7 Essential NFT Investment Tips You Should Know (Updated 2023)
Looking to invest or collect NFTs? After the NFT market downturn in 2022, many viable NFT projects are at selling at affordable prices on secondary. Here are some essential tips you should know before investing into NFTs.
Table of Contents
1) Do Your Own Research (DYOR)
As with any investment, it is important to do your research and understand the risks associated with investing in NFTs. Understand the project, the team behind it, and the track record of the developers.
2) Know What You Are Buying
Is the NFT just an art project or does it contain utility? What is the roadmap? Does it have any special features such as DAOs or cc0 licenses? Before investing, be sure to get all the information so you can make an informed decision.
3) Consider Your Risk Tolerance
NFTs are a highly speculative asset class, and investors should understand their risk tolerance before investing. Make sure you understand the risks and rewards associated with NFT investments and make sure you’re comfortable with the potential risks.
4) Diversify Your Portfolio
As with any investment, it’s important to diversify your portfolio. Don’t put all your eggs in one basket. Consider investing in a variety of NFT projects to reduce your risk.
5) Don't Overpay
It’s important to understand the current market value of the NFT you’re looking to purchase. Don’t overpay for an NFT, as you may end up losing money in the long run. There are many NFT tools out there which tracks the historical price of and NFT so you can determine a good entry point.
6) Stay Up To Date
NFTs are a rapidly evolving technology, and staying up to date with the latest news and developments is important. Make sure to keep up with the news and stay informed on the latest developments in the NFT space.
7) Use A Reputable NFT Marketplace
When investing in NFTs, it’s important to use a reputable NFT marketplace. Make sure to research the exchange, its fees, and its security measures before investing. Be wary of anyone trying to sell you NFTs outside the marketplace.
Wagmi.tips does not provide investment, financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal. Wagmi.tips will not be responsible and help liable for any losses or gains incurred directly or indirectly as a result of reading this aticle.