I recently advised against investing in non-fungible tokens, or NFTs. While it’s advisable for most people to confine their investing to more mature crypto assets like Bitcoin and Ethereum, the reality is that not everyone will want to pass up the opportunity of easy money. Part of crypto’s appeal is what some have termed the Ponzi mechanics, the fact that it goes up as more people join.

It’s truly hard for the current generation to avoid being lured in by the gains we are seeing. Personal stories abound of people spending 0.1 Ethereum (ETH) minting an NFT only for it to be worth hundreds of thousands of dollars a few months in. No doubt, there is value in this new space, but the fact that very few could forecast it means that this huge uptake even as late as two years ago should give you a pause in consideration.

So, What if you Rolled the Dice? For those that rolled the dice, and it came to sixes, what should they be worried about? In my opinion, the biggest concern should be people’s tendencies to pull into assets when they are in fashion and exit in panic during drawdowns.

Locking in The Gains There is a well-known saying in finance, that when the tide goes out, you will know who has been swimming naked. I look at every crypto cycle as the tide coming in big time and lifting all boards, including those with minor holes.

I suspect that the tide, in this case, liquidity for NFTs, will fade in the next bear cycle. Given that the whole crypto market has been rising since early 2020, we are closer to that event taking place.

As an NFT investor, this is the time to assess your portfolio and decide which assets are no longer worth holding.