What you need to know as an entrepreneur before investing in cryptocurrency

Hello entrepreneurs, my name is Abdulganiyu Ahmed from Nigeria. This is my first in steem entrepreneur community and I will be guiding my fellow entrepreneur on what they need to know before investing in any project in the crypto world.

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Crypto has become one of the biggest market in the world with a global market cap of around $1.91 trillion and every entrepreneur and investor want to have a taste of this booming market. The first successful cryptocurrency was Bitcoin back in 2009 and since then, we have witness one of the fastest growing market ever seen.

Investing in cryptocurrency seem like a good idea and which promise a reasonable profit but what some investor do not know is that with the high probability of success they is an even a higher probability of losing big due to the volatile nature of the market. So after thinking of investing in cryptocurrency, they are certain things you need to know to increase your chances of a successfully investment. Below I will be explaining what you need to know before investing in cryptocurrency.

-Consider why you are investing in cryptocurrency: This is the first and most important question you should think about before investing in cryptocurrency why are you doing this? There are thousands of other stable business with greater stability and less risk.

Are you doing this because everyone is talking about cryptocurrency and they look smart while talking about it and you do not want to feel left out? Or do you have a more compelling reason why you want to invest? These are the questions you need to ask yourself before investing in any digital token. Of course, they could be several reasons why you wish you invest in cryptocurrency but the question is “is it worth the risk?”

-Get a feel of the Industry: It is very important for any investor essentially when you are new to digital currencies to create a sense of curiousness on how the whole digital currency thing works before investing. You have you cultivate reading habit to be able to read more on different currencies and make researches on many coins. With this wild research, you will be able to look beyond the popular one like Bitcoin, Ripple, Solana and Ether.

And also it important to investigate how blockchain technology works since it the backbone of all cryptocurrency. After all these research, once you are able to identify the cryptocurrency or (cryptocurrencies) you wish to invest in, dive deeper and see what makes it or them different from others that where you will know where your advantages lay on.

-Join an online community of Cryptocurrency Enthusiasts: The crypto world is so vast and it is difficult to keep up in the trendy area and things tend to quickly change and develop. So to be active and be up to date with all latest news, you need an active community where other crypto enthusiasts can come and share your idea about a specific subject.

-Timing is key: After proper research, it likely you have pick an interest on a particular cryptocurrency. The next step is the proper time to invest in the token. The crypto world is highly volatile and things changes quickly.

A popular way is by buying a hot new currency before it become popular and the value may make investor to act quickly. If your researches are correct this an easy way you can generate I reasonable profit. Cryptocurrencies have been notice to follow a particular price patterns. Bitcoin is mostly use as a reference when bitcoin price drops significantly it very likely most coins will follow this pattern so a smart investor will see that as an exist sign and when the price begin to raise as an entry sign.

CONCLUSION

Cryptocurrency over the years has been seen as a good investment but in order to increases your chances of making profit you need to be very careful and not get caught up in the hype. We also need you know how volatile the market is and not get to greedy because things can change really quickly. The most important thing is to make sure you have done proper research before investing in this way you will know how to manage risk and make the best use of your time.

Thank you all for reading and I hope we all learn a thing or two form this article.

NOTE: 20% author reward goes to @steemkindness to help with the charity program and special thanks to @f2i5 for enlighten users about the charity program

Link to my Achievement 1 post.