4 Steps to Take Before Buying NFTs
Hello, guys! Welcome back to the CryptoGeek Newsletter. Last time we were talking about the decrease in the NFT market. As promised, I welcome you to read a short but informative article about the TOP-4 things to check before buying an NFT.
I am sure that many of you have already bought NFTs; I know that many of this newsletter's readers have been investing in NFTs for a long time very seriously. But some have not figured out where to start before looking for NFTs and what to pay attention to when buying the coveted NFT.
So, if you're considering investing in NFTs, read these tips first. It could save you time, effort, and money!
1. Research and then research even more
Research is a part of an investor's due diligence. No matter what you invest in, continually analyze the project and do the investing fundamentals. You need to understand what NFT can be used for:
2. The Unique Properties of the NFT
NFTs often come in the form of collections. Let's look at the NFT from the well-known Bored Ape Yacht Club collection. All the NFTs of the collection have their avatar and different properties, which sometimes equal a higher value of the NFT.??
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If you want to determine whether an NFT is worth investing in, check its properties first. NFT with the lowest percentage of commonness among the collection is what you need. It is more expensive but at the same time rarer because of its unique properties.
In addition, checking properties is a way to avoid scam NFT accounts, which upload copies of well-known and popular NFTs.?
?3. Seller Verification
Look for a blue verification tick next to the account's name to ensure you entered a verified account that can be trusted. So, if you want to buy from a well-known seller, like Bored Apes, make sure the account has a verification tick. However, many legitimate NFT sellers do not have a verification tick on specific platforms. So check the NFT properties as a backup measure if you want to buy from an unverified account.
?4. NFT Liquidity and Market Volume
It is important to remember that NFTs don't have the same liquidity as crypto tokens. This is especially true for those who invest in NFTs to make money. You can't easily liquidate NFT into traditional currency as quickly and fast as crypto tokens. So, always check the liquidity of chosen NFTs and recent trades.?
On top of liquidity, it's essential to consider the market volume of the NFT industry. At the time of writing, the NFT market volume stands at $12.2 billion, and the rise or fall of this number is heavily dependent on the type of NFTs being purchased regularly.
I hope this article was helpful. Be careful and always DYOR before you invest your money. It does not matter where you will invest in tokens of any project or NFTs.?All the best and have a great weekend!