In the past, sports fans would purchase a Topps trading card pack and then discover a unique baseball treasure. Instead, today’s sports card collectors are drawn to non-fungible tokens, which provide evidence of exclusive ownership of a video, picture, audio clip, or another digital record of significant events in sports history.
In the past few years, NFTs have gained much traction, and those who deal in digital collectibles claim that 2021 will only be the beginning of the phenomenon.
Investment bank Jefferies estimates the value of the NFT industry will increase to $75 billion by 2025 from its current worth $14 billion; however, this does not appear to be the case at the moment, as the crypto market is experiencing another winter, and this numbing chill has also affected the NFT market. As a result, some of the large NFT communities have ceased collecting. Dispiritingly, many of the most hyped projects have collapsed.
So, what should one do if the market is experiencing a downturn? Sports NFT advisor Crypto Sports Collector offers tips on how one can invest in sports NFTs this winter using different strategies.
- Start Early
Whenever you’re in a market such as this, it’s better to start as early as possible or invest in the first series. Whenever you invest in NFTs, the first and second series will be the most important, and in 5 to 10 years, the second series will be the most coveted. Why? It naturally makes sense because those series tend to be rare. So, one should heavily invest and look for deals in series one and series two.
- Be Careful Who You Invest In
It’s critical to be careful about who one invests in. According to Crypto Sports Collector, when it comes to NBATopShot, investing in future Hall of Famers is compared to investing in a blue-chip stock. Look for NBA players with good fundamentals and well-known names, such as LeBron James and Steph Curry. Because these elite players are so important to the game of basketball and culture, it will take a lot for them to fail or lose value.
Giannis Antetokounmpo is another player who, although not a household name yet, will undoubtedly become the face of the NBA. Giannis’s potential to be a Hall of Famer increased when he won the NBA championship in 2021, a trophy which now sits next to his MVP Award in 2019 and 2020. If you’re not sure if you’re buying a future Hall of Famer on NBATopShot, ask yourself: five years from now, what would someone care about when reselling an NBATopShot moment? Five years from now, will they still care about that random role player on the Golden State Warriors? Or would they prefer Giannis, LeBron James, or Steph Curry?
Simply put, don’t spend all your money on role players; invest a little bit in rookies and sophomores who you believe will flourish; However, premium players will last longer over the long run, so keep them in your portfolio as well.
- Stay On Top of the Latest News and Trends
Crypto Sports Collector makes an interesting point that the sports NFT market functions similarly to other markets, including stocks and real estate. This is due to outside news or other external factors affecting the market. For example, big names such as LeBron James and Steph Curry are often in the news regularly. The value of an NFT on NBATopshot may go up or down depending on how the player performs during the NBA season.
Some NBATopshot collectors may not realize the full value of an NFT in relation to a basketball player’s potential into becoming or being an elite player. They might lower their listing price in the marketplace after seeing one bad game, rather than looking at the long-term value of that player. Collectors should ask, is it possible that one bad performance could jeopardize their legacy? Is it conceivable that their chances of becoming a Hall of Famer and one of the NBA’s best ruined over one awful night? It’s doubtful. Within the Sports NFT market, human behavior suggests that a poor playoff showing from LeBron James may hurt his NFT value in the short term but, not in the long run. Alternatively a good night or amazing playoff run can exponentially increase their NFT value.
Crypto Sports Collector advises Sports NFT fans and investors on how to make the most of their alternative investing. Follow Crypto Sports Collector on Twitter and YouTube to stay up with all Sports NFT news and learn more about alternative investing, or go to his website to learn more.