BUSINESS

Here Are Key Things No One Tells You About Crypto Investing

Published

8 months ago

March 18, 2024

Key Things No One Tells You About Crypto Investing | Fab.ng

People hear about cryptocurrency investing, and it sounds super complicated. But is it really harder than buying a regular stock or bond? These days, you can buy both stocks and bonds easily through an app, often even the same app! So, investing in crypto shouldn’t be much trickier, right?

If that’s true, then why doesn’t everyone talk about it like it’s no big deal? Shouldn’t buying crypto be more of a common conversation if it’s actually pretty simple? Something else must be happening here that’s making people think crypto investing is a mystery.

There are a few reasons why crypto might seem complex. But the truth is, with a little research, you can easily understand the basics and start investing with confidence. Let’s break it down and see a few other things you should pay attention to.

1. Learning how to manage those risks is key in Crypto Investing

If you are thinking about investing in cryptocurrency, here’s a crucial tip: take it slow and be smart! While the idea of making a quick buck might be tempting, the most important thing you can do is manage risk. This means setting realistic goals and avoiding putting too much money into risky investments.

People who just focus on the potential rewards often forget to consider what could go wrong. They think, “This could be amazing if it works!” But they don’t ask, “What happens if it doesn’t work out?” Think about the worst-case scenario before you invest. How bad could things get?

Instead of focusing solely on the coins that promise the biggest rewards, spread your investments out a bit. This way, if one coin goes down, it won’t wipe out your entire portfolio.

Imagine someone offering you a game. You give them $10. There’s a tiny chance, only 1%, that you’ll win $20. Not a great deal, right?

But what if the game changes? Now you give $10 for a 10% chance of winning a whopping $1,000! Suddenly, that $10 looks more interesting.

Investing is similar. You risk some money for a potential reward. The key is understanding the risks and rewards involved.

Think about it this way: Is it worth spending $10 for a small chance of getting $20 back? Probably not. But if that same $10 could win you $1,000, it becomes a more attractive option.

The amount of money you risk should always be weighed against the possible reward. This is called risk management. By being good at risk management, you can make smarter decisions and avoid putting yourself in bad financial situations.

2. Thinking crypto will make you rich quickly? It’s not that easy!

Thinking you’ll get rich quickly by buying cheap crypto and selling it at a high price might not be the best plan.

Skipping established coins like Bitcoin or Ethereum for a shot at a new hotshot might seem tempting, but it’s risky. Imagine buying something because everyone thinks it’s the next big thing—you might be wrong! It’s like avoiding major currencies like the US dollar or Euro because they’re common—they’re still valuable!

Focusing all your money on a hot coin like Dogecoin (DOGE) because it seems trendy is even riskier. While some lesser-known cryptos might explode in value, it’s impossible to predict which ones.

The key to crypto investing, even with high-potential coins, is diversification. Spread your investments across different cryptos to protect yourself from crashes. This way, you’re not relying on a single coin to make you rich.

Many people get discouraged because they set goals that are way too high. Let’s say you invest in some cryptocurrency. Even if you make a cool $1 million in a year, you might feel bummed if you were secretly hoping for $10 million.

So, before you jump into any investment, do your research. Figure out what’s actually achievable in your situation. Set realistic goals that you can track. This way, you can check in on your progress anytime and see how you’re doing.

Remember, unrealistic goals are a recipe for disappointment and wasted resources.

3. Predictions can’t always be right in Crypto Investing

The first is that we can never know everything. Even the most powerful computers and fancy tools need complete information to make accurate predictions. It’s like trying to solve a puzzle with missing pieces; the picture won’t be clear.

Also, the information we have might not be perfect. Sometimes, the data used for predictions can be wrong or misleading. Imagine using a broken compass—no matter how hard you try, it won’t point you in the right direction.

So, even with amazing technology, predictions can still be wrong because of missing or inaccurate information.

Things can take surprising turns in the world of cryptocurrency. Just because a coin gets listed on a major exchange, like Binance, doesn’t guarantee it will go up in value. In fact, some coins even lose value after being listed.

This is why planning is important but also needs some flexibility. Even if you can’t predict everything, it’s still much better to make decisions based on information. Look into things like the coin’s market value, who uses it, the team behind it, and how easily it can be bought and sold.

