The long-awaited legalization of cannabis has spurred a brand new industry that is exciting investors from all over the world. marijuana companies are starting to get listed and their stocks are showing incredible promise. With this, investors are positioning themselves to take advantage of incredible opportunities to get rich more than they are today. In the last few years, in particular, one sector in the whole cannabis industry has emerged to be the most competitive and has shown a dynamic rise. This business is Marijuana CryptoCurrency.
Because marijuana is still largely illegal in many parts of the world, Marijuana CryptoCurrency has proven to be one of the best ways by which local businesses can expand internationally. For instance, different strains of cannabis grow only in certain countries where marijuana is illegal. Businesses in North America who are seeking to distribute these rare strains of cannabis can now safely purchase marijuana from foreign farms using marijuana CryptoCurrency. If you are interested to learn more about these rare types of marijuana strains and where to get them, read these yielding strains information to understand.
Investors from all over are very quick to notice the growing importance of Marijuana CryptoCurrency in terms of potential for a high return. Just a few years ago, sticks for bitcoins soared really high and companies offering cryptocurrency really made a lot of revenues. With the introduction of marijuana CryptoCurrency, many people are now bracing themselves to repeat their past success with their decisions to invest in BitCoins.
Of course, there are always risk in business, it is important for investors like you know how to protect yourself. The prospect of getting rich is a very real promise, but with anything in business, sensible care is needed to avoid the worse kinds of results in your undertaking.
Given this, here are three basic but very important concepts you need to know to truly learn how to get rich by investing in Marijuana CryptoCurrency.
TIP #1: UNDERSTAND THAT THE RISK IS HIGHER WHEN SUPPLY AND LIQUIDITY ARE LIMITED
In any industry, limited supply and liquidity of stocks offer the greatest risks to investors. With marijuana CryptoCurrency, it is very apparent that there are only a few stocks available to most investors. Canada and a handful of states in the US have become quite a neutral ground for many marijuana businesses because of its legalization of cannabis. As such, many of the publicly traded stocks for marijuana and marijuana-based businesses such as marijuana CryptoCurrency, are listed only in Canada and/or the US. In addition to this, marijuana CryptoCurrency is still starting, so there are fewer companies that are offering stocks for this. Given this, the liquidity and supply of stocks for marijuana CryptoCurrency remain very limited. Because of this, many investors are actually opting to buy stocks being available venues that are less liquid and with no listing such as pink sheets and over-the-counter markets.
The risk in all of this is that price is more erratic and swings in both directions. Thus, the chances for both growth and failure are extremely high. As an investor, you need to understand that risks are always part of any investment. With this in mind, hopefully, you can make the right decision in your investments.
TIP #2: INVEST IN COMPANIES WITH ACTUAL TIES AND KNOWLEDGE ABOUT MARIJUANA
There are a lot of companies that take advantage of every opportunity there is, voraciously entering into industries even without prior knowledge of expertise as long as the prospect for growth is high. Companies that do this are notorious among stockbrokers for their propensity to enter hyped up industries only to lose value in the end because of the inability to adapt well their business models to the industries they enter.
This kind of situation has been quite common with the rise of Bitcoin industry in 2017 and 2018. There had been companies that greedily entered and sold stocks for Bitcoin which are have recently lost their value by 85% due to poor implementation of their shift in strategy to accommodate their market in cryptocurrency and blockchain.
As an interested investor, you need to review the marijuana CryptoCurrency company before buying stocks from them. Critique the company’s financial statements. Look out for the following red flags:
- Previous histories of changing of names to adapt themselves into the new niche industry of marijuana CryptoCurrency,
- Lack of background or experience in CryptoCurrency or even Marijuana business, and,
- Poor and uncompetitive business model.
Of course, not all marijuana CryptoCurrency are untrustworthy. There are even startups that may not have a lengthy history. What you really want to avoid are companies that are only capitalizing on fads without a deep or long-term vision for their business or brand.
TIP #3: LOOK BEYOND OR AROUND MARIJUANA CRYPTOCURRENCY FOR OPPORTUNITIES
When one industry is rising, other industries supporting its value chain also grow. This is an important realization for many investors. In terms of investing in marijuana CryptoCurrency, due to the risks brought by limited supply and liquidity, perhaps you can invest in other industries that support its value chain.
A very good example of success in industries supporting a huge boom in another industry was the story of Levi’s Jeans. The company that would later become Levi’s was founded at the peak of Gold Rush in California during the last part of the 1800s. Instead of investing in mining, the owner of Levi’s invented jeans by repurposing denim for pants to supply miners and workers with pants that are more durable and will last. Today, the California Gold Rush has long ended, but Levi’s Jeans is still alive.
When deciding to invest in marijuana CryptoCurrency, do not be short-sighted with your options. Be open-minded and look out for businesses directly or indirectly involved in bitcoin, marijuana, or retail of marijuana. There is so much opportunity in the whole network of marijuana CryptoCurrency. The value chain is massive and as an investor, it is your due diligence, to find where the money is.
CONCLUSION The opportunities for growth with marijuana CryptoCurrency is immense. With the legalization of marijuana, the industry for marijuana CryptoCurrency is showing great promise for further growth. But there are risks. Strike while the iron is hot, but never forget to keep yourself warry of potential danger while keeping your mind open for other bigger opportunities. Hopefully, this article can help you with your endeavor to invest in marijuana CryptoCurrency. There are more things to learn in this industry. Because it is just starting, as the investor, you need to get all the opportunities to learn about the fledgling but fast-growing business of marijuana CryptoCurrency.