From August last year to New Year’s Day this year, NFT has experienced waves of popularity. It seems that the whole year has been spent in NFT’s hot projects. In the end, Jay Chou’s Phanta Bear completed the perfect link.
On New Year’s Eve, DeFi Youdao strongly recommended Phanta Bear. Why do we recommend such a project? Continue to look down. (Some useful gadgets will also be recommended at the end of the article)
Today, let’s talk about the characteristics of the NFT market first. Those who often participate in NFT will feel this way. Whenever a project rises, it will be at least 10 times or 20 times. Jay Chou’s NFT is now 30 times larger, right? These projects are too numerous to list one by one.
But if you buy some junk items, you can also return to zero directly.
To sum up the characteristics of the NFT market is: either take off or return to zero.
The core of all financial assets is liquidity , not only in DeFi, but also in the NFT market. Liquidity is king . NFTs without liquidity are meaningless. There is no difference between not being able to sell and returning to zero. They are all in their hands. When you see the Floor Price of a project falling, don’t worry, it proves that it is liquid. So having liquidity is also a key factor for NFTs.
Remember, in this market, there is real value in what someone is willing to buy.
How to choose an item?
Select hot projects for investment
The so-called project popularity mainly refers to the intensity of social media (mainly Twitter) and KOLs discussing the project. The popularity of the project must be investigated by yourself, and you must not listen to rumors in a certain group, or some “screenshots” that are very easy to fake.
Second, it is necessary to see whether the project party is doing things. In the operation of official social media such as Twitter and Discord, whether the project party has a clear and feasible implementation plan, and whether it has the necessary capabilities to implement these plans.
Don’t chase quantity
There are many investors who think that if I participate in 100 projects, as long as there are 1 or 2 projects, I will make a hundred times the profit. This investment strategy is incorrect.
In this market, there are always more unreliable projects than reliable ones. Reliable ones don’t necessarily fly into the sky, and unreliable ones generally go to zero in an instant. Under the bull market fomo mood, adopt a blind investment strategy, as long as you run fast, the probability of losing is smaller. Once the tide goes out, there is no chance of escape for a blind throw strategy.
Keep up with industry trends
The community is very sensitive to good projects, and it is the first place for discussion. It is very useful to lurking in the community of some well-known projects to check the relevant information. As a small fan, it is very important to get first-hand information. Any news has value, and timing is the key to your bottom line.
How to reduce costs?
The process of creating NFT is mint. Before NFT is placed on the secondary market (such as opensea), mint is required when it is purchased for the first time, that is, digital assets are generated and recorded on the blockchain (basically all on Ethereum). When you join a new NFT project, you will see the specified mint date, and when the specified time is reached, you need to act as soon as possible.
Another intuitive manifestation of Mint is that the gas cost rises sharply for a few minutes. At this time, it is very likely that NFT is in mint. When mint, the gas fee must be prepared enough, don’t lose the big one because of a small gas fee.
Many projects will have a few hours between the completion of Mint and the appearance, and the middle is the blind box form. If you are optimistic that this item will not fall after the blind box, then you can buy a blind box at Opensea, and you will earn if you open a high rarity. According to the general rule of the total number of items, the top 10 must be very rare and the most valuable. The probability of getting the top 10 out of 10,000 items is 1 in 1,000, which is much higher than Caipiao.
For some projects with a higher “b grid”, you can only participate in the pre-sale after your wallet address is whitelisted by the issuer, that is, participate in mint on the specified date. The whitelist mechanism is to reward early fans and to avoid excessive gas fees.
The application for the whitelist generally needs to go through social software commonly used overseas. You need to prepare more Discord, Twitter, etc., depending on the specific requirements of the project’s whitelist.
When will it be sold?
Strategy 1 : Buy 2 or 3 NFTs when you buy them. Hang one of them at 2 or 3 times the price and sell it back at the original price. The remaining cost-free holdings, in short, take off or go to zero . This strategy is very simple and crude.
Strategy 2 : “Sell it when it’s hottest”
This is a critical time to test the “art of escape”. When many people flock to buy, it is the easiest time to sell. Combining so many projects, we found a more general rule: there are two stages that are the most popular: the blind box stage and the map opening stage . At this time, a large number of fomo people rushed to buy, which is the time when NFT liquidity is the highest, and this time may be the best time for NFT price.
Regardless of the strategy, I think it’s important to understand your own strengths and weaknesses as a small scatter. Not every project is a punk. When taking over the secondary market, you must consider it carefully. The principle of investment is always: first to protect the capital, and then to make a profit .
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/why-do-you-always-lose-money-nft-investment-strategy/
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