If you haven’t been active in the NFT space that long, you’re probably wondering if there is some kind of secret NFT formula.
Is there a formula for achieving success? What is the secret of successful NFT traders?
Many of you are asking the above questions.
I don’t think there is such a thing as a secret formula or a shortcut to success. Not in the NFT space and certainly not in ‘real’ life!
If you dive a little deeper into the NFT space, you’ll discover that it isn’t really about anything.
It may seem unfair or unreasonable and in many cases, it comes down to luck. Maybe I’m charging a bit, but this is what it boils down to.
For an NFT collection to be successful, the hype is of the utmost importance, regardless of whether the art is good or not.
Nearly every NFT project does well in terms of earning if there is hype around the set. Good examples of this are Mekaverse, Azuki, BAYC, and RTFKT
An NFT project can have invested a lot of money into creating the art and the revenue model and yet the project can still fail if there is no hype around it.
But on the other hand, hype alone cannot carry a project in the long run either.
This has become clear after a number of celebrity cash injections and even high-profile avatar drops, where the hype was blown out of proportion and doomed to collapse. After the hype dies down, the team needs to keep working on the project and deliver on what they promised in the roadmap.
The consequence of this kind of hype is often that the art collection is damaged and people start dropping the NFTs en masse.
As a result, the project collapses like a house of cards as quickly as it was built.
Nothing is certain in the NFT space
You can claim that you know exactly how the market works, which project is going to be booming, who to follow and what to invest in.
The truth is that the only certainty in the NFT space is that nothing is certain!
Not all newly launched projects have hype or a strong community behind them.
What’s trending this week didn’t even exist last week, and next week we’ll be talking about something completely different.
There are of course certain trends that you can follow, such as the play-to-earn blockchain games (p2e) that have become extremely popular since ’21.
And the anime-based sets from Japan are also in demand.
Bored Ape Yacht Club
Much in the NFT space is supported by just opinion where credible knowledge and research are still undecided.
Take the now iconic Bored Ape Yacht Club collection, for example. Just in perspective, this set only launched at the end of April ’21, so only 9 months old.
In real life, you are not really considered an expert if you have studied a certain subject for less than 1 year.
So when people call themselves experts in the field of BAYC at such an early stage, it is not really explainable.
But if there is no secret key to success how is it possible that so much money is made around me with NFTs?
Perhaps this is because they follow certain frameworks and certain strategies from outside the NFT space.
NFT Space experiences
Many people in the NFT space have already gained experience in trading stocks and bonds, for example.
But in most cases it comes down to a little bit of luck, understanding the community, and using common sense.
If I’ve learned anything from my time in the space, it’s that you have to make your own informed decisions that fit ‘the moment’.
Easier said than done, you may think, but how do I do this?
Decide which NFT project you want to get into
For starters, you need to take the time to do this. Don’t rush. The research you do should go beyond just seeing whether a project sells or not.
Who is in the community, is there a solid and reputable team, what is offered, what is the revenue model for me, and what are the future plans?
If you can answer these questions favorably for you, then you can join.
It is important to make informed decisions in the NFT space!
Even though you can make quick Flips in a hyped project because people are guided by emotion, in the long run, common sense always wins.
Be inquisitive, curious, patient, and persistent.
Not only will it help you learn more about a project, but it will also teach you not to necessarily mint
Set yourself certain criteria, does a project meet your expectations?
You’ll need a lot of willpower to set limits, especially in a space as volatile and fast as the NFTs. Make sure you stay ‘in control’!
You don’t have to hurry and don’t give in to hype!
Just remember that for every project that you possibly ‘miss’, 5 others will replace it.
The NFT space goes on 24/7, it is simply impossible to follow everything.
So don’t try to do that. Connect with a set’s community and ask for help and gain insight.
Make sure you have a good balance between being in the space and your ‘other’ daily life.
The NFT space can easily lead to addiction.
Just as it is addicting to keep scrolling through social media, so is the NFT space because of the big profits that are made.
From the community to selling, to collecting art, to engagement with Twitter, you are under the influence of a constant flow of emotions.
Both extremely positive and extremely negative emotions can arise.
The fluctuations in the floor price are also a given, with huge peaks and unfortunately also price drops.
This can lead to big wins as well as huge losses. This goes beyond your normal imagination and can sometimes lead to stress.
It can become a tedious thing to decide when to buy and sell when to take your profit and sometimes accept that a set won’t pay off, and sell at a loss.
Part of your growth is also setting boundaries.
Again there is no such thing as a secret formula for trading NFTs. But is there a “right” moment to get in or out of a set?
If you make impulsive decisions, you can sometimes have short-term success. But believe me when I say that it won’t work that way in the long run.
Do Your Own Research!! (DYOR)
If you make decisions based on research, data, information processing, and the insight you have gained, you are doing it right.
Don’t blindly follow your favorite Youtuber or Twitter poster because they recommend an NFT collection. Sometimes they are paid by the project to “positively” review them. ALWAYS do your own research in the NFT space and decide for YOURSELF if you want to invest or flip an NFT in a certain collection.
Never invest more than you can afford to lose is a golden rule!
You may consider leaving an NFT set if it doesn’t make you happy, if it stresses you out, or if you can’t “keep up” with the set.
Everyone’s strategy will differ from another person’s.
The momentum, the size of the investment, risk appetite, etc. will in all cases be unique to the person and the transaction in question.
Sticking to your ideas, your portfolio, and your strategy in the broadest sense of the word is a good strategy for long-term success and massive gains.
Make sure to recharge your “battery” regularly and stay away from your screen from time to time. You simply cannot be active in space 24/7.
Successful sets will pass you by, as well as unsuccessful sets, you can’t buy every NFT project that comes out.
Good luck finding YOUR ‘secret NFT formula’!