đ§Â NFTs, like any other asset, carry some risk, and investing in projects can be scary and overwhelming. Fluctuating market prices can make NFT prices volatile, potentially resulting in large losses. NFTs are not fully exempt from fraud and there are many copycats selling fake NFTs, claiming to be originals of exclusive artists. It can also be difficult to determine project viability and value given that the NFT space is still so new. In the same way that cryptocurrencies can be stolen, NFTs can also be stolen, depending on how you store them and the security of your wallet. Donât worry, we are here to help!
đ There are no certain rules in deciding what NFTs to buy. If you buy what you like from who you like you can never be wrong. :). Pick artists/creators and projects that interest you and that you believe in. Many NFT projects are community-driven and that may be important to you as a buyer as well.
đ¤Â This leads us to a popular term in the crypto space: Do Your Own Research - DYOR
đ One of the ways to make sure you are buying into viable projects is to conduct your own research. In other words DYOR. Buying into project hype has a lot of risks and may or may not end well for buyers and sellers. It is important to look into the community, the creator, the artists, and the project itself. Examine the project roadmap. Read the whitepaper. Learn as much as you can about them. Look into their credibility on Twitter and Discord. Ask friends/peers. Join discord servers. Ask questions. Helpful platforms for research include:
đ When researching projects it is helpful to understand the rarity and attributes of the NFTs in a given collection. This can be difficult depending on the project but typically the lower a percentage of a certain attribute the rarer it is. If your NFT has multiple rare attributes, congrats! You might have a rare one :)
đ The blockchain is your friend, and it is public. You can verify the contract addresses of creators and projects to determine their legitimacy and see if they are associated with any known scams based on the transaction history.