Check Yourself Before Investing in Limited Edition Sneakers

But is it right for you?

Heres what you better know about the resale value of limited-edition sneakers before you dive into the sneakerhead game.

Sneakers are a risky investment

First, a quick primer on how the sneaker resale market works.

The coveted sneakers are released in limited amounts, though limited can mean varying things.

For example,500,000 pairs of the new Jordans are rumored to be released worldwidestarting tomorrow.

Resellers swoop in and purchase shoes directly from retailers or the manufacturer at retail price.

The nameStockXis a bit of a misnomer.

Investing in sneakers is not like investing in stocks.

With stocks, you want to build a diversified and balanced portfolio to reduce your risk as an investor.

Even still, there are still plenty of risks to investing in sneakers as a commodity.

Even for knowledgeable sneakerheads, a specific shoess potential resale valuecant always be accurately predicted.

Its a fast-moving market, and many limited edition shoes dont have long-term holding value for investors.

But consider all the hidden costs of reselling.

When its all said and done, youve made $56.

Ultimately, all sellerssay the same thing: You really do need to know what youre doing.

Hype is directly tied to a shoes value, and hype is unreliable.

Shoes that arent authentic have no resale value.

Youll make better investment choices if you have an insiders understanding of the commodity and the community.

Any investment in reselling limited-edition shoes will involve a Jordan-sized leap of faith.

So before you dive in investing in the shoes, start by investing your time.

Delve into sneaker culture and hone your skill at spotting the shoes most likely to be a profitable investment.