The world of NFTs can be a confusing, complicated, and dangerous place.
As a new collector, it is easy to get lost in the ocean of shiny new tokens and lose sight of why we’re all here – To enjoy these incredible little bits of magic we’ve come to know and love as crypto-collectibles.
NFTs are a great tool to buy and sell things such as artwork or items used in video games.
You can even use NFTs to purchase land in virtual reality games in what’s called the metaverse.
At its core, NFTs are just numbers on the Ethereum blockchain and intended to be used as unique tokens representing an item or asset of some kind.
Nevertheless, NFTs have taken the world by storm, mostly because of how fast they are gaining popularity and their potential use cases.
You can make money with NFTs
Yes, you can make money. However, the purpose of an NFT is far more than just collecting them.
Like baseball cards, the NFT market is still in its infancy, and prices are low.
As more collectors get involved, prices will rise, and your collection may go from a novelty to a veritable goldmine.
The NFT market is a wild frontier, with new assets being created daily.
Often the only way to get your hands on the desired token is through purchasing it from someone for more than face value. In time, scarcity will increase prices, and low-ballers will be left in the dark.
In many ways, NFTs are like stocks.
At any given moment, the value can change, especially when you consider how volatile Ethereum has been as of late.
NFTs are traded like stocks, but many people believe that they appreciate like them as well.
You need to use a marketplace to buy and sell NFTs
Marketplaces such as Curios and OpenSea are used to buy and sell NFTs. Each of these platforms offers something a little different, and you should research which platform is best for your collection.
Some will offer lower prices while others offer rarer tokens, so do your homework before using one to ensure the best deal for your hard-earned Ether.
A marketplace is the easiest method of buying and selling NFTs as it is a centralized location where everything can be handled.
However, in time, you will come to learn that the Ethereum blockchain has no concept of trust and that all transactions are final – there is no customer support or refunds, so please research each platform before using one to ensure a safe transaction.
Should you hold or sell your NFT?
Well, that’s up to you. One of the beauties of crypto-collectibles is that they are entirely your choice, and no one can force you into something you don’t want to do.
If you think that the value of your NFT will go up, then hold it – if you are looking to make a quick buck, then sell it.
Although you can’t cash out your NFTs into fiat currency without using an intermediary service, there is still the option of selling the tokens on the market for Ether.
This means that you can at least trade them back for Ether no matter what happens.