Cryptocurrencies have been a hot topic lately because people want a way to exchange funds without a third party. So, if you’re one of the startup founders for crypto, there’s a lot you need to know about the industry before releasing your currency to the blockchain.
Fortunately, this list will help you nail the basics before you speak to crypto investors and release your cryptocurrency to the market. Please continue reading to learn five things you should know as a startup founder.
1. The Crypto Market is Still New
The most important thing you need to recognize before releasing your cryptocurrency is that the market is still fresh. So, many people, even experts, don’t know exactly how the market will fluctuate. One of the longest-running cryptocurrencies is Bitcoin which launched in 2009 after the 2008 recession.
The first official cryptocurrency hit the blockchain in 1990 but never gained traction because it was ahead of its time. This fact means that cryptocurrency has only been a legitimate market since 2009. This makes the industry less than two decades old.
2. Crypto Trading is Becoming Increasingly Popular — and Easy
There is a hot debate on whether or not now is a good time to start crypto. Because they’re so popular now that many people have their own. However, while many cryptocurrencies have been profitable, it isn’t easy to market new cryptocurrencies to investors because of how over-saturated the blockchain is.
The first thing you should do before you launch your cryptocurrency is learn how to invest. Learning how to use sofi invest might be your best option to kickstart your crypto as a founder.
3. Keep in Mind That Crypto is High-Risk
Cryptocurrencies are high risk for both investors and founders, and there is a chance your crypto won’t make it. It’s a bit different from traditional investments.
Therefore, you need to assess your risk and ensure you can afford to lose your initial investment. Otherwise, you could find yourself in a situation where your cryptocurrency fails, and you don’t have any money.
4. You Need to Learn About Your Investors
As one of the crypto startup founders around the world, it would help if you had crypto investors to launch your currency and interest the public into buying.
First, you need to figure out who your demographic is that you think will invest in your cryptocurrency. Since there are so many crypto options out there, you must ensure that your cryptocurrency brings something to the table that the other currencies on the blockchain don’t.
An investor will not want to help you start your crypto if they’ve seen hundreds of the same currencies before yours. To learn about your investors, you need to figure out your demographic. Then follow investors on social media that align with your target audience.
5. Stay Up-to-Date on Crypto News
Since crypto is such a new industry, big changes are happening in all of the major currencies you need to keep up with. For example, recently, there’s been talk of an Ethereum merge that will cut down the power supply that crypto absorbs.
Since Ethereum announced that they are taking steps to reduce its carbon footprint, investors are cracking down on other cryptocurrencies to follow the same path. This is just one example of a news story you can monitor to ensure that your crypto startup meets the demands of the public.
As one of the crypto startup founders, you must learn as much about crypto and investors as possible before launching your cryptocurrency. Neglecting to keep yourself informed about the latest news, demands, and other cryptocurrencies will ensure that your startup fails. Launching a new cryptocurrency is much more difficult because the market is saturated with new investors and founders.