Investing in cryptocurrency

4. Your Psychology When It Involves Investing

Digital currencies might be all the rage, but how we think about money stays the same. Even with these new investments, our emotions can still trick us into making bad decisions. One way this happens is called herd mentality. It’s like seeing everyone rush to buy something, and you suddenly feel pressured to do the same, even if you haven’t thought it through. You might not be afraid of missing out (FOMO), but you feel like you have to follow the crowd.

Another trick our minds play on us is confirmation bias. This means you already have an idea in your head, and you only look for information that proves you right. Imagine judging a new restaurant by only reading reviews from people who loved it. The same thing can happen with investments. You might ignore any warnings because you’re so sure it’s a good idea.

Loss aversion is another big one. This means the fear of losing money is much stronger than the joy of making money. Even if a new investment could make you a lot of money, the fear of losing it might hold you back.

These are just a few examples, and there are many more ways our brains can mess with our investment decisions. By understanding these tricks, you’ll be better prepared to spot them and make smarter choices with your hard-earned money.

Conclusion

Cryptocurrencies might seem strange and new, but for you as an investor, they’re basically just another investment option. Just like stocks or bonds, you can put your money into crypto. The key to success isn’t getting caught up in the details of each cryptocurrency. Instead, focus on understanding how to invest wisely. Learn how to manage your expectations and risks, and most importantly, how to make sound investment decisions. By following a clear plan, you’ll have a much better chance of doing well with cryptocurrencies, even if you’re not a tech expert.

Check out more money-making articles here.

Related Topics:Business Crypto Investing Cryptocurrency

Up Next

3 Reasons Wizkid Is Disowning Afrobeats Tag

Don't Miss

4 Countries Where Workers Have Great Work-Life Balance

BUSINESS

7 Most Profitable Business Ideas In Nigeria

Published

7 days ago

November 11, 2024

Adaeze Okechi

Profitable Business Ideas In Nigeria | fab.ng

Nigeria provides abundant business opportunities for aspiring entrepreneurs. The country’s large population, diverse economy, and rising middle class create a thriving environment for profitable business ideas in Nigeria.

From technology-driven services to agriculture and creative industries, there’s a wealth of profitable business ideas in Nigeria that cater to different interests and investment levels.

As more Nigerians embrace online shopping and digital solutions, e-commerce, fintech, and tech startups present great potential.

By exploring these profitable business ideas in Nigeria, entrepreneurs can tap into underserved markets, meet rising consumer demands, and drive sustainable growth.

The key lies in identifying gaps in the market, leveraging innovative approaches, and creating value for customers.

With strategic planning and dedication, turning profitable business ideas in Nigeria into successful enterprises is highly achievable.

1. Agribusiness and Farming

Agriculture remains a cornerstone of Nigeria’s economy. The demand for food and agricultural products is ever-growing, making this sector highly lucrative.

You can venture into crop farming, poultry, fish farming, or agro-processing. With the right investment and market research, you can quickly scale up in this industry.

Agribusiness opportunities like cassava processing, vegetable farming, and organic farming are gaining popularity.

2. E-commerce and Dropshipping

Online retail has skyrocketed in Nigeria due to the increasing number of internet users. E-commerce platforms allow businesses to sell products directly to customers without the need for a physical store.

Dropshipping is a popular model where you don’t have to manage inventory or shipping—simply act as a middleman between suppliers and customers.

Platforms like Jumia and Konga have shown the potential for growth in this market. If you’re tech-savvy, consider creating a niche online store.

3. Renewable Energy Solutions

The energy crisis in Nigeria has spurred the demand for alternative power sources. Starting a business focused on solar panel installations or selling renewable energy products is a great way to tap into this market.

Given the country’s frequent power outages, Nigerians are looking for reliable solutions. By offering solar products, inverters, or energy consulting, you can build a profitable enterprise.

4. Real Estate and Property Development

The real estate sector is booming in urban areas like Lagos, Abuja, and Port Harcourt. As the population grows, so does the need for housing and commercial spaces.

Starting a real estate business, whether it’s property development, rental services, or property management, can yield substantial profits.

This sector requires significant capital, but the returns on investment can be impressive if approached strategically.

5. Information Technology Services

Technology-driven businesses are flourishing in Nigeria, especially in cities where digital transformation is taking off. IT services such as software development, cybersecurity, and digital marketing are in high demand.

Additionally, creating apps, providing website design, or IT consulting services are promising areas to explore. With the growth of tech hubs in Lagos, the potential for tech startups is expanding rapidly.

6. Food Processing and Catering

The food industry is always a safe bet in Nigeria due to its growing population and love for diverse cuisines. You can establish a catering service, a food truck, or a small restaurant focusing on traditional or continental dishes.

