Digitalization has reached its climax in the last couple of years. Just think about the plethora of options you have in front of you, and how you can use them in a variety of fields. However, we can see that the most popular ones out there revolve around finances, which makes perfect sense.
We live in a time when people have a plethora of options for investment. The only thing that makes this decision somewhat challenging is finding the one that suits your needs and preferences. So, conducting research is something we would regard as an absolute must.
The hottest topic of this sort these days is the concept of NFT. If you want to take a look at some of the most interesting ones like Savage Koala NFT, be sure to pay a visit to boredanimalsnft.com. Since this is a new concept, there are many unknown elements.
Now, we would like to take a look at a couple of things you should check before you purchase NFTs for the first time.
1. Know Why You’re Doing It
Before you’re ready to do anything else, find a proper reason why you should purchase an NFT. Naturally, the decision on whether you should do it should rely solely on your personal needs and preferences. While this may sound like a simple decision to make, believe us, it isn’t.
For instance, if you are a gamer, and you require an avatar, this is the way to go. However, think about all the surrounding aspects like the games you are interested in playing. For instance, if you like sports games, then looking for an avatar that resembles this motivation should be your choice.
At the same time, if your motivation is purely financial, then you should look for those who have the potential of reaching a higher value over time. Furthermore, if you are interested in these solely for artistic reasons, then take a look at artists who have made some NFT pieces of art.
2. Seller Verification
What needs to be said is that verified sellers on these markets are labeled the same way as verified accounts on social networks are. We’re talking about that little verification tick, which can be found near the name of the account. Therefore, you should look only at those places.
The reason is quite simple, concluding a deal with an unverified seller comes with a certain amount of risk. That’s why you should pay attention to this aspect. However, we want to say that this is not as easy as you may think. Not all verified sellers are credible.
A method you can use to verify these completely is to pay attention to a couple of elements. One of them is taking a look at the social media account of that particular seller. See whether that one has a lot of followers, and whether do they consider this seller a credible one or not.
3. Liquidity and Market Volume
Next, it needs to be said that NFT simply does not have the same liquidity as some other digital assets, like digital currencies. Obviously, you cannot convert them into a fiat currency. Therefore, those who are interested in investing in these to turn a profit can come across a problem.
To have a good perception of it, be sure to take a look at the market volume of the industry. For instance, let’s say that the market volume is near $5 billion. The future movements of this volume will depend solely on how many of these are purchased in a certain period.
We would like to point out that this can be problematic for some people. It’s because this is a relatively new market, and not all the rules have been confirmed. Since this is a digital asset, we would need to wait for some time before we can see the outcome. But that doesn’t mean we should pay attention to the present time, right?
4. Choose the Right Market
It doesn’t matter if you have experience with purchasing NFTs or you are just at the start of the journey, you probably came across numerous marketplaces during your research. These are places where you can purchase, sell, create, or explore all the options that are in front of you.
As you can presume, not all of these marketplaces can be described as credible. So, you will need to conduct a little bit of research before you can find the most credible one. When you find the one, the next move is to start looking for the right blockchain.
You surely know that purchasing these with digital currencies is much simpler than using fiat currencies. Besides that, the decision you make should consider other factors, like whether that particular blockchain, let’s say, Ethereum, is the right one for that particular market.
5. Choose a Wallet
After you have completed all the previous steps, then the next move would be to select a wallet. Thankfully, this is not something you need previous knowledge of. There are countless web3 wallets to choose from. When you find the one that suits your preferences, you’re ready to make the choice.
For those who don’t know, we’re talking about software where you can store both your NFTs and cryptocurrencies. Some would ask, how’s this possible? Well, NFT are not actual images or sounds. Instead, they are proof that you’re the owner of a digital asset.
For that reason, it is possible to store them in these. There’s only one small thing we would to talk to you about. Look at those wallets that have a proper level of security. That way, the chances of losing your assets due to fraud, will be practically impossible. So, pay attention to it.
As we’ve stated earlier in the article, NFT is still a new concept that requires further development. However, it has attracted a lot of interest from many people these days. Here, we’ve provided you with a couple of things that require your attention before you’re ready to purchase the first NFT. You will find them useful.