a foothold there yet.

Stocks

Stocks have become a very popular option among post-Soviet citizens. The trend is very visible in Russia and Ukraine, but interestingly Georgia has turned a country in recent years, where investors and people turn to stock trading. When an ordinary citizen wants to get information on how to buy stocks in Georgia the material is available on various websites on national banks. Because of this, many found the material useful, thus it became a driver to start trading stocks, which in general was not characteristic until 2010.

The choice in favor of trading stocks on the stock exchange in post-Soviet countries is due to several reasons. In part, they are psychological, as they provide the investor with tangible guarantees of return on investment. But there are objective factors. For example, all securities have liquidity due to material wealth: real estate of the enterprise, its raw materials and inventories.

The following is also attractive: The stock price does not depend directly on the value of currencies, raw materials (trading due to the lack of correlation is less dependent on interventions on currency pairs). Also, a crisis in a country or in a global market may not affect individual companies. Furthermore, investments in the assets of large companies are easier to predict than changes in the cryptocurrency market, precious metals.

Gold

And we have come to the final instrument, which is gold. Residents from post-Soviet countries pay particular attention to gold trading in financial markets. However, it could be regarded as the most complicated form of trading.

Gold trading on Forex and in the post-Soviet space is highly complex because accurate information on this market is practically not publicly available – no one can say how much gold is on the gold market, where it is located, how much is offered for sale, etc. In trading this instrument, traders rely on a number of indirect factors that accurately affect the market for this asset.

First, gold is considered a safe asset and this determines the demand for it. In times of crisis or in times of uncertainty in markets, demand for gold is growing – it is considered a safe haven for cash, which will at least preserve, and at a maximum, increase capital after the situation stabilizes.

Citizens from the post-Soviet know a very simple concept. The traditional rule that is followed in the gold trade is that, in unfavourable periods for the economy, the demand for gold grows, and in an atmosphere of dynamic growth, interest in gold decreases, since there are more opportunities to invest profitably.

Another rule of thumb is that gold can protect against inflation, which is why precious metals are also in high demand in the period of high values. This rule implies the importance of monitoring the policies of central banks – the super-soft monetary policy raises inflationary expectations in the market, which means it can serve as an indicator for timely investments in gold.

Finally, the dynamics of the US dollar is in itself considered an indicator of demand for gold – the dollar exchange rate and the price of this metal, as a rule, are inversely related, largely due to the fact that the lion’s share of world gold trading occurs for dollars on US exchanges and their allies.

By ForexNewsNow