If you are looking for a class of asset that allows you to quickly make massive returns with a relatively modest investment, NFTs just might be it. But you do have to know that investing in NFTs still comports a fair share of risk, and you can’t jump on the markets without having a basic understanding of what NFTs are exactly. Let’s take a look at some of the dos and don’ts of buying NFT calendar promotion.
Do – Get them from a Reliable Marketplace
One of the first things you need to be careful with when you buy NFTs is where you buy them from. The exchange or marketplace you decide to buy them from needs to have a good history and reputation with the public. It also has to have some solid security measures in place and a good security track record.
You can buy your NFTs from either a specific marketplace or a central exchange, and they are both good options depending on what you’re trying to do. Buying from a platform like OKX, for instance, would make things easier for you since it combines NFTs from different channels. Buying from a specific exchange could be simpler for you, however, so look at both options and choose the best one for you.
Don’t – Blindly Follow Social Media Advice
Checking what the community has to say about an NFT drop is very important, but you can’t buy an NFT purely based on social media hype. Make sure that you get a mix of information from sources like Reddit and YouTube, and reputable NFT/crypto news sources. Also, make sure that you delve deep into projects instead of just buying what’s hot. This will save you a lot of disappointment.
Do – Check the Terms of the Sale
A lot of people think that they’re buying whatever asset is being presented as an NFT when they’re making a purchase, but that’s not what’s happening. As a matter of fact, in most cases, buying an NFT does not denote ownership of the underlying asset.
At the core, NFTs are the piece of code on the blockchain, and what you’ll essentially be buying is a link. It is the NFT’s purchasing and licensing agreement that will tell you what you’re getting, so make sure that it’s available whenever you buy one and read it before you press that buy button.
Don’t – Assume that Any NFT in a Hot Collection is Worth Buying
Knowing how to value NFTs is very important, so be careful when buying anything from a collection that is trending or has a lot of hype behind it. Some of the NFTs might indeed be valuable, but you need to pay special attention to their price action first to know which direction it’s heading. Check things like volume for the collection and floor price as well, and check which pieces are the rarest.
NFTs can be a great investment if you know how to approach the markets. You have to make sure that you understand what they are before you start trading them, however, and learn as much as you can from the community, so you don’t make their mistakes.
