words Al Woods
NFTs [non-fungible tokens] are digital assets that are bought and sold online. While they are often bought with cryptocurrencies, they are non-fungible [unlike cryptocurrencies], which means that they are entirely unique and can’t be replaced with something else.
They have started to become very popular with online traders over the last few years, especially those who are interested in memes, art, and music. There are many different types of NFT, including those just mentioned, and things such as trading cards and domain names.
In this article, you will find important advice designed to help you collect NFTs:
Types of NFT
It’s also important to know what the different types of NFT are so that you can invest in one that’s right for you. Some of the main types of NFT are music, domain names, art, gifs, videos, online fashion, and collectibles. These different things vary in price. If you’re going to invest in one, do your research first in order to find which style of NFT is most popular, and which is least popular. Trends tend to swing back around, so you may benefit from investing in an NFT that’s currently unpopular.
Networking
If you’re going to get involved in NFT collecting, then it’s in your best interests to network with other traders and content creators. According to the NFT specialists from Jungle, marketplaces offer safe spaces where you can network with creators and sellers. If you don’t find a safe, reliable, and secure marketplace, you won’t be able to guarantee that the people you’re talking to are who they say they are. This could result in you being scammed, hacked, or having your personal information stolen. You can find out information about marketplaces on chat rooms and forums. You can also read online reviews.
Wallet
If you are going to begin collecting NFTs, then you will need a wallet. Like cryptocurrencies, NFTs are stored in digital wallets. Some marketplaces offer native wallets, although it’s always better to store your NFTs in a third-party wallet. The internet’s overrun with hackers, most of whom go out of their way to target crypto and NFT traders. You need to take your wallet’s security very seriously. You mustn’t share your password or personal information with anybody. If you do, you could find your wallet compromised, and your NFTs could wind up getting stolen.
Creation
If you have an artistic flair, then you could potentially create your own NFT artwork. There are many up-and-coming digital artists who have made fortunes from selling their art online. You don’t necessarily need to be good with the technical aspects of art [painting and drawing], as long as you have mastered digital photo editing software. Most NFT art sold online isn’t drawn by hand and is instead created on computer editing programs. If you have a sense of humor, you could also try your hand at creating memes. Meme NFTs are very popular, with some being sold for several million dollars.
Marketing
If you are collecting NFTs, then sooner or later you will likely sell some of your collection. If you need to sell an NFT, then you will need to focus on marketing it. Marketing is very important. You can market your NFTs on social media, through the NFT community [by networking], and on forums and in chat rooms. If you’re marketing your NFTs you need to go to great lengths to ensure your wallet’s security. Putting yourself out there publicly and advertising your collection may attract hackers and fraudsters and lead to you being targeted by them, especially if you own a particularly rare NFT.
Trends
If you want to acquire the best NFT collection that you can, then you need to stay ahead of trends. As with everything in life, there are trends in NFT trading. Some memes are more popular than others, and some types of art are more popular for a period of time. If you’re plugged into the NFT community, then staying ahead of what’s hot shouldn’t be difficult. When you become a very experienced trader, you will be able to predict trends. This will allow you to get in early and invest in NFTs before they become popular.
Community-focus
As we mentioned previously, you need to network. You also need to make sure that you’re plugged into the NFT community. There will be a point when networking becomes redundant because you will already be a well-known name and face in the community. Community engagement is very important because it will create opportunities for you. Creators may give you first dibs on their creations, or you may be able to acquire rare NFTs for less from other collectors who are your friends. There are myriad advantages to plugging yourself into the community. Make sure to get to know everybody and engage with people. In addition, help out people who are new to NFT trading, because later down the line they could prove to be valuable allies.
Pricing and Buying
If you’re selling your NFT collection, then you need to be fair with your pricing. If you charge too much, then you may struggle to sell your NFTs. You also need to be realistic when you’re buying NFTs. It’s easy to FOMO in and spend too much on a rare or valuable NFT, but this isn’t always the best idea. Do your research before buying so that you don’t get overcharged. If you don’t know what an artist’s work is worth but you like it, you may get a bad deal on it.
Artists
The works of some NFT artists are worth a lot of money. If you can find an artist that’s up-and-coming and collect their art before they gain exposure and recognition, you can make a lot of money. It’s hard to do this, but if you have an eye for art, you should be able to manage. Staying ahead of trends as mentioned previously will definitely benefit you when you are looking for new, hot artists.
NFTs are a great investment. Most NFTs appreciate in value over time, especially the particularly rare ones. If you want to begin collecting – and investing – then NFTs are a great place for you to start.
