How does the 10x a day NFT market make and lose money?
I saw a group friend say that he had 600 NFT whitelists day and night, and 90% of them broke!
Another discord, another telegram, another retweet, worked hard to get the whitelist of each project, but there were too many broken projects.
Just spent 0.1eth to buy the first NFT, and the price dropped to 0.01eth in a blink of an eye.
Most people have less than 600 whitelists, and they don’t have so much time and energy to grab the whitelist. If you choose to buy a dozen or more NFTs, there is a high probability that they will be reset to zero or quilted.
Although NFTs have myths every day, they are all owned by others. Some of them are the needs of the project party to publicize and distribute. Only by creating typical and rich myths can people continue to follow and enter the market.
In the entire NFT market, it is too difficult to make a short-term profit.
1. How to make money playing NFT?
At present, NFTs are more digital collections and hype and have less specific applications. The value of collectibles is more subjective. If someone buys it, it has value, and if no one buys it, it has no value.
For example, this BAYC Boring Ape #7089 NFT was just traded at 86 ETH, but the transaction price 16 days ago was 110 ETH.
The holder places an order to sell, and no one buys it, so it cannot be sold, or it can only be sold at a low price.
The minting price of Boring Ape #7089 was only 0.06 ETH in May last year. According to the current transaction price, the increase in 9 months is 1433 times.
If you had the vision at the time, bought this monkey, and got it now, $180 has become $530,000, a super high rate of return.
There is also the azuki series that has been very popular recently. Azuki #5580 was just sold at a price of 16.8ETH. It was minted at 1ETH a month ago, and the increase was nearly 17 times in one month.
If someone recognizes the value of the community and is willing to show their identity on social platforms, more and more consensus will be formed. Coupled with the continuous marketing of the project party, NFT may develop in a better direction.
If you can buy in early and hold on to it, the market has the potential to give a very good return.
2. How do you lose money playing NFT?
In addition to the rising NFT, some of them have broken or returned to zero. For example, in this Mind The Gap series of NFTs, the floor price has dropped from 3ETH to 1.13ETH.
This picture Mind The Gap #674 was minted at 0.15ETH on February 6, sold at 0.6ETH 8 days ago, then sold at 3ETH, and sold at 1.15ETH 4 days ago.
Greater volatility in a short period of time also means greater risk.
Long-term holdings may be more likely to increase multiple times, and more likely to zero. But for short-term holdings, you will either get a whitelist or the benefits may not be obvious.
After buying at 3ETH and selling at 1.1512, it lost 1.8ETH in 4 days.
If you want to sell quickly, either sell below the market price or continue to hold, there is greater uncertainty.
If you can hold it for a long time, you need to pay a certain time cost to sell it.
There is also this phantom bear PHANTA BEAR #8686, which was sold at a price of 8.6ETH a month ago, sold at a price of 3.9ETH 5 days ago, and dropped 4.7ETH in a month.
The current floor price of Phantom Bear NFT is 1.6ETH, and the initial price is 0.26eth.
Of course, it is also possible that the phantom bear will take off, but when buying NFTs, you must plan to hold them for a long time, because the buying point is the high point, and it may not be able to sell in the short term.
3. What are the characteristics and risks of NFT?
NFT is a non-fungible token, each NFT is different, and there is no uniform price.
In addition, the liquidity of NFT is poor, and if you buy it, you may not be able to sell it immediately. What you can’t sell is just a picture, you can only be trapped.
NFT may double 10 times or 20 times in 2 days, and there is also a 90% probability of breaking. The market has not seen this series of NFTs, and it has no value and cannot be hyped up;
Those who are cast by the whitelist will lose their investment.
Conclusion
NFTs are silently issued and silently returned to zero. Whitelist casting is also risky. Some projects will stop playing after cutting the whitelist, and then there will be no more.
NFTs are risky, and you must figure out how to play them before investing. Without knowledge, you can’t earn money from them.
The above is just my personal opinion and summary, no investment advice, any investment behavior of readers has nothing to do with the author.
