Below is a list of dos and don'ts you need to know before investing in non-fungible tokens (NFTs).
Do's for NFT Investments
1. Research extensively.
It is extremely important that you do proper research on every NFT project before buying. Researching on the NFT increases your odds of making a good ROI. Some of the things you should look into before investing in NFTs include:
- NFT creator's social profiles and status
- Community
- Intellectual property/brand name
- Contract terms (term dates, perks, and restrictions)
- Past projects, accomplishments, and failures
2. Get involved in Crypto communities.
If you want NFTs to be a profitable investment, you need to engage with the NFT community. The community is your support group; you can ask questions to understand the market and if you have something knowledgeable, share it with them. Interacting with the community helps ignite new ideas and friendships.
3. Be a skeptic.
A healthy dose of skepticism can prevent you from being a victim of an NFT scam. If the offer is too good to be true, it may not be true at all. So, ask people, research online, and investigate to seek out the authenticity of the offer and the company making the offer.
4. Understand your risk appetite.
NFTs are relatively new, and their market is extremely volatile. Before investing in NFTs, understand the risks and go ahead with them only if you have the financial bandwidth and the appetite to withstand the risks.
Don'ts for NFT Investments
1. Don't invest in something you do not understand.
It's important that you fully understand the asset you are purchasing. To guide you with the purchase, ask these questions: is the value of NFT based on demand? Scarcity? Utility? What can you do with the tokens? Research before investing in NFTs.
2. Don't share your wallet password or secret phrase.
You need to be extremely cautious about your crypto wallet. Never ever reveal your password or secret phrase to anybody regardless of the situation.
Anybody asking you to reveal this information is possibly a scammer. Your confidential details in the wrong hands put you and your digital assets at extreme risk.
It might be tempting to sell your NFT when you get a reasonable offer for it. But, it might not be the right time to sell; if you sell it too early, you might lose an opportunity for it to grow to its potential worth. If you think the value of your NFT is much higher than what's being offered, listen to your gut and don't sell it.
If you are greedy to make a quick buck with NFTs, you could be attracting deals that are too good to be true. Spammers love to target greedy people because they are quick to take a bite.
3. Don't sell too early.
It might be tempting to sell your NFT when you get a reasonable offer for it. But, it might not be the right time to sell; if you sell it too early, you might lose an opportunity for it to grow to its potential worth. If you think the value of your NFT is much higher than what's being offered, listen to your gut and don't sell it.
4. Don't let greed cloud your judgment.
If you are greedy to make a quick buck with NFTs, you could be attracting deals that are too good to be true. Spammers love to target greedy people because they are quick to take a bite.
Greed can also instigate you to make wrong decisions, making you lose all your hard-earned money. Avoid being greedy; do your research and always invest your money with good intentions, and don't forget to do your bit to give back to the community.
NFT Investing is a lucrative opportunity to make money, but it's extremely important that you understand what you are getting into before making NFT investments. Let the above do's, and don'ts be a guide to you in making informed investment plans and decisions.
Author Bio: Akanksha Malik is a content creator & digital strategist at Mesha - India's largest investing club & online community where the world's best investors gather to share ideas, discover fellow investors, invest in NFTs & crypto, and compete in challenges for real money. She develops content to share her knowledge and insights helping her readers stay updated with the latest in fintech & investments, as well as cryptocurrency trends and upcoming NFT opportunities. Apart from being passionate about her work, Akanksha loves exploring architectural sites and different local dishes during her travels.
NFT Investing is a lucrative opportunity to make money, but it's extremely important that you understand what you are getting into before making NFT investments. Let the above do's, and don'ts be a guide to you in making informed investment plans and decisions.
Author Bio: Akanksha Malik is a content creator & digital strategist at Mesha - India's largest investing club & online community where the world's best investors gather to share ideas, discover fellow investors, invest in NFTs & crypto, and compete in challenges for real money. She develops content to share her knowledge and insights helping her readers stay updated with the latest in fintech & investments, as well as cryptocurrency trends and upcoming NFT opportunities. Apart from being passionate about her work, Akanksha loves exploring architectural sites and different local dishes during her travels.
