Best Advice for New VeVe NFT Collectors - Don't Start Before You Read This!
/22 Things You Should Know Before You Get Started Collecting VeVe NFTs - Part 1
I have been asked by several of my YouTube fans about doing a “guide” of sorts for new VeVe collectors that don’t know where to get started, those that have a limited budget, and also for the people that have a handsome amount of money to invest. This article will include my best advice, based on my experience with the VeVe app and community where I got my start in the winter of 2021.
But before we get started, readers should know that this article does NOT constitute financial advice, because there’s no way I can know each and everyone’s individual financial situation. Plus, I am just a “regular Joe investor”, not a certified financial advisor. Keep that in mind, and please enjoy the advice!
1) Decide on WHY you are here
Before you dive in head first, you need to be clear on why you are wanting to get involved with the VeVe app. Are you here because you head that it is a great way to make money? Or was it that you heard you can collect your favorite iconic brands in NFT form? Maybe it’s a combo. Whatever the case, it is imperative that you are clear on what drew you to the app before you start digging into your pockets to buy NFTs.
Many people are here not just for the fun, but for the prospect of buying an NFT that can help them to “get rich quick” in the future. What you need to know is that the founder of the company never intended the app to be a money-making machine. He rather created the app for serious collectors, with hopes to allow people to buy and sell on a secondary market in addition to the items released in limited quantity on the “drops”.
At the time of writing of this article, there is no “cash-out” option for VeVe NFTs. The “Money Transmitter License”, or MTL for short, is something that has yet to be hashed out for the various countries that VeVe is operating within. It could take months before the necessary legal work is done. Until then, be aware that the money you invest could be stuck within the system for a while.
2) Take your time - start out slow, begin with a strategy in mind
Nothing is worse than jumping in “head-first” into an investment project when you don’t have a strategy or have not done your homework on the project. Before you buy that first item, decide on what brands have the most value to YOU, and which items you would enjoy the most as interactive art pieces. Then go from there.
Set a budget, and never EVER spend more money than you can afford to LOSE. It is best to invest with this strategy so that you won’t be harmed financially if the project fails, or if the items you invest in don’t increase in value in the future.
Decide on whether or not you want to complete sets and compete for the “MCP” (Master Collector Program), or if you would rather stack certain items that you believe will have high future value. No matter what, stay within your budget and don’t spend your hard-earned rent money.
3) Create a risk management plan and stick to it!
Managing risk is one of the most important things in the world of investing. Make a plan that fits your personality, and your needs. If you are squeamish about investing, and don’t have a lot to lose, you need a risk management plan that matches your style. That would probably entail spending a limited amount of money, and buying items that are “safe”, and not long shots.
Over spending and buying items on impulse will bite you in the rear every single time. That’s why you need to set some ground rules, decide how much risk you are willing to take, and then abide by your plan from DAY ONE on.
4) Don’t swing for the fences on every item that causes you a case of “FOMO”
FOMO, or “fear of missing out”, is a serious emotional state that hits investors and causes the majority of them to make impulsive decisions that usually lead to loss. Whenever new items are advertised for the next big drop, keep calm and don’t go “all-in”, thinking you must have that particular item.
When you get emotional and feel like you will only have that one chance of landing the new exciting shiny thing, that’s when you are most likely to overspend. Remember my advice… more times than not, items ALWAYS come back down in price to pick you up when they are at first out of financial reach. You’d be surprised.
5) Think in terms of 6 months to 1 year for making or cashing in on gains
This is not a “short-term flip” investment method, especially since we do not have the MTL worked out. But even once the MTL does begin, you should not jump into this thinking you will be profitable overnight. There are rules and limits you must reach before you can cash out, once the MTL goes live. Study those requirements BEFORE you put your money in.
It’s best to look at this as a 6 month to 1-year investment, or longer. Keep in mind that there are taxes, fees, and commissions that will come out when you sell, and should be factored in to your overall game plan for exiting with a profit.
6) Flip low cost items to practice leveraging your gains
There will be many items available on the Market portion of the app where users can sell items they previously bought from drops. At times, these items sell for less than the retail price from the drop. These are the perfect items for beginners to analyze for possibly flipping for a profit.
For example, I have bought comics for less than 4 gems on many occasion. These same comics have tripled and quadrupled in price over time, where they can be sold for a “profit” (you only get gems when you sell on the app). This is how I leverage my gem balance.
If you start off buying items that are priced below retail, and at minimal cost, you can practice the method of “flipping” without breaking the bank. Flipping cheap items requires the same research and planning as is required on the more expensive items. Learning this skill in low-risk situations will provide you with invaluable experience for the future.
7) Study the market prices EVERY DAY, multiple times per day
On average, I run through all of my favorite items at least 4 times per day, every single day. I study the market to the point where I already know what trends are developing without even looking at a price chart for an item. The more you study the price fluctuations, the better chances you will have with timing purchases.
People who don’t study the market trends tend to buy impulsively, and end up diving in head-first at the peak of the market. When this happens, it can take months, or even a year before prices come back up just to the point where they can sell at a break-even point. Careful planning and daily observation of market price trends will help you to avoid making mistakes that cost you time.
Next up, we will cover 7 more critical points when Part 2 of this series is ready for release! Stay tuned!
Carlton Flowers
The Crypto Pro
