Even though NFTs are still new in cryptocurrency, that hasn’t stopped them from gaining a ton of attention. Reports show that the NFT market now has a value of $3 billion. It’s no surprise that you’re interested in starting to learn about NFTs.
Do you want to learn what are NFTs and what makes a great purchase? Check out the NFTs for beginners guide below to understand what you need to get started.
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What Is an NFT?
An NFT is a non-fungible token. It’s a part of the cryptocurrency blockchain that indicates that you own a digital asset. These assets can be anything from digital art to online music.
An NFT gets created through the minting process. You pay the mint fee and get an NFT that says you have ownership of an asset. An NFT owner can make multiple copies of an NFT in the case of a song or create one-of-a-kind NFTs like artwork.
What to Look for in an NFT
Now that you know what an NFT is and what they are in cryptocurrency, you need to know what to look for when buying. Here is a short NFT guide that will help you learn what to look for when purchasing.
Learn About the Creator
Not every NFT project is created with the best intentions. Some builders create project after project to gain as much money as possible. Unfortunately, most of those NFTs won’t be worth much and are pump and dump schemes.
It pays to learn about the creator of a project before you buy. Does the person creating an NFT have a history of successful projects? Is there a roadmap to develop an NFT in the future?
Learn what the creator plans to ensure you don’t waste your money.
Consider Your Goals
Some people buy NFTs simply because they like the asset. However, not everyone has that goal. Many people get into NFTs because they want to flip them for profit.
Your goal will change what you look for in an NFT. If you only care about the asset, it doesn’t matter as much about the creator’s future plans. However, that’s something you’ll need to learn about if you want the price of your NFT to go up for you to sell for profit later.
Learn About Rarity
Many NFTs have more to them than the original asset. You can purchase part of a collection with many different asset types and attributes. Those things can impact the price of an NFT.
This happens because some NFT attributes are rarer than others. A rarer attribute will drive up the price of an NFT, so it’s something you need to consider. Check out rarity tools NFT websites to learn more about these things for NFTs you’re thinking of buying.
NFTs for Beginners: You’re Ready to Make Your First NFT Purchase
NFTs are new in the crypto space, but they didn’t take long to get attention and gain popularity. However, they don’t work the same as traditional cryptocurrency coins. That means you’ll need to educate yourself to get started.
The good news is that you’ve already read the NFTs for beginners guide above. Keep the NFT basics in mind to ensure you make great buying decisions.
Check out the blog to learn more tips that will help you make great decisions in the crypto space.