NFTs are a relatively new phenomenon and are an industry on the rise. Many people are seeing opportunities and entering the market daily. Numerous examples of NFTs minted for a few hundred dollars becoming worth thousands or six figures in months.
Some of these people are Crypto fans who've seen the emergence of NFTs, possessing the fundamental knowledge, have become involved. Others are investors interested in traditional stocks and shares, carrying out day or swing trading. There are collectible fans such as art that view NFTs in the same light. The final category is people who've never invested but have seen the explosion in NFTs and wish to participate.
To become a successful NFT investor, people become traders on a short or long-term basis or a combination of both. What are the requirements to become successful?
It's essential to enter the business from the correct mental perspective; a successful trade can make millions of dollars over time. The trader needs to be ready for success and to make money. Many people seek success but don't possess the right mindset to earn serious financial returns. With the mentality "I am happy with $30k a year", it's unlikely investors will take the necessary action.
Mindset consideration is vital for success in any arena, not limited to Cryptos, NFTs, traditional investments, or the business world. People who achieve display the right mentality and desire for success. Those without the correct mindset need to improve their outlook to become motivated.
Aside from financial success, there are other important considerations, such as the ability to keep emotions in check, not worry about the fear of missing out (FOMO), being comfortable taking risks, self-discipline, and adapting to changing market conditions.
It's essential to understand the industry. The good news is that the NFT world is new, and no one is a seasoned professional! No person has years of experience and is ahead of others. But those who have an understanding of crypto, trading, or buying and selling, will have an advantage with the basics in place.
All the information required to understand NFTs is on the Internet. Check out guides on blogs, Social Media platforms and join the Discord server of different NFT projects. Twitter is the platform of choice for NFT crypto enthusiasts, and YouTube is an excellent resource for learning. Discord is a perfect app as it's where NFT projects build communities. It provides the opportunity to communicate with others and understand in real-time.
The best way to learn is through investing in projects. By taking action, it becomes possible to learn from errors and mistakes. It's an excellent way to appreciate the ins and outs of the NFT world. But best to respect the fundamentals before making a purchase.
NFTs are an ever-evolving space; what's in demand now may not be favored in the future. For example, in early 2021, an NFT project could become successful with art. But as the year progressed, projects had to incorporate utilities in addition to great art. There was a trend where play-to-earn games became popular. In 2022, there is a desire for NFT based music, photography, and the Metaverse with commodities such as real estate. NFTs will continue to evolve and change. It's essential to keep up to date with the market and the awareness of the latest trends.
Something that stops people from entering the market is the financial consideration. Hesitation is not an issue for crypto investors or traditional traders with access to funds.
For the average person, finance is a barrier to entry. Typically, to purchase an NFT on the Ethereum blockchain (including gas transaction fees) will exceed $500. A few thousand dollars is required to become fully involved and participate in numerous projects.
Other blockchains, such as Solana, have low gas fees and inexpensive NFTs. But the number of significant projects hosted on Solana is limited in contrast to the Ethereum blockchain.
The Polygon chain is a secondary network that resides on Ethereum's main blockchain network. NFTs on Polygon have no gas fees, and the cost of NFTs is considerably less than its Ethereum counterpart. But serious projects don't utilize Polygon; it's a platform that individual artists use to sell digital art. However, it is possible to buy NFTs on Polygon from lesser-known artists, shill on Social Media, and build profits.
Some people without the financial means to purchase NFTs enter Giveaway competitions on Twitter, Discord, and Instagram. Many projects view Giveaways as a means to generate hype and interest.
As with any trading, involvement in NFT to generate profits carries a risk. There are no guarantees of success, and everyone should do their research before investing. But NFTs is a relatively new market providing alternative investment possibilities and the chance to generate profits.