5 things to know before investing in NFT gaming:
Blockchain is a set of program on which a particular coin runs. Many tokens and NFT gaming artefacts surrogate specific blockchain to run their project. Crypto traders or we can say gamers, invest large amount on the tokens and NFT price but before that you should properly investigate about the blockchain on you are going to invest. Further we discuss about which metrices to look out to be foolproof in highly uncertain crypto market.
What is NFT Gaming?
NFT gaming is the new concept to connect global gamers community on a blockchain platform. Users can participate in the game by purchasing NFT associated with game and earn tokens as reward. These tokens can be sold on crypto platform to earn real money. This sounds attractive but most of the projects are in early stage, it’s really hard to identify a legit project that will run for long term. Most of the NFT price go down rapidly and token price go down to 2000%-3000% and players struggle to complete their ROI. To increase their yield players buy more NFT gaming artefacts but the token price continue to go down and players stuck in endless loop. To avoid this scenario identification of the successful blockchain is very important.
Metrices to look out:
Most people rely on volume of the coin. General thinking is “bigger the volume, more successful blockchain is” which is not entirely wrong but one should take other parameters in consideration before making decision about the merit of the blockchain. But if you make decision on the basis of volume only, you may have to face bad consequences. Mostly new investors take decision on the basis of volume of the tokens and the NFT price history. But the in game NFTs price go down like roller coaster and the tokens associated with the NFT gaming and the token price become insignificant to complete the ROI.
As we can see in this chart, this is the trend of one of the popular crypto gaming token price. We can see the prices drop down to more than 1000% within the span of three months.
How to avoid losses in NFT gaming?
There is no proven strategy has developed yet as this is very early stage of NFT gaming, many projects still at their development phase. But according to expert gamers one should invest as little as he or she can forget and complete the ROI first then go for profit. It has to be seen that any players get carried away by instant profits and invest more money by taking loans. Then they got stuck when price crashes. So one should avoid these mistakes.