NFTs Mistakes to Avoid
NFTs may be gaining a lot of attention, but for many, this is uncharted territory and ripe for scams and costly mistakes. From clicking on a fraudulent link to trying to day-trade your way to riches with NFTs, both creators and investors need to protect themselves.
Discover the top NFT mistakes to avoid when minting or investing in NFTs.
NFT Mistakes to Avoid for Creators
With so many NFTs selling for tens or even hundreds of millions, everyone sees an opportunity to get rich with an NFT. There’s a lot more to the process than simply minting an NFT and earning income, however.
Check out the top NFT mistakes to avoid as a creator.
Trying to Make Money Too Fast
NFTs are gaining a lot of attention because of overnight successes and million-dollar sales. People get the idea that NFTs are a get-rich-quick situation, and that short-term thinking has been an undoing of NFT creators and sellers.
If you want to succeed with NFTs, you need to offer value to your audience first. If you’re only in it to make money, you have a recipe for disappointment. You need to create something that people want to buy and be consistent with your promotional efforts.
Not Promoting Your NFTs
It’s not enough to simply mint an NFT and sit back and wait for the money to roll in. Once you create an NFT or series and list it, you’re competing with hundreds of thousands – if not millions – of other projects and trying to get the attention of millions of visitors.
Once you create an NFT, you need to promote it. Use social media platforms and get active in communities within your niche. You have to know who your audience is to promote your NFT drops. It’s important to promote, but not be overly salesy. Highlight what makes your project unique and interesting.
Are you a Company?
Looking for a Blockchain Marketing Agency? Crowdcreate is a leading crypto, NFT, web3, and metaverse marketing agency that’s helped some of the top projects in crypto create buzz, grow a digital community, and connect with influencers & investors. We’ve been called one of the best agencies in the world because we have the track record and case studies to prove it. Book a call with our team to learn more.
Choosing the Wrong Marketplace
Many NFT creators jump into the industry without doing their research. All marketplaces offer unique benefits for minting and listing NFTs, and it’s important to know where your audience is spending their time.
Always do your homework and find the communities that are most likely to be interested in what you have to offer. Evaluate the communities on different marketplaces and how responsive they are.
Not Investing in Your Work
NFTs aren’t usually free to mint or list. If you use the Ethereum blockchain network for your NFTs, you will need to pay a gas fee.
Keep in mind that if you want NFTs who want a high value, you have to invest in them. This isn’t just about fees, but investing in the NFT marketing to get the word out.
Not Understanding NFTs
It may seem obvious, but a lot of NFT beginners fail to truly understand how NFTs work and the basics of crypto and blockchain before minting NFTs. Fortunately, there are many resources online to learn about this industry.
NFT Mistakes to Avoid for Investors
Part of the rise of NFTs is how much investors are noticing. They are at the forefront of the crypto space and allow creators to cultivate real-world scarcity in virtual objects. If you’re looking to invest, it’s important to avoid these common mistakes that can harm your efforts at the start.
Purchasing Cheap NFTs
Most NFTs listed on marketplaces are expensive, with some valued at hundreds of Ethereum as a floor price. The popular NFT projects are extremely expensive, such as the ones held by Bored Ape Yacht Club.
With everyone creating NFTs, some are new and cheap, or may even act as a front for fraudulent activities. Before you buy an NFT, do your research and learn about the project on Twitter and the Discord channel. Make sure to interact with community members and note the number of members in the community.
Don’t Get into Day-Trading
NFT investors may seek an opportunity to purchase an NFT and flip it for profit, much like they would with a stock. This could work out, but it’s likely that you’ll end up losing money in the process. NFTs are subject to incredible price fluctuations.
These fluctuations can convince you that you can buy and hold an NFT for a few weeks and then sell it for profit. This can be true in some cases, but it’s a big risk and best left to experienced NFT investors. Instead, focus your efforts on NFTs from creators you appreciate, then consider it essentially worthless until the market turns in your favor.
