NFTs are essentially a baby in the online space – but one with unprecedented force. Sure, they have only been around since 2017, but they are already immensely prevalent and are being used in the music and gaming industries, as well as the art world – and even for virtual real estate. If you want to get started with your first NFTs and build on your collection, then you are in the right place. This article will explore NFTs, common marketplaces, and offer some top tips for collecting NFTs, so read on to learn more.
What is an NFT?
In layperson terms, NFTs are basically a special type of digital asset that is stored on a blockchain – and they are unique and non-fungible. This means that they are irreplaceable and cannot be changed, copied, or anything else. Unlike more traditional digital assets, like cryptocurrencies, for instance, NFTs are not interchangeable nor divisible, which makes them ideal for collecting and trading. Out of them all, probably the most well-known NFTs are ERC-721 tokens, which represent digital artworks, collectible cards, and other digital assets.
As mentioned above, perhaps the most popular NFTs are ERC-721 tokens, representing digital works of art (like digital paintings, as an example), collectible cards, and various other digital assets. Other popular NFTs also include digital gaming assets, such as skins and in-game items, and even virtual real estate, such as virtual plots of land. To add further, many NFTs can also represent digital music, videos, and books, among a variety of other assets.
In addition to these popular types of NFTs, there are also several other emerging types that are gaining headway. These include tokenized real estate, which can represent property, tokenized stocks and bonds, and also tokenized loyalty points. Plus, NFTs are also being used for digital collectibles, digital tickets, and even coupons in some strange instances.
Common NFTs Marketplaces
You can find a ton of dedicated NFT marketplaces on the internet. These are specifically designed for trading NFTs and provide information on the current prices, the types of NFTs available, and their trading history.
When choosing an NFT marketplace, researching thoroughly is of paramount importance – this is to ensure that each site you choose to use for your investments and trades is reputable and secure. Additionally, it’s crucial to understand the fees associated with trading on each marketplace and ensure you can afford them and are, of course, comfortable with them. Finally, anyone getting involved in this new trend must be aware of the risks associated with trading and only ever trade with reputable and trustworthy buyers and sellers.
Top Tips for Collecting NFTs
Collecting NFTs can be a fun and rewarding experience – but it’s essential to remember to be careful and do your research, as it is with anything that involves money. On that note, it’s recommended to scour crypto guides written by those in the know – such as those on OKX – for more information on cryptocurrencies and NFTs, especially the all-important element of proof of reserves.
For now, though, here are some extra tips for collecting NFTs:
- Research the platforms and marketplaces thoroughly and ensure they are reputable and secure.
- Understand the fees associated with the platform or marketplace.
- Look into the NFTs you’re interested in and confirm they’re genuine and that the seller is trustworthy.
- Use a secure crypto wallet and back it up regularly to ensure that your NFTs are safe.
- Use a secure network to protect your NFTs from potential threats.
- Understand the risks of trading NFTs and only deal with reputable and trustworthy buyers and sellers.
There is a lot to take into account when it comes to buying NFTs; after all, they can be costly investments, so you need to get it right to avoid wasting your hard-earned money. Still, that said, they can also have the potential to be lucrative opportunities that appreciate over time. Whatever the case, be you a businessperson or a hobby collector, with these tips, you’ll be well on your way to searching for and buying your first NFTs, so good luck!
Phoneia.com (February 7, 2023). Top Tips for Collecting NFTs. Recovered from https://phoneia.com/en/top-tips-for-collecting-nfts/