What Entrepreneurs Need To Know Before Starting A Business In NFTs

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If you’re an entrepreneur looking to start a business creating and selling NFTs, it’s important to have a solid foundation of knowledge before you dive into this new market.

I spoke with Daniel Maegaard, a pioneer in NFTs as well as Bitcoin and cryptocurrency, to learn the strategy he used to become a multimillionaire in the NFT space.

Get educated and never stop learning.

You need to be educated about the NFT space as well as the platforms that support it such as Blockchain and cryptocurrencies. “Take time for learning and educating yourself, because it does take a little while to really wrap your head around what actually makes a good NFT,” advises Maegaard. The best way to learn is by spending time in communities where people come together and share advice. There are many places you can go to learn about NFTs online, including on social media. Maegaard recommends communities on Discord and Twitter as a great source of education, and sites like Rarity Sniper and Flips.Finance for staying up to date on trends.

Learn the fundamentals first.

Having a solid grasp on what makes a good NFT will take you very far in this space. “The more time you spend in this space, the more you’ll get a handle of the fundamentals of what makes a good NFT. The more you learn about what actually makes a good investment, the more likely it is that you’ll have success,” says Maegaard, who looks at the underlying principles of why something could become potentially valuable, and uses that to guide his decisions in buying or selling. This is applicable for creating NFTs too, as you want to be sure that the product you’re putting out there is in line with what’s in demand and trending on the marketplace.

Stay current on trends and changes.

The NFT world moves incredibly fast, so it’s critical to business success for you to stay up to date on current trends and market changes. “If you don’t stay updated, you’re going to miss out on a ton of opportunity,” says Maegaard. “You need to schedule time every day to go onto Discord and Twitter, check Rarity Sniper and Flips Finance for changes, and see if there’s any new listings that could potentially be a good buy.” Spend as much time as possible in Discord and Twitter communities to be sure that you’re staying current, and if possible, ahead of some of the trends.

Figure out your strategy.

Maegaard’s advice is to have a really solid foundation of knowledge before you start investing in or creating NFTs. Once you have a solid foundation, you can start strategizing and planning. “You need to have a good strategy that you’ve created for yourself based on your risk tolerance,” says Maegaard. “Are you someone who is more risk adverse, so maybe you’ll commit 10% of your portfolio, or are you willing to take more risk and invest bigger? Work out what your risk appetite is, then you can work out your strategy.” Learn how to read the markets and monitor changes so that whatever your risk is, your strategy stays in alignment with your risk level.

Perhaps the most important thing you can do as an entrepreneur in the NFT space is to simply be willing to be flexible. With changes happening rapidly, if you’re able to pivot and adapt and be flexible in your work, you’ll find success.

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