NFT trading guide: how to avoid becoming a picker?
Original title: "NFT Trading Guide: How to avoid becoming a receiver? "
Compilation of the original text: The Way of DeFi
Compilation of the original text: The Way of DeFi
There are two types of people who trade NFTs:
- investors
- Liquidity exiters (who consider themselves investors)
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1. DYOR – do your own research!
For every NFT you consider buying, insist on doing your own research.
Don't buy an NFT just because of someone else's suggestion - this is the first step to avoid being withdrawn from liquidity.
I don't care who told you or why you were told to buy a certain NFT - find out the answers to these questions yourself:
- Why this NFT is going up or could go up
- who's behind all this
- what is their plan
- When will they deploy these plans
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2. Classification
After you've done your research, think about what your "exit point" is based on your research, and be disciplined enough to stick to it.
Divide your NFTs into 4 categories:
short term
mid term
long
diamond hands
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short term
These NFTs are the highest risk - they will spend the least amount of time in your wallet.
These are quick-trading games where traders see floor prices rise dramatically in a short period of time due to pure hype or anticipation.
NFT traders use tools including @curiotools, @tinyastroNFT, @Promintcc to track down NFTs whose floor prices have been wiped out, and pick the NFTs they think will outpace price cuts.
Be very careful with short-term hype.
Within an hour or two, volume can dry up and the floor can plummet...monitor these short-term investments very carefully.
Tip: Set an exit price point, and a backup exit price point, so your investment doesn't go to zero if things don't go your way.
Sniping and Hyping Rare NFTs
A small side note to the short-term category.
After the NFT is revealed, some rare NFTs will appear -
If you're actively following @blur_io, @gemxyz, @the_x2y2 or @opensea, when the time is right, you can snipe.
Be sure to check the volume and floor prices of these rare NFTs before buying and going live.
Even so - consider your exit point.
Don't get drunk on the excitement of owning a rare NFT.
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mid term
A medium-term investment is an NFT that you buy, ready to sell when the upcoming good news appears, and this good news will make the floor price rise.
Mid-term investing is tricky - you need a certain amount of trust in the team to do it.
You still need to manage your expectations.
You think a piece of news will cause the floor price to skyrocket, but it probably won't.
Market sentiment is difficult to predict - actively monitor the market and the team and make necessary adjustments to exit points.
I suggest researching similar floor price catalysts in other projects to see what impacts these floor prices...
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long
These are investments you don't need to check on a daily basis.
Long-term investments can take months, a year, or longer to bear fruit — and you trust wholeheartedly in the team's vision and ability to get there.
But, never forget to take your profits - long-term investing also has an exit point...it just takes longer to get there.
Personal emotions and attachments cannot be a factor in investing.
Personal emotion is what separates art collectors from investors.
Mistaking a mid-term trade for a long-term trade, or both for a diamond hand NFT, is what causes most people to lose money.
The longer you plan to hold NFTs, the more trust you have in their team.
Again, don't get carried away by your emotions.
The team should have:
- Models of success in their respective fields
- Passion for their projects and holders
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diamond hands
Only a very small number of NFTs in your portfolio can be labeled this way.
These NFTs do not require an exit point to be set.
(Currently I have two diamond hand NFTs in my hand-will be described later.)
So... what kind of NFT is worthy of the diamond hand label?
Not only do these NFTs meet all the criteria to be a long-term investment, but you spend a lot of time on these NFT communities.
The people around you have the greatest influence on you - choose carefully!
Think about what you want from Web3 - what NFT community can help you achieve these goals and will continue to stick to it?
Having fun with friends? Can gradually develop your spam account? Have Web3 work? NFT transactions?
Your Diamond NFT should enhance your Web3 experience.
Ours:
I only have two diamond hand NFTs - @AzukiOfficial Beanz (my avatar) and @0xbrotherhood pass.
Both communities are full of genuinely good people who know how to have fun but also help me learn and make money in Web3.
First off, My Beanz is my brand.
Even if I could afford an Azuki, changing my PFP was a tough decision.
And... there are so many builders, artists, and developers in Azuki - so many people to learn from and connect with.
The 0 xbrotherhood pass has brought me into contact with a lot of amazing people in this field who have already achieved my goals one step ahead of me. Being able to connect with them and keep learning from them is invaluable.
all in all……
Don't romanticize your investing.
For every NFT you buy, create a plan to achieve your goals, and execute on that plan.
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