Learning How NOT to Lose Money in NFT with YesYes DAO
The NFT sector is expanding quickly and will explode again in 2022. What is the issue? Everyone talks about how much money you can earn trading NFTs, but no one talks about how to prevent losing money on NFTs, or who makes the big bucks.
YesYesDAO strongly advises you to only invest in NFTs and Crypto that you can afford to lose. The market is volatile, and it is becoming more challenging to trade NFTs successfully. We are also starting to see the development of institutional trading, even in the NFT space. However, NoNos (Parent of YesYes DAO) promises to guide you through the dangerous tides of secondary trading.
This post offers crucial recommendations to assist you in avoiding losses on NFTs. This post should not be construed as investment advice. We recommend all of our readers to do their research, form their own opinions, and use caution in these markets. Now, let's dive in.
What NFTs do you own, and why do you own them?
One of the best pieces of advice you have to remember is to know what stocks you own and why you own them.
Knowing the project's name from which your asset is sourced is a good start, but you must dig further.
Most NFT initiatives include assets of varying rarity, and various project segments may appeal to different audiences. For example, Cryptoadz by Gremlin features assets with hoodies, Matrix backgrounds, cigarettes, etc. You may see people Tweeting, "wow, Hoodie Toadz is popping off right now!"
Will you understand the possible demand for the rarity type that you possess if all you know is that you own a Cryptoadz?
You may be leaving money on the table if you don't know what you possess. You might be able to hold it for too long. During the bull run, you may overprice your goods. If you need assistance determining the rarity of your item, see our step-by-step guide here.
What happens if you possess 12 NFTs but forget about two of them that you purchased months ago? A project might be sinking, and you could be left holding the bag. You may be working on a project and forget to delist it.
Because you own another asset, you may be added to the allowlist.
It requires effort to understand what you possess and the value you get from having the item. To keep updated, you should often join the Discord Groups of your projects.
Does this seem to be a lot of work? Yes, it is. However, the effort is worthwhile since it requires you to think carefully about your acquired item.
Learn More About the NFT Creator
Many (too many) NFT projects started with anonymous founders. Several reports of projects making founders millions of dollars vanish and leave consumers carrying the bag.
Don't allow the extreme instance to trick you into thinking you're safe because you invested in a startup with a prominent founder. Some public founders are not long-term dedicated to a project, and there will be long-term devoted founders who make blunders that may derail an enterprise.
There will be founders who are unaware of the legal implications of how they give value via their enterprise. Others would deceive purchasers with functionality in a project that was not completely understood. Joining a project's Discord group is a fantastic starting point. Conduct as much research as possible on the creators - Twitter, LinkedIn, and Google searches.
You might want to look into what Nono offers: 1% of NFTs are fully 3D (rotatable 360 degrees). NoNo is a company based on a character from SEER having the same name. It is backed by SEER and its parent company, TAOMEE. It aims to teach people how to profit from NFT while simultaneously allowing people to enjoy their childhood memories, make games, and give back to the community.
Many new NFT projects are coming out, and it might be tempting to spend all of your money because you don't want to miss out.
If you become too involved with ventures that you only half believe in and aren't liquid, you can miss out on the winner. This relates to having macro-patience (recognizing that there will be more victors in 2022 and beyond) and micro-speed (ready to strike).
A lot of money has been wasted in the NFT industry due to purchasers experiencing FOMO (the reverse of panic), overpaying, and panic selling when the enthusiasm slows down. This article's cover image is from the MekaVerse project, which traded for about 7 ETH in October and is presently trading at a 1.35 ETH floor. Because there was so much early excitement around the initiative, consumers overpaid before the market adjusted.
If you find yourself panic selling, it's most likely because you spent more money than you can afford to lose. If you're selling fast because you discovered you overpaid and need your money back, that's a far different (and better) circumstance.
There is no sure-fire strategy to prevent losing money with NFTs, except you shun the market entirely. If you decide to invest in the market and only spend money, you can afford to lose, and your losses will be less severe. The success tales you witness on Twitter and Discord are seldom the result of a lucky coin. On Twitter and Discord, it's generally from 50-hour workweeks. It is reading white papers till 3 a.m. It's called networking. It's growing in conviction. It's going through data.
If you follow these golden principles of investing and are more deliberate in your decisions, you may lower your chance of losing money on NFTs.
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