Search Inside Bitcoins

Are NFTs Profitable Right Now? – Here’s How To Mitigate Losses And Maximize Gains

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Are NFTs Profitable Right Now
Are NFTs Profitable Right Now

Join Our Telegram channel to stay up to date on breaking news coverage

The non-fungible token market has experienced tremendous growth in recent years, attracting many investors and artists to the nascent sectors to create and trade unique digital collectibles. However, the majority of active NFT investors have reported making losses from their NFT investments in recent weeks. Let’s find out how we can mitigate such losses and maximize gains:

How To Mitigate NFT Losses

NFT Investors Are Losing 0.1 ETH Daily – How To Stop This Loss

Non-fungible token collections with small floor prices are the most unpredictable and volatile digital assets, making them easy to incur losses. Based on the short study, NFT investors investing below 0.05 ETH are likely to end up with 0.2 ETH losses at the end of the month just because of that.

In an April 26 blog post, Nics, an on-chain crypto researcher and trainer, has shared some tips that might help non-fungible token investors to effectively mitigate or even stop regularly losing some of their NFT investments:

1. Stop Investing In NFTs With Less Floor Price

The crypto researcher has urged NFT investors to stop investing in NFT collections with less than 0.05 ETH floor prices. Instead, they should embrace investing in bigger collections with a much higher winning percentage to remain profitable, especially during this bear season.

Nonetheless, Nics has urged NFT collectors to do due diligence and study several factors in an NFT project, including the volume, the listings, objectives, and whales, among other essential metrics, before choosing their portfolio.

2. Don’t Invest Over 25% Of Your Wallet In A Single Collection

Nics has also advised NFT collectors to avoid investing more than 25% of their wallet in a single NFT collection, even if they strongly believe it would soar high in the future. He cited that he once fell victim to such an occurrence, losing a considerable sum.

In that context, it’s also worth noting that most non-fungible token projects have recently collapsed due to regular crypto occurrences, such as FUD, in which a single tweet may lead investors to massive losses. Other NFT projects have suffered from rug pull.

3. Learn More About NFT Investments

NFTs are evolving. In that case, the crypto influencer has advised collectors to keep training, citing that becoming a good NFT investor is only possible with proper training. Indeed, 90% of NFT investors without training, 90% have ended up making massive losses.

Before summarizing, Nics noted that some of these tricks had helped him to mitigate losses and even save more than 0.5 ETH in a month. He has asserted more than 80% of NFT investors have suffered from a lack of investment knowledge.

Related NFT News:

Join Our Telegram channel to stay up to date on breaking news coverage

Read next