Have you bought your first non-fungible token (NFT)?
Or maybe you’re still on the fence but are open to buying one or two (or four hundred) NFTs?
Whether you’re just planning to soothe a FOMO or you plan to make a career out of buying NFTs, here are 5 tips to help maximize your NFT investments:
1. Protect the bag
If you can’t protect $30 worth of NFTs, how can you protect $300 or $3,000 worth of digital assets?
Get to know the different crypto and NFT wallets on the market and pick one or two that will work for your needs. Invest in a cold wallet if you’re planning on HODLing NFTs long-term.
Use password managers, 2FA, and authenticator apps to make it really hard for scammers to steal your coins and NFTs.
Read up on PHISHING SCAMS that aim to get your NFT account/wallet details by giving you fake forms via Twitter, Discord, or new project “airdrops.”
Likewise, watch out for CATFISHING SCAMS that imitate legitimate marketplaces, project websites, and influencer social media accounts to get you to share your wallet details.
2. Know the PRODUCT
Just like you wouldn’t buy a stock or real estate until you’ve done your research, you also shouldn’t buy NFTs without knowing their value.
Is the seller even selling original work? Or was the design pulled from an unsuspecting artist’s catalog?
Is the NFT committing copyright infringement?If so, then you probably shouldn’t buy meme NFTs of your branded childhood faves.
Will the NFT still have value even through a crypto winter?
Remember that most NFTs are priced in cryptos. A crypto bear market can drag down your NFT’s value, yo!
3. Know the SELLER
Even original artwork/tokens can lose value if their popularity is based on hype.
Who’s “selling” the NFT?
Are they celebrities and “thought leaders” who got paid to say “Trust me bro. This collection will moon!”?
Or maybe you’re getting FOMO from a dedicated group of “early adopters” who are preparing to dump after the pump.
Look for strong, resilient communities who are truly excited about a project.
If there’s real-life demand, there’s a better chance that your NFT will continue to gain in value.
4. Know the PLATFORM
If you REALLY want to maximize your NFT investments, you should also be aware of network or blockchain fees that may cut your profits.
Meanwhile, take note of marketplace restrictions that may limit how you buy/sell/trade your NFTs.
5. Get inspiration from the community
Planning to “buy low, sell high” your way to NFT investment success?
You can follow popular NFT buyers or artists who can point you to future NFT trends.
If you’re lucky, you can even track their purchases on blockchains and snag similar works!
Signing up on NFT groups and marketplaces can also work for you if you’re into NFT drops.Planning on getting “higher value” NFTs? Try applying or signing up on curated platforms that invite more exclusive NFT artists.
There you have it, folks!
IRL traders have shed blood, sweat, and actual tears to share their lessons so make sure you don’t waste it!