With every niche on the market, the new opportunity to invest comes up. We consider cannabis industry as a novelty and a huge opportunity, which is hard to ignore for any investor.

There are two main possible ways to go, when desiring to invest in the industry. Either you can invest in producers, processors and retailers, who are directly connected with the plant or into the ancillary businesses as software engineers or consultants. The way you go depends on your risk awareness. The professionals connected directly are obviously riskier choice. However, with such a positive expectation of growth in the US, it seems like the investments will be in the right hands.

Changes can also be seen in Europe. Cannabis is decriminalized or legal in more than 10 countries already. It brings an opportunity to invest in European growers of legal marijuana, producers of legal hemp products or of course the auxiliaries as well.

The most important rules to invest in cannabis are following:

1. Know the industry
The fact, that you might be smoking cannabis, doesn’t make you any more informed about the industry itself. As any other investor, you need to keep up with the news and know what is going on.

2. Do your research
You should know which branch of the industry you are most interested in and how is the company performs on the market.

3. Know your risk tolerance
As mentioned before, only you know how risk-aware you are. Maybe you don’t feel like investing in the grower or producer for the first time, and rather go for consultant or marketing specialist in the cannabis industry. Based on that, you’ll find the right company to invest in.