If you’re into tech at all then chances are you’ve heard the words NFT and crypto very recently. Even if you’re not into tech, there’s a good chance you’ve heard about these things.
This is because NFTs are a new tech that is already proving to be a very useful technology to both, businesses and individuals. Individuals have started collecting NFTs and trading them, while businesses have found marketing success with NFT technology.
However, whether you’re an individual or a business there are some key mistakes that you should avoid when trying to dip your fingers into the NFT world. Clancey Braxton Yohman has been investing in NFTs since the beginning and has kept up with everything in the community.
This means Clancey Braxton Yohman has made and seen enough mistakes to fill a book. Today they’re here to share some of these mistakes with the rest of us so that we can start off our NFT journey the right way and get an edge in the game.
The first thing Clancey Braxton Yohman pointed out to us is how a lot of investors will hop into NFTs and just start buying without really understanding what blockchain is. This means they have no idea what they’re paying for, why they’re paying for it, or why they’re paying fees.
It is extremely important that you research what a blockchain is, what crypto is, and what Ethereum is, and how they all intermingle together and relate to NFTs.
You should actually enjoy NFTs if you want to start buying and trading them. You should be excited about the technology.
NFT technology is not a get-rich-quick scheme, it is a tool and you should think of it as such. Once you understand this, buying NFTs will be fun, and you won’t experience the letdown that many new investors do when they experiment with NFTs.
FOMO or fear of missing out is a plague that has hurt traditional investors and NFT investors alike. Clancey Braxton Yohman points out that it is crucial to understand when you’ve missed an opportunity and to not jump on at the end of the trip.
There will be trends with NFTs, some tokens will be worth a lot one day, and nothing the next. This is why it’s important to do your research and have a reason for buying. Do not buy something just because it is popular at the moment.
To become a pro at NFTs, you should understand how to set up an Ethereum wallet, how to connect that wallet to an NFT marketplace, and how to buy NFTs. You should know this process and the fees that come with it before you ever make your first purchase.
Yohman points out that they’ve seen many rookies purchase only enough Ethereum for an NFT without even thinking about the fees, which can be pricey. This leads to them having to purchase even more Ethereum and pay even more fees.
Know how your assets are stored with every marketplace you frequent. If your NFT is on a centralized server, that means anyone with access to that server can make changes to your asset.
You have to think about the future, what if the marketplace shuts down? This is why it is important to do your research and plan for the future so that you will maintain ownership of what you buy forever.
If you are thinking of buying your first NFT, you might want to follow Clancey Braxton Yohman on Rarible for the hottest and newest NFT projects.