The art collection is a relatively well-known hobby. People collect art pieces if they like the art or think the price will increase. Becoming an NFT collector is very similar. You collect valuable NFTs that match your taste, and if the moment arises, you flip them for more money than you had spent.
NFT collection is becoming less of a closeted hobby and gaining mainstream recognition. You can follow our simple guidelines if you want to be a part of this community. We’ve developed a comprehensive guide that will ensure you have all the info for successful NFT collections.
1: Get Technical
The first step towards any endeavor is getting to know what it is all about. Because only after we understand the inner mechanics can we reliably use the system to our advantage. Similarly, you must have as much info about NFTs as possible before diving into the NFT collection game. To summarize, NFTs are digital assets that are stored on the blockchain. Blockchain technology allows for the safety and non-repeatability of the assets.
With the blockchain, NFTs become more than images or JPEGs with a unique identity. Smart contracts can add several perks to the NFTs, making the collection worthwhile.
As the number of NFTs grows, we can expect some older names to become rare. These will be sought-after NFTs that will sell for many times their original worth – just like rare art pieces are sold now.
2: Niche Down
Even though we’re witnessing a slow season for minting. But the NFT market is still growing. New niches are added every second day. So you need to be specific about what you want to collect. Like in physical art, you can decide which type of NFTs you want to collect. If you’re a Football enthusiast, collecting FIFA or similar NFTs will be the goal. If you’re into music, you might want NFTs of your favorite songs. And so on.
There are two ways to find your NFT niche.
You can start with what you like, as mentioned. This will save you time and energy because you’ll have some basic niche knowledge. So exploring the NFT market for your niche won’t be much of a hassle.
Or you can get started with a niche that caught your eye. You may have heard that an NFT class is going to blow up. Your first step would be to know as much about NFTs as possible. This will ensure you don’t feel left behind in the NFT market. And as soon as something interesting pops up, you will be on it.
3: Research the Market
You can’t go blank into the NFT market. Even if you know about the overall niche, NFTs of that niche can be a different beast to tame. So start with research.You have to be where the majority of those NFT holders are. You will find a healthy community on social media if you’re trying to break into a relatively good niche. You will notice the community’s overwhelming response and can make your decision accordingly. These communities are usually on Discord, Twitter, Instagram, and YouTube. Make sure you’re on all these platforms and follow the community’s activities. You’ll essentially have a front-row ticket to what is about to happen in the community, and you can make informed decisions based on that.
4: Don’t Just Sit There
One grave mistake about the NFT market is sitting idly. You may think you’re in the community, so that’s it. But there’s so much more to it. Engage with fellow NFT collectors if you want to be among the top NFT collectors. There are two types of people you want to engage with. The first one is the generalist. They know about the overall NFT market and can educate you on key concepts, while others are specialists. They are the experts in the NFT niche you’re trying to infiltrate.
Again, use social media platforms (mentioned above) to engage with fellow NFT enthusiasts.
5: Will You Buy the Right NFTs?
NFTs are digital art, digital images – JPEGs, if you will. Their intrinsic value depends on the artist’s credibility.
Another factor that adds to the NFT’s value is its scarcity and the add-on value. If an NFT collection is popular, you might want to go for the rare ones in the collection. Because this combination will lead to increased value in the long run.
6: Stay Away from Scams
Scamming is a real part of the NFT space. You will be surrounded by people who want to rob you of your cryptocurrency with counterfeit NFTs. You have to avoid these at all costs.
Here are some practices that can help reduce the chances of getting scammed.
Always keep your secret phrase a secret. No trustworthy site asks for that. Do proper research before sending your crypto to someone. This means ensuring they are legit and have the actual NFT. You can do it by confirming the meta details of the NFT. If a deal is too good, it is likely a scam. Avoid such deals. Always study the market you’re investing in to know the trends and the potential. Like counterfeit art, the NFT space also gets tons of counterfeits. You must confirm every small detail from the manufacturer to the purchase history.
In general, be aware that the NFT space has a lot of scammers. It’s up to you to protect your crypto.
7: Maybe Try Hardware Wallet
Crypto wallets are software that store your crypto securely. But a hardware wallet is even better at keeping your content secure.
There’s no chance of any cyber-attacks. Keeping your NFTs in a hardware wallet puts you ahead of the curve because the majority of wallet scams have occurred via soft crypto wallets.
You can have a second, soft crypto wallet for your transactions, while the main will be hardware-based. So in the worst-case scenario, you get scammed, and only the crypto on the digital wallet will be lost. Your main wallet will be safe, and so will your majority of crypto.
8: Keep Your Finances in Check
Spending on your favorite NFT can seem logical. It will eventually become huge, and you’ll be reaping profits.
Yet, you have to keep your finances in check. If you spend more than you can spare, you’ll end up in a cycle. This is a difficult cycle to get out of because many people try crypto to get out of crypto-induced debt. So make sure you have enough money in your actual wallet to spend on your digital ventures.
9: Keep Trends in Mind
One thing you have to track is the market. If the market for a specific NFT is down, you must know the future trend. This will help you make decisions on when to hold and when to sell. You’ll make huge profits if you sell at the right time. Or you can hold an NFT for its future worth.
All this is possible with research and keeping a keen eye on where the market is going.
NFT Marketplaces Are A Good Place to Start
If you’re new to the NFT landscape, you will have NFT marketplaces to back you. You will find all the info on an NFT there, from creator to purchase details. You will also know if an NFT collection is worth buying by following the creators on these marketplaces. XANALIA is a good choice if you want to get authentic NFTs – from well-known artists and IPs.
So start your journey to become one of the top NFT collectors today by scouring the internet.
