You may have considered NFTs and Crypto as a way to gain admission to the 0.1% club. Here’s why it probably won’t make you rich.
If you’re a long-term believer in these assets, then by definition you’ll be holding for at least a decade. Your success will be entirely dependent on being right about the long-term value and upward trajectory of these assets in general, and being right about your specific NFT or cryptocurrency. Unlike stocks, some or perhaps even the majority NFTs and crypto could depreciate over time.
You’ll also have to accept having no income from these assets. If you invest $100K, this amount will be locked away for the entire duration, whereas other investments might allow you to enjoy both appreciation and income generation. Speaking of other investments, have you extensively researched the return on investment (ROI) of other assets before coming to the conclusion that NFTs and Crypto will offer you the highest ROI?
Those who find success will most certainly be a very patient person, calm about short-term price fluctuations, have done hundreds of hours of research, and have other sources of income to eliminate any temptations to sell before the target year or desired price level.
Despite being the hottest new thing, if you’re looking to make money with NFTs and Crypto in the short-term, you’re playing the same game as stocks. Making money by picking the right time to buy or sell a cryptocurrency is the same as attempting to time the market. It is a speculative play, or in other words, gambling.
If you’d like to try to pick a NFT that will rise in value, you must dedicate your entire time and energy to this. Trying to pick winners, whether it’s with NFTs or stocks, is NEVER a side hustle. Internalize the fact that you’ll be competing with people who have teams of talented people dedicating hundreds or thousands of hours a week attempting to pick the winners using AI assisted algorithms and bots to be the first buyers. I’m an optimist but I’m also a realist. You don’t stance a chance.
But there’s no shortage of articles and videos out there that sell you on the idea that you can do this as a side affair to your main job. Always ask yourself, how does the author make money? They’re not telling you that because they’ve made millions of dollars through the buying and selling of NFTs themselves. They’re telling you that because they can make a decent income through affiliate links to NFT and crypto platforms, sponsorship by such platforms, paid training courses and ad revenue. Ask them how much money they have actually made from NFTs and crypto.
News of brands making money by selling NFTs is also a very different story and probability than you making money by buying and selling existing NFTs. A lot of people are successfully making you believe NFTs are investments when they’re just another consumer product.
If you’re not just looking to make a quick buck with one lucky NFT or crypto trade but seeking to create serious wealth, you must be able to make the correct predictions over and over again. Some people can successfully pick winners, but being able to do that over and over again is what separates the truly talented from the merely lucky. And the truly talented are truly rare indeed.
Now learn how to create serious wealth without relying on luck.
