For every investor profiting off a business poised to become the Next Big Thing, there are countless others getting burned by SquidGame digital tokens, fake Elon Musk Twitter accounts or another wannabe high-flyer that either implodes or turns out to be a scam.
Some of the most popular investment opportunities around exist in the worlds of cryptocurrency and decentralized finance (DeFi). But creators have run into a major stumbling block on the path to profitability: When pretty much anyone can pitch in on building new digital infrastructure, there’s a good chance that some of those participants will inadvertently (or deliberately) mess things up.
As we head into 2022, here are the high-risk investing trends that people will be talking about non-stop, and what you need to know about each of them.
NFT flipping
NFTs, or non-fungible tokens, are unique digital assets that are linked to a blockchain. To date, most NFT activity — and the fortunes it has made — has been through digital art or the authentication of brick-and-mortar (or pen and paper, or paint and canvas) works.
Flipping NFTs works the same way as it does for tangible assets. The goal is to find NFTs that are cheap and likely to increase in value; i.e., “buy low and sell high.” The relative newness of NFTs as an asset class (the concept has been around for nearly a…
