Some people imagine the world of Non-fungible Tokens (NFTs) to be a complex, unnavigable maze with endless possibilities. Fortunately, only the latter part of this conception is true – NFTs are riddled with endless possibilities, although not as difficult as we think them to be. One particularly compelling aspect is investing in NFTs. NFT investment allows trade in digital tokens that can establish ownership, foster a sense of belonging, and, more importantly, yield substantial financial dividends. This guide is indispensable for persons looking to get into the feel of NFT investment as it contains detailed explanations on how to invest in NFTs.
What are the Steps to Begin your NFT Journey
As a beginner in NFT investment, there are some fundamental rules to know. The few points below will prove indispensable in beginning your NFT investment journey.
Satisfactory Study
NFTs have been recently compared to a vehicle for heavy financial investments. The NFT marketplace itself hit an increase of USD 17 billion in 2022. Unfortunately, herein lies the trap; with these figures and the hopes of landing a life-changing deal, many interested investors rush headlong into the NFT marketplace without researching to understand the investment deeply. Investing in NFT involves investing in a projects hosted on different blockchain platforms, each with strengths and weaknesses. Research on the authenticity of the founders, blockchain compatibility, and the project’s purpose are all crucial for a first-time investor.
Design a Digital Wallet
The next thing on your beginner’s investment to-do list will be to create a digital cryptocurrency wallet. These digital wallets are how you can spend, receive, and send cryptocurrencies. Crypto wallets are indispensable for NFT investment. Each wallet must be directly related to the tokens or the blockchain where the NFT is located; this would mean that an Ethereum-based NFT project would require the investor to have an Ethereum wallet.
Credit Cryptocurrency
It is not enough to purchase a wallet. Just like how a country’s currency is needed to invest in a company located and incorporated within its territory, a newbie looking to delve into the NFT investment journey will require cryptocurrency to fund all transactions that are NFT-related. A good instance is that an investor who is looking to buy or invest in an NFT hosted on the Ethereum blockchain will have to purchase the tokens – Ether (Eth). The same goes for a purchase of NFT located on the Solana blockchain.
After this step, an investor can proceed to an NFT marketplace to purchase the project of their choice. It is advisable to opt for a marketplace with many users’ attention to guide against fraud.
Carry on with the Curves
The work of an investor is never-ending. It is simply not enough to sit still after purchasing the NFT. An investor must be sure to keep up with the happenings of the project chosen. They must also monitor market trends and the increase and decrease in crypto. In some other instances, you can get dividends by playing games that reward players after completing game tasks successfully. There are also NFT experts online; a quick follow on their social media pages will be sure to give factual information on NFT market trends.
Conclusion
Like most high-risk investments, NFTs can be pretty volatile, and you never know what to expect. However, as a beginner, it is essential to keep your eyes peeled and stay abreast of quality research while continuously confirming the authenticity of projects. With that, the guide to your NFT investment as a beginner is excellent and complete.
