IncrediTools has vetted the best services in these industries, click to view:

Buying NFTs: Dos and Don’ts

While technically still in its early days, the NFT economy has become massive. It is affected by everyone from millionaires, to teenage artists, to influencers, and fashion companies. Many people looking to get into NFTs are searching for purchasing avenues and opportunities to get in on the “ground floor,” or at least one of the lower floors of the NFT economy. With any new industry, however, there are a number of do’s and don’ts, and understanding what to look out for early on can be crucial to best success in any type of investing or trading. Here are some Do’s and Don’ts when looking to buy NFTs.

Don’t Trust Everyone

When you are buying NFTs, be careful who you buy from. Don’t trust everyone who offers you a too-good-to-be-true NFT drop, don’t trust random pop-ups, and don’t trust uncredited websites.

Especially when it comes to crypto, you want to ensure that you are buying from the proper channels, that you are going through a service with blockchain verification, and that you are buying directly from the seller.

This doesn’t mean that you can’t trust anyone, simply do your research and ensure that you utilize the right channels.

Do Trust Your Gut

While there is plenty of room for research, data, and consulting, many NFTs exist in an artistic medium. If there is an NFT that you think will increase in value, that speaks to you, or that you think is going unnoticed, get into it!

While you may be wrong a number of times, trusting in your gut allows you to find unique investment opportunities and potentially discover artists and creators before others do. 

Don’t Trust the Hype

The NFT economy has more social media influencers in it than most others, and you will frequently discover hype around what NFTs to buy. While these are occasionally good tips, most smart investors will not tell everyone else about the ‘big buys’ until they have already gotten theirs.

crypto chart

If there is significant hype telling you to purchase an NFT, it is either too late, or someone is trying to get you to spend unnecessarily large amounts of money. 

Purchases made should be done out of logic, learning, and careful understanding. Never make a purchase—especially a big one—because there is a lot of hype around it.

Do Diversify

Diversify your NFT portfolio. There are a number of NFTs to buy—big and small—and a number of unique innovations to get involved in. Complete your crypto wallet with everything from niche, indie NFTs to big-name and pop-culture NFTs. You never know which ones will take off or fall, and the ability to participate in the NFT economy across a wide range of content and spaces can help you secure your investments and make larger profits.

Don’t Get Discouraged

You will lose money. Not all the time, not necessarily in the long run, but at some point you will lose money as you invest in NFTs. Don’t sell your whole portfolio because you had a loss, and don’t relinquish your investments because you had a few bad ones. Continue to do your research, find ways to make up for your losses, and you will usually find a way to generate profits. 

Do Create Your Own

One of the best ways to learn about the way the NFT economy works is to create your own NFTs. Granted you might not make a six-figure selling NFT, but you can make commissions and learn how the market is functioning. There is very little to lose out of creating your own NFTs, and it can be an exciting and fun process.

NFT 1

Don’t Put All Your Eggs in One Basket

Don’t focus all of your efforts on one NFT or collection. Ensure that you have a few long term investment NFTs, and a few short term investments. This not only makes your NFT investments safer, but makes it more enjoyable.

Do Enjoy the Process

NFTs are artwork, digital assets, and creative material. Investing in them, and trading them should be fun. If you aren’t enjoying the NFTs you’re purchasing, you’re missing the point. Loving the NFT economy will actually help you find better drops, and find tokens that will sell better to others. If you’re excited about your NFT purchase, others will more easily get excited to purchase from, or trade with you.

Don’t Base Your Whole Strategy on a DO’s and DON’Ts List

Lastly, research diversely. There are a plethora of strategies for NFT trading and purchasing. When you are looking to buy NFTs, the best strategy is the one you have developed through trial and research that works for you and your lifestyle. There is no equation for NFT success. Take note of DOs and DON’Ts, but buy NFTs based on your own experience, learning, and testing.

Facebook
Twitter
LinkedIn