There are currently around 360,000 people globally who own NFTs.
Collectible NFTs are rapidly growing in popularity, and more are being traded every day. The world of NFTs is very new, so most people are still working out how it all works. There are plenty of mistakes that people make when getting started, and avoiding these can save you a lot of time and money.
For some of the most common mistakes to avoid when trading collectible NFTs, keep reading.
Trying to Make Fast Money
One of the reasons NFTs have become so popular is because some people have managed to make huge profits in a short time. It’s important to understand, however, that this is a small fraction of collectors. While it’s definitely possible for anyone to make profits, most of the time it’s a long-term investment.
Research the types of NFTs you can buy, and make sure you understand the investment process. Trying to rush things can often just lead to losses.
The public blockchain is generally very secure. NFTs use distributed ledger technology to make transactions safe and fast. Despite this, there are still some risks out there.
Scammers may try and get the seed phrase to your wallet, or even try to trick you into clicking on a bad link. Look into the potential scams that people are using so you know how to spot and avoid them.
For improved safety, you could also start using a hard wallet. This will help keep your NFTs and crypto more secure than a soft wallet does.
Hard wallets are advisable if you’re holding assets long-term. Leave a valuable artwork NFT in a hard wallet and you can wait for it to go up in value without any worries.
All types of blockchain networks have fees. It’s important to know what these are, as they vary quite a lot.
Two of the most popular blockchains for NFTs are Ethereum and Solana. Ethereum gas fees can easily be tens or hundreds of dollars, and during very busy periods may even be thousands. Solana on the other hand generally costs less than a cent for a transaction.
Make sure you look at these fees before every transaction you make so that you don’t accidentally end up spending a lot more than you want to.
Finding a Good Marketplace
There are plenty of NFT marketplaces out there, so do some initial research to find one that’s right for you. There are some questions you should ask before using a marketplace.
Is it safe? Does it have a strong/helpful community? Do your views align with the marketplace? Does it use a blockchain you support?
SuperRare is a marketplace that focuses on high-quality art and is a great place for both collectors and artists. All transactions are on-chain so you can see an authentic record of all transfers. Artists can place royalties on their work to receive income from all secondary sales.
SuperRare also has a discord server, blog, and other resources that can prove very helpful. You can find more information here.
Starting Out With Collectible NFTs
In the world of NFTs, you will often see the term DYOR (do your own research). This is one of the most important aspects of NFT trading. Look into different projects and blockchains, and make sure you understand what you’re doing before investing in any collectible NFTs.
For more business articles, check out some of our other website posts.