We all know that the NFT has many forward-looking potentials and utilities. As you find more NFTs trading in different marketplaces, you start to wonder what you should do next- “To buy or not buy”. Here are 6 NFT trading mistakes to avoid for newbies.
Mistake 1- Not promoting your NFT
After buying the NFT that you like, that NFT is yours. Most people have this mentality that the creator should be the one promoting, and as holders of the NFT, let’s sit back to watch the prices grow.
I’m afraid that’s not right. If you promote your copy of NFT, your unique NFT could be the one that gets sold the fastest. Always remember you control your assets. There is no need to wait for the creator.
Mistake 2- Flipping it too fast
In the bull market, you have heard from NFT experts that they flipped their NFT 100X in an hour for millions of dollars.
Yes, this is possible back then. Right now, at this bearish market, you need to think long-term. You bought something that you feel has good value and potential. You bought a low price, and you do not mind keeping it. This kind of mentality will bring you far. “Good things take time”- remember this.
Mistake 3- Buying it on the wrong marketplace
There are many NFT marketplaces in the space right now. Some of them are more controlled; They filter what can be listed and remove items that are unsuitable, not authentic or with copyright issues. While some are more open, adopting an “anyone can list” model, they have minimum supervision, and anyone can list almost anything on their platform.
If you choose the latter, you could be buying a fake and when you realize that, you are too late. There is no one attending to your complaints. And yes, there is no refund too. Hence choose wisely.
Mistake 4- Buying an NFT that you do not like it
This is a real example. I have friends flexing their apes and punks as profile pictures merely to show they are well-to-do. But the fact is they do not like them. One guy told me he likes tiger more and is his good luck animal, but there isn’t a big blue chip tiger NFT project. So he bought the monkey.
My sincere advice to all is to buy something you like, not just for the value. I purchased an NFT at $0.01 from Bybit NFT marketplace last month. It is affordable, has potential, and most importantly I like the colours and I am keeping it. This is how it should be. There is no stress about it.
Mistake 5- Not using the right tools
There are many groups out there who are giving you tips on which NFT to buy. You can take their advice, but I suggest you do your own research before agreeing to their advice and committing to your first NFT.
Many NFT tools in the market right now help you with your decision. For instance, some tools allow you to check on the rarity types. Some tools allow you to analyze the volume and tell if any wash trading is involved. Stop guessing. Use the right tools!
Mistake 6- Listening to the wrong consultants
NFT creators who listened to the wrong consultants are another common thing. They tend to hire the more expensive consultants thinking they know it all. Based on a survey I have conducted with corporations which have launched their NFT, they paid $300,000 on average to the consultants to start the ball rolling.
I would advise corporations and even for individuals to look online for resources before hiring consultants. I know of NFT studios who helped fellow creators by sharing their resources for free and helping them to list on platforms with zero cost. One of the groups that I founded in 2006 is doing just that. They groom NFT rising stars, front the NFTs for them and do not ask a single cent from the creators. I think the spirit of sharing is essential, and they did it all correctly.
I am not here to put up any sale propositions. I want to see more people entering the NFT market with ease. And that is also the reason why I launched my book- “NFT: From Zero to Hero by Anndy Lian” in August.
An NFT or non-fungible token is a unique digital identifier that is recorded in a blockchain and used to certify authenticity and ownership. Remember the above. NFT is not a profile picture or just another speculative product. The real value is in its utility. Do not make this mistake as well.
Featured image generated via HackerNoon Stable Diffusion prompt of ‘bored apes making sales at a lemonade stand.’
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.