You probably noticed the cryptocurrency craze that took place in 2021, particularly with NFTs gaining significant adoption and spreading like wildfire. The number of new wallets for popular blockchains like Ethereum, Solana, Binance, and more are still on the rise, signaling more first-time users joining the crypto economy with no signs of stopping.

Non-fungible tokens (NFTs) have been one of the hottest tech topics for creators, artists, and collectors alike. From artists selling their art and perpetually gaining secondary sale royalties, to collectors trading pieces for record amounts of money. An exciting ecosystem set to revolutionize media and pop culture, giving everyone a chance to own authentic digital assets and trade globally thanks to cryptocurrency payments.

If you have bought or traded crypto in the past, working with NFTs is not so different. When you buy an NFT you are the owner of a unique token within a limited supply, similar to how you may own 1 Bitcoin from the 21 million capped supply. Another opportunity to globally invest in projects and vibrant communities, a place where generational wealth and friendships are made, similar to what we saw when the early internet came out in the 90s.

Whether you are a crypto OG or just getting started, we hope this insight can steer you in the right direction, the WAGMI way that is.

Let's acknowledge that there are many more user types we can come up with, but for the sake of simplicity we narrowed it down to four common ones: investor collector, paper hands trader, community champ, and degen gambler. We hope this gives you an idea of the folks you might encounter along the way and helps to find the balance that is right for you.

Hodlr Collector

  • Hodlr = Slang for asset holder
  • Understands that NFTs are an investment mechanism
  • Does research about the project's team vision, skills, and craft
  • Takes calculated risk without going all in, working with a balanced and partially liquid portfolio
  • Knows the difference between a cold and hot wallet
  • Outlook: Medium to Long-term investor
  • Risk: Medium / Low

Paper Hands Trader

  • Paper Hands = Slang for seller, liquidity lover
  • Aims to grow wallet with liquidity
  • Makes numerous plays, understanding its a numbers game
  • Wallet is likely to have lots of worthless NFTs, probably in the hidden Opensea folder
  • Gets excited with the words 'ROI', 'sale', 'profit is profit'
  • Outlook: Short term to Medium-term investor
  • Risk: Medium / High

Community Champ

  • Understands that NFTs open doors to network with communities
  • Twitter and Discord vibes master, WAGMI champion and consistent GM'er
  • Builds relationships by providing value, whether it is alpha, tips, or 'shitposting' some good ol' memes
  • A beloved curator of views and opinions
  • Outlook: Long-term investor
  • Risk: Low

Degen Gambler

  • Degen = Degenerate. Not much of an investor, more of a gambler
  • Thrives under risk, no need to do much research before investing
  • Alpha (insider) chat group connoisseur
  • Commonly maintains an illiquid portfolio
  • Usually is unaware of crypto tax responsibilities
  • Risk: High

So, which one are you?

You are probably neither, chances are everyone is more of a blend of all types. Attribute yourself a percentage (%) of each and ask if this balance can help you fulfill a higher purpose. Whether you want to learn more about the tech, start your own project, meet new friends, or make extra cash, ask yourself if your current balance will help you get there.

There is nothing wrong in deciding to invest in an NFT without being active in socials, being an awesome community member without owning the collection, or cracking a cold one and making some degen bets hoping a project pops off. After all, the beauty is in the balance and is perhaps the best way to understand the NFT space as a whole.

Remember NFTs are way more than a jpg, it's a token giving you access to an investment opportunity, community, and personal identity. We hope this post made you think about yourself and the type of users out there, helping you analyze if those behaviors align with your personal goals. A retrospective exercise that we hope will stand relevant for years to come.

Last but not least, if you are reading this you are still early.