And smart contracts can be created for literally any task: from smart homes and property insurance, to payment cards and logistics.”
Here’s where cryptocurrencies come in. The hype around them includes tales that reinforce the need to be cautious yet also celebrate those brave enough to give these currencies a go. Hidden in these stories are three valuable lessons about how to know whether you’re being as cautious as you should be in business.
As happens with every business decision, an entrepreneur is pushed to look uncertainty straight in the eye and give it a punch. Some will end will up lucky and take home flourishing businesses, while others will lick their wounds and deal with burdensome losses. Whatever be the outcome, risk-taking is part of the game.
In December 2017, the price of one bitcoin soared to a mind-blowing $19,738, breaking records. What a great way to transition into 2018! At least that’s what investors thought– until bitcoin took a heart-shattering dive this month, to $7,178 for one bitcoin.
Since Bitcoin’s creation, the values of the various 1,300-plus cryptocurrencies have been going up and down like a yo-yo. Their volatility hasn’t stopped people from investing in them. Even more people are joining the pack.
Still, most investors remain skeptical of cryptocurrencies like Bitcoin or Ethereum, and will give you a thousand and one reasons why you should not buy Bitcoin, usually focusing on the currencies’ volatile nature, making them an unsustainable investment.
Heavy investors in cryptos, meanwhile, beg to differ on the grounds of these currencies’ transparent transactions, ease and anonymity. The use of smart contracts guarantees that all transactions are properly documented, and ensures transparency among the parties involved.
Still, even with the expected risks, you should be cautious. The question, however, is how much? There’s a lot to learn about risk-taking, and it can’t be learned in just one sitting.
The ups and downs in Bitcoin prices, the fear of losing your life’s savings to an unanticipated crash and the conflicting views out there on the benefits of actually investing in cryptocurrenciess may leave you feeling lost as to whether to try your hand at these ventures.
1. Clearly set out what you will be comfortable losing.
If you’re ready to take the risk, how comfortable are you losing when things come crashing down?
When one coin was worth just $72, Grant Sabatier of the company Millennial Money started his journey with Bitcoin. After doing some research, he told CNN, he decided to invest 1 percent of his net worth ($5,000 at the time) into the currency. He was just trying the waters, but he knew that taking the risk to invest in something so “unstable” wouldn’t hurt him too much if things turned out badly.
2. Think long range.
Olaf-Carlson Wee became a millionaire when he realized the potential of cryptocurrencies and decided to make a daring switch: He chose to be paid in Bitcoin. At that time, he was 26, and bitcoin was valued at $20 to $30.
The message: It’s risky to put your money into something you don’t know will pass the test of time. Carefully weighing an investment’s potential against our dynamic world will tell you that taking this step, though risky, is worthwhile.
When you study the bitcoin success stories of early adopters, you notice how they had something in common: They were long range in their thinking. Bitcoin was really just an idea, these people invested the time and effort to understand this new phenomenon. After their research, they realized the currency’s potential.
3. Don’t go all in.
No matter how good something sounds, give yourself time to observe and take a breather. The worst mistake you can make as an entrepreneur is to dive into what’s trending without taking time to assess it objectively.
Grant Sabatier of the company Millennial Money started his journey with Bitcoin when one coin was worth just $72. When you study the bitcoin success stories of early adopters, you notice how they had something in common: They were long range in their thinking. Bitcoin was really just an idea, these people invested the time and effort to understand this new phenomenon.
In December 2017, the price of one bitcoin soared to a mind-blowing $19,738, breaking records. At least that’s what investors thought– until bitcoin took a heart-shattering dive this month, to $7,178 for one bitcoin.