What I Wish I Knew Before Investing in NFTs
⚠️ 1. Expect High Volatility and Value Fluctuation
NFTs are speculative and often lose value quickly. In fact, research shows that over 95% of NFT collections became worthless within two years of peaking. They offer no income streams and lack the reliability of traditional assets.
🔍 2. Always Do Your Homework
Don’t fall for hype or influencer endorsements. Investigate the project’s team, roadmap, community, and track record. Be cautious with anonymous creators or overpriced mints—they're common red flags.
💸 3. Account for Fees and Liquidity Issues
Gas fees (especially on Ethereum) and high minting costs can eat into profits. Consider network congestion and explore lower-fee blockchains. Also, selling your NFT might take time—or may not happen at all.