People who pay attention to new things are always full of expectations and excitement on the one hand, and anxiety and doubts on the other. Investors who are concerned about investing in the NFT field have such sentiments.
Recently, more and more people in China have begun to pay attention to NFT tokens. Among the many NFT tokens, the most popular is the various avatar (Avartar) projects. In the book "Blockchain: The Soul of the Metaverse", I refer to this type of project as a "club" type of project.
The most famous such avatar project is Bored Ape (BAYC). In recent days, The New York Times has also reported on a new hot project, Pudgy Penguin. These popular projects have attracted great attention from inside and outside the circle with their astonishing increases.
Friends who are interested in this kind of project but have not participated in it will be anxious: on the one hand, the popularity is so high now, do you want to follow up? On the other hand, the price is so expensive now, is it risky to buy it? And friends who have already participated will also be anxious: what are the laws of the market trend in the NFT field? Should these purchased tokens be held all the time or at what stage should they be liquidated?
In my opinion, the market rules of NFT projects are the same as Bitcoin, Ethereum, and DeFi tokens. There are bulls and bears, and they will encounter both the climax and the trough of the market. Therefore, the general rule is: buy in a bear market and sell in a bull market.
A better understanding of "bull market selling" is to sell the NFT projects held when the bull market is approaching its climax. There are two ways to "buy in a bear market": one is to buy NFT projects with low prices one by one when the bear market is down; , I estimate that the price will not be cheap, so we can adopt a fragmented method of fixed investment for such tokens.
Fragmented regular investment in NFT projects, I think it is a very suitable way for ordinary investors to invest in high-value NFT projects. I introduced this buying method in detail in the article "NFT Investment Trends: "Fragmentation"" on August 3.
I myself plan to use fragmentation to invest in high-value NFT projects that I am optimistic about during the bear market.
Speaking of the present, are some well-known NFT projects, such as cypherpunk, worth buying at this time? To make this judgment, we must first judge the follow-up trend of the big market.
I think that after the bull market is officially established in the second half, according to my original estimate, it may be able to go to the end of this year or the beginning of next year, so the prices of these NFT projects such as cypherpunk will continue to rise. But how much room they have for subsequent upside in this round of bull market deserves careful consideration.
Therefore, investors who are willing to take risks can buy fragmented tokens to make a fixed investment in such NFT projects; if investors are worried about risks, I suggest simply ignoring its subsequent trend and wait until the bear market to make a fixed investment. This can be done for high-value NFT projects, and it can also be done for other NFT projects.
I still insist that there are many opportunities in this field, and we are still at a very early stage, so we should not have the lost mentality of missing opportunities. As ordinary investors, even if we do not catch the most lucrative first wave of original dividends, we can still catch the second and third waves of dividends. And I think the opportunity for the second wave of dividends is in the next bear market after the current bull market.
In addition, how many of these currently popular NFT projects, especially these avatar-type avatar projects, have long-term value, especially need to go through the test of the bear market to see. Therefore, if we intervene in a bear market, on the one hand, we can better see the true value of the project and select a good project, and on the other hand, we can avoid the risks of bubbles and market irrationality.
