NFTs (non-fungible tokens) have been around since 2015, but they’ve only recently begun gaining traction in the mainstream eye. As innovation pushes forward, more people are looking for ways to benefit from it, and NFT marketplaces are the perfect tool to do so. However, navigating the NFT world can be complex, which is why we’ve put together these tips for NFT marketplace success.
Spend Time Researching
If you’re new to blockchain, crypto, and NFTs, then research is your strongest ally. The landscape is in a constant state of change, meaning yesterday’s news will soon be outdated. The best way to keep up is by subscribing to blogs, listening to podcasts, learning how to retrieve blockchain indexing data, and reading project whitepapers.
Understand the Landscape
Before you start making purchases through NFT marketplaces, you have to understand the NFT basics and how they operate. To keep things on topic, we’ve broken these down into three small points:
- NFTs are digital code stored in smart contracts, which operate on blockchains like Ethereum, Solana, and Binance.
- Non-fungible means it can’t be replaced; each NFT is 100% unique.
- Any digital asset can be minted as an NFT, including tweets, art, music, and real estate.
Pick Apart Successful NFTs
NFT value is tied to community demand, which is why some collections rise and some flop. Take a look at the likes of Bored Ape Yacht Club and CryptoPunks, and ask yourself the following questions:
- Why were people interested and invested in them?
- What makes them unique?
- Are they using any tactics that could improve your own NFT strategy?
If you’re looking for a quick way to get rich, you’ll never find it in the NFT marketplace; the only way to unlock profit is through doing your own research.
Look at the Past
In the same way investors research past stock trends, it’s essential to look into the history of an NFT before making a decision. A great way to do this is by following NFT influencers, keeping an eye on popular marketplaces like OpenSea, and becoming part of relevant online communities (Subreddits and Discord).
Explore Different Marketplaces
There are so many fantastic NFT marketplaces, and they’re all unique in their own way. Mainstream marketplaces like Rarible and OpenSea host enormous catalogs spanning several categories, whereas, more niche marketplaces like NBA Top Shot focus on NFTs related to basketball. To help tailor your search for a solid marketplace, consider the following:
- The user interface – is the platform easy to use?
- What type of NFTs do you want to deal with?
- What are the transaction fees?
Read the Small Print to Understand Marketplace Dynamics
Just like there are different marketplaces for different types of NFT investors, each NFT marketplace will have its own list of rules and inner workings; make sure you know these before diving in headfirst. To help get a firm grasp on marketplace dynamics, be sure to read the FAQs, learn how to bid on NFTs/create listings, and analyze changes in NFT prices to spot common influences.
Keep Transactions Secure
Whenever there’s money involved, fraudulent activity isn’t far behind, and the NFT marketplaces are no different. Although there are many excellent NFT marketplaces, you’ll likely come across bogus marketplaces designed to steal your money. Like choosing traditional platforms to use, spend time reading reviews, assessing security measures, and looking into historical proof of services.
If you are just starting out with NFT marketplaces, it’s essential to know how they operate. By taking note of the tips outlined above, you’ll understand the importance of research, verifying the authenticity of marketplaces, and keeping transactions secure.