Although the world of NFTs is fairly new, people have already made lots of mistakes when they are creating and selling their tokens. In this article, you will learn about 5 common mistakes that people make with NFTs. You need to avoid these at all costs.
1. Trying to Make Money too quickly People see that some NFTs have sold for millions of dollars and they think that it is a good way to make money quickly. This is short-term thinking and has been the undoing of a number of NFT creators and sellers. If you want to succeed with NFTs then you always need to provide value first. Focusing on making money fast with NFTs is a recipe for disaster. You need to trade NFTs that people want to buy and be consistent with your promotional efforts. 2. Not Promoting Listed NFTs This is the "build it and they will come" syndrome. You create an NFT or a series and list on OpenSea. Because OpenSea gets millions of visitors each month you think that your NFTs will sell like hot cakes. What you need to take into account is that there are millions of NFTs available on OpenSea all the time so yours can just get lost in all of this. You need to do more than just create and list your NFTs on a marketplace. Determine who your target audience is and then promote your NFT drops to them. Use social media platforms and find communities that are dedicated to your NFT niche. When you are promoting your NFTs you need to avoid outright sales tactics. Nobody likes to be sold to and this is particularly true in the NFT world. You need to showcase your NFTs and let people know what is special about them to generate interest. 3. Listing your NFTs on the wrong Marketplace This is something that happens a lot. A lot of NFT creators are not prepared to spend a little time researching which marketplace is best for the creation and listing of their NFTs. Many beginners will use the OpenSea platform for their NFTs because it is the largest. But this can be a big mistake as your target audience might not hang out there. You need to do your homework here and find out which NFT marketplace your target audience is the most likely to use. Find out what the community is like with the different marketplaces and see how responsive they are. 4. Not Investing in your NFTs It is usually not free to list your NFTs for sale on a marketplace. If you are going to use the Ethereum blockchain network for your NFTs then you will need to pay a "gas" fee. A lot of people think that they can create and list NFTs for free but this is not the case. If you are creating NFTs that have high value then you need to invest in them. We are not just talking about paying the different fees here. You need to invest in marketing to spread the word about your NFTs. 5. Not Understanding NFTs properly This mistake is so easy to avoid but there are many people that make errors with their NFTs because they do not have a good overview of how they work. You need to know the basics about crypto and blockchain and there are many resources online available to help you with this.
0 Comments
You will have no doubt heard the buzz recently around Non-Fungible Tokens (NFTs). If you are not aware of what an NFT is we will explain this in the article. We will also explain what NFTs are not as there is quite a lot of confusion about this.
NFTs are Digital Assets that are Unique An NFT is a digital representation of something in the real world which is unique. One of the most common types of NFTs is digital art. People create NFTs and trade them with collectors. Usually, NFT transactions are based on cryptocurrency such as Ether. NFTs are not entirely new and have been in existence since 2017. A lot of money has already been spent trading NFTs. An NFT may not be a one-off. It is fairly common to see limited editions of NFTs with a few copies available. The most valuable NFTs are only available as a single item. You cannot replace an NFT with another asset as you can with a cryptocurrency for example. This is why they have the "non-fungible" element to their name. A $1 bill is fungible because there are lots of them and it is easy to replace one with another. These bills all have the same value which is $1. NFTs are always on a Blockchain Network An NFT cannot exist without a blockchain network. The most popular blockchain for NFTs is the Ethereum network. Blockchain provides distributed ledger technology and every element of a blockchain is unique. This provides a very high level of security. As the name suggests, blockchain is a chain of data blocks. Each of these has unique identifiers which links all of the chains together. Users of a blockchain network must have a public key and a private key for identification and uniqueness of transactions. NFTs are not the same as Cryptocurrencies A lot of people think that NFTs are the same as cryptocurrencies but this is not the case. It is possible for you to hold a number of cryptocurrencies that have the same value. You cannot do this with NFTs. Many people hold more than one Bitcoin or Ether unit for example. It is easy to see where the confusion comes with this. Both cryptocurrencies and NFTs rely on blockchain technology for their existence. But NFTs are unique assets and cryptocurrencies are not. It's that simple. There are different types of NFTs You could be forgiven for thinking that NFTs are just about digital art because this is what makes the headlines the most often. The truth is that an NFT can be something else that is considered of value. Other examples of NFTs include: * Video * Audio (usually music) * In-game resources * Images and avatars * Designer items There is a classic NFT story where the founder of Twitter created an NFT from his first tweet on the platform and sold this for nearly $3 million. Think about an NFT as a digital item that a collector is interested in. An NFT has only one owner There can only be one owner of an NFT at a time. Anyone that purchases an NFT has the exclusive rights of ownership. Every NFT has totally unique data associated with it. This is ideal for verification and identification purposes. |
Archives
March 2023
Categories |