Why are People Jumping on the NFT Bandwagon?

Source: www.verdict.co.uk

NFTs were a hot topic in 2021. They are digital art that can be bought and sold on the blockchain. NFTs are equivalent to the limited-edition print but certified by encryption.

NFTs brought a lot of changes to the art industry in 2021. In December, the NFT market had reached $22 billion. Auction house Sotheby’s reported that the rise in the popularity of NFTs coupled with the launch of the Sotheby’s Metaverse platform attracted new users, with 78% of NFT bidders being new to the auction house and more than half of them aged below 40 years. Beeple’s “Everydays: The First 5000 Days” is currently the most expensive NFT ever sold after attracting a price of $69.3 million. The same NFT had previously been sold for $100.

It is believed that everything we buy will be marketed as an NFT in the future, including clothes, homes, and cars.

The NFT hype has seen many individuals and businesses jump into the NFT bandwagon, and this has helped them to create new friendships and alliances. Today, there are many artists using NFT to sell their artwork.

What are NFTs?

Most people think of NFTs as just pieces of .jpeg photos, but this is not true.

NFTs are digital assets that run on the blockchain. Each NFT is unique and it can only have one official owner. NFTs run on the blockchain, making it difficult to duplicate or reproduce them. This makes NFTs a suitable way of defining the ownership of digital assets. It is also the reason many industries are jumping into the NFT bandwagon. For instance, there are artists using NFT to create and sell NFT music. We can define NFT music as the sale of songs and audio files as NFTs.

Other types of NFTs include NFT fashion, NFT tweets, NFT videos, NFT games, and others.

NFT Trading Strategies

Source: wealthquint.com

You might have decided to jump into the NFT bandwagon to make money. This is possible by trading NFTs. The purpose of trading NFTs is to generate huge returns. There are so many NFT trading strategies that can help you to achieve this. They include the following:

#1: Value the Project, Not the NFT

It is easy to jump into the NFT bandwagon after spotting an NFT that either became popular overnight or is insanely expensive. Less expensive NFTs are overlooked as most investors think they have no value. That is how investors lose good opportunities.

Remembers that Beeple’s popular NFT was once sold for $100 but later sold for $69.3 million.

Projects developed by notable artists using NFT or backed by big names will gain much value with time, hence, you should consider such projects when jumping into the NFT bandwagon.

#2: Buy the floor

As the NFT popularity continues to rise, there are chances that NFTs will exist for many more years. Thus, buying NFTs at their floor price could be the best NFT strategy for you. The floor price of an NFT is its lowest price in the NFT market. However, you should consider the category under which the NFT falls before buying it. For example, you can go for a rare NFT category and choose the NFT with a floor price in that category. This will position you for enormous growth in case the NFT price rises in the future.

#3: Market for the NFT Project

One of the best NFT trading strategies is to check whether an NFT has a market or not. If the NFT has a small market and there is no NFT marketing strategy for that NFT, don’t invest in it.  

New NFTs are listed on the NFT marketplaces. It’s good to invest in an NFT with a proper NFT marketing strategy. Most NFT projects are marketed on social media companies and platforms such as Discord and Reddit.

#4: Reputation and Community

NFTs are a new strategy for cryptocurrency, and this makes them vulnerable to scams. Previously, projects such as Evolved Apes and Frosties made away with rug-pulling investors’ funds worth $3 million despite being some of the trending NFT projects.

Thus, checking the credibility of the NFT development team and the NFT community should be part of your NFT trading strategies.

#5: Buy High, Gain More

Source: beincrypto.com

Another best NFT strategy is to ensure that you are not only the first one to buy but also the topmost.

You can jump into the NFT bandwagon by buying at the floor price or the highest price.

If you choose to buy an NFT at its highest price, you should be prepared to part with a large sum of money as some NFTs cost over $30 million.

Despite the high cost that you may incur for this, you will become the owner of the most demanded and rarest NFT. You can then hold the NFT or sell it for profit in the future. `

By darnell
August 30, 2022