The blockchain and crypto space has grown exponentially over the last couple of years, expanding into important spheres like DeFi, NFTs, blockchain gaming, etc.
The NFT sphere is currently one of the most lucrative spheres of the entire blockchain space. There’s been a huge influx of enthusiasts into the NFT space. This article is an in-depth overview of the fast-growing NFT space. Readers will also have access to important tips to guide their foray into investing in NFTs.
According to a Twitter thread by 6529 (@punk6529), an NFT enthusiast and advocate, investing in NFTs has been at the top of the list of crypto-related questions in recent times. More and more people are interested in navigating this nascent yet lucrative ecosystem. There’s been a lot of questions asked, such as, “Which NFTs should I buy? What’s the process of purchasing an NFT? etc.”
6529 (@punk6529) expounds on these questions, providing interested persons with answers to these questions.
Find out some of the answers below.
1/ On buying your first NFT
6529 has a lot of new followers and (so far) has DMs open and receives a lot of DMs asking "Hi 6529, I am new, which NFT should I buy"
So rather than trying to answer this 1-on-1, I am posting this for future reference
— 6529 (@punk6529) August 29, 2021
What You Should Know Before Investing in NFTs
The first thing to note is that an NFT is not a “Get Rich Scheme.” You do not purchase an NFT and expect to become an instant millionaire. While this has happened in very few instances, the chances of that happening on your first NFT purchase is next to zero. So, it is important to remain realistic and not get carried away by FOMO trends. For beginners, NFT purchases should remain within your “entertainment” budget. As 6529 puts it, your NFT buys should be registered as “[…] $0 on your balance sheet.” This means that you should not accrue it for any economical value at all.
With that out of the way, let’s find out more about how to go about your first NFT purchase.
- The first thing to do is to buy a relatively cheap NFT. With a cheap NFT, it is easier and safer to learn the rudiments of how NFTs work than having to do so with one worth a quarter of a million dollars. It is also important to learn how to navigate NFT marketplaces like OpenSea, Rarible, etc.
- Once you are comfortable owning a cheap one, you can move on to purchasing more expensive NFTs. With respect to your budget, you may need to get a Trezor or Ledger wallet to safeguard your NFTs. This is because hardware wallet devices are much safer than just software wallets.
Remember, after locating a collection you like, it is advisable to start your purchase at the floor. That is the collection with the lowest prices. This is because most NFTs “at the floor” have:
- Market prices that are open and well-known.
- They get easily priced up because they enjoy more competition than the most expensive NFTs in a collection.
- Lastly, they are also easy to sell if the need arises.
Other Important Points to Note
- Watch Out For Scammers – As part of your NFT purchase tips, you need to be on the lookout for scammers. Most of these nefarious individuals will pose as customer support asking for your seed phrase, etc. As a rule of thumb, customer support does not ever reach out first. So, if someone is reaching out to you and sounding very helpful, chances are they are trying to scam you.
- Be Active on Social Media – It is also cool to join the Discord channel of collections you like. You could also follow NFT-savvy Twitter handles to learn more about the non-fungible token ecosystem.
- The last tip is to only “Buy Art That You Like.” Do not get FOMOed into purchasing an NFT you do not like.
In conclusion, art is generally free, and you do not necessarily have to purchase an NFT to enjoy it.
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