Things to Check Before Buying NFTs

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We have recently discussed that only a little percentage of NFT projects can give you the opportunity to make money. NFTs are high-risk investments due to numerous reasons, and you should never invest more than you are ready to lose. Especially that’s important to remember when you are minting in the projects that haven’t been established yet, and the community is not very engaged.

 

Today let’s also mention several important features characterizing the NFT projects. These things can also be helpful indicators during your research.

 

1. Uniqueness

 

Is it true that the greater the uniqueness, the higher the value? In the world of non-fungible tokens, it’s not necessarily so! Even the simplest avatar NFT artworks can have incredible value and top collections can easily prove it.

 

But checking the uniqueness of an NFT is also vital because it can identify whether it is legitimate. Scammers often use copies of popular NFTs – mirrored or not – but they don’t replicate the properties.

 

It is always a cool idea to check the rarity of the chosen NFTs.

 

2. Seller Verification Badge

 

Have you ever seen a blue verification check mark next to the account name of any project? This is it! Many official sellers on NFT marketplaces have these check marks. We are certainly talking about the big brands like TIMEPieces from The Times Magazine, but also the other well-known and established NFT projects.

 

Unfortunately, some smaller start-ups that are totally legitimate do not yet have their verification check marks. If you need to figure out whether it’s safe to jump into a project that has no verification badge, go to the NFT properties, and if it’s a good one, you should be able to see many traits there.

 

3. Transaction and Gas Fees

 

Some NFT selling platforms charge fees on both sides of the transaction, while others only charge sellers. The fees can be quite significant, especially if you are buying inexpensive tokens. 


It also hurts to pay gas fees that can be sometimes higher than the mint price. For this reason, you should always pay attention to the gas rate and estimated gas fees before taking a final decision to accept the deal. And you can also look for the options on different marketplaces trading non-fungible tokens. Remember that Solana-based projects have very low gas fees, so it's a good thing for you.

 

4. NFT Liquidity and Market Volume

 

Many NFT newbie investors come from cryptocurrency markets. It’s natural for them to use the same techniques, trying to conquer the new sphere which looks so similar and is based on the blockchain too. But don’t fall into this trap. Always remember that NFTs do not have the same liquidity as the crypto. Liquidating an NFT in traditional currency can be a real quest in many cases. And it can be a total loss when you subtract all expenses such as transaction and gas fees mentioned above.

 

The market volume of the NFT industry is also a key aspect, and you should always respect that. The peak can be short-lived and if you are not there to sell on time, you may never return your investments. Always apply strategic thinking: what do you really expect from the NFT purchase? Do you plan it to be a long-term investment or a quick flip? And for how long are you ready to wait? Are you sure the project will survive in the long run?

 

These questions are often hard to answer, especially if you are new in the NFT universe. Try to take advantage of various alpha groups, and learn from our articles too. Good luck, NFT voyager!