Thread by @DCLBlogger

How I invest in the whole NFT ecosystem.

From Games to Art. From NFTs to cryptocurrencies/tokens.

A short thread 1/

2/ The old school way of investing in new projects was to buy their native token.

If the project announces partnerships, releases some big internal news etc, token does well.

But what about NFT industries/projects? Do you just buy $RARE, $AXS, $MANA, etc?

3/ I mean you can, but you're missing out.

Fungible and Non Fungible tokens behave differently.

For example, you can buy an art piece on Superrare and sell it for 10x the price you paid in 2 months while $RARE doesn't budge.

Let's go through these.

4/ Fungible tokens/Cryptocurrencies, etc.

- Reacts to Bitcoin movements/news
- Reacts to Project announcements
- Influenced by tokenomic utility design, for better or for worse
- Are traded, charted, shorted, longed, covered by crypto influencers, etc
- Are more liquid

5/ I invest by,

- Buying different tokens from different industry buckets, $MANA, $SAND, $RARE, $AXS, etc

- Some new, some established,

- Ideally those that have strong tokenomics to put demand on the token in an organic way.

6/ NFTs

- React to user base growth/awareness
- Collectors can pay HUGE $ for them
- A way to invest in extremely scarce items within a game, artists work, ecosystem, etc
- Can vary in value based on utility, (Stronger items/better combination/more scarce)
- Aren't as liquid

7/ I invest by,

- Buying genesis pieces, (The first of a certain game, artist, project),
- Buying rare items,
- Diversifying
- Buying what I like, enjoy or use, (proof others will to)
- New and Innovative projects
- Where collector demand might be within that ecosystem

8/ Equity

- Traditional way of investing
- Can get access into upcoming token releases
- Is a more umbrella way of investing into a variety of projects from a studio, (dapper labs, immutable, etc)
- Illiquid
- Regulated

9/ I invest by building a network, social presence, reaching out.

More news on this soon.

10/ Physicals

Something I personally enjoy and so am sure others will too.

Kind of a hedge "against" the NFT space. If hypothetically it all goes to zero, at least I have physical items that I can cuddle at night and cry with. 😅

And ahem...sell to a museum that wants them.

11/ This is a short thread, I can get more specific.

Eg,

NFT - Gaming
NFT - Art
NFT - Collectibles
NFT - Virtual land
etc

Because honestly, the NFT space is super and complex and you can only truly grasp it by diving deep.

12/ Might do a more specific thread later but thought I'd share this.

Enjoy!