There’s no better time than now to invest in NFTs, or non fungible tokens. Early adopters can gain several benefits, such as buying low and enjoying greater profit potential when they join the NFT bandwagon.
Here are 5 tips to heed when you make the NFT investment plunge.
Spread Out Your Investment
NFTs are short for non fungible tokens, or digital assets that represent something of value. In short, they’re similar to cryptocurrencies and can be viewed as such, investment-wise.
The best trading advice also applies to NFTs. Ideally, you should take several, if not more of these assets and combine them with other portfolios, such as cryptocurrencies. If you intend to do this, it’s best to sign up at a reputable trading platform such as yuan pay group so you make the most of your capital.
Sign Up at a Reputable Marketplace
It’s important that you put your money (investment) in a safe place, and in terms of NFTs this means searching for a reputable NFT marketplace on the internet.
OpenSea is a good place to start, since you can buy and sell NFTs with minimal procedures and steps. You can then branch out to other platforms to expand your reach and gain the ability to create NFTs for selling.
One way of knowing if an online marketplace is good or not is to read user reviews about them. If it’s mostly positive then it’s probably safe to sign up; on the other hand, if you keep hearing the words ‘scam’ or fraud then you should skip it.
Know When to Buy
It’s easy to buy your first NFT- just open a crypto wallet that can hold digital coins, then use them in an NFT marketplace in exchange for the token you want.
The value of an NFT is the same as with stocks or Bitcoin, which means they tend to go up if there’s a greater demand for them.
The rule of trading is to buy low and sell high, and this means determining which NFT is popular, rare or has a high demand. Ideally, when you buy an NFT you should keep it and only sell it if you’ll be making a profit.
Know When to Sell
The timing of selling an NFT can be tricky since it’s relatively new. Other than gaining more than a thousand percent profit, you should be careful with your asset so you can make money off it.
It’s probably not a good idea to hold onto an NFT for too long. Once you gain a token you should list it up for sale or auction on multiple sites to try and get a buyer.
Consider the Creation Fees
Lastly, you should check out the marketplace’s NFT creation fees so you can have an idea of how much capital you need to enter the NFT trading niche.
It’s a good idea to join platforms that don’t require as much fees and costs, then slowly trickle into popular ones that offer their services at reasonable prices.