How I’m Investing in NFTs and Crypto in 2022

Michael QuanCrypto, Education, Investment, Making Money, Misc, NFTsLeave a Comment

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crypto strategy

This post is going to share with you WHY I’m so bullish in NFTs (non-fungible tokens) and how I’m planning to invest in NFTs and Crypto in 2022.

2021 was a pivotal year for me on many fronts. Not only did I publish my first book but it also marked the first year that I dove into NFTs and crypto (shout out to my cousin who first introduced me and then guided me headfirst into the abyss… haha).

To say it was confusing, in the beginning, is a huge understatement. I had no clue what I was doing, nor how deep the rabbit hole went with crypto. Heck, I’m still exploring and learning it every day… BUT, after 300+ hours of doing something, you start to know a thing or two. And, I know SO MUCH MORE today than at the beginning of last year.

To say that I’m bullish on NFTs and crypto is a huge understatement. I was recently a guest on the Side Hustle Show where I chat with Nick Loper and breakdown NFTs and their investment potential.  I also started up an investment group called – NFTs Unlocked – which helps people to invest in their first NFTs the right way. Getting started with NFTs and crypto can be daunting and feel like you’re wandering through a maze blindly. My goal is to give you a flashlight so you know where you’re headed. (*Use code: NFTS2022 for $200 OFF)

Why I’m So Excited About NFTs, Crypto, & Web3

First, I love technology. I love seeing the possibilities of innovation and being at the forefront of tech. That’s probably why I spent the first part of my career building a tech company. I was able to witness the dot com revolution in the late 90s and then watch the demise of the first wave of internet darlings come crashing down. Yet, despite the turmoil and rubble in the headlines, companies continued to innovate and we now live in a world where online commerce is seamless.

Companies like Google, Amazon, and Yahoo were able to innovate beyond the crash and were rewarded heavily in the aftermath. Then there were companies that dominated web 2.0 (social), like Facebook (now Meta), Instagram, TikTok, Twitter, Snapchat, etc. These companies learned to compete for your attention and are profiting handsomely.

investing in crypto 2022

However, technology does NOT stand still. In fact, the one thing we can count on is innovation to continue and a new way to things being done in better ways. The evolution of the Internet is on a new front with crypto and NFTs leading the way. Web 3.0 is the incorporation of decentralization and blockchain technology. We’re in the infancy now, which is WHY I’m so excited.

You see, once you “get it”, then you “get it” and there’s no turning back. In fact, it seems so obvious once you begin to understand what’s happening with smart contracts. You also begin to realize that there’s money to be made in so many different areas AND without the hassles of traditional investment vehicles. Now don’t get me wrong, I have the majority of our assets tied up in traditional asset classes like stocks and real estate. But, now that I can see the future of this tech, I’m willing to increase my amount of exposure to this area a lot more.

My NFT Investments So Far

I should note first that by nature, I’m a bit risk-averse. So, it takes me a while to warm up to new ideas or paradigms. And it took me quite a while to warm up to cryptocurrency and blockchain – mainly because I wanted to understand it before I invested. With that said, I’ll admit that I started investing prior to fully understanding it, partly because I was watching what other smarter investors around me were doing. I felt like I was late to this game, but the truth is it’s just getting started and there will be tons of opportunities for anyone who wants to start now.

Okay, so let’s dig into some specifics. In the last 8 months that I’ve started investing in NFTs and crypto, I holding:

  • Unrealized losses of -$3723 from bad investments in NFTs
  • Unrealized profits of +$80,811 from good investments in NFTs
  • Capital that I have put up to date is $25,280
  • Value of my current NFTs portfolio is $106,019
  • ROI is currently at 4.25X
  • Largest single NFT ROI is 135X

Now, these numbers could vary wildly and they could even go to zero (unlikely). And if you want to learn more about how and what I invested in, then read my post How to Make Money with NFTs – A Beginner’s Guide.

I believe there’s an asymmetric risk/reward opportunity here in our favor. That simply means that a little risk taken can lead to some very high returns relative to the amount of capital put up. These opportunities don’t come along often which is why I’ve been trying to share this with everyone I know.

On a macro level, we’re super lucky to be living during the information age. It’s an opportunity that many will see, but few will take advantage of. I wish that weren’t true, but it’s human nature to maintain the status quo as long as possible (i.e. people LOVE certainty).

Why NOW is the Time to Invest in Crypto

Look, I’ve been blogging about crypto a few years ago already. But, I didn’t have the full conviction at that point to take a lot of action. Part of this was because I didn’t fully understand it. But now that I do, I know with a high level of certainty that NOW is the time to take action. Although you will see crypto labeled by mainstream media as “highly speculative” and “risky”, what are the risks of leaving your money at a bank? With the US dollar losing its purchasing power to inflation at recent highs of 6.2%, isn’t it risky to “save” your money? The value of your money is getting stolen from you without most ever knowing it.

Investing in Crypto 2022

So, I’m looking at blue chip crypto (eg. Bitcoin & Ethereum) as a hedge against inflation, similar to gold but with better upside in my opinion.

Even if you allocate a nominal 2% of your portfolio in BTC and ETH and completely stay out of NFTs, I believe your risk will be rewarded massively within the next 10 years. NFTs are a bit riskier to hold long term as they could drop in value, but if you’re pulling out your profits consistently, then it doesn’t matter as much. Or, you could hold NFTs with strong brands (eg. Marvel, Disney, Starwars, etc.) which is one of the strategies that I’m focusing on.

As more and more people come into the NFT and crypto space, the more opportunities there will be to see a surge in demand, AND, and boost in markets.

Taking Action

There are no results without taking action. Is it possible to lose? Sure. But, it’s also possible to generate life-changing money in a short amount of time also.

So, there are a couple of ways I’m looking to add more exposure to these markets in the first half of 2022. First, I may sell off some of my equities to raise capital. Next, I intend on funding a Roth Crypto IRA for both my wife and me. I intend to buy BTC and ETH periodically over time (dollar-cost average) as well as purchase more on bigger drops (I will admit you’ll need to have some discipline to do this).

invisible friends NFT

Invisible Friends NFT – dropping Feb 2022

When it comes to NFTs, I’m focusing on a few quality projects and finding some great plays that contain both short and long-term upsides. I’ll continue investing in my community NFTs UNLOCKED and win together as a group. AND, I’ll continue to learn more and more to give me an edge that others aren’t willing or able to get.

Final Thoughts

There are many similarities between the dot com revolution and the innovation of crypto markets and web3. And while history doesn’t always repeat itself identically, there are some patterns you don’t want to ignore.

I can’t wait to see what new innovations are born out of web3 and it’s my intention to fully participate in them well into the future.

I’m also welcoming any market corrections downwards. It’s when I’m going to push hard and establish an even bigger crypto foundation.

2022 will be another pivotal investment year for us. I can’t wait!

Readers, have you invested in crypto yet? How about NFTs? Why, or why not?

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