If you have been on the internet for a long time, you should have heard more about NFT how everybody is making a lot of money. Cryptocurrency and NFT have been the talk of the town since last year because people are making a ton of money through these. So you might also be interested in getting into NFT and making a ton of money through this. But when you go to buy an NFT, you see a lot more technical terms related to it, which you understand at one go. But you want to get into this space and buy your first NFT, which may make a ton of money for you. So, this article is entirely based on that. We will share some tips that will help you buy your first NFT.
What is NFT?
Let’s start by knowing the basics of NFT. NFT are Non-Fungible Token which means that they are non-exchangeable. It is a digital asset based on blockchain technology whose value cannot be expressed.
People who buy these intangible assets claims to be official proprietors of that NFT. However, other people can examine the digital assets, but they can’t own them. It includes any form of digital artwork such as image, video, audio file, GIF and many more.
Tips to know before buying first NFT
There are certain few things that you should consider before buying your NFT.
If you want to consider buying your first NFT, check its rarity. The rare the NFT will be, the higher the chance of increasing its value in a brief period. As NFT most of the time comes in the form of collection, it’s recommended to check the rarity of the properties of NFT. The lowest the percentage of commonness among the collection, the higher the chances of its value getting higher quickly. You can check the properties percentage on the NFT page.
2. Gas Fees
You may not know about gas fees if you are new in this NFT space. They are not just like your standard gas fees. They are transaction fees that the platform charges from you.
Do consider this before buying because, on some platforms, they are as much as $200. However, some platforms like OpenSea charge 2.5% from the seller, and no charge is paid to the buyers. A platform like Origin and Axe also do the same thing. So, do consider checking gas fees before buying your first NFT.
3. Verification of Seller
We all have sometimes come across news of fake accounts on NFT and how people are cheated. Many people do not go into this space because they fear getting cheated.
So, if you want to buy your first NFT, always make sure that that account has been verified by the platform, which makes them an official seller. However, some sellers are legitimate accounts without verification, but it is better to play it safe and buy from a verified account.
4. Price Performance
Now, if you have decided to buy your first NFT before buying, do check the price performance of the seller previous NFT. You will find out at what rate this same NFT was sold for a week or months ago. It will also show whether this NFT price is going up or not and at what rate.
As NFT is regarded as the next big thing, I think these factors will help you avoid mistakes while buying your first NFT. Please let us know if these tips help you buy your first NFT.