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Most traded currencies in the world: The best currencies for digital and international trading

 The most-traded currencies in the world

Most traded currencies in the world: The best currencies for digital and international trading

Top 10: The most-traded currencies in the world for 2021

By RemitrFinance Forex Market Top 10: The World's Most-traded Forex Trading 2021

Did you know that the equivalent of $ 6.6 trillion is traded daily?

The foreign exchange market is the most traded currency market in the world, with the ten most traded currencies accounting for nearly 90% of all Forex trades. Here, we take a look at the 10 most traded currencies last year:

 The exchange rates are taken from Google Finance

# 1 - US Dollar (USD)

The most traded currency in the world belongs to the United States of America, home to the largest economy in the world. The US dollar is also the primary reserve currency in the world.

The US dollar is held by central and commercial banks around the world, for the purposes of international transactions. Many commodities are priced in US dollars, including gold, oil, copper, and most other metals.

Check out: The History of Currency in the United States

# 2- Euro [1 EUR = 1.17 USD]

The euro is the official currency of the European Union (EU), and it is currently the second most traded currency in the world. It is used by 19 of the 27 countries of the European Union, in what is known as the Eurozone. It is also the second largest reserve currency in the world.

Check out: The History of Currency in Germany

# 3- Japanese Yen [1 JPY = 0.0095 USD]

The Japanese currency is, by far, the most traded currency in the Asian market. Oil is an important factor in determining the value of the yen. As a major importer, high oil prices could severely affect Japan's economy.

# 4 - British pound [1 GBP = $ 1.29]

The British pound is the official currency of the United Kingdom and its territories. In recent years, its value has been affected by the changing relationship between the United Kingdom and Europe.

# 5 - Australian Dollar [1 AUD = 0.71 USD]

The Australian dollar was the fifth most traded currency in the world in 2020. Australia is a major exporter of coal, iron, copper and other extracted commodities. It is also a major importer of oil. Shifts in trading volumes and the prices of these commodities can have a direct impact on the value of the Australian currency.

# 6 - Canadian Dollar [1 CAD = 0.76 USD]

Like Australia, Canada is rich in natural resources and is also a major exporter of commodities. This means that prices can be a critical factor in determining the value of CAD.

The United States is Canada's main trading partner - accounting for more than 75% of total exports and 50% of total imports. The Canadian economy and the value of the Canadian dollar tend to be sensitive to changes in the US economy and the US currency.

Check out: History of Currency in Canada

# 7 - Swiss Franc (1 CHF = 1.09 USD)

Switzerland has a strong reputation for financial services and banking secrecy. This, combined with the country's sound monetary policies and low debt levels, made the Swiss franc a "safe haven" currency.

# 8- Chinese Renminbi [1 CNY = 0.15 USD]

Sometimes referred to as the "yuan," the Chinese currency is the eighth most traded in the world. Since China is a major exporter of manufactured goods, the value of the renminbi is highly dependent on the country's terms of trade. China's main trading partners are the United States, Europe and Japan.

# 9 - Swedish Krona [1 SEK = 0.11 USD]

Unlike the currencies mentioned above on this list, the Swedish official currency is not a major reserve currency. The main Swedish exports include cars, engines and communications equipment. This could lead to some volatility as demand for the SEK falls in times of global economic meltdown.

# 10 - New Zealand Dollar [1 NZD = 0.66]

New Zealand's official currency is also not a major reserve currency. The strength of this currency depends to a large extent on the balance of trade with the main trading partners China and Australia. New Zealand's main exports are agricultural products (dairy and meat), and its main imports are oil and cars.

The value of many currencies has been affected by the global COVID-19 pandemic. Emerging market currencies were the hardest hit. Many of these economies are highly dependent on oil and commodity exports, and both are currently experiencing a sharp decline in demand.

Buyers and investors are reluctant to risk weaker currencies, and as a result, the world's ten most traded currencies are likely to remain intact for the foreseeable future.