Investing in Illiquid NFT Projects
An NFT collection may offer value to investors who earn profits from investing in the potential of the project. NFT collections can have numerous applications and benefits, however, without attracting investors.
If you invest in a low-interest collection, you may discover that the project has no interest from investors, even when the price drops. You may also acquire a rare NFT collection and find that the price increases. This is why you should invest in value-based NFT projects and not buy into the hype surrounding them.
Falling for Scams
Scammers are having a field day with NFTs. One of the biggest mistakes you could make is buying your NFTs from scam links. These scammersScammers are having a field day with NFTs. One of the biggest mistakes you could make is buying your NFTs from scam links. These scammers exploit the excitement around an NFT collection and send out fraudulent links, which attract unsuspecting investors that drain their wallets.
exploit the excitement around an NFT collection and send out fraudulent links, which attract unsuspecting investors that drain their wallets.
Only use the links sent out by a project’s team on their official website and social media accounts. If you get a random link from a Discord member, find the project’s official site and only make your purchase there.
Not Securing Your NFTs
NFT investors may be defrauded out of their investments by using insecure wallets. Be sure to invest in hardware or software wallets like Trezor or MetaMask that can keep your NFT secure, as well as facilitating buying and selling easily.
These wallets can be prone to hacks, however, from human error like clicking on fraudulent links, providing details about the wallet to fake support team members, and downloaded harmful graphics or codes. Users are also subject to minting an NFT and having it hacked at the start.
Be sure to protect your assets by purchasing secure wallets and guarding your seed phrase and wallet details. You should also consider investing in a VPN software and antivirus.
Investing in the Short-Term
Some are entering the NFT space with the intent of short-term gains. If you believe in your NFT selection, it’s best to hold onto it for the long term to get the best results. Consider a cryptocurrency like Bitcoin, which started low and has grown to an all-time high value of over $68,000 in the first quarter of 2021.
Don’t panic when you see price fluctuations. Even the most valuable collections will have highs and lows. Your collection could have an upward trend over time, which will help you enjoy a worthwhile investment.
NFTs Mistakes to Avoid
Looking for a Blockchain Marketing Agency?
Crowdcreate is a leading crypto, NFT, web3, and metaverse marketing agency that’s helped some of the top projects in crypto create buzz, grow a digital community, and connect with influencers & investors.
Advice from Twitter
Learning is sticking with the same project through ups & downs, making mistakes within that project while building, & working your ass off to get it right.
— Anthonyjay.eth (@NFTViking) May 11, 2022
Silly #NFT mistakes that you should avoid ❎❌❎#Blockchain #NFTs #ETH #nft #NFTCommunity #EthereumNFTs pic.twitter.com/ORL2NAXgab
— Albin.eth (@albin454) May 7, 2022
16. Learn from your mistakes. A lot of you will be finding now that there is no liquidity to sell your NFTs because everyone is trying to sell at the same time. Floor prices are prices you can BUY at not SELL. Recognise what is a quick flip/gamble and don't get over-exposed.
— OSF (@osf_nft) May 9, 2022
Don't judge NFT by its followers.
— T O L U 🏕️ (@xOfuryOx) May 7, 2022
People keep making this mistakes.
Looking for a Blockchain Marketing Agency?
Crowdcreate is a leading crypto, NFT, web3, and metaverse marketing agency that’s helped some of the top projects in crypto create buzz, grow a digital community, and connect with influencers & investors.
NFTs Mistakes to Avoid
Get Started with NFTs with Crowdcreate
NFTs are a hot trend, with both creators and investors getting into it. This makes the industry ripe for beginner mistakes that can cost you, however, no matter which side of the transaction you’re on.
If you’re looking to invest in NFTs or minting your first collection, Crowdcreate can help! As a top-rated NFT marketing agency, we have our finger on the pulse of what’s hot in the NFT market. Book a call today!
