You’ve probably heard of non-fungible tokens (Sell NFTs) — in fact, you may now be ready to hear no more about NFTs. People's every day: The First 5,000 Days sold for more than $69 million in March 2021, sparking broader interest in digital artwork and sustained media coverage. WIRED writer Kate Knibbs sold one of her tweets as an NFT, and editor Sandra Upson even featured some CryptoPunks.
The concept of digital ownership can be difficult to grasp, and with so many of the loudest voices heavily invested in NFTs, it can be hard to know who to trust. Our guide to the blockchain is a good place to start if you want to dig deeper into core topics like Ethereum.
Be careful when diving into the world of NFTs. Financial investments can disappear overnight if you take them out of circulation. Certain artworks can pose security risks, such as exposing your IP address. Plus, the energy consumed in blockchain transactions contributes to climate change. Despite all this, if you want to buy and sell NFTs, here’s what you should know.
Profile Picture NFTs Reign Supreme
Profile image projects are the most popular type of NFT collection. A series of digital artworks are created around a single subject such as a monkey or an alien. The subject is often in the center of the image and repeated with a selection of facial expressions, skin tones, and accessories.
Using CryptoPunks as an example, one NFT in the 10,000-piece collection may be unique because it has a mohawk, pink lipstick, and 3D glasses, but the overall style is instantly recognizable as part of the larger project. In cryptocurrency circles on Discord and Twitter, NFT’s profile pictures
Are the Marketplaces Safe?
Anyone who decides to spend money on buying an NFT should exercise caution. Be critical of whose advice you internalize. Kim Kardashian and Floyd Mayweather Jr. are facing class-action lawsuits over their involvement in a blockchain project. The minimal regulation means it can be difficult to determine if a celebrity is being paid to promote something.
“Only invest what you can afford to lose in NFTs. I know a lot of people who go full in without knowing what they’re doing,” Parekh says. She advises against making impulsive buying decisions and recommends taking time to learn about those behind a project.
Shiva Rajaraman, VP of Product at OpenSea, recommends newcomers get help choosing an NFT from someone they know in real life. He says, “Find a buddy and go through this together. You shouldn’t feel like you have to do it alone. As for interacting with Nifty bridge, the company’s website gives a handful of pieces of advice on how to stay safe, such as not sharing your secret recovery phrase and avoiding suspicious links.
Make sure all NFT lists on the blockchain are closed if you want to keep an item. Smart contracts that were not properly deleted led to owners Sell NFTs on the Nifty bridge at older, lower prices.
These marketplaces are where digital art is purchased, but many of the communities thrive on Discord. Be careful — even well-moderated servers can be a breeding ground for potential scammers. Rajaraman says, “If you go into these communities, turn off DMs on the server.” The advice to block server DMs is also echoed in announcements from OpenSea’s official Discord.
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