Food processing, like producing packaged snacks, spices, or beverages, can also be lucrative. As people become more health-conscious, there’s also room for businesses that offer healthy, organic, or vegan food options.

7. Educational Services and Online Tutoring

Education is a priority for many Nigerian families, and the demand for tutoring and skill development is on the rise. Starting an educational service business, like tutoring, vocational training, or online courses, can be highly profitable.

You can focus on providing services in areas like coding, languages, exam preparation, or even soft skills like public speaking. Online platforms make it easier to reach a wider audience, reducing overhead costs.

Tips for Starting a Business in Nigeria

1. Market Research: Before diving into any business, conduct thorough market research to understand customer needs and competition.
2. Leverage Technology: Use digital platforms for marketing, sales, and customer engagement to reach a broader audience.
3. Financial Planning: Create a solid business plan to guide your finances, especially if you’re considering funding from investors.
4. Stay Compliant: Ensure your business adheres to local regulations, tax requirements, and industry standards.

These business ideas align with current market trends in Nigeria and have shown profitability potential.

By focusing on sectors like technology, agriculture, or renewable energy, entrepreneurs can not only achieve financial success but also contribute to the country’s economic development.

Starting a business in Nigeria can be a profitable venture if approached with the right strategy and mindset.

Whether you choose to invest in agribusiness, tech services, or e-commerce, understanding the local market and leveraging digital tools will significantly enhance your success.

Get more business updates here.

BUSINESS

Telecom Entrepreneurs Raise Concerns Over Borrow-Me-Credit Scheme

Published

2 weeks ago

November 6, 2024

Reporter

Telecom entrepreneurs on borrow-me-credit scheme | fab.ng

The Association of Telecom Entrepreneurs has urged a review of the “borrow-me-credit” scheme offered by certain telecom operators. This raises concerns about monopoly practices, foreign exchange leakages, and tax impacts.

Representing Nigerian businesses in the airtime distribution sector, the association highlights issues around the ownership structure of these credit-providing services. It also points out the exclusion of Nigerian banks and credit institutions from participating.

The association argues that the exclusive partnerships between major telecom operators and a single provider create an imbalance. This restricts competition and limits opportunities for local businesses.

They emphasize that Nigerian banks and other credit-lending institutions should be involved in offering this service. Further, their inclusion would enhance fairness and encourage broader economic participation.

Additionally, the group warns that foreign exchange leakages could affect Nigeria’s economy. Consequently, profits from these services often flow out of the country.

By addressing these concerns, they believe the industry can create a more balanced and inclusive telecom credit system that benefits both the Nigerian economy and its local businesses.

“We are seeking clarity on these matters to ensure that the borrow-me-credit scheme benefits Nigerian consumers, businesses, and the economy,” said a spokesperson for the association.

The association has raised concerns about several issues, including:

Service providers using dollar-denominated contracts for services within Nigeria, which violates Central Bank regulations.
The potential for foreign exchange leakage and negative impacts on the naira exchange rate.
Increased costs to ordinary Nigerians due to monopolistic practices.
The revenue and profitability of service providers.
The tax implications of dollar-denominated contracts.

The association has called on regulatory agencies like the NCC, EFCC, FCCPC, and FIRS to investigate these matters.

“We want to ensure that the borrow-me-credit scheme operates in a transparent, competitive, and affordable manner,” the spokesperson added.

Finally, the growing concerns over the impact of monopoly practices on Nigerian consumers and the economy drive the association’s call for a review.

Check out more business updates here.

BUSINESS

Top 10 Best Cities To Start A Business In Nigeria

Published

2 weeks ago

November 4, 2024

Adaeze Okechi

Best Cities To Start A Business In Nigeria | fab.ng

Discovering the best cities to start a business in Nigeria requires careful consideration of the country’s unique advantages. Nigeria’s massive population of over 225 million people creates an expansive consumer market, while its position as one of Africa’s fastest-growing economies generates diverse business opportunities.

The country’s abundant natural resources fuel various industries, from oil and gas to minerals and agriculture, making many cities attractive for entrepreneurs. Government initiatives actively support new businesses through targeted programs and incentives, creating a more conducive environment for startups.

When evaluating the best cities to start a business in Nigeria, entrepreneurs must consider crucial factors like population density, economic vibrancy, infrastructure quality, and living costs. Each city offers distinct advantages, from established commercial hubs to emerging markets with untapped potential.

