These days, readers often ask: what good projects can be invested in the NFT field now.
It is human nature to hope to recommend projects straightforwardly and earn money quickly, which is normal. But I think that for an investor who wants to take root in a field for a long time, it is more important to do the necessary homework carefully before investing in the project.
These homework includes: understanding the characteristics of the invested projects, understanding the development and prospects of the fields where the invested projects are located, and mastering the methods of judging the investment value of such projects.
Since the essential characteristics of NFT tokens are different from Bitcoin, Ethereum, and DeFi tokens, investing in NFT tokens is very different from other tokens. Specifically, the investment characteristics and value judgment methods of NFT tokens have their own distinctive characteristics. If you don't understand these differences and start rashly, you will step on many pitfalls.
Among these features, I think there are two points that everyone should pay special attention to:
The first point is that the liquidity of NFT tokens will be much worse than other currencies (such as Bitcoin, Ethereum, DeFi tokens, etc.), so in many cases, when we buy an NFT token, if we want to realize it , the required cycle will be very long, and even if it is necessary to realize the actual price that may be realized, it will be a discount from our ideal price.
Therefore, for NFT tokens, we need to invest in a long-term and value-judging way: buy at a low level, wait for a period of time for the value to be realized, and then sell at a high level. The methods commonly used in other fields, such as short-term swing, long and short, or even leverage, are hardly applicable in this field. Because in the NFT field, there are almost no short-selling and leverage tools available to traders.
The second point is that the current NFT tokens will show diversified characteristics in value judgments. We need to judge and understand its value from multiple aspects and even some relatively "virtual" aspects. This is very different from DeFi tokens. For DeFi tokens, we can judge from the economic model. In addition to individual projects in the game field, the current NFT tokens in other fields show more cultural, historical and social value. This requires us to start imagining the future.
This is a bit like the very early days of Bitcoin and Ethereum.
In the early days of Bitcoin and Ethereum, they had almost no application scenarios and no application ecology. They just showed some very peculiar characteristics. If you don't understand, understand, or imagine these features, investors will easily regard them as air coins, worthless.
This phenomenon and history is now repeating itself in the NFT field, and it is surprisingly similar. Because I also saw and heard comments like "worthless" and "hype" happened to many NFT projects.
This is very normal for outsiders, and we don't need to pay attention to those opinions, just like we don't care about people saying that Bitcoin and Ethereum have no value. But for an investor who wants to make a difference in the NFT field, this is probably a place worthy of vigilance: because the traditional thinking mode is hampering our understanding of new things again.
As far as my own experience in recent years is concerned, there have been more than one cases of misjudgment and missed investment opportunities due to my ignorance of new things. I have mentioned these cases many times in the article. So now I am forced by reality to learn to be in awe of new things. Even if I don’t understand it for the time being, I have learned to be humble and observe, and not to draw conclusions easily.
It is precisely because of the above reasons that I specifically summarized the experiences and feelings of the past few months and wrote it into the book "Blockchain: The Soul of the Metaverse" to share with readers.
In this book, my most fundamental purpose is not to recommend certain projects to you, but to share with you my understanding and analysis of the typical projects in the book, especially the wonderful development history of some projects in the book and your comments. share. If you don't understand the background of the project and the development of the project, investors will not be able to grasp the origin of the project's value, let alone judge the long-term value of the project.
When readers have an understanding of some typical projects in the book, plus their own attempts (such as taking a look at OpenSea, browsing, or even participating in NFT trading in person), they will have a very different understanding of NFT tokens , will gradually produce their own judgments and value measures. At this time, I will gradually find projects that I like and recognize.
Therefore, I highly recommend that you spend time carefully reading books and improving your understanding of NFT, instead of spending time looking for projects first.
It's still early days in this field, and we're never short of opportunities.
