Question.

What’s the difference between those that make Millions in NFTs vs those that lose it all?

Answer: Managing RISK.

RISK.

The opposite of reward.
Most newbies to crypto/NFTs have fantasies of the upside.
FOMO’ing to new projects that can potentially go 10x, 100x, the next BAYC, etc.
But fail to have a plan if it goes wrong.

Some fundamentals.

I started with the above mindset. (2013).
Do you know how much I made in 2013? ZERO.
My cryptos portfolio went from $20k to $140k back to sub $20k when the dust settled.
It all changed when I did the below.

All this is what I've implemented for myself.
Just sharing what's allowed me to stick around and hit my wealth goals.

Managing your downside risk.

Is balancing your portfolio so you never put yourself in a position of ‘losing it all’.
Losing that, is for many, checkmate.
Amazing opportunities will just pass you by and you can’t do anything about it.

The ‘gambler’ vs ‘investor’ mindset.

The gambler comes here without a plan, influenced by fear and FOMO, risking too much on the first investment they see.

The investor comes in with a mindset of steady wealth accumulation
A strategy to analyse, to participate, to not over leverage, to find opportunities over a long period of time.

The gambler will look for one hit wonders and it's just a matter of time till their $ is lost or stuck in illiquid JPEGs.

The investor puts themselves in win-win scenarios.
Market goes down? That's ok - they have $ prepared for this. Win
Market goes up? Great. Win

The ‘All-in’

This crushed me almost every single time in 2017.
Back when I was a peak degen.
Going in heavy is one thing, going almost all-in can be BRUTAL in NFT land.

Especially during mint.
Mint day is THE RISKIEST TIME to invest in anything.
Yes prices are low but team is unproven, idea is unproven, no history of persistence, etc.

It’s like some random person came to you with an idea on paper and you gave them all your money.
This is where most people lose big time.
A new idea, buzz around social media - but riskiest time to invest.
Because it's day 1. Mint day.

Similar to 2017 ICO days.
New projects would offer cryptocurrency/tokens instead of NFTs like today.
Big ideas with a currency.
98% went to zero.
People lost 100s of millions betting too much on new ideas.

From ZERO to HERO

The BEAUTIFUL thing about crypto/NFTs is if you get it right, your $200 can become $20,000 or even $200,000.

So you don’t need to take unnecessary risk and go too heavy during the early stages of a project.
Especially if you don’t have much $ to begin with.

“But I could have put $10k,(my whole $), and made $1M!”
Easy to say looking back.
But it’s this mindset that will destroy you long term.

Why?

Because there's 100’s of projects that look like the ‘next big project’ that long term turn to dust.

Illiquidity

Another danger to investing in NFT projects too early is you don’t know if they can maintain liquidity.
That is, if they can attract a healthy amount of CONSISTENT buyers/sellers.
For months, years?
If this doesn't happen then your money could get stuck.

Strategies

I know different people have different strategies that work for them.
Personally, I’ve found NFTs/crypto to be HIGH RISK.
So no matter how confident, I’ll still make sure I’m diversified.
I also have the personality that wants to participate in everything.

A example diversification allocation to me looks like,

10% -> new NFT mints
20% -> NFT projects > 3 months+ old
40% -> Established NFT projects/brands/teams > 2 years+ old
30% -> stable $

So if I have $50k,

I can participate in,

• 10-20 new NFT mints, ($5k)
• 5-10 post mint but have some traction beyond fomo, ($10k)
• 2-5 established projects that are likely to become blue chip, ($20k)
• $15k in stable $ just in case

Ok so if not at mint when DO you buy?
Ahh the golden question. I buy in batches.

In crypto this is called DCA, (Dollar Cost Averaging).
So instead of seeing an NFT opportunity and putting in the whole $10k
I’ll put in $2.5k.

And then if the price drops, I’ll put in another $2.5k.
Repeat/reanalyze if it keeps dropping.
But if it goes up and I only had $2.5k in there that’s fine.
At least I protected my downside risk.

So when do you sell?

I have so many regrets about selling too early and on the flip side not selling at all.
The reality is you will NEVER buy at ‘all time highs’ or ‘all time lows’.
These are easy to see looking back but almost impossible to time and act on at the time.

For me the solution again, has been DCA.

Selling at systematic intervals.
Just made a 3x on an NFT I have 5 of? Cool I’ll sell one.
Goes up more? I’ll sell another.
Maybe I’ll leave 1 because it might just become the mother of all unicorns.

To summarize,

The goal of investors is to survive.

If you survive you stay,

If you stay you learn,

If you keep learning you limitlessly train your decision making skills and it becomes WAY easier to reach your wealth goals.