How to Trade NFTs Responsibly?
NFTs have seen a tremendous rise in popularity in the past few years as many NFT owners, artists and collectors have been making mainstream headlines regularly for selling these digital assets for millions of dollars. What started as simple digital arts have now become more complex assets ranging from in-game items to virtual land.
If you are a proud owner of an NFT and you are looking to trade or sell it for a profit, there are considerations you must keep in mind to ensure you don’t compromise the security and funds of your potential buyer. Like in the real-world stocks and ForEx trading, you should also be responsible with your actions when trading or selling your NFT.
Where to Trade NFTs?
Your NFT trading journey starts by visiting NFT marketplaces. There are various marketplaces nowadays that allow NFT enthusiasts to trade NFTs safely. Some of the famous marketplaces like OpenSea literally contain thousands of these digital assets that can either be purchased directly from the marketplace or by getting involved in the auction process. So, if you want to get involved in NFT trading then you should keep checking out these marketplaces frequently so as to not miss the drops of any of the highly sought after NFTs.
The point here is to do a thorough research when looking for the right marketplace as each one has different transaction fees which might affect your budget.
Trading NFTs Responsible?
Trading NFTs is a pretty easy process that can be done by every other person. There are factors you must consider when you start trading NFTs. These factors will help you keep safe and ensure you that your funds are not compromised.
Create a crypto wallet
The first thing you need to do before starting with the trading process is to obtain a crypto wallet. This is because the crypto wallet is the place where you will be storing the NFTs that you earn, purchase or sell. As most NFTs are built on the Ethereum blockchain, it would be beneficial to create a crypto wallet that is suitable for types of blockchain technology, like MetaMask.
Purchasing of NFTs
After setting up the crypto wallet, purchase the NFTs that you want to trade. The NFTs can be purchased from the NFT marketplaces where they are being sold. On the contrary, NFTs can also be won by playing some fun NFT games.
Visit the NFT marketplace
Visit the NFT marketplace from where you want to purchase your desired NFT and create your user account. This step won’t require much time and your profile will be ready within a short span itself.
Start with your trading journey
Finally, now after completing all the above-mentioned steps, you will be ready to start trading your NFTs. This means you can now purchase NFTs you like and list the NFTs that you want to sell-off.
While the above mentioned factors are direct ways of trading NFTs, there are also indirect methods wherein you don’t need to go through the hassle of finding someone to trade with you. Here are the indirect ways of trading NFTs.
Investing in NFT projects
Trading on NFT tokens or cryptocurrencies is another way of NFT investing. Some larger NFT marketplaces like FLOW are being traded on crypto exchanges and those can be purchased to get indirect exposure to the NFT industry. Similarly, cryptos like Ethereum which are widely used for NFT trading can also be purchased as their value would also get somewhat influenced by the demand of NFTs that require them.
NFTs can also be traded within a virtual reality world called Decentraland in which each parcel constitutes an NFT. With popularity, the price of these parcels goes up. The parcels can be sold or rented to others thus facilitating a range of NFT trading options.
By simply creating NFTs as per market requirements and then selling them, you earn passively with the initial sale and the royalties each time your NFT is sold to another buyer. NFT creation requires no special knowledge but minting it on the blockchain will require you significant amounts due to the high transaction fees.