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Best Way to invest in NFT field

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Written by   61
1 year ago
Topics: Cryptocurrency, NFT

The sharp rise of the four kings of the Binance NFT field ( Bake , Alice , CHR and SLP) reminded the people that the NFT field is likely to be one of the main lines of the emerging sector of the next bull market, just like the Ethereum L2 field . In addition to mainstream currencies (Bitcoin, Ethereum , etc.) as the traditional protagonists of the bull market, in emerging fields, the next DEFI liquid mining currency ( DEX , lending, etc.) has a certain probability of entering a quiet period , and the emerging mainstream is most likely to be replaced , one is Ethereum L2 and the other is NFT . However, we know that NFT is probably the most complex ecology in the blockchain field at present . If other areas of the blockchain are similar to a piece of artificial forest, NFT is naturally a pristine forest, not only has a variety of plants. Big trees, there are small grasses and kaleidoscope-like creatures. Therefore, most of the currency users are still relatively unfamiliar with how to invest in the NFT field.

So i roughly divides the investment framework in the NFT field into three levels as follows.

The first level: public chain and infrastructure :

Public chain currency is the concept of "shovel". After these months of training, the coin people are generally familiar with DEFI mining, and the most basic lesson from DEFI liquid mining is that the quality of shovels is far more important than the yield . Some time ago , the profit rate of mining on the Binance Smart Chain BSC was actually not high, generally below 500% per annum , but why the pool of large funds? The most powerful mine on HECO can only accumulate roughly 200 million U.S. dollars, while the mine on BSC can easily accumulate more than 1 billion U.S. dollars. The reason is that the shovel for mining on the BSC is almost all proved to be a gold shovel , while the shovel on the HECO or EOS chain is proved to be a fragile earth shovel . My personal experiences, used Bunny single currency dig WBNB income over 4 times, because the reason is that the shovel Bunny has increased from more than $120/coin to $400/coin. And the bumper harvest that was involved almost in the same period turned out to be a mess. The reason was that the shovel USDC plummeted and then plummeted. At present , most new mines are on HECO , but almost all of them are fast-running games , so recently they bought some shovel if they were fancy. Some people went in to mine and pushed up the price of shovel and quickly dumped it. As a result of tens of thousands of mining coins , the mining pool will drop 10 times in a short time , and there is really no willingness to mine. After the bull market is over, the golden shovel will also become a dirt shovel, but at least now the duration and rise are longer.

Closer to home, the bottom infrastructure of NFT is of course the public chain. According to the concept that mining is better than buying a shovel, there are currently two most famous NFT public chain concepts , one is FLOW and the other is ENJ . Flow is a public chain built specifically for NFTs , behind which are consortiums such as Warner Music Group. The ENJ is the NFT 's ERC-1155 Ethernet Square tokens standards , each one able to NFT marked "label" work to ensure the uniqueness of circulation. These two projects still have their own characteristics. Although most NFT projects in the future will start from smart chains like BSC , the scarcity is more expensive. These two professional NFT chains are still worthy of attention, and there is a high probability that they will be in the NFT boom.

The second level: NFT trading platform :

Currency security NFT4 kings generally fall into this level, and in the NFT thriving trading areas king OpenSea also belong to this level. The tokens of the NFT trading platform are of course more similar to those of the exchanges. In fact, paying attention to this level is the idea that mining is not as good as a gold shovel.

It should be noted that, although the field of NFT is broad, the current climate is mainly 4 sub-markets, namely Art-NFT (art collection), FI-NFT ( DEFI financial certificate), IP-NFT (intellectual property) and Game- NFT (gaming) . In addition to large platforms such as OpenSea, which are all-encompassing, most trading platforms will gradually focus on a certain field . Therefore, investment needs to observe whether the trading platform has outstanding performance in one of these four sub-markets. Whether it can become a leader on the road, including transaction volume, activity level, work status, etc.

Projects at this level are similar to DEX on Defi . There are many projects and a mixed bag. Now it is difficult to tell who has the lead besides the leading OpenSea . So the key point is that in addition to the Binance magic bonus for Binance 4 Heavenly Kings, the business development so far is relatively good and you can pay attention to it. For example, the Rarible ( RARI ), Decentraland ( DCL ) and SuperRare , Terra , Virtua , Async Art , NFTfi etc.

The third level: specific NFT works :

Paying attention to the shovel does not mean not caring about the content at all. Of course, the biggest opportunity in the NFT field lies in NFT works , but the vast majority of coiners , like me, have nothing to say about "artistic accomplishment". How can they be in NFT works like the ocean ? Looking for possible opportunities? I feel that this level should not be considered by ordinary coin users in the short term under the current boom, but in a bear market, it is a good time to start, because the possible increase after the bear-bull conversion may be at least comparable to that of a hundred times coin.

To summarize, NFT works have several characteristics: fixed total amount (pursuing the rarity of the Bitcoin model), multiple unique image series and an overall ecology (unique and systematic combination), interesting and humorous content, and easy Circulation and application . This kind of "set" NFT can be considered as a commercialized work with high liquidity, and if encountered in a bear market, it should be worthy of long-term investment.

Compared with previous projects in the currency circle, NFT is more "different" and "alternative", but it is inseparable from its origins. When it comes to every emerging investment field, people always unfamiliar at the beginning, but continue to study. Maybe you will find new opportunities for "heterogeneous" and "alternative".

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Avatar for ekrem
Written by   61
1 year ago
Topics: Cryptocurrency, NFT
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