It is becoming more and more profitable to trade with NFTs and earn BSC, FTM and MATIC through NFTs.
In recent months, the focus on non-refundable tokens (NFTs) has been on the amount of money invested in the industry. While this certainly holds true for many NFT collectors who explore various NFT marketplaces to find NFT projects that excite them and expect a substantial return on investment (ROI), for many, the pleasure of collecting NFTs has much more to do with the emotional. value and connection to the work of art itself. If this is your first time hearing about NFTs, you should probably check out our previous article to find out what NFTs are.
Why should you care about NFTs?
So far, all indications are that NFTs are trending to last. They offer several benefits for both buyer and seller. Let’s look at four of them:
1. Before NFTs, it was difficult to verify that digital artworks were genuine because anyone could take a screenshot of the work. But with the implementation of NFTs, digital artists have a clearer way to sell directly to buyers and easily compensated.
2. The purchaser of an NFT is the property of the original work, but has the added value of established ownership verification. An NFT may present the opportunity to own a rare digital asset or represent an investment that can be resold at a profit in an NFT market. NFTs are a sustainable way of creating verifiable relationships between artists and collectors. They allow individuals to form a unique bond that can be traced through their artwork.
3. NFT collectors are digital natives and futurists with an interest in integrity and originality. NFT artists can truly express their wildest ideas and find people in the industry who know them.
4. NFTs are also a way to financially support NFT artists you admire. As an artist, you can monetize your digital work at the price you think it’s worth, and an NFT collector might think it’s more valuable and bid above the asking price.
How to start NFTs?
1. Create and sell
First, do you want to build NFTs or become a collector? If it’s the first, find something worth printing NFTs for, or better yet, find an interesting and potential use case. Some of the most popular NFT use cases are digital art, gaming, fashion and music. There is value and opportunity to be found in all these use cases.
Once you have a valuable digital asset to sell, it’s time to build your NFTs. Start by choosing one of the many NFT markets available, such as AirNFTs, where you can print your NFTs on Binance Smart Chain (BSC), Fantom (FTM), or Polygon (MATIC) for less than a dollar.
2. Investing in NFTs
If you’re into digital art, NFTs are a great way to invest in unique artwork. Look for artists who have defined a particular style and trajectory. If the artist is committed and has an artistic NFT project in progress, the work you purchase is more likely to gain value later on. Similarly, if you’re a collector of NFTs with a particular style, at some point you may decide to ignore the price. In short, choose something you love and want to keep for a long time.
3. Generate passive income with utility NFT projects
These can come in many forms. It could be a collection of similar NFT artworks, or an NFT game growing with new creations. Whenever a utility NFT project is sold on a secondary NFT market, royalties may be distributed in the form of special coins to all NFT holders of that service. Be sure to research the NFT artist or NFT market that creates an NFT art. If they turn out to have a strong track record of creating unique and valuable NFT work, have a track record of continuing to create NFTs in the future, and have an active social media fan base, they’re more likely to be worth the investment. .
4. Turning a purchased NFT for profit
Since NFT markets can go up or down at any time, if the NFTs you buy rise in value after you buy them, you can sell them for a profit. Check out our previous article to learn more about How to Convert NFT for Profit.
How to choose NFTs that make you money?
There are a number of projects that offer users the opportunity to purchase NFT, but not all of them are worth it. In fact, the vast majority of these are not good investments. In most cases, most NFT projects follow a path where launch is heavily exaggerated and most users rush to buy NFTs. Then the excitement subsides, prices drop and trading volumes are much lower for a while. After a while, some projects will survive through game development and community building, while most will quietly disappear.
1. Transaction volume
Using NFT marketplaces like AirNFTs, Opensea or Rarible is a good starting point to look at which NFT projects have the highest trade volume. This gives you a good idea of the hottest and trendiest projects worth looking into, but keep in mind that once the hype wears off, the volume can drop very quickly.
2. Activity trend
When you have an NFT project to evaluate, one factor to check is the evolution of the activity over time. Is the number of users and transaction volume increasing or decreasing? If you are considering a short-term trade, you should only look at ascending projects.
It’s also important to get a sense of how active and engaged the project’s community members are. Follow the project’s Twitter account, join Discord and Telegram channels for more information. Are there many people discussing the project? Are they playing (and enjoying) the game or are they sitting on the sidelines? These are subjective and relative factors, so it will be easier to evaluate them after reviewing various NFT projects.
4. Project Phase
Is this a new project or one that has been around for a while? If a project is new and does not yet have a game or other mechanism to assist NFTs, it will be much more difficult to sustain a community. Buying NFTs on a pre-sale or generally earlier is much riskier than buying a project that has already built something and gathered a dedicated community.
What should be considered before buying NFT?
1. NFT’s uniqueness
NFT collections consist of individual avatar NFT artworks, all unique in their own way. Sometimes the greater the uniqueness, the higher the value, but sometimes this is not the case. Sometimes the simplest avatars have more value, like the basic Bored Ape NFT.
Checking the uniqueness of an NFT is also a great way to verify that it’s legitimate. Many scammer accounts upload copies of popular NFTs but cannot copy their features.
If you want to increase your chances of purchasing an NFT with a promising value trajectory, check the rarity of the features of your chosen NFT.
2. NFT vendor verification badge
Official sellers on NFT marketplaces like AirNFTs will have a blue verification checkmark next to their account name to prove they are trustworthy and not fraudulent accounts. So, if you want to buy from a known seller like rizkiahmads or yobaninja, make sure the account has a verification checkmark.
However, this verification mark cannot always be used to verify the legitimacy of the seller. Many legitimate NFT vendors do not yet have verification checkmarks on certain NFT marketplaces, just like some yet-to-be-verified influencers on social media. So, check NFT specs as a backup if you want to buy from an unverified account.
3. NFT marketplace transaction/gas fees
When you exchange cryptocurrencies, buy an NFT, or make a similar transaction in an NFT market, you usually have to pay a transaction/gas fee, but these can vary depending on the platform. Some platforms charge fees on both sides of the transaction. As an NFT aggregator, it’s best to know the current fees in your chosen NFT market before making any purchases.
4. NFT Liquidity and Market Cap
NFTs do not have the same liquidity as cryptocurrencies, which is extremely important to keep in mind. Liquidating an NFT in traditional currency is very difficult compared to how you can do it with cryptocurrency. This may hinder those who invest in NFTs from making a profit.
In addition to liquidity, it is important to consider the market volume of the NFT industry. As with many businesses or industries that seem to explode overnight, the peak can be short-lived. So it’s important to keep this in mind if you want to buy an NFT as a long-term investment rather than owning or selling a piece of art within a few months.
Buying and selling NFTs can certainly save you a lot of money, but there are countless mistakes you can make in your purchasing decisions if you are not well-informed. Cybercriminals are making big profits from the NFT industry right now and some NFTs are just not worth buying. However, the rush to own NFTs is growing as more and more people and organizations choose to be part of the industry.
Start making money with NFTs now!