The famous phrase "money never sleeps" - coined by the popular Hollywood movie "Wall Street" - sums up the foreign exchange market perfectly. The forex market is open for trading from 22:00 GMT on Sunday until 22:00 GMT on Friday. Therefore, during the week you can trade the forex market 24 hours a day!

When you are a beginner Forex trader, you may find yourself confused and confused by the huge number of currencies and other instruments available for trading through MetaTrader 5. What are the best currency pairs to trade? The answer is not straightforward, as it varies by a trader. You must take the time to analyze the different pairs against your trading strategy, and while doing so, determine the best currencies to trade in your forex account.

This article will briefly describe what currency pairs are, and help you determine the best forex pairs to trade. It will also explain what are the Forex specialties and whether they will work for you.

What is Forex Trading?

Forex trading - or foreign exchange trading - is all about buying and selling currencies in pairs. To be able to effectively buy and sell currencies, you need to have information about the value of each currency in the pair relative to each other. This relationship defines the currency pair. The currency pair consists of two currency abbreviations, followed by the value of the "base" currency (the first listed) which is expressed in the "quote" currency (the second listed).

There is always an international code that defines the setup of the forex pairs. For example, a bid of EURUSD of 1.23 means that 1 EUR equals 1.23 USD. The base currency here is the Euro (EUR), and the counter currency is the US dollar. If you want to learn more about how to read currency pairs, why not check out our article "Understanding and Reading Foreign Exchange Rates" which explores the topic in more detail.

What are the major forex pairs?

Not surprisingly, the most dominant and powerful currency, as well as the most widely traded currency, is the US dollar. The reason for this is simply the sheer size of the US economy, which is the largest in the world. The US dollar is the preferred reference for most currency exchange transactions around the world and also the dominant reserve currency in the world.

There is no set list when it comes to the major currency pairs, but when people talk about the majors, they are usually referring to those pairs that are trading the most actively and thus the most liquid. However, this does not necessarily mean that they are the "best" to trade. These majors generally include:

EUR / USD (Euro - US Dollar)

USD / JPY (US dollar - Japanese yen)

GBP / USD (British Pound - US Dollar)

AUD / USD (Australian dollar - US dollar)

USD / CHF (US dollar - Swiss franc)

USD / CAD (US dollar - Canadian dollar)

The values ​​of these major currencies continue to fluctuate according to each other, with the volume of trade between the two countries changing every minute. These pairs are naturally associated with countries with greater financial power and countries with high commercial volume that is made all over the world. In general, these are the most volatile pairs, which means that the price swings that occur during the day can be the largest.

Does this mean that they are the best for trading? Not necessarily, as traders can either lose or gain money from the volatility. The above pairs tend to have the best trading conditions, as their spreads tend to be lower, but this does not necessarily mean that the majors are the best forex pairs to trade for every trader.

Are you interested in learning more about trading? Why not register for one of the trading webinars? These live sessions, which are conducted by professional traders, take place three times a week and are completely  register today:

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What are the best currency pairs to trade?

With more than 200 countries in the world, you can find more than a handful of currencies to trade with. However, it may not have the potential to provide the best results for traders. So what is the best currency pair to trade? What do most traders trade? Which is worth trading and why? Keep reading to find out the answers to these questions and more!

Before analyzing the best trading pairs, it is best to consolidate our knowledge of the most popular currencies that can be found in the world of forex trading. They include:

US Dollar (USD)

Euro (EUR)

Australian dollar (AUD)

Swiss Franc (CHF)

Canadian Dollar (CAD)

Japanese Yen (JPY)

British Pound (GBP)

Among these currencies, you can find a few popular currency pairs. If you want to be successful in Forex trading, you need a deep understanding of the different Forex pairs that you use to trade. If you select any of the options we'll discuss below, you will be trading a lot

The best currencies for digital trading

Before we take a closer look at some of these alternatives to Bitcoin, let's take a step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, in the broadest sense, is virtual or digital money in the form of tokens or "coins". While some cryptocurrencies have entered the physical world with credit cards or other ventures, the vast majority of them are still completely intangible.

