Things to know When Buying and Selling NFTs

The use of NFTs (Non-Fungible Tokens) has swept the globe. It's quite probable that you or someone you know has heard about this new class of digital assets, unless your 2021 New Year's plans included giving up the internet.

First of All, What are NFTs?

NFTs are blockchain-based cryptographic tokens that stand in for "one-of-a-kind" assets. Both the physical world and the digital world contain these assets. NFTs give holders the ability to demonstrate both the authenticity and the origin of the underlying asset. The idea of scarcity can now be introduced in the digital world because to their existence.

Creators can build a direct relationship with their followers by minting NFTs on the blockchain, all while minimizing platform risks. Everyone interacts with NFT contracts in the same way, free from proprietary platforms and limitations regardless of where they are or who they are. The NFTs cannot be changed after they are created on the blockchain. This creates a solid sense of permanency and ownership. We think that the network effects, interoperability, and composability that the NFT open standards foster will lead to many fascinating innovations in digital commodities.

Getting Started

You can become overloaded with the daily introduction of fresh updates and information as the NFT market expands. To get you started, we've compiled a list of 4 things to think about before transacting on an NFT marketplace.

1. What You Are Interested In & How It Affects Where You Purchase NFTs

Knowing what kind of NFTs will most interest you is crucial before stepping into the realm of NFTs. Fortunately, there are countless NFT categories, even though video games, music, and digital art now dominate them.

Sounds good to you? NFTs that are premium (made by well-known artists or producers, for example) or NFTs that are more generic can be differentiated further within these categories (and all others) (e.g. those created by everyone else). The kind of NFT collection you want to amass can be strongly associated with where you decide to purchase your NFTs.

There are various markets that support various NFT collecting types. There are markets to service all audiences in a variety of different sectors, from generic NFTs to industry specific ones like games or art. The freshly launched manga NFT site, trophee.xyz, will be a good place to start for newcomers to the manga industry who want to explore a wide range of NFTs. There will always be something for everyone, from top-notch NFTs made by renowned artists to NFTs from up and coming producers.

2. Market volume and liquidity

In the early days of NFTs, the majority of what is available can be classified as "collectibles," and these kinds of NFTs are often bought and then held by the buyer in the hope that the asset will someday value.

Similar to an oil painting, it could be challenging to sell the asset again on the open market, particularly if the underlying asset isn't doing well right now. It is crucial to keep in mind that buying NFTs is fundamentally different from buying Bitcoin, which is always liquid and driven by substantial market volumes on cryptocurrency exchanges. Depending on the kind and level of popularity of the NFT you buy, you can be making a long-term commitment to deal with little liquidity and a sluggish market for that asset as you wait and hope for its value to rise.

3. Transaction Fees

To everyone of us, it occurs. When we locate what we are looking for and proceed to the payment page with a price in mind, we are shocked to see that a sizable transaction fee has been added to the final amount. Due to the large price range of NFTs, it is crucial to be aware of both a platform's transaction fees and the gas costs associated with the underlying blockchain well in advance.

Since the term "transaction fee" might represent different things on different platforms, transaction costs can vary significantly between platforms. NFT platforms today charge anything from 2.5% to 15% in fees, yet, if we define a transaction fee as all additional costs in a sale that go to the platform or the author!

Lastly, gas taxes. Gas costs are always necessary for appending confirmations of transactions onto the underlying blockchain. Transaction costs for ETH have increased to as much as $70 USD each transaction. Trophee.xyz transactions (except for Bridging), however, will take place on the Binance Smart Chain, which has exceptionally low gas costs that are often expressed in pennies rather than dollars.

4. The Situation

Many NFT markets are exactly what they claim to be: markets. Just a means for exchanging digital assets on the chain. The NFT experience, however, can (and should) be much more. Both the physical and digital worlds are greatly enhanced by NFTs. These new digital assets are igniting a degree of excitement in the asset sector that has never been witnessed before, in addition to bringing creators closer to the customers they serve.

We have mainly discussed collections up until this point, but NFTs are capable of much more. In reality, NFTs have enabled systems like Decentraland and Axie Infinity to offer a kind of utility that was previously unavailable in the virtual world. This feature enables users of these platforms to transact and exchange valuable goods with one another independent of the platform.

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