Spencer X Smith is the founder of AmpliPhi Digital, a digital marketing and consulting company, and a board member with the Wisconsin Technology Council. In a recent newsletter, he described investing in cryptocurrencies as “early-stage investing with instant liquidity,” noting investors in this area need to learn patience as prices fluctuate.

Because the cryptocurrency market is decentralized and largely unregulated, prices often change quickly due to media coverage, changes in investor perspectives and other factors, Smith notes. Plus, it’s smaller than traditional stock markets and is therefore more likely to see price swings.

He says those interested in getting into this market should start small and consider investing across a range of different cryptocurrencies to reduce risk. He notes this approach “will help protect you against the potential loss of any single investment.”

But he also recommends doing independent research on market conditions and specifics for the currency in question.

“Look for cryptocurrencies with strong technology, a solid development team, and a clear use case,” he wrote. “This will help you avoid potential scams and make informed decisions about which cryptocurrencies to invest in.”

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