In 2021, the digital art, ‘The Merge’ by Pak sold as an NFT for $91.8milion. Likewise, many artists across the world have made lots of money selling their digital art as NFTs.
Some others simply trade NFTs for profit. The profit people have made, has created a craze for NFTs.
If you’re interested in jumping on the NFT train, you should read this. Chris de Diego believes that the NFT market can be rewarding, but it can also be damaging. This is why newbies in the market need guidance when starting out.
Chris de Diego is a crypto expert and has lots of experience trading NFTs and other crypto tokens. He gave us his view on the best way to get started in NFTs.
Understand how NFTs work
If you already have a good idea of what NFTs are and how they work, you can move on. A good understanding of NFTs is essential in getting into NFT trading the right way.
If you want to be a successful trader, find resources and learn what you need to know about NFTs before you start trading. Trading NFTs while being clueless has cost many newbie traders lots of money.
Create your wallet and Get on a Marketplace
To trade NFTs, you will need a virtual wallet that would be able to interact with the NFT marketplaces. Metamask is suitable for this.
You would also need to get on a marketplace so you can start buying and selling. Some popular marketplaces around now are OpenSea, Rarible, Nifty Gateway, and Foundation to mention a few. Chris de Diego is on Rarible, be sure to follow him to check out the hottest NFTs.
Do your Research
You should always be on top of the latest NFT trends. Research on all you need to know about an NFT collection before buying. NFT lovers love art, but still, no trader wants to take huge losses on the art he is holding.
Occasionally, when lots of traders are interested in a particular project, fake ones might pop up on the marketplace. You should be able to spot the NFT project you’re interested in from fakes.
The best way to handle research is to follow the project. Join their communities, follow their social media profiles, and get the feel of the project, so you know whether you should buy or not.
Don’t buy only one piece in a collection
It might look like a smart move to buy only one item in a collection, but in NFT trading, it is not. When you buy into an NFT collection, more than the NFT itself, you gain the value of being in the community.
This value can guide you to making more profit from the project. When the price of the collection rises, if you have only one piece, you will have to sell it off to get your investment and profit.
On the other hand, if you bought more than one piece, you could sell one, get your profit, and still remain in the community.
Secure your Wallet
All your NFT assets are stored in your wallet. Before you start trading, ensure your wallet is secure.
Your wallet’s seed phrase can be used to access your wallet anywhere, so you need to ensure that it is well protected. You can also look into using NFT wallets or other security mechanisms for protecting your assets.
Also, avoid clicking links or paying attention to malicious messages requesting your seed phrase. They’re scammers looking to run with your money.