NFT tips: must-read advice for beginners

If you need NFT tips for everything from the best types of NFTs to buy, how to promote your NFT and what NFTs scams and hacks to be weary of, we have you covered in this feature.

We have deeper features, such as our NFT guide What are NFTs? that explains in detail how non-fungible tokens, digital files registered on a blockchain, can offer scarcity. You may want to take a look at our tutorial on how to create an NFT for free and a list of the emerging NFT trends for more information.

We cover how to make and sell an NFT elsewhere, in this NFT tips feature we’ll be taking a closer look at how to buy and sell an NFT. The big thing to always remember is NFTs can be highly volatile, meaning their volume can rise and fall quickly. Be prepared for a roller coaster ride on some NFTs, which leads us to our first tip.

01. NFT tips: buy NFTs you love

Generally, always buy an NFT you actually love. Think to yourself, if this NFT drops in value will you still love it or are you only buying it for the potential profit you can make? We’ve listed some of the best new NFTs to buy before, and these are ones we like regardless of value.

It’s easy to get caught up in the idea of getting rich quickly, and in fact a survey by Hiscox Online Art Trade Report shows 82% of NFT buyers surveyed were motivated by the idea of an investment rather than the art itself. Interestingly the women surveyed were more likely to place the value of the art above the potential profit of the NFT.

02. NFT tips: buy the utility

This is linked to Tip 1. If you’re in doubt about an NFT’s artistic value then consider its utility, or rather what access or use this NFT – the smart contract behind the art – can be used for. NFT art can be used for everything from funding films to setting up education platforms. This new technology can mean a lot for NFT gamers, too.

An NFT’s utility could be for access to a community, in real life events, assets in a video game or even a real life wearable. For example, Crazy Skullz is raising funds for charities as well as buying land in the metaverse for owners of the NFT. Some NFTs place profits into a fund to pay for new projects, gallery events, and support artists; so you can buy an NFT and feel good.

03. NFT tips: If its sounds too good, it probably is

As with anything, be weary of email and social media scams. If someone offers you an NFT at an incredible price or will drop an NFT into your wallet for free, be cautious. Do some research – take a look at the seller or project’s history, how long it has been in existence, who has bought it, ask questions of others and drop into Discord and social channels to sound out the project.

Don’t share your wallet or bank details with anyone who approaches you out of nowhere. Be safe online and always do your research into who is selling and what the project is. Ultimately, this all comes down to Tip 1 and only buy an NFT you really like or understand.

04. NFT tips: support new artists

There are a lot of new artists coming into NFTs, and part of the excitement around non-fungible tokens is how artists who would have never been able to grab headlines or get a space in a gallery are successfully selling NFTs. These artists, like Beeple, are creating new kinds of art.

But remember investing in an artist should be a personal thing. As with Tip 1 invest in NFT artists you like, or you feel have something to say. Often it can be ill-advised to follow trends too, so find artists you like and invest from a personal perspective.

A good piece of advice would be to follow and invest in NFT artists who are dedicated to NFTs. For example Eternal Royals is an NFT by Jesse Johnson that enables collectors to have a 1:1 real life canvas print of the art, once printed the  NFT’s metadata changes as does the digital representation. These artists will be experimenting with NFTs and smart contracts, and will often have new and original ways to present art. Remember, art is about ideas.

05. NFT tips: don’t flip an NFT for profit

Realistically we’d say don’t try to flip an NFT for profit. We’re back to Tip 1 again – if you don’t love the art or the idea or the NFT’s use, then you’re likely setting yourself up for a fall. You’ll really need to study NFT crypto too. But if you really want to know more, read on.

If you are into non-fungible tokens just to make money, then you’ll need to learn the do and don’ts of flipping NFTs. Basically this is buying an NFT at a low cost and selling it for a higher price. If you do this, you’ll need to keep track of upcoming NFT drops and try to spot the best new projects.

The mantra ‘buy the rumour, sell the news’ is relevant here, and means you’ll need to do a lot of research and immerse yourself in the NFT world to make anything from flipping NFTs. Even if you do the research be weary of the cost, for example the Moonbird NFT comes from a well-respected team but it’s mint price was incredibly high. If we’re honest, flipping NFTs is incredibly