EZ Wallet 101: Surviving the Bear Market — Finding the Floor Price in Uncertain Times
Welcome back to EZ Wallet 101, the all and everything Web3 and blockchain series of EZ Wallet. In this article, we will learn more about NFTs and how the NFT market works. Additionally, you will see how NFT integration is a feature every investor should watch out for.
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🤲 What type of hands do you have?
It’s a common adage in finance, that even though profits are earned during a bull cycle, it is during a bear market that the most profitable investments are made. Crypto markets are known for huge fluctuations. It’s a new technology that still hasn’t reached mass adoption. The invention of new ways to create value and new forms of digital currency takes a lot of faith, as completely new economic systems are created to find better alternatives to fiat currency.
Crypto maxi’s looking to create stability in the market often use the terms ‘paper hands’ and ‘diamond hands’ to represent long-term investors that believe the crypto market is just beginning, thus investors need to hold long positions in crypto as the market goes through growing pains. Investors that hold their positions even though crypto bear markets are said to have diamond hands are unbreakable in their conviction that crypto still has room to grow.
The current market conditions are increasingly confusing for crypto investors. Granted the market is in a bear market, but so is every other market, from commodities, and equities to bonds. The “everything bubble” is popping and the speculative nature of crypto has left the market unsure of future momentum.
💸 Finding the floor price in crypto markets
So, what is the floor price? In simple terms, it is the lowest price any NFT can be sold for in a certain collection. The initial floor price is set by the market along with the rarity and desirability of the NFT being sold. The more popular an NFT project gets, the higher its floor price tends to trend. A sudden reduction in floor price may suggest that an NFT project is losing traction, as ultimately like any economic market, NFTs are determined by supply and demand.
Determining this value in the crypto market is difficult, as many crypto enthusiasts still believe the market cap of crypto is highly undervalued compared to its use case value. Investors are willing to digest a turbulent market are set to profit considerably from ‘diamond’ hand investors when the overall global economy recovers.
🧩 NFT integration
With EZ Wallet’s NFT integration feature, NFT will make crypto transacting easier. This feature allows users to clearly have confidence in who they are sending to through their NFT virtual identity. Additionally, the use of NFT domains can help remove the need for hard-to-remember wallet addresses, giving investors an easy-to-remember NFT domain for users to transact with.
Ultimately determining a speculative market such as NFT can be difficult, but the technology is continually being used in new ways that open up new opportunities for NFT markets to grow.
No one has a crystal ball for the future of financial markets. Unexpected events, new government regulations, and market sentiment can change at any moment. Nevertheless, investors need due diligence in understanding emerging technologies, and all the ways they are changing the way people invest. The NFT market is only about 5 years old, and as the NFT market deals with its first major correction after the global crypto viral explosion of the past few years, those who can follow the trends and find the floor price in these uncertain times will fare best going forward.
📝 About EZ Wallet:
EZ Wallet is on the journey to make crypto more accessible and convenient for everyone, from the crypto newbie to the seasoned crypto vet. The EZ Wallet team is a diverse and dynamic team aiming to create a non-custodial wallet that makes everyone’s journey into the crypto world easier, with a more friendly interface that simplifies the Crypto process while simultaneously pushing the boundaries of what advanced features a digital wallet can provide.
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