Since the emergence of Non-Fungible Tokens, their utility increased, and as a result, their demand was strong even during the cold winds of the crypto winter. NFT marketplaces, though, came down on their sales volume during this time; people still gave their support for NFTs for their unique indestructible characteristics. If you are someone who is interested in buying an NFT, no wonder you are attracted to this new trend. So what should you do, and what should you take into consideration before buying an NFT?
Before buying a Non-Fungible Token
Deciding to buy an NFT takes only seconds. But the time between that and buying the NFT is something that would feel like years if you are not aware of what you are doing. It takes lots of effort and research before buying it. If you actually know what you are going to buy, for instance, if you are going to buy NFTs because of your favourite actor or a pop star, you are good to go. All you have to do is to check the authenticity of the NFT if you are buying it from a general marketplace rather than the artist themselves.
- To check the authenticity of the NFT, you will have to check the NFTs metadata with a blockchain explorer like Etherscan. Here you can check the previous transactions and other details. You just have to click on the contract address to do this.
- If you are buying any other NFTs, check for the artist. Check if he is a verified creator on the marketplace or a popular artist with a lot of followers on social media.
- Check for the rarity and unique properties of the NFT which desires you. If the properties are unique and one of their kind, their rarity rank will be high, and hence their value.
The bottom line
There are also other factors you must check. It is important to do your own research and look into the market value and market risks before buying your NFTs from an NFT trading platform.
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