What are NFTs?
Non-Fungible Token (NFT) is a digital asset on the Ethereum blockchain. They are unique digital assets that live in the crypto blockchain that is the online record of all transactions. NFTs are distinctive, singular, and show proof of ownership so you can see the person who designed it, who has sold it, and who owns it. This entire list of transactions is stored in the Blockchain. The majority of NFTs currently are in the Ethereum blockchain. However, there are some brand new projects on Solana Burn Solana NFTs. The majority of NFTs will require Ethereum and a crypto wallet, such as Coinbase account or MetaMask.
If you’re new to cryptocurrency and Ethereum I would highly suggest spending time learning about the workings of Ethereum before you purchase an NFT. There are numerous resources online about Ethereum, Crypto, and Blockchains which is why it is essential to get them first.
Where do you buy NFTs?
It is possible to purchase an NFT on OpenSea or Rarible These are the two most popular platforms in use today. I’ve used OpenSea and it is easy to use. A lot of people who are part of the community are referring to OpenSea to be “OS.” On the OpenSea website you can join an account to a wallet, and look for NFTs. They also have a rank system to see what is most popular and what is trending. With the sheer number of options their rankings system and statistics can be extremely helpful.
How To Pick an NFT
When I first began I used to the OpenSea scoring system. I felt more secure buying items that already was ranked as Top. The first NFTs that I purchased were by Parallel Alpha and they had a Top 3 ranking at the time. New projects tend to be less expensive, but they may lack the following of their peers and could not be confirmed. Here are some ideas to help you get going:
Twitter is a great way to get more information about NFT project. You can see how many followers they have, and how many people enjoy posts, post comments, etc. This is a great method to gauge the engagement of NFT. NFT collection.
Join the Discord Channel
The majority of NFTs have a Discord channel you can join. It is a great opportunity to get acquainted with the project, its founders and to engage. You can check the number of people who are on the Discord or how many are online, as well as read through the comments. Is the Discord channel in use?
Project Roadmap / Website
NFT projects usually will have a roadmap of plans in the future on their website. It is possible to see their plans for growth, marketing as well as new releases. Many projects have giveaways in the roadmap to attract new users. They may also have online events, releases, or plans to develop new features such as the game. This will provide you with a clue to understand where the game will take it in the coming 6-12 months.
Social Media Influencers
Today, we live in a social media world filled with Influencers and a lot of them are now incorporating NFTs. This is also an effective method to measure the amount of attention in a NFT project. If an Influencer has millions of followers, and they begin to promote a particular project, it could be a good sign. The potential of viral marketing and Twitter is vital to NFTs as their followers may begin buying NFTs.
Ethereum Gas Fee
If you buy an NFT using OpenSea with Ethereum, you will need to pay the Gas Fee. The gas fee is an amount to pay for the computing power needed to process and validate transaction transactions through the Ethereum blockchain. The gas cost will vary dependent on the hour and day and it can be anywhere from $30-$150 or even more. I’ve been told that the gas price is usually lower between 2am and 7am (EST). When I started buying NFTs it was usually about $30 but now it is much higher.
Minting an NFT?
If the NFT project is brand new and being launched with the intention of launching it, you are able to mint an NFT. This means that you will receive a Random NFT from the assortment. The minting process takes place on a particular day and at a certain time. Popular collections can sell out in just a few minutes. So you may not even be able to get one. I recently tried to mint an NFT of eight Bit Universe and my transaction was waiting for 15 minutes. I was unsuccessful during the process of minting, so I decided to cancel the transaction in order to avoid the fees. I ended up purchasing two NFTs in the 8 Bit Universe project on OpenSea and they were less than mint price.
NFT projects have me thinking of small Tech startups. They have a lead developer the operations manager, and marketing. A majority of NFT projects will have two or three people running the show, which means it’s more like a small company. Other will have more as they expand and add more developers, ops marketing. When you invest with an NFT is like investing in a startup! There are risks when investing in the form of a “company” so small. I predict that many NFT projects will fail, break up and then go back to zero. If you’re considering an NFT, do research into the NFT’s management team!
There are a lot of fraudsters in the NFT space. They could contact you via an DM on Discord or Twitter seeking to “help you.” Do not share personal information with anyone online. Don’t divulge your private secret key with anyone. Do not share your wallet QR code to anyone. Be cautious as some people will try to access your private information and steal you NFTs and Ethereum.