NFTs have continued to be a popular trend within the entire crypto space. According to NonFungible.com, NFT sales have risen every year since 2017, while peaking in 2021 with total NFT revenue of over $15.3 billion.
In Jan. 2022, the biggest NFT marketplace within the world — OpenSea — had a record-setting month of sales logging over $5 billion worth of NFT sales. The main driver of this trend is that NFTs are the most recent intangible status symbols for wealthy people, joining the physical prestige flexes which include Lamborghinis, Rolexes, yachts and all of the other material possessions of the rich and famous.
While you can make profits off of NFTs if you know what you are doing, there is a certain level of risk if you don’t have a clue what you are doing. If you would like to join the ranks of the NFT owners, here are some cautionary steps that you may want to consider.
Do your own research on any NFT project
After you have identified a possible NFT project that you are interested in, the next thing you should do is locate the website of the project. That is where you will discover its overarching mission statement, the utility and vision of the project — if any — as well as who the founders, designers and financial backers are.
Once you know who the team members are, Google their names so you can learn about their expertise, backgrounds, as well as cryptocurrency and technical track records. You could also enter their respective names with some Boolean search terms like “scam, lawsuit, fraud, crime, theft, etc.” to see if any negative news coverage comes to light. If so, read them and factor them into your decision.
Back on the project’s website, make sure to check if it has a whitepaper or roadmap to get additional information about where it is on its development path and what the future plans may be. It is also a good idea to go on Twitter and enter in the name of the project as well as the founder and developer’s names. That could help provide some social sentiment regarding the NFT you’re looking at.
Use a solid NFT trading platform
There are many NFT platforms where users are able to buy, sell, and trade their digital collectibles. The biggest in the world is OpenSea, however, the larger the NFT marketplace is the more it attracts thefts and scams anecdotally. The easiest and best platform for a newcomer– or anyone really– to explore or purchase an NFT is the VeVe Collectibles app that can be found on the iPhone app store.
VeVe has a lot of proven NFTs from big brands that include Star Wars, Marvel, Disney, Star Trek, DC, James Bond, Universal and more. Also, you do not need a crypto wallet to use VeVe as it connects to a credit or debit card or PayPal, and it is very easy to use.
Investing in NFTs might be risky at times and this is not financial advice, however, this might provide some useful information for you to start exploring and get grounded in this popular trend.