Cryptocurrency space has been growing over the past few years. Therefore, it goes without a doubt that you have heard certain terms such as bitcoin, crypto wallets, non-fungible tokens(NFTs).
These terms have various meanings when it comes to cryptocurrency. For example, what is an NFT?
Non-fungible tokens are unique assets that are difficult to exchange with just any type of assets due to the quality placed on it. For example, dresses have a known average cost. However, if a celebrity was to wear a certain dress, it would not be sold for the same price as the others. The celebrity has made the dress unique hence increasing its value.
Non-fungible tokens are not any different. They are not traded with assets of the same type due to their uniqueness.
In addition to their uniqueness, non-fungible tokens can be used to represent assets that are either physical or virtual. Those two are some of the numerous benefits of non-fungible tokens.
However, there are certain factors you need to put into perspective before you decide to purchase non-fungible tokens. These factors are;
Is the seller verified?
In today’s digital world, social media platforms have become quite popular. There are certain accounts that have a greater following than others hence they are verified.
NFTs sellers are not any different. When looking to buy NFTs, it is advisable to look for a seller that has been verified. In most circumstances, the seller usually has a blue tick on their accounts.
However, it would be best for you to remember that not all legitimate sellers are verified. Therefore, you are advised to look into the properties of the NFTs that are being sold.
In addition to that , you can look at the sales made by the sellers. This information gives you an upper hand when buying NFTs.
How unique are the NFTs?
As mentioned above, NFTs are unique. However,it is crucial for you to know that NFTs come in a collection.
Therefore, the level of uniqueness for each NFT varies. As you purchase your NFTs it is crucial for you to look into this.
When buying the NFTs, select the ones with the lowest level of similarity. This will give you value for your money.
How are other NFTs performing in the markets?
As you decide on the type of NFT to buy, you also need to decide where you will purchase the NFT. This will prompt you to look for a seller.
Once you find a seller, determining if the type of NFT you want is the most appropriate becomes easy. This is because you can check on how that NFT is fairing since a previous sale.
All this information should be available on the seller’s account. With this information you can easily select an NFT that will work for you.
Are there transaction fees?
When performing cryptocurrency activities such as exchange of cryptocurrencies or buying of NFTs, there is usually a transaction cost.
When it comes to buying NFTs, the cost is sometimes on the seller’s side only. However, it is crucial for you to remember that it could be on both sides.
Therefore, it would be best for you to prepare yourself to cover this costs as you purchase the NFT.