Both currencies are considered “safe havens” in times of global economic instability due to their liquidity, international acceptance and strong underlying economies. In the world of finance, the choice between investing in euros or dollars, in addition to other currency hedges, has a direct impact on the protection of your portfolio, as well as its long-term profitability.
Euro and Dollar:
These two currencies significantly influence global markets and represent distinct economic forces. However, the classification of “stronger” and “safer” can vary depending on evolving economic and geopolitical factors. It is always important to keep up with trends and consider asset diversification to mitigate risk in any investment portfolio. By investing in both currencies, you increase your opportunities and mitigate the chances of facing losses.
Even if you live in Brazil, you will enjoy the following advantages:
Euro: More specifically, the advantages of investing in assets linked to the euro are:
Stable eurozone: the eurozone is made up of developed and stable economies, which can bring greater security to investments.
Interest rates: Lower interest rates in the eurozone can be advantageous for investors looking to finance projects or loans at lower rates.
Wide acceptance: The euro is widely accepted in international transactions, facilitating global investment and trade.
Potential appreciation: The appreciation of the euro against other currencies could result in currency gains for investors.
Dollar: In turn, the advantages of dollarized assets are:
Strong economy: The US economy is one of the largest and most influential in the world, which contributes to the stability of the dollar.
Liquidity: Dollar-denominated assets tend to be highly liquid, allowing for fast and efficient trading.
Refuge in crises: The dollar is often considered a “safe haven” in times of global economic turmoil, which may increase its demand
Variety: Investing in dollar-denominated assets offers a wide range of options, from government bonds to shares in international companies
Buy Cryptocurrencies for Dollars or Euros?
Many people are averse to cryptocurrencies, I understand. After all, it is difficult to withstand fluctuations of 10% in a day and up to 30% in a week or month. However, there are some ways to use Euros or Dollars to buy cryptos. The two currencies currently have similar values, but you should pay attention to some factors such as: trading fees, purchases and sales below or above the market value, etc. But in general, the value is almost the same, so it depends on each investor.