What is an NFT?

This new investment may have piqued your interest for its lucrative prices. After all, one of the most expensive non-fungible tokens (NFTs) around has a $69.3 million price tag.

However, before diversifying your portfolio to these digital artworks, it’s best to learn more about them. Do you have no idea where to start? We can help, so continue reading for a quick guide on NFT trading:

1. NFT Art Evaluation Factors

People consider NFTs like a new crypto market, much like Bitcoin OTC. As such, finding their value may be a tricky task. However, these are the following factors to help:

• Age
• Off-chain or On-chain
• Project background information
• Scarcity

NFTs existing before the asset became popular are mostly more valuable. It becomes more expensive if its rarity is higher than other items within a collection.

2. Buying NFTs at Floor Price is the Best

NFTs are still on the rise, and their existence will continue as time passes. As such, consider using the floor price to buy NFTs. It represents the lowest price of a token within a specific category.

However, buying NFTs because of their low price shouldn’t be your only basis. Opt for categories interesting to you, and if you’re unsure of what these are, attend an nft conference to learn more about the different types. For example, pick some rare NFTs and pick a token with a floor price.

This strategy has the most potential for growth once the token becomes more popular.

3. Look at NFT Google Trends

Regardless of your experience in NFTs, determining its popularity is easier after checking its Google trend. This search engine is a reliable tool for measuring public opinion since it has over 90% of the global market.

The search engine puts a specific keyword on a scale of 0 to 100. An NFT with a higher rating has more interest. It means more people are becoming involved with it.

4. Ceiling NFTs

Ceiling NFTs are the opposite of Floor NFTs. They’re the most expensive assets due to their rarity and popularity. If you have disposable cash, consider adding these to your investment portfolio.

Most of these NFTs have celebrities involved with them. However, the primary challenge of having this investment is only a few people can afford them. When their popularity wanes, you might suffer from losses.

5. Have a Value Strategy

Focus on buying NFTs experts regard as highly valuable. Several online tools exist to identify valuable NFTs. These compare various NFT projects and sort them based on rarity. In addition, NFT marketing services, more here on that, are becoming popular for those wanting to promote NFTs – so keep an eye out for who is using these!

For example, over 10,000 CryptoPunks NFTs sell at high prices. However, using a valuation tool allows you to identify the rarest ones. These NFTs have unique features others lack.

Start NFT Trading Now

These are some NFT trading facts to learn before starting. Once you have a firm grasp of these concepts, learning how to sell NFTs in the future is more convenient.

However, these NFT tips are only the beginning. Look for other viable investment options to diversify your portfolio now.

Did you find this guide helpful? If so, learn more valuable tips and tricks by browsing our other posts today.

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