NFTs, these digital collectibles on blockchains, have completely changed how we see art, investing, and ownership. But here’s the thing: with so many NFT projects out there and the challenge of figuring out their worth, investors are finding it tough to make smart choices beyond just following the buzz.
While the first NFTs popped up back in 2013 (even though the concept started in 2012) and started creating a buzz, but it took a few years for the market to grow big. Even though NFTs have been around since 2012, most folks only heard about them recently.
For a lot of people, NFTs suddenly appeared out of nowhere and got huge, thanks to celebreties like Justin Bieber showing off their NFT buys on social media. Big companies like JP Morgan and Facebook (now Meta) also got into the game, making NFTs a hot market worth billions.
Understanding NFTs is tough for newbies. Many still think of them as “crypto-collectibles” or “nonfungible tokens.” We need better tools to help both developers and investors get into the crypto world.
With so much cash flowing into this market and everyone buying, people are asking, “Why not join the hype?”
But NFTs and blockchain assets come with risks. There’s no promise that a company or person will deliver on their promises. There are no watchdogs to protect you if something goes wrong with a specific token or project. And unlike stocks, you can’t easily cash out if things don’t look good.
To make it worse, most investors don’t get how these tokens work – a lot of people don’t even know what an ERC-20 token is! This lack of know-how leads to people throwing money into projects without really understanding them.
Investing based purely on hype is risky, just like during the dot-com bubble. When people see a chance to make quick cash, they jump in without thinking. This has led to market crashes and losses for investors who came in too late. It’s crucial to be careful and wait for a project to prove itself before jumping in.
At the same time, we shouldn’t avoid NFTs completely. Instead, we should get smarter about how we invest.
Think of NFTs as a new way to invest. It’s a fresh approach that lets people invest in things they care about, not just another way to make money. NFTs open up a world of possibilities – from video game upgrades to investing in sports teams or bands. And who knows what else could come next?
Investors should do solid research before diving in. NFTs are growing fast, but many experts believe this trend won’t last forever. That’s why it’s vital to understand a project’s value beyond just the hype.
Crypto investment is tricky; it’s hard to know what to pick from the sea of projects out there.
Look for what makes a project valuable beyond the hype. Dive deeper than just the team and the product – check out how those factors fit into the bigger market trends. For example, the current rush in NFTs won’t keep going forever, and many projects might flop when this trend slows down.
This means knowing more than just what everyone else is talking about. It’s not that people make emotional choices because they’re clueless; they just lack the tools to decide.
NFTs are different from traditional investments. Things like ownership, rarity, and social proof matter. And there’s a mix of unique and similar assets that make some rarer than others.
For example, the Bored Ape Yacht Club has almost 10,000 NFTs, with the priciest selling for over $3 million and others cheaper. People often rush to buy into these collections based on news or Twitter, but it’s tough to figure out a project’s true worth among so many assets.
That’s why researching a new NFT or collection means putting in serious effort. It starts with tips from Twitter, Discord, or news. For lesser-known projects, do in-depth research on the creator, technology, and utility, often found in a whitepaper. Then, use rarity tools to see what makes that NFT stand out.
Navigating the NFT Market
Buying, storing, and dealing with digital assets is already hard. On top of that, NFT investors get swamped on social media when new projects drop. So, having an easy-to-use system becomes crucial for discovering promising projects and following other NFT investors.
A report from Diar found that lots of Ethereum transactions on decentralized exchanges come from social media as a discovery tool. Around $6 million worth of crypto gets traded daily on platforms like Telegram and Discord. With more platforms offering NFT services, it’s getting tougher for investors to spot them across different places at once.
Final Thoughts
Cryptocurrency investing can be intimidating, but a new app called Delta makes it simpler. This app lets users track their NFT investments and create portfolios using unique tokens that can’t be copied.
The app suits both newbies and experienced collectors. It helps users find new collections based on their trading volume or other criteria, found in the NFTs tab. Users can also search for specific crypto collectibles using the global search feature.
New tools like Delta are making it easier for more people to join decentralized finance by helping them find projects based on their volume and other factors.
Users get a dashboard showing all their digital collectibles through a secure connection to an ETH wallet.
