Many investors have started considering alternative investments. There is a lot of uncertainty in the markets and with cash. Inflation has been hitting very hard, and markets have had a downturn.
This means commodities, cryptocurrency, and NFTs are in, and they are probably here to stay. So, if you’re thinking about investing in NFTs, what should you know? We talked with Click Clone Cash, a source for everything NFT-related, whether it be news, markets, or tips, and asked them what most new investors get wrong about NFTs.
Click Clone Cash was more than happy to do an interview with us, and we are here to share that interview with you.
What would you say is the most common misconception about NFTs, whether from investors or the general public?
At Click Clone Clash, we’ve seen a lot of people believe that NFTs are only Gifs and images, and they believe they can screenshot the NFT and eliminate all of its value. You can print it off.
Baseball cards on your computer; this doesn’t give the printer paper the value of a baseball card, though, right? There’s a lot of ignorance regarding NFTs, and I think investors should go out of their way to research exactly what the technology is before they invest their money in them.
How about for investors specifically. When purchasing NFTs, what kinds of mistakes do you see?
We see a lot of investors, whether they be NFT investors or crypto investors, purchasing whatever the flavor of the month is, with no thought whatsoever. Sometimes the hype will turn out to be right, but it’s exactly that – hype, more often than not.
You need to learn to do your due diligence and really think about your purchases. Especially as a new investor; otherwise, those first few bad investments will leave a bad taste in your mouth.
Other than buying because of hype, what do the NFT experts at Click Clone Cash consider as bad purchases?
Sure, if you’re investing, you don’t want to buy things just because you like them, right? You want to buy something other people will like in a few months to a few years down the line.
There are a few ways to determine this, but the point is you shouldn’t just go out and buy every single NFT with beautiful art.
We’ve seen many new investors that will just buy into every cool project on the market, and in a few months, their collection will be practically worthless.
Can you explain some of the things you look at when deciding whether to buy into a project or not?
Sure, the artist is the first thing the NFT experts at Click Clone Cash look at. We want to know about the artist, their background, why they make art, things like that.
We’ve talked about this topic more in our Interview with Anton at Hawaii Weekly. Real artists are worth more. This should be considered by collectors when it comes to NFT investing.
We also look at the purpose of the project. If someone is just making art and minting it for the sake of making money off of NFTs, we are probably not going to buy it because no one else is going to want it in 5 years.
If the artist seems to have the potential to get huge, or the project has a distinct purpose that we deem worthy, then we’ll buy into it.
Do you think a lot of investors get into NFT collecting for the wrong reasons?
No, we wouldn’t say that; after all, investing is about making money and protecting our capital against inflation and global events. Many investors think NFT investing is a lot easier than it is.
They don’t practice due diligence and believe every NFT will be worth thousands immediately. It’s best to check all the NFT Marketplace and monitor the movements of big NFT influencers.
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