The term "cryptocurrency" in cryptocurrencies refers to the complex encryption that allows the creation and processing of digital currencies and their transactions through decentralized systems. Besides the important 'crypto' feature of these currencies, there is a common commitment to decentralization; Cryptocurrencies are usually developed as a token by teams that build issuance mechanisms (often, if not always, through a process called "mining") and other controls.

Cryptocurrencies have always been designed to be free from manipulation and government control, although they are becoming more and more popular, this foundational aspect of the industry has come under criticism. Bitcoin-style coins are collectively called altcoins, and in some cases "shitcoins," and have often attempted to present themselves as modified or improved versions of Bitcoin. While some of these currencies may contain some impressive features that Bitcoin does not possess, matching the level of security achieved by Bitcoin networks has largely not been seen by altcoins.

Below, we'll examine some of the most important digital currencies other than Bitcoin. First, though, a caveat: It's impossible for a list like this to be completely exhaustive. One reason for this is the fact that there are more than 4,000 cryptocurrencies as of January 2021. While many of these cryptocurrencies have little to no follow-through or trading volume, some are hugely popular among communities dedicated to supporters and investors.

Moreover, the field of cryptocurrencies is always expanding, and the next great digital token may be released tomorrow. While Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts have adopted many methods for valuing tokens other than BTC. It is common, for example, for analysts to give a great deal of importance to the arrangement of coins relative to each other in terms of market capitalization. We had this in mind, but there are other reasons for including a numeric code on the list as well.

Types of digital currencies

Types of digital currencies are the most widely used in the world

1. Ethereum (ETH)

The first Bitcoin alternative on our list, Ethereum, is a decentralized software platform that enables smart contracts and decentralized applications (DApps) to be created and run without any downtime, fraud, control or interference from a third party. The goal of Ethereum is to create a decentralized set of financial products that anyone in the world can access for free, regardless of nationality, race, or religion. This aspect makes the implications for those in some countries more compelling, as those without government infrastructure and state identity can access bank accounts, loans, insurance, or a variety of other financial products.

The apps on Ethereum run on the platform's encryption token, ether. Ether is considered a vehicle to navigate the Ethereum platform and is sought by mostly developers looking to develop and run applications within ethereum, or now, by investors looking to purchase other digital currencies with Ether. Ether, launched in 2015, is the second-largest digital currency by market value after Bitcoin, although it lags behind the dominant cryptocurrency by a large margin. As of January 2021, the market cap of Ether is around 19% of Bitcoin's volume.

* In 2014, Ethereum launched an Ether IPO that received an overwhelming response; This helped usher in the era of initial coin offering (ICO). According to Ethereum, it can be used to "codify, decentralize, secure, and trade in anything." After the attack on the DAO in 2016, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC). As of January 2021, Ethereum (ETH) has a market cap of $ 138.3 billion and each token's value of $ 1,218.59.

In 2021 Ethereum plans to change its consensus algorithm from proof of work to proof of stake. The move will allow the Ethereum network to run itself with much less power as well as improve transaction speed. Proof of stake allows network participants to "share" their Ether in the network. This process helps secure the network and process the transactions that occur. Those who do so reward Ether like an interest expense. This is an alternative to Bitcoin's proof of work mechanism as miners are rewarded with more Bitcoin for processing transactions.

2. Litecoin (LTC)

Litecoin, launched in 2011, was among the first cryptocurrencies to follow in the footsteps of Bitcoin and is often referred to as "Bitcoin's silver for gold." It was created by Charlie Lee, a former MIT graduate, and former Google engineer. Litecoin is based on an open-source global payment network that is not under the control of any central authority and uses "script" as evidence of action, which can be decrypted with the help of consumer-grade CPUs. Although Litecoin is similar to Bitcoin in many ways, it has a faster block generation rate and thus provides a faster time for transaction confirmation. Other than developers, there is an increasing number of merchants accepting Litecoin. As of January 2021, Litecoin has a market value of $ 10.1 billion and each token is valued at $ 153.88, making it the sixth-largest cryptocurrency in the world.

