NFT Tips: What I have learned so far…
So I have now been near this dark part of the Ethereum forest for over 6 months, not as long as some, and more than others.
Deployed smart contracts, built various discord communities and talked with thousands of people online… yes thousands. On this beautifully harmonious side of the internet…. here’s what I have learnt so far.
Here are 3 quick tips that will help any beginner:
- Use small amounts at the start like 20–100$ while your starting
- Don’t put all your eggs in one basket, diversify your investments
- Join as many chat rooms as you can to learn about it all
NFTs are illiquid assets; meaning that when you buy one unless there’s high volume (i.e buyers) then you will not sell your token. This is very different to crypto, as you can sell this whenever you want, so long as there is enough liquidity (buyers when your selling/sellers when your buying) on the exchange.
So this is was my first lesson, ensure you have done your research, don't go buying anything until you can explain some of the basics, and you can tell there will be a market looking for what this piece of art offers.
What is the right research? Well, that's up to you and your strategy. However, if I was to start anywhere it would be asking the community questions, getting to learn the roadmap and understanding how these projects plan to create parts of the metaverse.
Most of the time, if the website is well made, the art is consistent (doesn't have to be super detailed) and the community is popping then that shows something, but this can always change. So I often look at how the market is changing rather than how it is right now.
Secondly, tread carefully on mints, I have been caught time and time again frantically scrambling gas and other fees together to mint as quick as possible. Only to then see it dip on OpenSea after, where I could've gotten in cheaper. Then there's not supplying enough gas only to lose it when the transaction goes through just to late. There's a lot of risk here.
So mints can be profitable, but then your so early you don't know if it's just hype or the project is actually good in most cases. Often if you are doing mints you will be aiming for projects you have been whitelisted for (you have been allowed access prior to public sale)
So in general, be careful of mints. That's a 24/7 job right there, looking for hype, predicted hype, and reacting to hype… lot’s and lot’s of work…
The other thing is trade off community and good hype. Yes so I know I just said be careful with hunting hype, but if it's something that is hype, not because it has a huge discord or heaps of messages. Not because there's a Twitter account going ham and getting a heap of followers. Look for more genuine things that would actually get you hyped, like Sandbox releasing a metaverse with a custom builder or one of the guys from Mr Beast launching an NFT lifestyle brand.
Look at the team, are they hyped organically, look at the utility, does it line up with current trends. Like right now utility is being hyped, which can be both a good and a bad thing.
On one side utility is good, because it means metaverse integrations and real-world applications. But the moment something becomes trusted or hyped, every scammer/rug project tries to replicate it and steal some of their buyers. So that means you will have to sort through the thousands of scammy, crappy websites through all the botted out discords, and the bought Twitter followers… fun right?
Well, I was always told, nothing worth doing is easy, or everyone else would've done it by now. This leads me to my next tip, join a good community, find a group of people on voice channels or group chats of their own who have done this before.
I will be building a community soon so stay tuned to my medium and I will let you know when we have it up and running.
NFTs are the future of crypto and community, the more any of this is flagged by the media and hedge funds, the more it's clear they don't understand… yeah 99% of the market is saturated with rug pulls. But the 1% may actually have value and the potential to change everything about our world for the better.
I hope this article has helped make investing easier for you.
NFA and DYOR
Enjoy!
Huxley
