Hodl Or Flip? The NFT Investors $1M Question.

Hold or Flip NFT’s?

The NFT investors dilemma,

Our beloved NFT industry is quite young.

Many that came to it, came from the 2017 cryptocurrency hype so it should have been no surprise that many “investors” were more people that were looking for early enters and exits.

That’s what most people did with cryptocurrency right? they bought, they sold and then they jump to another coin.

The NFT space has similar dynamic but is vastly more strategic.

Benefits of Flipping

For many it’s hard to sell, for others they will sell even with a $5 profit.

When I first started in 2018, my strategy was to buy at well under market price.

I never bought on the actual marketplace, always buying via negotiation through discord.

This would make sure that if I had to sell desperately, I could at the very least get my money back. In fact in most cases I could at least get 30-40% profit.

When buyers came across an offered good prices it was hard not to sell.

Especially when I knew I could take that money and repeat the process. With that compounding gains, in my experience, flipping far outweighed holding.

There definitely were some assets that I could have held for longer but because I was so active with this strategy, those were often negligible.

I also think it was because of the industry I was in.

The flip strategy is usually something many use during moments of hype.

Like cryptopunks for example, it saw insane volume for a few weeks and now almost nothing. Nothing wrong, it’s just the nature of that project.

Data from nonfungible.com

During that hype phase, many bought and sold.

With flipping, it’s kind of like day trading. There’s an exit strategy so you can realise your gains.

And with those gains, you can make another, usually more educated entry.

Having access to capital at the perfect time I can make you a lot of money in this industry.

It’s mostly a timing thing.

I mostly make 3-4 deals a year, but those are enough to sustain me well beyond my needs.

Benefits Of Holding

Lately, I’ve been exploring a lot of art. And I love what I’m seeing.

It makes sense to hold it till the pieces gain more value.

The few pieces that I have my eyes on, if I were to buy them, it would make sense to hold as the artist grows.

(Hackatao Example – Not Mine)

Data from nonfungible.com

With art, there’s so much you can do. Especially in virtual worlds. I personally have liked the 3D art style.

Buying tokenized art and displaying them as 3D animations on my Decentraland land does 2 things.

Increases value and awareness for the art piece and the land/project that I deploy it on.

With holding, you need to be confident in the project as a whole.

Good team, good funding, great marketing skills, and a focus on doing the best damn project in the space.

With Gods Unchained, although my overall portfolio value has dropped significantly, I’m extremely bullish because of the above reasons.

I know the liquidity is low but the asset order books are extremely thin.

So any sort of bullish volume when gas fees issues are sorted, should take that project Sky high, especially with my investment strategy which is mostly the first generation of cards.

I know they have a big tournament in the works which will bring a ton of players. They also understand good on boarding metrics so cost to acquire users should be low and sustainable. I know they’re marketing technique is savvy enough to bring this down.

I’ve seen it in action.

Flipping or holding is really dependent on you and your style along with the projects in question.

Do you find it hard to sell? Maybe you’re a true collector.

Or are you interested in increase your wealth so you can reinvest in more assets?

I apply both strategies depending on the situation but the real gold is knowing which situation these are.

So you don’t get burnt holding the wrong thing and thus having your money such, in some cases, indefinitely.

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