Nft Market: Hype, influence & Luck

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Avatar for HappyBoy
2 years ago

Taking risks is something we have to do daily. It takes a lot of courage and confidence to take some steps sometimes. The recent NFT trend on SmartBCH opened my eyes to what it takes to stand out in an endeavour.

Smart investors study the market well, study the hype around a project and think of the best strategy to use. While Speaking to a friend, he said "One thing I've noticed about this trading stuff and NFT is that the rich keep getting richer, while the poor get poorer - the big guns are taking from the little we have and adding to theirs". Yes! The big guns control the market, they play a big part in the pump and dump. Though I could understand what he was saying, his frustration and agitation while thinking about it I realised there's a lot to learn from the "Whales" as they are called.

In business, everyone has different strategies, your style might be detested by another while someone somewhere appreciates it. Some don't mind what others say, so far they get the work done, it's enough satisfaction for them. Other's approval isn't needed. That aside, here are the things that I've come to notice in the last few months of trading:

Capital matters:

This is an advantage most people have compared to others. Some have more capital than others for investing. Some wishes to, but have little money with them, Mr A can have $30 as 50% of their holdings while $3000 might be just 5% of B’s asset. If an investment does a  $100 increase, the latter will have more profit in the bag than the former.

Big risk taker: Just 2 results - Win or go home empty

Using the same example mentioned above, if  A decides to go all-in with 100% of his holdings and the investment does 100% he will be getting times two of what he got in the previous example. However, when there is a high chance of a project being a success, know that there is an equivalent chance of it being a failure too. If it pays, you feel proud and happy, and if it boomerangs you are left with nothing.

The concept of large quantity:

This is still related to the first point stated. Let’s use NFTs as an example. While the minting is on Mr A gets 5 NFTs at $10 each (A total of $50). He listed two $100 each, hoping to get his capital back and some profit. He kept the rest for staking, gambling or whatsoever use case the NFT has. For weeks he couldn’t sell any of it and decided to lower his price to $20 for each, at least $10 gain from each is enough. Others keep selling their NFTs, writing articles about it but Mr A still has his list on Oasis with no one showing interest. He decided to list it below the mint price and within minutes it was off the market. He is annoyed and wondered what he is doing wrong.

On the other side, Mr B minted 500 NFTs at $10 (Total of $500). First, by minting this large quantity, there is a higher probability of minting a rare one which will go for a huge price in the market. That aside, Mr B decided to list 40 out of it when the hype was high for $50 each. Meanwhile, most small investors listed their's $100 when the hype was high, while Mr B listed his just $50. He was able to sell 25 out of the 40 listed, which sums up to $1250. He made his capital back and still have 465 NFTs left. He can either wait for the option to stake or list some at different prices or wait for the implementation of the use case. Either way, he isn't losing, he has made his capital back and even more.

This doesn’t mean you should lower your price when listing, but try to know the worth of what you hold also, maybe a little hype can help you in selling what you have, we never can tell- someone might like those NFT others say isn't rare. Also, there's possibility that the few minted by a small investor will be rare.

The hype & influence market

I've come to realise that, how popular and influential you are also matters when selling an NFT. A few nice words about your collections before the listing can help in getting them off the market as soon as possible. Some even resort to lies and rumours, claiming a particular one has more value than others just to get rid of the non-rare ones they have and the innocent and desperate ones quickly buy it from them.

Is this a nice strategy? That's left for you to decide.

Conclusion

There's no perfect strategy for NFT trading or crypto trading. Everyone uses whatsoever works for them, some turn out well, while some fail. A $1000 loss might not be significant to someone, while a $100 loss might be heart wrecking for another. Invest only what you can afford to lose and do your own research before indulging in any trade.

On this note, it’s with no pleasure I bring to your notice that I'm down to over -20% on my investment. Feel free to send virtual hugs and kisses, I need them right now. 🤣

Thanks for Reading! 💋💚🤗

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2 years ago

Comments

Sending some virtual hugs hahaha. I bought reaper NFT last time and until now I cant sell it for a higher prize tsk.

$ 0.00
2 years ago

Everyone when it comes to NFT will always say do your research and use your strategy, but If your strategy work for you, can't others copy it😥😥😭

$ 0.02
2 years ago

If they copy it, it might fail and then they put the blame on you directly or indirectly. That's why everyone add DYOR to their posts

$ 0.00
2 years ago

Oh..I get it now

$ 0.00
2 years ago

Sending virtual hugs and kisses 😂😂😂 I am straight tho

$ 0.00
2 years ago

I’m not sure if I agree with your friend. I started with zero BCH in April and slowly build up enough capital that I’m able to invest more than a few pieces in new NFT projects. I think with hard work and the right strategy all is possible for everyone. The difference is however in the mindset. Having poor mindset never helps.

All the best for you HappyBoy 💙

$ 0.02
2 years ago

Thanks Fantagira.

I think what differentiate those winning from others is the willingly to take rise, not everyone take risks.

$ 0.00
2 years ago

I don't want to see my overall crypto portfolio 😢😢.. Especially BCH ..tsk.. Btw Giddyboy is really lucky in NFTs.

$ 0.02
2 years ago

Yes he is, he got the number 1 rarest cattos. 10 BCH is a fair price. Reapers also brought in some profit yesterday.

$ 0.00
2 years ago

Ah, where did it go wrong for you, did you overslept and forgot yourself? I would've gone to zero in SmartDex token investment that almost 10x in three days, I was lucky to get out with a little profit though.

About NFT, I vowed never to use my money to buy any, if I get any by participating in a promotion good. Most NFTS are over hyped.

Sorry for your lost my friend, hopefully there will be a bounce back for you.

$ 0.00
2 years ago

Sorry man, sometimes all these investments are riskier than we expect.

$ 0.02
2 years ago

Dear friend, you gave a very good and practical example about NFTs. In order to enter the crypto market, we really need to invest our discarded capital. Good luck...

$ 0.02
2 years ago

Down 20% on which investment?? SmartBCH?

$ 0.02
2 years ago

All my crypto investment in General ,in fact, it's more than -20

$ 0.00
2 years ago