NFTs (non-fungible tokens) have become the biggest blockchain and crypto story in 2021. From Cryptopunks to pet rocks, we have seen all sorts of digital items put up for sale in the name of NFTs. And as the craze continues even to the end of 2021. You might ask yourself, when, where, and how to buy NFT drops. Here is a guide.
NFT Drops – Know when to buy
NFT Drop simply refers to the release of an NFT project. It includes the date, time, and the general minting price of the digital assets. In most cases, NFT drops have purchase limits that apply to the number of NFTs a collector or a trader can mint in a single transaction. There are many reasons you would want to purchase NFTs during the project launch.
This is how to get NFT drops. First, you buy at a bargain price. In most cases, mint price is approximately the lowest price a successful NFT would ever sell. NFTs increase in value with demand. However, most NFT drops will have a constant minting price for the early buyers. This price is often reasonable and not influenced by any anomaly market movements. Once the NFT is minted and listed for secondary sale, the market movements will hold sway on its value as reflected on its price. Any successful NFT will increase in demand hence value. Therefore, buying NFTs early is one of the tricks of acquiring a successful NFT cheaply.
Second, buying NFTs early gives you a rare chance of acquiring highly rare NFTs. Rarity is one of the major factors that influence its value, demand, and price. A highly rare NFT is very rare to find on the secondary markets. However, if you find some, their pieces might surprise you – they are too expensive. Some Meterverse will give equal chance for anyone to mint any NFT at a flat rate for any tier. Some lucky buyers may get highly unique NFTs that may attract more value soon after. For one-of-one (1v1) NFTs, you can enjoy this benefit, especially when dealing with a less famous artist or an upcoming one. Such artists usually do not price their artwork so high, even though the work may be of high quality. Buying such arts can be a golden chance to own a rarer NFT and high-quality NFT, that might turn out to be a holy grail in the future.
Third, you minimize risk by buying NFT early. Investing in NFTs has its risks just like any other investment. Knowing when to buy NFT is essential for your success. The NFT market is speculative, and there is a chance that any NFT can flop. In case that happens, buying early will mean you minimize the risk. For example, CryptoPunk #1422 is currently valued at over $2 million. Four years ago, this NFT was bought at $74. Assume you bought this NFT that early, and still holding it, will it worry you so much that its value has dropped from $2 million to $1.5 million? However, imagine the person who bought the NFT recently at $2 million receiving such news in the drop of the value. Such news will be a threat to them because they will lose money.
Know where to find NFT Drops
The easiest place where to find an NFT drop is on the marketplaces. Many marketplaces list many NFTs for sale. Large markets such as OpenSea, Axie, Nifty Gateway, and Rarible are homes to many types of NFTs including arts, sports collectibles, trading cards, virtual reality. These platforms will list the upcoming drops. You will find the description of the NFTs, the date of release, and the price. Other markets will specialize in specific areas for example gaming and sports. Additionally, there are curated NFT marketplaces, which operate with invites only. They select the artists that use them. Such platforms have high-quality NFT drops. However, they are expensive.
Twitter and other Social sites are platforms where you can find NFTs. Twitter is the leading communication channel for the NFT community. Nearly every artist or project that deals in NFTs have Twitter channels that they communicate through to the rest of the community members. You will find the news about the upcoming drops. You can type keywords such as “#Upcoming NFT drops” easily find relevant results. Other sites such as Discord and Telegram also host NFT communities and you will find relevant information about the upcoming NFT Drops. Finally, YouTube also proves an important source of news about NFTs. Some famous channels by experienced NFT community members are resourceful in knowing about the upcoming NFTs including the stealth drops (the unannounced launches).
How to buy an NFT Drop
Now that you know when and where to buy NFTs and how to find them, here is what you need to do to purchase them.
First, you need an account with the marketplace that has listed your drop. Different sites have different signup procedures. However, the registration process is relatively simple for all the marketplaces. Second, you have to add your payment method to the platform. Some sites accept both fiat and cryptocurrency payments. In the case of fiat payments, you should connect your bank card. However, if you are paying with cryptocurrency, such as Ether, you will connect your wallet to the platform.
You need to be ready for the launch after connecting your payment method. Some NFTs sell within a very short time, even in seconds. You should be on time and prepared for the launch.
Once the project goes live, you can browse through the collections, in case there are many NFTs, to find the one that best suits your demand. Once you have identified the NFT, click on the buy button and make the payments. You shall have claimed your NFT.
NFTs are arts, therefore, they are designed to have hedonic value as much as they have the functional (monetary) value. Therefore, ensure you find an NFT that you enjoy. The one that you can flex. Finally, consider doing good research before you purchase an NFT. Having good information about an NFT will help you find the right asset. Additionally, you reduce the risk of being scammed by fraudsters who cone people through fraudulent NFT projects.
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Good luck as you join the exciting world of NFTs!