Our comprehensive analysis of the best cities to start a business in Nigeria examines key metrics including market access, workforce availability, and business support systems. These insights help entrepreneurs identify optimal locations for their ventures.

We’ve thoroughly assessed multiple urban centres to identify the best cities to start a business in Nigeria, ranking the top 10 locations based on current market conditions and growth potential. This detailed evaluation will guide you in selecting the ideal city for your business venture.

Now, let’s explore these top 10 best cities to start a business in Nigeria…

Here’s a detailed exploration of the best cities to start a business in Nigeria:

1. Lagos

Lagos stands as Nigeria’s pulsating economic powerhouse, drawing entrepreneurs with its massive consumer market of over 20 million people. International corporations, from Google to Microsoft, have chosen Lagos as their Nigerian headquarters, creating a thriving ecosystem for startups.

The city’s diverse talent pool, spanning technology, finance, and creative industries, provides businesses with skilled workforce access. While operating costs run higher than other cities, Lagos’s robust infrastructure and established business networks offer unparalleled growth opportunities.

Entrepreneurs must develop comprehensive business strategies to navigate the competitive landscape effectively.

2. Abuja

As Nigeria’s carefully planned capital city, Abuja attracts substantial government and private sector investments. The city’s modern infrastructure, political stability, and growing middle-class population create ideal conditions for businesses targeting government contracts or high-end consumers.

International organizations and diplomatic missions contribute to a sophisticated market for premium services and products. Abuja’s central location makes it one of the best cities to start a business in Nigeria, particularly for companies seeking nationwide distribution capabilities.

3. Ibadan

Ibadan combines historical significance with modern business opportunities, housing over 6 million residents. The city’s lower operational costs compared to Lagos make it attractive for manufacturing and agriculture ventures.

Multiple universities, including the University of Ibadan, create a steady demand for student-focused businesses. The city’s improving infrastructure and proximity to Lagos position it perfectly for businesses seeking cost-effective operations while maintaining access to major markets.

4. Kano

As northern Nigeria’s commercial hub, Kano serves as a gateway to markets across the Sahel region. The city’s ancient trading heritage continues today through its massive markets and industrial zones.

Manufacturing businesses benefit from lower labour costs and established distribution networks reaching into neighbouring countries. Kano’s agricultural processing sector offers particular promise for entrepreneurs in food processing and distribution.

5. Rivers

Port Harcourt drives Nigeria’s oil and gas sector, creating numerous opportunities in support services. The city’s deep-water port facilitates international trade, while its energy sector attracts substantial foreign investment.

Businesses in logistics, engineering, and environmental services find fertile ground here. The city’s growing middle class also supports retail and service sector expansion.

6. Onitsha

Known as one of the best cities to start a business in Nigeria for trade, Onitsha hosts West Africa’s largest market. The city’s strategic location on the Niger River enables efficient distribution across Nigeria’s eastern region.

Entrepreneurs can tap into established trading networks and benefit from the city’s experienced merchant community. The manufacturing sector, particularly in consumer goods, continues to grow rapidly.

7. Aba

Aba’s reputation as Nigeria’s manufacturing powerhouse stems from its skilled artisan community and entrepreneurial spirit. The city specializes in leather works, garments, and consumer goods production.

Local manufacturers export products across West Africa, benefiting from well-established distribution networks. The city’s lower operating costs attract businesses seeking manufacturing bases.

8. Benin City

Benin City’s rich cultural heritage meets modern business opportunities. The city’s strategic location between Lagos and Port Harcourt creates excellent distribution advantages.

Growing industries include agriculture processing, education, and technology services. The city’s young population provides a ready workforce and consumer market.

9. Warri

Warri’s business landscape is defined by energy sector dominance, which creates opportunities in related services. The city’s port facilities support international trade, while its industrial zones attract manufacturing investments. Engineering, environmental services, and logistics businesses find particularly favourable conditions here.

10. Jos

Jos’s temperate climate and rich agricultural land create unique business opportunities. The city ranks among the best cities to start a business in Nigeria, particularly in the agriculture and tourism sectors. Its mining heritage provides opportunities in mineral processing and export.

The growing tourism sector supports hospitality and service businesses, while the agricultural sector offers potential in food processing and distribution.

When selecting your ideal location, consider factors beyond basic infrastructure – examine market access, workforce availability, competitive landscape, and sector-specific advantages. Each city has unique benefits and challenges, requiring careful evaluation of your business model and long-term objectives.