THE HIDDEN TRUTH ABOUT NFTs

Recently many of my friends have been scammed in the process of investing in NFTs. There is a lot I want us to understand before investing in this space.

NFTs (non-fungible tokens) are unique digital assets stored and maintained on the blockchain.

They are one-of-a-kind, limited-edition collectables that are impossible to duplicate or alter. Many people do not make their research (DYOR) before attempting to deal with NFTs. If you don't do your study before investing, you can get scammed by some greedy folks out there.

- WHO IS BEHIND THE NFT?

Most importantly, just like cryptocurrencies, you need to know who is behind the NFT you want to invest in as NFT projects can be completed by a single person or a group of individuals. The folks that put together an NFT collection are what decide its success. Next to each NFT that is for sale in NFT markets, the name of the group or developer behind the project is displayed.

If you wish to do more investigation, you can look up the NFT developers' social media pages to see if they have made an NFT with that name. Look for the blue tick on their social media usernames.

- CAREFULLY STUDY THE NFTs COLLECTION.

Before deciding which NFT to purchase, make sure the project is legitimate and has a good track record of gaining value. There are several ways to spot an innovative project.

There is no authority regulating the sales of the NFTs placed on the marketplace, as there is with any non-custodial market platform; this means that many bad individuals may seek to take advantage of this opportunity to advertise counterfeit NFTs as legitimate NFT producers.
Check to see if the NFT collection has a blue tick next to it, indicating that the creators have approved it. Consider this proof of approval as you would when authenticating your Twitter or Instagram account. This will help you identify between genuine and duplicated NFTs.

You can join some join groups where people talk about their experiences buying, holding, and selling various NFTs.

- WHAT IS THE NFT ROAD MAP?

Every exceptional NFT initiative has its route map. An NFT road map will show you all of the project's goals and techniques.

A roadmap will outline an NFT's ideation process, design process, and unique branding and style. After reading the roadmap, you should be able to identify what an NFT collection's overarching vision is. Understanding the NFT road map is an important technique you can also use to spot and figure out.

- NEVER PUT YOUR EGGS IN A SINGLE BASKET

Now that you are ready to purchase an NFT, you must first determine your risk tolerance and how much you are willing to lose if it depreciates. Examining your cryptocurrency portfolio and evaluating your previous purchasing history is a good way to start.
What coins did you feel safe buying? What was the investment that you lost, and why did you decide to buy it back?

With this, you can be utilized to decide how you wish to divide your money, which will assist you to avoid any losses. Please bear in mind that these are the most important steps to take before acquiring an NFT, although they are far from exhaustive. Understanding how to obtain an NFT is also critical. After performing the required research, you are now ready to acquire your first NFT.