Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How To Identify Investment Opportunities
Jun 12, 2023
Irrespective of the investment area you’re researching, some rules can help you determine whether a market will provide value. This stretches across the world of stocks, commodities, cryptocurrencies, or even tangible investments such as property or works of art. We’ll try and skim through some of the essential components and help you recognize the several variables to weigh before putting your money into any investment.
You should always consult a qualified professional to provide advice before you invest. The information you will receive today is general information that covers some of the basic principles of investing and how to hone them to benefit your strategy. Still, you must always consult a professional and several reliable sources before making any sort of investment.
Regarding any financial move you make, reading up on several different sources is essential. Some of the most significant investment opportunities over the last few years have been in sectors such as AI, cryptocurrency, and casino investing. For example, digital casinos and the esports industry, as some of the articles from https://thunderpick.io/blog/ can prove, have witnessed an enormous boom in revenue, and it has caused widespread institutional investment, such as hedge funds and investment banks, into the companies that run these hugely profitable gambling sites.
Remember to always gather the important data you need to ensure the successful process of your investment.
Get To Grips With The Market
Ensuring you understand your investment is so significant. During the cryptocurrency bull run in 2021, trillions of dollars worth of trading activity occurred across several international markets. It resulted in a significant boom and bull run, with substantial public figures entering the space, tweeting about cryptocurrency, and countries like El Salvador introducing Bitcoin as a legal currency.
Although there were initial trepidations about a fairly sizeable country and economy adopting Bitcoin as currency, these concerns mostly came from external sources. El Salvador has proved to be a thriving economy and has announced plans to open its doors to some of the world’s most innovative technology companies.
However, this bull run was fuelled by a significant portion of retail investors who were putting their money into cryptocurrencies they didn’t understand. As a result, in May 2021, the cryptocurrency market experienced a monumental dip and lost an eye-watering $1 trillion in 24 hours. Most people who lost a significant portion of their wealth were retail investors who didn’t perform the necessary due diligence and found the most brutal possible.
Conduct Appropriate Research
Simply understanding the market isn’t good enough to make a successful investment. Various other factors are at play, and research can mean dozens of things depending on the type of investment you’re looking to make. In our last section, we explained the unfortunate circumstances that occurred a couple of years ago, where millions of retail investors lost thousands of dollars.
There’s a frosty relationship between cryptocurrency and Canadian regulators, so it’s a good idea to explore the current dichotomy before investing in such a volatile and unpredictable marketplace. For example, the world’s leading cryptocurrency exchange, Binance, has withdrawn its operations from the Canadian marketplace due to regulatory issues, and it’s essential to understand the market conditions such as this before you start putting your money into any marketplace.
Understand External Factors At Play
Often, the nuances and identifying opportunities ahead of the curve result in investors making significant returns. For example, a couple of years ago, if you’d invested in one of the world’s leading technology and AI companies Nvidia, in October 2022, you’d have got their shares at a price of between $120 and $130.
This was before the current AI rhetoric went into overdrive, but if you were in the industry or the know, you’d have realized that ChatGPT was on the cusp of becoming huge international news. In nine months, you’d have trebled your investment, with Nvidida’s shares surpassing $400 in May 2023.
The news is often a significant factor in determining the market value of company stocks and share prices. Information about the specific company or store is more specific to your investment. However, more general news, such as the current economy and employment figures, can also move the market.
See: The Rise of Impact Investing in Tech Startups: Aligning Profit with Purpose
Ensuring you factor in other social or global events like the outbreak of war or a global downturn will give you a better indication of how to read the market and plan accordingly. However, it will also give you a potential window of opportunity to enter the market when prices are experiencing a dip, so there are a lot of components to weigh up.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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