The 3 Most Important Things I Learned from Investing in 100+ NFTs
#1 — You Are The Middleman
It is common to say that there is no middleman in web3, but actually, you are the middleman. You can decide what you want to do with your NFT. And we are already seeing lots of use cases pop up with IP (Intellectual Property) rights — Meaning you can do whatever you want with your NFT. Some NFTs are displayed in art galleries and printed on clothes, canvases, or objects.
The most exciting movement we are currently seeing within NFTs is the development of characters or cartoons to be used in magazines, videos, advertisements, and television. Many NFT projects are investing heavily in major partnerships with web2 brands to gain traction. And a lot of early believers of NFTs believe that this will bring mass adoption to the NFT world, as do I.
Be on the lookout for projects that understand this use case; these projects might be one of the first ones to ride the wave of mass NFT adoption.
#2 — Invest In Team Capabilities
This might seem cliche, but I will tell you why it matters. Nowadays, many NFT projects are based on hype; therefore, we see a lot of big jumps and dumps in prices. It is essential that a team can even build hype, preferably multiple times within a specific timeframe; this says a lot about the expertise and execution of the team.
An additional crucial factor is the long-term plans of the project. Therefore, you need to look further than the hype and predict their future (hype) cycles. You can do this by investigating the team members’ backgrounds, reading their whitepapers, and researching projects with similar visions.
The points mentioned above are important factors when building a long-term NFT investment portfolio.
#3 — Double-down
Like with every investment, you should think long-term and not be focused on short-term gains. Therefore, you need to believe in a project before investing in it, and as mentioned before, you will probably experience a couple of hype/bull run cycles while holding. There will always be a moment where you think, do I need to sell or not? Especially if the price of your NFT pumps with 3–10x your purchase price (it often happens in the NFT world).
So instead of buying single NFTs of multiple projects, double down on the projects you believe in so that you feel more engaged and can sell 1 of your NFTs when the price pumps 3–10x.
I hope you learned something new or that it was just a good reminder for you. I will be sharing more tips and in-depth crypto & NFT stories along the way, so give me a follow on Twitter (@nielskaspers) or subscribe on Medium or Substack.