If you’re new to NFT trading, then there is a good chance that you’ve either lost money, or that you’ve felt overwhelmed at some point. NFTs are the newest and most risky asset class, therefore diving in head first without properly educating yourself can lead you to a negative portfolio balance very quickly. Fortunately, if this sounds like you, then you’ve landed in the right place. Here are three tips to help you make money with NFTs.
#1 Use Trading Tools
To even stand a chance of being a successful NFT trader, using trading tools is an absolute must. There are many out there from you to choose from, including icy.tools, NFT Nerds and Alpha sharks. The biggest advantage of using tools is the access they provide to data, statistics and charts. By using these correctly, you are able to identify supports and resistances, which ultimately will lead you to better time your entry and exit. The aim is to buy low and sell high. Unfortunaetly, without charts, many traders end up buying high and selling low, because of heightened emotions. This leads me to tip number 2.
#2 Never Trade With Emotions
If you have ever traded any asset class, not just NFTs, then you will know that it is a very emotionally and psychologically taxing process. When I say emotional, I don’t mean that it makes you want to cry. I’m referring to the unsolicited emotions that creep up, such as greed and FOMO, which stop you from making logical decisions when entering and exiting trades. Succumbing to these emotions may certainly feel like the right thing to do in the moment, however, more often than not, they will be the deciding factor in whether you end up holding the bag or not.
#3 Keep A Trading Journal
This one may not sound appealing, but by keeping a trading journal, you will be able to better understand your own wins and losses. A journal will be something that you can refer back to time and time again and constantly learn from. Once you have a log of trades that went well, and also trades that didn’t go well, you will begin to recognise behaviors and patterns that led to a winning or a losing trade.
While there are many many more tips, use these 3 as a foundation to begin your successful NFT trading journey.
For more tips on how to trade NFTs, read our exclusive interview with one of the most successful NFT traders in history.