TimTyler NFTs have become extremely popular assets in recent years. And there is no limit to their current value and popularity rise. NFTs, on the other hand, now have a wide price range and may sell for tens of millions of dollars. An alarming number of scam artists in the NFT market also attempt to take advantage of unwary consumers. This is why it is essential to be cautious and consider certain things when buying an NFT.
The Unique Properties of the NFT
NFTs are frequently in the form of collections. Consider MekaVerse, the Bored Ape Yacht Club, or PEACEFUL GROUPIES. These NFT collections are made up of unique avatar NFT artworks, each with its own attributes. More attributes can yield a higher value, but not always. Sometimes the simplest avatars, such as the basic Bored Ape NFT, are the most valuable.
So, if you want to know whether an NFT is worth purchasing. You need first look at the uniqueness of its traits. You’ll want an NFT with the lowest proportion of commonness in the collection. Which you can see in the Properties part of the NFT’s page, as seen above.
Examining an NFT’s attributes is also an excellent technique to ensure its legitimacy. Many scam accounts upload copies of famous NFTs but cannot duplicate the characteristics. As a precaution, keep an eye on this part as well.
Seller Verification
Official sellers on prominent digital asset platforms, such as OpenSea, Twitter and Instagram, or other NFT blog articles, will have a blue verification tick next to their account name to ensure they can be trusted and are not impostor accounts. So, if you want to purchase from a well-known vendor, such as World of Women or Cool Cats NFT, make sure the account has a verification tick.
However, this verification tick can only sometimes be utilized to determine the vendor’s authenticity. Many reputable NFT merchants do not have a verification tick on some sites, much as many social media stars still need to be confirmed. If you intend to buy from an unverified account, verify the NFT characteristics as a precaution.
You can also look at the seller’s social media pages to see whether they have many followers and a verification tick, which suggests their validity. You may also look at their page’s sales figures to discover whether it’s a long-established account selling your desired NFT or a new one.
The Market Platform’s Transaction Fees
A transaction fee is frequently paid when you swap cryptocurrency, purchase an NFT, or perform a similar activity on a trading platform. Traditional e-commerce platforms, such as eBay and Depop, charge similar fees, but the amount varies based on the platform.
For example, OpenSea charges sellers a 2.5% transaction fee, which equates to 2.5% of the sale price. On the other hand, buyers are not required to pay any transaction fees. This is true for most NFT markets, including Known Origin and Axie.
However, platforms like Rarible levy a fee on both ends of the transaction, such as 2.5% on top of the NFT pricing per transaction. So, before making any purchases, ensure you’re aware of any current costs on your preferred site.
NFT Liquidity and Market Volume
It is vital to remember that NFTs have different liquidity than cryptocurrencies. Because you cannot convert an NFT into regular cash as readily as you can with cryptocurrencies, this may provide a dilemma for individuals looking to benefit from an NFT. Some experts recommend fractionalizing your NFTs to boost their liquidity rates, effectively separating your NFT into smaller sections.
As you are aware, the NFT market is still in its infancy. Just a few years ago, no one talked about NFTs.and these digital artworks were not selling for millions of dollars. And, like with many other organizations or sectors that appear to boom quickly, the peak may be fleeting. So, keep this in mind if you want to buy an NFT as a long-term investment rather than something to hold as an art piece or sell in a few months.
The Price Performance of the Seller’s Other NFTs
It’s always a good idea to examine the seller’s account to ensure that your selected one is a solid investment and will appreciate in value. You may check through their prior sales to see how much their pieces are selling for. Then, scroll down the table to see how much the same NFTs sold a few weeks or months ago. The floor price is the minimum price for NFTs traded at the bottom end of the value range.
This will give you a decent understanding of how NFT prices change. And whether they connect with what you want to see in your selected one.
Other platforms provide similar information and extra statistics that you may not be able to get on the market. NFT Stats and CoinMarketCap provide interesting statistics about NFT sales, value, growth, and more, so check them out if you want more in-depth information.
Conclusion
You may take a few further measures to guarantee that your NFT of choice is worthwhile to purchase, such as examining the value of the NFT project in question. Some (but not all) NFT ventures, like many decentralized projects in the crypto industry, provide usefulness to investors. Utility is frequently used to describe a value greater than its monetary value. For example, a project may give discounts to investors, early access to future updates, or something similar.
In addition, keep gas prices in mind at all times. The bulk of NFTs on the market can only be purchased using Ether (ETH). Ethereum is notorious for its high gas fees, levied to users to cover the computational power expenses required when maintaining this massive blockchain. So, to avoid exorbitant gas expenses, look for NFTs that can be purchased using other cryptocurrencies, such as Solana (SOL) or Polkadot.