3. Cardano (ADA)

Cardano is a "europorous proof of stake" cryptocurrency created with a research-based approach by engineers, mathematicians, and cryptologists. The project was co-founded by Charles Hoskinson, one of Ethereum's first five founding members. After having some disagreements with the direction Ethereum was taking, he left and later helped create Cardano.

The team behind Cardano has created its own blockchain through extensive experimentation and peer-reviewed research. The researchers behind the project have written more than 90 research papers on blockchain technology across a range of topics. This research is the backbone of Cardano.

Due to this rigorous process, Cardano appears to stand out among its peers in Proof of Stake as well as other large cryptocurrencies. Cardano has also been dubbed the "Ethereum Killer" as its blockchain is said to be capable of more. However, Cardano is still in its infancy. While it beat Ethereum to a proof-of-stake consensus model, it still has a long way to go in terms of decentralized financial applications.

Cardano aims to be the world's financial operating system by creating decentralized financial products similar to Ethereum as well as providing solutions for serial interoperability, voter fraud, and legal contract tracking, among other things. As of January 2021, Cardano's market cap is $ 9.8 billion and one ADA is trading for $ 0.31.

4. Polkadot (DOT)

Polkadot is a unique stake-proofing cryptocurrency that aims to provide interoperability between other blockchains. Its protocol is designed to link licensed and unauthorized blockchains as well as Oracle to allow systems to work together under one roof.

The core component of Polkadot is the relay chain that enables the interoperability of various networks. It also allows for "parachains," or parallel blockchains, with their tokens for specific use cases.

Where this system differs from Ethereum is that instead of just building decentralized apps on Polkadot, developers can create their own blockchain while using the security that the Polkadot chain already provides. With Ethereum, developers can create new blockchain chains but need to create their own security measures which can leave new and small projects open to attack, as the larger the blockchain, the more security. At Polkadot, this concept is known as shared security.

Polkadot was created by Gavin Wood, another of the founders of the Ethereum project who have differing opinions about the future of the project. As of January 2021, Polkadot has a market cap of $ 11.2 billion and DOT is trading for $ 12.54.

5. Bitcoin Cash (BCH)

Bitcoin Cash (BCH) holds an important place in the history of altcoins as it is one of the oldest and most successful hard forks of the original Bitcoin. In the world of cryptocurrencies, the fork occurs as a result of discussions and arguments between developers and miners. Due to the decentralized nature of cryptocurrencies, wholesale changes must be made to the base code for the token or currency on hand due to general consensus; The mechanism of this process varies according to the cryptocurrency.

When the different factions cannot reach an agreement, the digital currency is sometimes split up, with the original chain remaining consistent with its original symbol and the new chain beginning to life as a new version of the previous currency, complete with changes to its symbol.

The Biosafety Clearing-House began life in August of 2017 as a result of one of these divisions. The debate that led to the establishment of the Biosafety Clearing-House was related to the issue of scalability; The Bitcoin network has a block size limit: one megabyte. The Biosafety Clearing-House is increasing the block size from one megabyte to eight megabytes, with the idea that larger blocks can contain more transactions within it, and thus transaction speed will increase. It also makes other changes, including removing Segregated Witness, which affects block space. As of January 2021, the market capitalization of the Biosafety Clearing-House is $ 8.9 billion and the value of each token is $ 513.45.

6. Excellent (XLM)

Stellar is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions. Huge transactions between banks and investment firms that usually take several days, a number of middlemen, and cost a great deal of money can now be made almost instantly without middlemen and at little or nothing cost to those who do the deal.

