Buying NFTs in bear markets - An opportunity or a foolish mistake?
NFTs are undoubtedly a trend that will stick around. Their hype is now larger than that of the late 2017 ICOs. Why do I compare them to the ICO era? Because of the fact that there is a plethora of collections coming out every day in different chains, be it art NFTs or Blockchain Gaming NFTs, or others.
This means that not all of them will make it. To be honest, the majority of them will fail, and they only have a small window of opportunity where they maintain their value and can be flipped for profit. For what is worth, there's been already a number of collections and NFT based Blockchain games that were either cash cows milking their fans, or outright rugging after mint / pack sale / launch.
Snipe some cheap high value NFTS
These past months the market has been bearish with lots of dumps, and a January crash that liquidated many traders. There's always opportunities in these cases. One good opportunity is snipping for NFTs listed for sale on NFT marketplaces that have not been re-priced by their owners during a crash or a significant dump. You have to be fast, as other users or bots are trying to do the same by buying the floor from high value collections or whatever they had their eyes on.
Even if we go into a full bear cycle that lasts for years, NFT collections like Bored Apes Yacht Club, their Mutant Apes spin-off, or Crypto Punks will make it. As long as they maintain their value and hype they are not going anywhere. Justin Bieber was the latest celebrity in a growing list to buy a Bored Ape. More will follow. That's how the social and financial value of NFT collections gets a snowballing effect. I believe collections like BAYC (eg) will maintain their leading status on the crypto sphere and there is no better time to try and grab some than market crashes.
You can apply the same strategy not just on Ethereum marketplaces like OpenSeas but also on your Wax, Solana, Hive, and marketplaces etc. Do your research and find those NFT based projects with a strong community, good use case (staking, gaming use, ability to use as collateral), active team behind, solid road map, cultural significance on the crypto space. Then, grab the opportunity to snatch some rare ones on the cheap.
In hindsight, it requires spending hours on doing research, some luck, and available funds in the ready. But, for the love of crypto, don't hold whatever NFT you get into your hands forever, expecting it will appreciate. Most will not. I found that the hard way by being involved early with NFT projects on Wax. Many of them failed or disappeared and I was left with some NFT pixels stuck in my wallet. To make things worse, even legitimate projects are not guaranteed to remain relevant and make it through a bear market. Last, always do your OWN research (see my first point) and be aware of the risks you take. NFTs are still the wild west of crypto.
