The life of an entrepreneur can be exciting, with a range of opportunities to take advantage of. While this is very true when starting up your own firm, many entrepreneurs also look outside of their own companies for fresh ways to generate wealth. They may also, of course, look around for new ways to bring extra revenue into their business.
Investing has long been one of the most popular ways to go about this. Although stocks, shares and bonds might have been the go-to choice in the past, next-gen cryptocurrencies have recently emerged as a top asset to put money into.
But what four aspects should any business leader consider before doing this?
1. Where to invest in crypto
One very important thing to consider initially is where you will invest money into cryptocurrencies. You will need a reliable place to check the latest cryptocurrency prices. In addition, all investors need a safe, secure platform to trade with and access the crypto markets from.
By far the best option is reputable cryptocurrency exchanges. These online platforms are designed to not only be easy to use but also provide a safe place from which to trade crypto. It is advisable to do some research before signing up with one, though, as not all are made equal.
Before creating an account, check out online reviews of the platform and visit it yourself to gauge its reputation. Common things to look out for are whether it offers a good range of coins to trade, if the customer support is good, if it uses the latest cybersecurity features to protect your money and what fees it charges.
You should also check if the platform you plan to trade on has access to the latest price charts, so you can check on things like the current Smooth Love price or how Litecoin is doing.
2. Do your research before investing
Another good tip is remembering to conduct proper research before starting to trade in crypto and before opening up any trades. It is vital, for example, to check the latest Luna price before trading in this coin, so you can time your entry correctly. As well as the current performance of any coin you plan to invest in, you should also check out its history, if it has value in the real world and whether its price has potential to move up in the future.
In terms of crypto in general, you should also do some research into the market and how it works. This is essential if you have never traded before but still worthwhile if you do have some prior experience.
3. Write out a trading plan
Just as the best books for aspiring entrepreneurs are worthwhile reading when starting out in business, drawing up a trading plan is key when starting out in crypto trading. It is also very important that you actually follow it, once written out! Many investors make the mistake of failing to do this and it can be a real blunder.
But why is this important? In simple terms, it prevents you from trading randomly and making rash, impulsive decisions. This will help give you a trading edge over time and hopefully make it simpler, faster and less hassle overall to invest in crypto. The best plans include things like what coins to keep an eye on, how much you will invest per trade, how long you will keep trades open for and when you will exit the trade.
4. Consider diversifying
Diversifying your investments is a trick any savvy entrepreneur should consider and one that can certainly be applied to the crypto market. In short, you should avoid putting all your money into only one or two coins. This is because it elevates your risk level overall and leaves you vulnerable to any downward moves in these coins.
If, on the other hand, you spread your trades across a larger range of coins, you also spread your risk and avoid any losses in one causing major problems. Many crypto investors, for example, will put money into coins that are involved in diverse sectors, such as smart contracts, De-Fi and NFTs. This can make crypto trading much less stressful and means you are not unduly affected by one sector experiencing a temporary blip.
4 things to consider pre-crypto investing
If you are an entrepreneur looking at new revenue streams for your business or new ways to build personal wealth, investing in cryptocurrencies is a great idea to think about. As with any investment class, though, it pays to know what you are doing and consider key factors before making any moves.
