Cryptocurrencies: 5 tips for an entrepreneur to invest

Cryptocurrencies fulfill all the functions of traditional currencies, they also offer high performance as an investment instrument.

The performance differences between the stock market and the cryptocurrency market in 2017 were substantial: the Ripple cryptocurrency had an ROI of 28,963%, while Zimbabwe had the best stock performance with a return of 117.7%.

How much to invest in cryptocurrencies

The cryptocurrency market in a volatile market offers attractive returns but a high risk must be tolerated investing in cryptocurrency. It is advisable to invest the capital that can be risked without compromising finances.

Eneko Knörr, one of the most successful entrepreneurs in Spain recommends investors to increase profitability:

  • Diversify your portfolio and include cryptocurrencies in your portfolio
  • Destine between 5% and 10% to the purchase of cryptocurrency.

What projects support the issuance of cryptocurrencies?

There is a wide range of virtual currencies, each of which responds to a particular project for example:

  • Bitcoin is a payment system without intermediaries.
  • Ethereum is a system for creating smart contracts

Understanding the project behind the virtual currency allows visualizing if it represents a competitive advantage; l innovation can generate high yields.

Evaluate the cryptocurrency promoter team

Currently thousands of companies are creating virtual currencies. It is important in cases where you can, verify the experience of the promoter team; usually on the internet you will find abundant information.

It should be taken into account that it is a poorly regulated market and where fraudulent projects abound; you must also verify the company’s partners and business alliances this will allow you to visualize the acceptance of the virtual currency . 

Create commercial alliances for the use of cryptocurrencies

An entrepreneur can accept payments in cryptocurrencies and establish alliances with other companies to promote their use; this can contribute to customer loyalty. You can also obtain financing by OCI initial coin offer.

In the white paper of the Colombian cryptocurrency SColcoin, it is explained that the affiliated trade will have access to financing and rewards; a strategic proposal to achieve acceptance and success of this virtual currency.

Evaluate the risks of investing in cryptocurrencies

The blockchain is the technology that supports most virtual currencies; It is a technology that provides security to transactions. However, there is a risk of fraud when crypto assets are acquired through third parties.

When investing in this new market, it is convenient to do so with the help of a professional specialist in this new market; to be successful in business you have to be informed.

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