NFT art, non-fungible tokens, is the latest hype. These unique pieces of digital art are becoming more and more popular, both with creators and celebrities who want to know how to buy NFTs. Everyone wants to get on this train of success with investors buying NFTs for thousands of dollars. Sometimes, even more. Recently, the Loaded Lion went on sale and the bid started at $200. Three days later, these avatars reached the ground-breaking sum of $1 million.
The NFT marketplace is so trendy, even the British Collins Dictionary recognized it. In fact, NFT is the word of the year, since its use rose by more than 11,000% in 2021. Alex Beecroft, representative of Collins Dictionary, said “whether the NFT will have a lasting influence is yet to be determined, but the sudden presence in conversations around the world makes it very clearly our word of the year.”
So, NFTs and art are worth your time and investment. But, how do you buy NFTs safely? Thanks to blockchain technology and its applications, your digital art investment is safe and sound.
How to buy NFTs safely
Any NFT sale happens through blockchain technology. These tokens exist in the blockchain, which is where the transactions take place. Each transaction has a traceable record, which makes it difficult for hackers to access. When you buy NFT tokens, you will receive a digital certificate, proving that a specific piece of content is yours. The certificate is on blockchain technology and it has the same value as an ownership certificate for a Van Gog’s painting.
Different platforms have their own NFTs, like Ethereuem. So, to buy NFT art, you need cryptocurrencies such as Bitcoin and Dogecoin. Then, you have to store it in an e-wallet. But beware: each NFT marketplace has different requirements for the crypto wallet.
How to choose the right NFT art marketplace
You need to think of these platforms as a grocery store filled with digital content, including memes, videos, and images. The choice depends on what type of NFT you are looking to buy and what NFTs are for sale. Creators and buyers should pay attention to different standards, to buy NFT safely.
For creators: if you are a creator, you need to double-check the platform’s standards for file formats and other important details. If you are an investor, make sure your cryptocurrency is supported. For example, some NFT art marketplaces allow you to mint your art on the blockchain, no coding needed. Other marketplaces only allow auctions or they set a fixed price for the NFT for sale.
For buyers: if you are looking to buy NFT tokens, check out the copyrights. Some NFTs don’t allow the resale of the collectible token. Investors should make sure they have the appropriate Intellectual Property (IP) rights, even to showcase their digital assets.
Also, it’s important to double-check regulations and laws. For example, the US Security Act defines “securities” as assets that increase in value over time. Investors buy securities to make a profit, like they would with stocks. While regulators are still catching up on the world of digital tokens, it’s important to stay up-to-date with the taxes. Just like you need to double check the NFT marketplace’s user safety.
Features to pay attention to
So, any NFT marketplace uses blockchain technology to ensure safety. But buying NFTs isn’t just about the safety of your cryptocurrency. When you are looking for the right platform, check out these features:
- The Terms of Service, which safeguard sales and purchases
- Two-Factor Authentication (2FA) and recovery phase for the e-wallet
- Is there a reporting tool? This can help you flag suspicious users
The pro tip: to buy NFTs safely, consider having a crypto hardware wallet, not just a digital one. These are plug-in devices that act as portable keys for your crypto assets. They still use blockchain technology, but they are never exposed to the internet. Hardware wallets are an extra layer of security when you decide to buy NFTs.
Thanks to blockchain technology and the security protocols of NFT art marketplaces, buying art tokens safely is possible. With a few precautions and patience, you can own or create the next, crypto hit. Why don’t you start now? Check out our latest drops and get on the digital train.