NBA Top Shot Advice from One Noob to Another
NBA Top Shot is all the rage. You hear so many people getting into it to buy what can pretty much be described as digital basketball cards. Some even make a ton of money, and that, in turn, attracts even more people, for good reason or not. Whether you are a collector, an investor, or just someone who's interested to see what's in it, I've got some tips for you to make sure that you are prepared for what's about to come your way in the NBA Top Shot universe.
1) Evaluate your intentions
Be very clear and honest with yourself: are you in this to collect or to make money? If you are here only to collect, then I don't think there's much of a downside, really. Having moments you like in your collection is a great feeling to have, and moments dipping in price should be a shopping paradise.
If you are joining only to make money, then Top Shot might not be for you, at least not in its current state. Remember, the platform is created for collectors and not intended to be a get-rich-quick scheme. There is money to be had, flips to be made, packs to be opened and sold for a profit, but there are also a lot of risks involved, and it is important to evaluate those risks. The market has shown us how volatile it can be. Not all moments you buy can be sold for a profit, and if you are expecting to just earn a profit with every purchase, market downswings can be very taxing for you.
It is also worth noting that currently, mass demand and scaling issues are keeping withdrawals at a timeline of at least 6 to 8 weeks which means, if you put money in, even if you make money, you can’t withdraw that immediately.
If you are in-between collecting and investing, which I think a lot of people belong to, the next two tips are especially relevant for you.
2) Don't put more money than you're willing to lose
Determine your risk tolerance: how much are you willing to lose and how devastating would it be for you to lose it all?
I personally have very high risk tolerance. Whatever money I put in, in my mind, is as good as gone. But, because of that mindset, I am very careful with the money I put in. I only put in what I can afford to lose and do without, and when I buy moments, I make sure I really like them. Putting money that you cannot afford to lose in a vehicle that is not guaranteed to make you profits will just lead to not only financial, but also emotional, hardship.
3) Buy moments you like
(at the price you are willing to pay for them.) Because if you buy moments that you like, whatever happens to that particular moment’s price, you still have that moment in your collection, which you can always appreciate for your personal enjoyment. With all these market valuation tools out there and our addiction to refreshing them, sometimes we forget that our collection is not just about the sum of all our moment's values. There is still value in owning something that you like, whether that something is now selling for $5,000 or $5.
For example, I bought a Vince Carter moment for $400 about two months ago. Since then, the price has fluctuated wildly from $400 to $5,000 but is now currently sitting at $2,400. If I want to cash out and call it quits, I could make $2,000. But, if tomorrow this moment for some reason tanks to $5, I wouldn't really care--because I like the moment, and genuinely want to have it. This removes so much stress from my mind, especially at times when the market seems to be moving towards an endless pit.
The euphoria of a bull run is addicting, but the come down from it can be devastating, which may lead to a lot of FUD and toxicity in the community. Now more than ever, it is important to re-evaluate what it is that we want from this platform, and what we are willing to pay for it. And as always, before jumping into things, knowing what exactly you're getting into and accommodating your strategies to it will lead to a lot less heartbreaks in the future. I hope this helps, and happy collecting!
By the way, I'm trying this new thing--if you'd rather watch a video than read a blog, I made this YouTube video for you! I am also doing a giveaway there, so be sure to check it out.
Until next time! Holler on Twitter @topshotnoobie.
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