Reasons why many people buy an NFT
Have you heard about NFTs but are struggling with where to start? Get ready to discover the world of NFTs, the technology that allows creators to profit directly from their work and gives collectors the opportunity to own unique digital assets while taking part in the upside of the creators’ future career. We know when starting out, browsing NFT marketplaces can be overwhelming. In this post we will provide you with tips of how to get started with NFTs, what you should consider before you buy an NFT and how to find the right NFTs to buy.
NFTs offers more than the art itself which normally represents an NFT. There are several reasons people buy NFTs, including subjective preference of the art, supporting creators, collecting purposes, digital identity, investments, or joining a community led by a team. Prior to diving into the different reasons to buy NFTs you should keep in mind that there are always different aspects to consider depending on what NFT category you looking into.
How to find the right NFTs and what you need to consider before buying
If you buy an NFT you love, you will be more comfortable holding the NFT as price fluctuates. Thereby you should always only buy an NFT if you enjoy the art (as all NFT normally is represented by a piece of art). Here we provide you the key reasons to why people are buying NFTs:
- Buy an NFT to become part of a community
- Buy an NFT when you believe in the creator and their art
- Buy an NFT as an investment
Find the right NFTs to buy to become part of a community
One of the most rewarding experiences in the NFT world is joining a vibrant community. Ranging from founders and developers to creators and collectors, these communities are often filled with diverse and welcoming members who are passionate about the projects they support. As an NFT collector, you become part of an exclusive group with all the appeal that comes with it.
But what makes a community truly special? Well, it's all about the people and the interactions occurring within. For most NFT communities, the main hub of activity is their Discord and Twitter. In a healthy and thriving community, you'll find members helping newcomers navigate the NFT space and answering questions about the project. The project's team will also provide information about upcoming drops, sneak peeks into future stages, warn members about potential scams, host Twitter spaces, and sometimes even organize real-life events to further foster a sense of community.
Put yourself out there and ask any questions you may have. The responses from the team and other community members will give you a sense of what kind of community it is and if it’s something you want to be part of. Not to be forgotten – always stay vigilant and don’t click any suspicious links community members may send you, NFT security is always important. NFT security is always important.
Bottom line: always research the team behind the NFT project, their track record and the vibe of their community before buying an NFT to become part of a community.
Find the right NFTs to buy when you believe in the creator and their art
NFTs have created a new creative economy, providing an opportunity for all kinds of creators, including those who have been marginalized by intermediaries in the past. There are several ways to discover creators and projects that you might never have come across if it weren’t for the global and decentralized scale of NFTs and blockchains.
One great resource to start with is our NFT Twitter lists, where we highlight creators, founders of NFT projects and collectors. Following these lists and staying up to date with our interview series will kick-start your journey of finding valuable insights from people within the NFT space. Make sure to also check out the accounts people in the NFT space are following.
NFT podcasts are another great way to discover new creators and NFT projects. On our page NFT podcasts you will find, among others, PROOF, Overpriced JPEGS and Admit One where you regularly can listen in on conversations with creators, founders, collectors and discussions on the development in the NFT space.
Exploring NFT marketplaces such as SuperRare, Foundation, Blur, OpenSea, LooksRare and Magic Eden is a great way to browse through various creators and their projects. It could seem daunting at first, but it's a fantastic way to stumble upon hidden gems.
Once you have found creators’ and art you enjoy, you should research if there is any potential historical value attached to the creator or their art previously created. You can also try to shoot the creator a DM if you have any questions of specific nature or just want to get an understanding of the person behind the art.
Bottom line: always research the creator and their art. Look into what they have created historically and if they appear to be in the NFT space for the long-term. Check out their website and profiles on SuperRare, Foundation, Twitter and Instagram.
Find the right NFTs to buy as an investment
Thinking about investing in NFTs and make millions? Well, be warned, the world of NFTs is full of opportunities but also rife with scams and fraud. So how can you tell if an NFT is legitimate or not? First, you should check out our page NFT security to understand the most common scams and how to avoid them. Second, never invest more than you can afford to lose. As NFTs is a nascent space evolving every day you should always be comfortable with the risk of potentially losing the money you put in.
Follow these 6 steps to put yourself in a good position when buying an NFT as an investment:
- Research the team / creator(s). Are they established and respected in the community? Do they have a history of success?
- Check out their social media following and get a feel for the community. Jump into their Discord if it’s not token gated and ask questions. See how they are responding.
- Take a look at the roadmap if there is one. If their plans seem too good to be true, they probably are. Make sure you understand any utility that comes with the NFT.
- Consider investing in smaller projects with a lower price entry point which you believe have big potential.
- Start following renowned Twitter accounts in the NFT space to see what they are saying about the NFT collection you are considering buying.
- You can use tools like Icy Tools to discover upcoming NFT projects and Nansen to find interesting market data for existing NFT projects.
Keep in mind that NFT markets are highly volatile, and there are no guarantees of success. However, with some savvy research and a bit of luck, you could be on your way to striking it rich while enjoying truly fantastic art.
Discover NFTs today
Whether you're a curious newcomer or a seasoned NFT collector, there's something for everyone in the NFT space. However, it's important to do your research and approach the space with a healthy awareness of the risks. But if you navigate the space with care, you're sure to have an amazing time.
NFTPORTAL is your NFT guide in this rapidly growing space. Seize the opportunity to discover NFTs and their potential today, which opportunities you can take advantage of and how it will affect your everyday life in the near future.