Getting Started With NFT Trading: A Beginner’s Guide to Success

You must have heard of NFTs if you’ve used the internet at least once in the past four years. They are everywhere; everyone is talking about playing NFT games on platforms like Chainers, trading, and making money. 

Since NFTs hit the big stage, they have become more than just digital art; they have become a way to make money. Just like there are professional stock traders, there are professional NFT traders who make money from trading them. In this article, we will focus on NFT trading. So, if you are a beginner in the NFT trading business, this is your guide to trading success.

What Are NFTs?

Many people think NFTs are just “digital art," but they are more than that. An NFT, which stands for a non-fungible token, is a one-of-a-kind token documented on a blockchain. It serves as proof of ownership for either a digital or physical asset.

In simpler words, an NFT is a unique digital asset that cannot be replaced or duplicated. There is only one possible copy of each.

What Is NFT Trading?

It is the buying and selling or exchanging of NFTs. Trading is usually done in an NFT marketplace, a uniquely designed online market platform to trade non-fungible tokens.

The process works almost exactly like stock trading. Buy cheap, hold, and sell when the price goes up. The goal of every trader is to get the top or best-selling non-fungible tokens or to buy cheap ones at a low price, wait till the price goes up, sell, and keep the profit from the sale. 

It sounds easy, but it is a delicate trade. Non-fungible tokens have no inherent value, so their prices can fluctuate significantly. The values of NFT are usually determined by demand and market trends, so if no one wants to buy what you’re selling, you have to sell for cheaper.

NFT trading is also usually done using cryptocurrency like Bitcoin or Ether. However, some NFT marketplaces may accept payment in regular currency.

Where Do I Trade NFTs?

To start trading your tokens, you’ll need to go to a marketplace where hundreds of thousands of traders like yourself are ready to buy and sell.

Simply put, an NFT marketplace is a platform where NFTs are traded. They are online platforms usually powered by blockchain technology to allow the buying and selling of non-fungible tokens. Different kinds of marketplaces have different features and rules depending on your buying NFT strategies.

Some of the most famous NFT marketplaces you can use as a beginner are:

• OpenSea
• Rarible
• SuperRare
• Foundation
• Nifty Gateway

These marketplaces have thousands of NFTs you can buy through a direct sale or an auction. They also allow you to sell and even create your non-fungible tokens.

How Do I Start?

Trading in NFT is straightforward to start, even for a beginner. These are some helpful tips to help you start trading:

Do Your Research

Before trading NFTs, you must know as much about them as possible. So take time to research what kind of NFTs you want to trade in, what marketplaces you want to trade on, what collections are trending, and the valuation history of the NFT you wish to trade. Information like this will help you have a successful trading career.

Choose Your Strategy

There are many buying NFT strategies you can employ in your trading. But whichever one you choose, make sure it covers your budget, risk tolerance, and boundaries. This will guide you to make better decisions.

Create a Crypto Wallet

You must create a crypto wallet to store the NFTs you earn, buy or sell. Choose a crypto wallet based on the blockchain the token was minted so your transactions can work smoothly.

Get Your NFTs

To trade NFTs, you need to get some NFTs. You can either create your tokens or buy from an NFT marketplace. You can also win some from some NFT games, like Chainers.

Pick Your NFT Marketplace

Choose which NFT marketplace to use and create your user account to start trading. Make sure you consider the type of marketplace you pick. Some marketplaces only take one kind of NFT or trade based on your artist profile. You may want to go for a non-curated marketplace like OpenSea, where all types of NFTs and sellers are welcome.

Sell at the Right Time

Once you get your marketplace and your NFTs ready, it’s time to start trading. You can always buy more NFTs you think have potential, but the most important thing is to sell at the right time to make a profit. 

Conclusion

NFT trading is an excellent way to make money and is here to stay. It is also simple to start, but remember that just like any business, it bears its own risks. Nothing is certain; nothing is safe. But there’s also much money to make. It all depends on your strategy and market trends.