Why do I like NFTs?
I got to ask that question to myself. What exactly are NFTs?
NFTs are a unique blend of technology and creativity, allowing for programmed artwork and pictures. Artists may make graphics using smart contracts on blockchain networks. Directly selling digital works to global audiences allows artists to retain a bigger share of their sales money compared to traditional auction houses or galleries. The artist might also charge license fees for his collections. This allows the creator to earn cash by selling their work on the secondary market.
When customers purchase an NFT, they instantly "register" their ownership. They can learn about the history of a work of art or photo, including prior owners and sales prices.
Well that is an Wikipedia kind of description, but taking a closer look on them, we can find a lot more observations.
As a collector, I consider these fine-looking pictures as a new generation of digital art and very innovative collectibles. I've been drawn to collecting different stuff since I was a child, like many of my contemporary friends.
Most of us remember, how exciting was the feeling when you could open a brand new pocket of NBA cards or Pokemon cards, and find a rare, desired by all your colleagues specimen.
Unfortunately, most of all, I remember the traumatic experience when one of my mate had tricked me into swapping my raribles for the very common, worth-of-nothing ones.
After years of contemplating what went wrong, I came to the conclusion that my main fault was: the lack of knowledge and the right strategy.
Now, as an adult, I decided to never make such a mistake again!
Firstly, I need to find a good strategy, I'll be a Macchavelli or even a Napoleon in collecting the best NFTs.
To get such a high level I will need to educate a lot, so I have to find some information about investing in NFTs.
Let me check, what is that:
NFT investing strategies are a group of plans and methods for optimizing investments in digital assets such as collectibles, virtual worlds, and other kinds of art represented by NFTs. These tactics help investors choose which assets to purchase when to buy them, and when to sell them to maximize profits.
The good adjusted plan will help us to:
- avoid emotional influence: emotions and stress often lead to impulsive decisions in the NFT market. Stress-induced choices can negatively impact investment portfolios. Emotional decisions may lack rationality and understanding of market data, leading to poorly timed entries or exits. Utilizing investment strategies prevents hasty and irrational decisions, safeguarding your investments.
- organize portfolio: having a broad picture and a precise action plan guarantees methodical and productive investments. Staying focused on the specifics of your strategy keeps you from deviating from your investing goal and ensures that your approach is consistent.
- maximize profits: a well-developed trading strategy based on detailed market analysis may greatly increase returns when compared to random, one-time investments. A professional approach produces excellent outcomes. A codified, documented plan with a well-defined action algorithm increases earning potential for the same investment amount. This boost comes from increased concentration and speedier decision-making, which leads to a more profitable investing path.
Well, sounds complicated, but the more read it, the more questions arise in my mind: how can I set a right, profitable strategy, what particular features I should keep an eye on?
MARKET CAPITALISATION
Examining the project's market capitalization is an effective technique to choose the best NFT project. Because of the way NFTs are constructed, their market capitalization does not move as quickly as that of other cryptocurrencies.
When a project has a large market capitalization, it means that multiple NFT owners are prepared to spend a greater price to acquire the NFT collection from another.
VOLUME OF MINTED COLLECTION
It is important to check how big the volume of collection is - how many NFTs have already been minted and how many are going to be minted.
LIQUIDITY
This shows how many tokens were traded for a specific project during a given period. The bigger the volume, the greater the demand for the project among investors. To determine whether the project is in strong demand, analyze the trading volumes of several NFTs on the popular marketplaces or the NFT's data page.
NUMBER OF UNIQUE HOLDERS
This measure takes into account the amount of addresses that contain an NFT. When the number of addresses owning the token is high, it signals a larger community, which may help market the product to additional potential investors and increase the token's value.
All of the above-mentioned metrics are only basic knowledge for beginners, and it is only a drip from the vast ocean of NFTs' markets.
Before investing, I will start by researching the asset, its creator, and the market. Firstly, I'll highlight everything from market history and cycles to the intricacies of choosing a project for investment.
Meantime, I'll continue my NFT education and I will check that knowledge in practice.
It seems that I've got a very long way to go through until I become a real NFT connoisseur.
And, about Drip (not only in the Ocean), every time, I get an invitation code from Drip. Haus, I will put it in my post, so, there are two: 2ekHnuW8DwSgv5tJ
These are for those, who had enough patience to read my post till the end.
Unfortunately, I'm afraid this is a one-use invitation code, so I'm sorry for those who will be late using it.
I hope you enjoyed reading it , thanks for stoppingg by!
Greetings!
