WTF are NFT's and what can they do for you and me.

It seems like everywhere you look you hear about all these crazy NFT sales, and about people making millions with NFT's, but what are NFT's and what they can do for you other than make you wealthy.

NFT stands for non-fungible token.  Non-fungible” more or less means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different.

At a very high level, most of NFTs today are part of the Ethereum blockchain and are experiments that are gaining traction and attention in the form of ETH. An NFT acts like a receipt or a deed of ownership to a provably scarce digital item, and it can represent a still image, video file, video game item, and plenty more.

NFTs are interesting because their uniqueness and ownership can be verified, they can be utilized across applications developed by different companies, and they can be traded easily through secondary markets. These features open up possibilities for new use cases and business models.

The key takeaway is that NFTs create many new ways for values to be created for both developers and asset owners.

Sales volumes of non-fungible tokens (NFTs) surged to $10.7 billion in the third quarter of 2021, up more than eightfold from the previous quarter, according to data from market tracker DappRadar, as the frenzy for crypto assets reached a new high

The reality is, like art dealers, most are here for the money and a quick flip. Others are looking to be part of communities to network and make friends, while some want to be involved in changing the landscape of tech. A few are just at the right place at the right time, so luck plays a role.

Here are few rules to follow to make NFT's sweet and not sour.

1. Most of the NFT's will be worthless. Therefore, spreading your stack around might be worth it. Don't buy just one collection, diversify and be in the action.

When you are considering buying into a project or NFT's, be mindful if you came across it on TikTok, Twitter, or heard about it from a celebrity. Remember there is a good chance they got paid and/or got a free product to pump it away! When something is marketed too much, chances are they might eat your lunch.

2. Most of the NFT's that are hot might be at all-time high so be careful you don't get stuck. Think bitcoin when it shot to around 60k.

We get it. FOMO (fear of missing out) gets the best of us. There is nothing worse than missing out on a good project. However, getting in at ATH just for a flip can come back to bite you. Imagine getting stuck with a bunch of NFT's that you don't want to hold for an indefinite amount of time to end up selling it a loss. You want to tread carefully when choosing projects but also test the waters. See if there is real potential for opportunity. This applies especially to anything on a secondary market. It can seem like a bargain because of the floor, but if you need to sell quickly, or expected a quick flip, there might be no buyer and things depreciate much quicker than they appreciate. In other words, what goes up must come down, and the crash is not going to be pleasant.

3. Most of the NFT's are tightly held by Whales and Sharks, and they run the game, you do not. Don't believe the Floor price, it's just a way to blind the eyes.

You are looking at Pudgy 6520 for 5ETH and you see Floor at 2.1 ETHyou might be thinking that's not bad,  and Pudgy 1774 comes to your Metamask with you for 3ETH that's not bad! And my favorite Pudgy 8476 for under 3ETH and when they moon in 2 weeks you are at 12 ETH so be it. You could be thinking Floor is what you can always sell at, but yours might not go. Since there are no regulations and multiple ways for manipulation, and  NFT market is prime for speculation and coordination, so make sure you take that into consideration.