Are NFTs a good investment?
NFTs are high-risk, speculative assets – and with no protections for if things go wrong, you should be prepared to lose all the money that you invest.
With that said, there are steps you can take to learn more about the NFT market at large, and that will help you make responsible choices when it comes to buying, selling or interacting with NFTs:
- Get involved in the community. X (formerly Twitter) is the primary social media service for discussing NFTs and the wider blockchain industry. Sites such as NFT Insider can keep you up-to-date with the latest news, whilst enthusiasts and influencers endlessly discuss all manner of topics, projects and questions.
- Do your own research. If you come across an NFT collection that you admire, it is crucial that you conduct your own research into that collection. Do not rely on third-party sources. Ask yourself: who is behind these NFTs? What is their track record? Are there any red flags that concern me?
- Stick to what you know. Do you like games? Look at blockchain gaming assets. Do you like music? Look at music NFTs. By sticking to areas you are already familiar with, you will be better acquainted with terminology, ideas and standards – and will be able to better spot something that doesn’t seem right.