In Q3 of this year, $10.7 billion in non-fungible tokens (NFTs) were sold, and everyone from grandma to a $248 billion shoe company wanted to get involved.
On American Institute for Crypto Investors LIVE streams, I give disclaimers about NFTs because I don’t want people buying things they don’t understand with money they can’t afford to lose.
NFTs should not be considered core investments.
But are there projects that will succeed, that you can appreciate, AND can make you money?
If you understand the risks of buying an NFT and will be able to explain to good ole grandma what you just purchased, then you are ready to proceed.
What You Need to Know Before Getting Started with NFTs
It’s impossible to tell what will go viral and can sell for big bucks; there is no science or magic formula to follow. But one of the best ways to hedge your bets with an NFT project is to look at the community.
See what people are saying on Discord channels, on Twitter, on Reddit, and on other online communities. If there are vibrant discussions and people seem connected to the projects and just aren’t talking about the money they are going to make, you have a project that has support, and therefore, may have a better chance to succeed.
It’s better than finding no media presence and no one talking about the NFT…or listening to people who can’t wait to cash out.
Now, when I find something I like and am willing to take a gamble on, I’ll sell a few NFTs in the collection to break even.
I let the rest ride.
I’m able to recoup my initial purchase, and then the rest are just lottery tickets.
Every now and then, you can buy something for $500, and a few weeks later, they are trading for $5,000.
If you’re buying an NFT, part of the reason I say to buy something you like is because it may end up not having much monetary value. But if you like it, then it doesn’t matter as much because it’s something you can appreciate.
For me, one of my favorite NFT projects is Samot Club (samot.club).
The NFTs they’re creating have huge cultural significance in Central and South America.
I sat down with the creator for the first on-camera interview this guy has ever done. EVER. And what better way to dive into the world of NFTs than hear about them from someone who’s creating them?
Check out our interview below:
I’ll have more on NFTs for you later this week. But in the meantime, if you have any questions, make sure you join me here for American Institute for Crypto Investors LIVE tomorrow at 11:30 a.m. E.T.
See you soon,
Chief Crypto Strategist, American Institute for Crypto Investors