While Stellar has established itself as an institutional blockchain for corporate transactions, it is still an open blockchain that anyone can use. The system allows cross-border transactions between any currencies. Stellar's original coin is the Lumens (XLM). The network requires users to hold Lumens in order to be able to perform transactions on the network.

Founded by Stellar Jed McCaleb, a founding member of Ripple Labs and developer of the Ripple Protocol. He eventually left his role with Ripple and went on to found the Stellar Development Foundation. Stellar Lumens has a market cap of $ 6.1 billion and a value of $ 0.27 as of January 2021.

7. Chainlink

Chainlink is a decentralized Oracle network that bridges the gap between smart contracts, such as those on Ethereum, and data outside of it. Blockchains themselves do not have the ability to connect to external applications in a reliable way. Decentralized Oracle Chainlink allows smart contracts to communicate with external data so that contracts can be executed based on data that Ethereum itself cannot connect to.

Chainlink's blog outlines a number of use cases for its system. One of the many use cases that have been explained will be monitoring water supplies for pollution or illegal withdrawals occurring in certain cities. Sensors can be set up to monitor corporate consumption, water streams, and local water levels. Chainlink Oracle can track this data and directly enter it into a smart contract. A smart contract can be set up to enforce fines, issue flood warnings to cities, or bill companies that use a lot of city water with data from Oracle.

Chainlink was developed by Sergey Nazarov along with Steve Ellis. As of January 2021, Chainlink's market cap is $ 8.6 billion, and one LINK is valued at $ 21.53.

8. Binance Coin (BNB)

Binance Coin is a useful cryptocurrency that acts as a payment method for fees associated with trading on the Binance Exchange. Those who use the symbol as a payment method for the exchange can trade at a discount. Binance Coin's blockchain is also the platform that the decentralized platform Binance operates on. The Binance Exchange was established by Changpeng Zhao and the exchange is one of the most widely used exchanges in the world based on trading volume.

Binance coin was initially an ERC-20 token running on the Ethereum blockchain. It eventually had its own flagship network launch. The network uses a consensus model to establish a stake. As of January 2021, Binance has a market cap of $ 6.8 billion with a single BNB value of $ 44.26.

9. Lanyard (USDT)

Tether was one of the first and most popular sets of stablecoins, cryptocurrencies that aim to peg their market value to a currency or other external reference point in order to reduce volatility. Since most cryptocurrencies, even major currencies like Bitcoin, have experienced repeated periods of massive volatility, Tether and other stable coins try to smooth out price fluctuations in order to attract users who might otherwise be wary. The Tether rate is directly related to the US dollar. The system allows users to make transfers from other cryptocurrencies to the US dollar more easily and in time than an actual conversion to the regular currency.

Tether was launched in 2014, and describes itself as "a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital way." Effectively, this cryptocurrency allows individuals to use the blockchain network and related technologies to engage in traditional currencies while reducing the volatility and complexity often associated with digital currencies. In January 2021, Tether was the third-largest cryptocurrency by market cap, with a total market cap of $ 24.4 billion and a value of each token of $ 1.00.

10. Monero (XMR)

Monero is a safe, private and untraceable coin. This open-source cryptocurrency was launched in April 2014 and quickly gained great attention among the crypto community and enthusiasts. The development of this cryptocurrency depends entirely on donations and is paid by the community. Monero was launched with a strong focus on decentralization and scalability, and it enables complete privacy using a proprietary technology called "ring signatures".

With this technique, a set of encrypted signatures appears that includes at least one real participant, but since they all appear to be valid, the true signature cannot be isolated. Because of exceptional safety mechanisms like these, Monero has developed something of a loathsome reputation - it has been linked to criminal operations around the world. While this is the main candidate for conducting criminal transactions anonymously, the inherent privacy of Monero is also beneficial to opponents of oppressive regimes around the world. As of January 2021, Monero has a market cap of $ 2.8 billion and a value of each token of $ 158.37.