How is NFT trading faring in this post-COVID era?
Well, if news reports are anything to go by, it is thriving — and remarkably so.
Carrying on from last year’s unprecedented record highs where NFT trading volumes surged by 21,000% to $17.6 billion up from 2020’s $82 million, investors are looking forward to bigger wins as companies such as Nike and celebrities like Eminem join the NFT craze.
It hasn’t all been fun and games however as we’ve also witnessed a corresponding increase in NFT scams. So, in this post, we’re going to look at a few NFT trading tips and what you can do to stay safe as you venture into this emerging investment market.
NFT Trading Tip #1 Stay on top of the latest news
When it comes to NFT trading, especially in today’s market, it’s imperative that you stay abreast of developments in the market.
Warren Buffet’s golden investment rule, “Never invest in what you don’t fully understand,” is quite apt in this scenario, especially with regard to new technologies.
If you’re new to NFT trading, however, don’t worry, I’ve got you. I did a series earlier that will bring you up to speed:
NFT Trading Tip #2 Stick to well-known crypto wallets
In order to buy NFTs, you need a crypto wallet. We’ve seen a number of scam wallets and scam wallet impersonations burst onto the scene recently. Investor beware!
The recommended wallets by the experts are as follows:
· Ideal for beginners — Exodus
· Ideal for seasoned Bitcoin users: Electrum
· Most secure: Trezor Model T
· Ideal for mobile users: Mycelium
· Most popular: Coinbase
· Notable mention: Metamask
NFT Trading Tip #3 Be smart about how you get NFTs
One of the great things about NFTs is that there are various ways in which you can get your hands on one. You can either buy an NFT, create your own, or earn some from playing games.
NFT Trading News and Forecast
While the general crypto market has witnessed a steady drawback that saw the values of Bitcoin go down by 12%, Ether by 17%, and Sol by 23%, the NFT market appears to be relatively untouched.
At the start of the year, rapper Eminem staked his claim in the NFT market by purchasing a Bored Ape Yacht Club NFT for a whopping $460,000. He’s not alone though. Fellow celebrities Jimmy Fallon and Britney Spears are rumored to have made investments of their own.
NFT activity is likely to keep up thanks to the entrance of major sporting franchises and fashion brands that are all vying to create, collect, and sell various digital collectibles.
The Bottom Line
NFT trading isn’t for everyone but there is no denying that it has managed to successfully stamp itself as an asset class of its own and for the time being, appears like it’s here to stay.