NFTs have exploded as high-tech innovations in the crypto space and are taking on variant forms from images to music albums and movies to games. As of today, the majority of the NFT market exists on Ethereum or on the Tezos blockchain network.
But before diving into the NFT world, you need to be wary of certain things which can make you more successful in the space. Here are 5 common pitfalls to avoid/be wary of before your foray into NFTs.
1. Don’t try to make fast money!
Creating your NFT can seem like a very exciting journey, however, if you create an NFT, it does not mean you will make a quick buck. In fact, you are at the risk of losses if you are not careful. Remember that it takes value, patience, consistency, and marketing to find a collector for your NFTs.
2. How secure is your NFT?
NFT technology is all about “ownership” which needs to be tamper-proof to the collectors who acquire them. But unfortunately, many NFT projects use “off-chain” storage methods.
If the assets are stored on a centralized server, it means that the person or organization with access to the servers can modify it at their will. The next question to ask yourself is, ‘What happens if the marketplace shuts down?’ Will your assets be at the mercy of individuals or is it protected forever by the blockchain?
3. Choose an appropriate marketplace
Always DYOR before choosing an appropriate marketplace. Is it safe? How big is the community? Is the community helpful? Are there collectors and most importantly, does your work go with the ethos of the marketplace?
Since there are way too many marketplaces on the rise, it is important to do the research before choosing one.
One can also venture into the marketplace in a secure way through databases like DappRadar to avoid falling prey to scammy/illegal NFT websites.
4. Fees, fees, and more fees.
Whichever blockchain network you choose to mint your NFTs, there is always a fee to pay in order to carry out your transactions. The fees vary according to the blockchain and the platform. Tezos is one of the cheapest blockchains to mint your NFTs as it is an LPoS blockchain.
Always be aware of your transaction fees to not disrupt your budget goals.
5. Basic knowledge of blockchain helps.
Without a basic understanding of key concepts in blockchain, you are more likely to make serious mistakes in terms of security, transactions, or by choosing an inappropriate platform.
In conclusion, always do your research before jumping into NFTs, build your brand, help your community. NFTs are just starting and if you’re reading this, you’re early to the game!
If you have any questions or doubts, reach out to us at our Telegram Support Channel or our Discord server for help.
Kalamint, a leader of the Clean NFT movement is one of the first marketplaces on Tezos, an LPoS blockchain that consumes a fraction of the energy compared to its power-hungry counterparts. Backed by Tim Draper’s Draper Goren Holm Ventures, Amesten Capital, Moonwhale Ventures among others, Kalamint is one of the only NFT marketplaces which is truly on-chain, meaning that the data on the chain can never be altered or lost.
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