Since the turn of the 21st century, we are seeing massive innovations in technology and culture. Social media emerged and has become a massive global force. Phones got smaller, became portable, and then got bigger again. Companies are experimenting with, and are now right on the cusp of massive improvements to AI software. Millions watched as crypto values skyrocketed and then plummeted, then rose again, and so on. Now, the next massive technological investment venture is underway with the rise of the NFT marketplace. As the concept of NFTs continues to build traction, more and more people are looking at buying NFT real estate.
With new people constantly looking to join in on the fun, the NFT marketplace is constantly shifting. Prices, values, supply, and demand can all swing wildly on a daily or even hourly basis. With such a volatile market, it is critical that you understand the NFT market before investing your time and money. Luckily, we are here to help.
NFTs… What are They?
Before we dive in-depth into buying NFT real estate and its marketplace, it is vital that we understand what NFTs are. Non-fungible tokens, or NFTs, fill somewhat of a broad category and wide spectrum of utility. They can act as identification, tickets, artwork, and more. But essentially, an NFT is a completely unique product that is limited in quantity. Each NFT comes with a unique serial number that verifies the token’s authenticity, and also verifies you as the rightful owner.
NFTs can take on any number of forms and functions. Along with art, NFTs can take form through music, movies, world events, or even sports. For example, one rising NFT market is one centered around virtual horses and horse racing. Customers can buy these horse NFTs that correspond to real-world horse racing. The NFT’s value will rise and fall along with the real horse’s results in races, and owners of the NFT can even receive exclusive real-world benefits like free entry to events that their horse takes part in. And this is just one example.
The potential application of NFTs is almost limitless, and our society hasn’t truly scratched the surface of its potential yet. With so much we have yet to uncover, the NFT game can be overwhelming. But don’t worry, we’re here. Here are some of the Dos and Don’ts of buying NFT real estate.
- Invest in your interests. With so many options available, the choice of what to purchase can be overwhelming. Choose something you are interested in and passionate about. Not only will this make the experience more enjoyable, but you will also likely have a better grasp of the product and the market as a whole.
- Your own research. It’s important to remember that NFT sellers want to make money too, so don’t always trust their product at face value. Do your own research before making any purchases to ensure that the product and the seller are trustworthy.
- Buy at the floor. Similar to the stock market, NFT values are constantly shifting. Much of the NFT game is timing. If there is a specific token you’d like, make sure you are getting it at a good price. Check to see recent trends and evaluate if the product will go up or down from here.
- Be active in the community. The NFT real estate community is massive and is likely full of people with more knowledge than you. Use them. Ask questions and look for their insights or advice. Always take it with a grain of salt, but the information is always valuable.
- Re-invest and flip your profits. The best way to make money is to spend it. When you make a nice profit from your NFT, don’t be afraid to dive right back into the marketplace.
- Trust the hype. Always do your own research before buying. Just because plenty of people are talking about an NFT doesn’t mean that it will be profitable. Always assume you are the smartest buyer on the market.
- Buy at the peak. While you should buy at the floor, you should conversely not buy at the peak, and sell instead. If you think an NFT has reached its maximum potential then it’s probably a good time to offload it. Or if you don’t already own it, stay away for the time being.
- Hunt quick profits. If you are looking to make a quick dollar, don’t try NFTs. While the market fluctuates frequently NFTs work best as long-term investment strategies. Looking to make a quick dollar leads to poor decision-making with selling and buying.
- Share your account info. EVER. This holds true for anything online, but don’t ever share your password. NFTs are valuable, and other people know that. There will be no shortage of those looking to take your profits for themselves. Be careful, and keep your password secure.