There’s a high possibility that you’ve heard of NFT and you have decided to try them out too. If you haven’t heard about NFT then there’s a high chance you live under a rock. NFT Quantum was created by Kevin McCoy and Anil Dash in 2014, they called it “monetized graphics” during a live presentation that year.
Fast forward to 2022 and it’s everywhere, it’s mentioned on almost all social media platforms. In this article, you will get to discover how NFTs work, what makes them important and the biggest mistakes to avoid when it comes to Investing in NFTs.
What are NFTs?
NFT means Non-Fungible Token.
NFTs are digital assets that represent real-world objects like arts, videos, and in-game characters. You can buy and sell them online usually with Cryptocurrencies such as ethereum.
NFTs are usually one of a kind with unique identifying codes. This is different from most digital objects and software that are usually infinite in supply. Theoretically, cutting off the supply of such software should increase its value of it if the software is in demand.
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How does NFT marketing work?
There are a few things to do to get started if you want to start NFT, one of the methods is by turning virtual arts into tokens on the blockchain. Digital tokens can be in the form of JPG, GIFs, or videos that are later put in the marketplace for sale. To do that, you have to do a few things.
Register on the marketplace: You open an account with an Ethereum wallet and keep your NFT along with any cryptocurrency made from the sale.
Upload your file: You upload the file with the digital asset (video, image, or gif) into storage called InterPlanetary File System (IPFS)
Mint your NFT: You mint a digital token connected to your file that will create a cryptographic signature that exists in the blockchain. With that, you will know that your file is authentic and has been accepted by the blockchain.
List your new NFT for sale: You fix an approachable price and the duration of the auction.
When you get your NFT, the next step is to market your products. Professional marketers can use different methods to market and promote NFT products.
Why is NFT important?
Now you know what NFT means and how it works but why are they so important, why is everyone so suddenly interested in them. The ads are everywhere so someone must be paying for them, which means it’s important.
NFTs are trading cards, just like money but unlike money, they are unique, irreplaceable, and belong solely to the person registered on the Blockchain, that’s what makes it so important. Only you own whatever digital works you uploaded on the Blockchain, you can keep it as a collectible or trade it.
Like most digital assets an NFT can also be duplicated, it could be screenshotted on a phone, it could be saved on a computer or other digital devices, now you’re wondering what makes NFT so special if it can be duplicated. Well, the actual ownership is carved in stone in the Blockchain, it’s like The Starry Night by Vincent Van Gogh, they are hundreds of duplicates but only one original that is worth over $100 million, despite the availability of duplicates.
Another example is the minting of your game avatar in the blockchain, your online/game avatar will be different from that of other players even as the quest and levels in the game will remain the same. This also applies to movies, music, and celebrity photos, the original will always be more expensive and have more worth than the duplicate.
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Three major NFT marketing mistakes to avoid
Just like all marketing and trading, there are lots of mistakes to avoid and NFT is no different. NFT trading isn’t a trial and error thing because if you make mistakes you will not only lose money but your digital assets, below are the 3 major mistakes you should avoid.
1. Not Understanding how NFTs work
It might seem ridiculous that someone will invest in something they don’t understand but it happens, some people think they can learn as they go but that is not advisable for lots of reasons. You need to know the basics about crypto and blockchain, thankfully there are lots of resources and articles online to help you. There are also YouTube tutorials about NFT and how it works. Take the time to do research before investing.
2. Trying to make money too fast
When it comes to making money, some people are not patient at all, they want to make the money now, rushing can make you ignore important things and before you know it you’ve made irreversible mistakes. To make it in NFT you have to provide value first, you need to trade with people who are interested in buying whatever it is you’re selling. Finally, be consistent in the promotion of your product.
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3. Not promoting your NFT
If you avoid the first two mistakes and don’t promote your NFT, you won’t get good buyers, that’s if you get a buyer. The best thing to do for your product is to market it, you’re probably wondering where? Well, everywhere, social media is a good promotional tool, you can promote your NFT there.
There is also an NFT marketplace, there’s also a good place to market your products. When promoting your NFT, you need to showcase it and let people know what makes it special and why they should buy your products.
Aside from this three, there are also other mistakes to avoid. They are listing your NFT in the wrong market and not investing in your NFT. You need to look for the right marketplace for your product and invest in it to do promotions and advertisements.
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As with any new technology, it is important to do your research before you invest. This includes understanding the risks and rewards associated with investing in NFTs. We hope that this article has helped you understand some of the common mistakes made with NFTs, and how to avoid them.
We’ll be sure to keep this list up to date as we learn more about the industry and more mistakes are made. If you have any other suggestions or think we’ve missed something, feel free to let us know in the comment section below.