The NFT market has been doing quite well over the last couple of months considering it's a bear market. While many people don't understand what they are, or think that they're scams, the fact of the matter is that people are making millions of dollars from buying and selling them. So if you're interested in getting started here are some basic things to get you going.
1. Understand what NFTs are: NFTs are unique digital assets that are stored on a blockchain, typically on the Ethereum network. They can represent anything from digital artwork to collectibles to in-game items. It's important to have a good understanding of what NFTs are and how they work before you start trading them.
2. Set up a digital wallet: You will need to have a digital wallet that supports Ethereum, such as MetaMask or MyEtherWallet. This is where you will store your NFTs and the cryptocurrency you use to buy them.
3. Buy cryptocurrency: To buy NFTs, you'll need to buy cryptocurrency, typically Ethereum. You can buy cryptocurrency on a cryptocurrency exchange such as Coinbase or Binance.
4. Study and analyze the NFT market. You'll often hear people say "Do your own research" or "DYOR." This is very important because there are a ton of different collections out there and most of them are unlikely to rise in value. There's websites out there like NFTGo.io where you can go to study the NFT market. NFTGo.io is my favorite because it's free and it has a ton of useful features. Particularly a section to find upcoming NFT drops, a section to follow whale wallets, a place to buy NFTs, and a section to study sales to listing ratios.
5. What's an NFT drop? When an NFT first gets released it's called being "minted." When an NFT is about to mint, people often refer to it as a drop. Learning about upcoming NFT drops is crucial because when an NFT first mints is the cheapest time to buy one. Some people make their entire living just by minting NFTs the day they drop and reselling them shortly thereafter.
6. What is a whale wallet? A whale wallet is a crypto wallet that has at least 1 million dollars worth of assets in it. People often follow these wallets to study what they're doing so that they can learn from the masters.
7. Find a marketplace: There are many marketplaces where you can buy and sell NFTs, such as OpenSea, Blur, X2Y2, NFTGo.io, Rarible, and SuperRare. Do your research and find a marketplace that suits your needs.
8. Browse NFTs: Once you've set up your wallet and bought some cryptocurrency, start browsing the NFTs available on the marketplace you've chosen. Look for NFTs that you find interesting and that you think will increase in value over time.
9. Make a purchase: When you've found an NFT you want to buy, make sure you have enough cryptocurrency in your wallet, and then make the purchase. You'll typically need to pay a gas fee to complete the transaction.
10. Monitor your NFTs: Once you've bought an NFT, make sure to keep track of its value and any news related to the project it's associated with. You can use tools like NFTGo.io to monitor NFT transactions on the Ethereum blockchain.
11. Get on discord, twitter, and telegram. These are the most popular places for people to discuss and learn about NFTs. By following big twitter accounts and attending twitter spaces you can learn about what collections experienced traders are trading. This will help you sift through all of the noise to make it easier to find what collections may be worth investing in, or what collections people think are scammy.
12. Find an alpha group. The term "alpha group" is typically used in the context of finance and investing. An alpha group is a group of investors or traders who are considered to be highly skilled and knowledgeable. There's a ton of alpha groups on discord and telegram, by joining some of these groups you can gain insights into what NFT collections professional traders are looking at. Some of the groups cost money to join but if you're serious about getting into NFT trading then joining an alpha group will be incredibly helpful, especially if you're just getting started. You will learn at a much faster rate.
Remember that NFT trading can be volatile and unpredictable, so it's important to do your research and only invest what you can afford to lose.
When buying and selling NFTs, it's important to take steps to keep your cryptocurrency and NFTs secure. Here are some security tips:
1. Use a secure wallet: Use a reputable and secure wallet to store your cryptocurrency and NFTs. Hardware wallets such as Ledger or Trezor are generally considered to be the most secure, as they store your private keys offline.
2. Use strong passwords and two-factor authentication: Use a strong password for your wallet and enable two-factor authentication for added security.
3. Be careful with public Wi-Fi: Public Wi-Fi networks can be insecure and make it easier for attackers to intercept your data. Avoid using public Wi-Fi networks when accessing your wallet or buying/selling NFTs.
4. Double-check wallet addresses: When sending or receiving cryptocurrencies or NFTs, double-check the wallet addresses to ensure they are correct. Attackers may try to trick you into sending funds to a different address.
5. Research the marketplace: When buying or selling NFTs, use a reputable marketplace that has a good reputation for security.
6. Avoid clicking on suspicious links: Attackers may try to trick you into clicking on a link that leads to a phishing site or malware. Be cautious and avoid clicking on links that you are not sure are legitimate. Make sure to check with the discord community or twitter community for the NFT you're looking at to cross reference and make sure you're clicking on official links.
7. Keep your software updated: Make sure to keep your wallet and computer software up to date with the latest security patches to protect against known vulnerabilities.
By following these tips, you can reduce the risk of having your cryptocurrency or NFTs stolen. It's important to stay vigilant and cautious when buying and selling NFTs, and to only use money that you can afford to lose.
