Moving around in the NFT space, you often feel pressured to always be on the lookout and not miss out on anything. After all, you want the next CryptoPunk before it costs countless ETHs, right? Take it easy and follow these rules for your next drop.
What is an NFT drop?
An NFT drop stands for the release of NFTs, a “drop” gives you info on where and when you can bid for them.
People buy at a drop because the NFTs are likely to be cheaper there than after the drop. Most buyers are hoping that an NFTs will go up in value. If that happens, they resell them (flipping) or just enjoy their value.
1. NFTs cost money. Do your homework.
Do your research to avoid being scammed or buying an NFT that doesn’t suit you. Ask yourself the following questions:
- Who made the NFTs?
- What are the opinions on the Internet?
- What is the community like and how much does it suit me and my mindset?
- What has the artist put out before?
- Do I like the art?
If there is no good information about the NFT, then you should definitely think twice before buying it. In this post we show you how to tell fake artworks from real ones.
2. There are different drop types.
It’s typical for artists to mine a collection and then make it available for purchase while supplies last. There is often a purchase limit per wallet.
Then there are the open edition drops. This means that artists mint as many NFTs of a collection as they can produce within a certain period of time. After that you know how many NFTs that collection will contain.
Some NFT marketplaces use English Auctions. As in a traditional auction, the creator offers a limited NFT for bidding.
3. Buy only NFTs you like.
NFTs are an art form, so only invest in art you like.
Don’t just buy to earn, buy to support the artists and the community and the next drop is guaranteed to be more fun. It will also take off the pressure to discover the next Bored Ape.
These tips will help you make a better decision when buying NFTs. But keep in mind:.
All investments, including NFT investments, involve risks that may result in loss of asset value, financial loss, or legal consequences. In this article, we only want to inform you, not give you financial advice. Seek the advice of a licensed financial professional before making any legal or financial commitments.