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NFTs are very valuable and more than just collectibles. They carry unlimited possibilities in real-world applications. NFT stands for "non fungible token," which means it is unique, and you can't replace it with something else. Most NFTs are part of the Ethereum blockchain at a very high level. This Ethereum blockchain is crypto-currency, like bitcoin or Dogecoin.
Important Things to Keep in Mind before Selling NFT
The NFT (non-fungible token) boom has given a wave of new investors and creators to enter the space. However, the non-fungible token marketplace is still very new, and there are not always easy answers to questions that buyers and sellers have. Although the marketplace of NFT is continuing to grow in recent days, you must consider the following things when you are thinking of selling an NFT.
What Are NFTs?
In recent days most people have probably heard about the NFT craze. NFT (non-fungible token) is the digital collectible that may or may not involve the buying or selling intellectual property rights. Similar to the Pokémon card that does not represent the intellectual property rights for Pikachu, there are also so many NFTs that do not need property rights. That is why many buyers and sellers are left to wonder what exactly it is that they are buying and selling.
It has not stopped investors from entering the world of NFT. However, certain elements of it are extremely inefficient because the technology is very new. For example, NFTs created on the Ethereum network charge high transaction fees and have a large carbon footprint. In addition to this, there are also some concerns about fraud in the world of NFT.
Rarity in NFT
Rarity is one of the most key factors in determining the value of an individual non-fungible token. If you want to sell your NFT, you must check the value of such NFT. You can easily determine that an NFT has some rare traits by looking at its properties. Each NFT has several traits, and by merging the rarity of all of them into one single value per NFT, you can rank them. This factor will help you understand how rare and "hand to get" specific non-fungible token is.
The first-of-its-kind artwork from a famous digital art creator or an NFT created by a celebrity is a very good example of rarity. The effect is another factor of rarity, like a video game. Many buyers and sellers have drawn NFT because of its intrinsic value, where the NFT owner holds the blockchain proof of ownership. It gives a sense of distinction and helps you to find out the premium value of an NFT.
Consider All Technical Issues
Before you sell or buy your NFT, there are so many important things that you must consider. The reason is that when you enter the NFT world, many challenges could impact the value and potential return of your investments. The impact congestion and transaction fees often result from limited windows when NFTs are available for transactions and high-frequency trading systems that stifle fair trading between buyers and sellers by manipulating prices and available supply.
The founder and CEO of DChained said that all these technical problems are slowly but surely being addressed. Some NFT platforms have decided that the method of addressing these problems in the short term is to introduce white lists to participate in the private or public scale. It will not only increase the overall engagement with their projects, as participants must fulfill a series of requirements to qualify for a potential spot on the "white list", but it has significantly reduced the volume of bots and congestion to buy their non-fungible tokens. The involvement of the project's founding team is also very important, ranging from communication on the safe list through the official public listing, which has helped create a booming investor marketplace. NFT sellers or buyers should also be sure that what they are peddling is the real thing.
Final Words
The value of NFT is the most important thing. Additionally, it is largely a matter of personal perception, but intrinsic value does obey several NFT market rules. How valuable a non-fungible token resides in its short and long-term resale value? Therefore, when you want to sell NFT, it is very important to check the value of your NFT.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.