How to buy an NFT and not get duped, experts explain

Non-Fungible Tokens or NFTs are the latest Web3 feature that is taking the world by a storm. Digital artworks and collectibles are being sold for millions of dollars, celebrities are minting their NFTs, movie studios are getting in for promotion and merchandising, NFT Play to Earn games are becoming a big industry, but how can people like you and ride the NFT bandwagon?

Experts at the Business Today Crypto Conclave have sorted it out for us!

Kashif Raza, founder of Bitinning explains how to choose an NFT before investing. He compares NFT projects to start-ups saying most projects would fail.

He also advises the new investors about the two types of NFTs that are available in the NFT marketplaces. He said “There are two kinds of NFTs, licensed NFTs and unlicensed NFTs. Licensed NFTs are NFTs which are authorised by creators like Yuvraj Singh or Prithvi Shaw, and they are listed on NFT marketplaces.”

He further explains how users can invest in other kinds of NFTs and what steps they need to keep in mind while doing so.

“Join the Discord channels of NFT projects and try to get into the Whitelist where you can actually contribute to the ecosystem and you get NFTs for free by the way.”

Whitelists in the context of NFTs are sort of like VIP lists of members of the community who can mint the NFTs of the project in their name before the sale goes live for the public. They can also contribute to the ecosystem by giving suggestions to the core team of the project.

Raza further highlighted that choosing an NFT is as difficult as choosing another financial product.

“It takes a lot of pain and patience to choose an NFT. Do not just go on a website without research and put your money because you will most likely lose your money that way.” He further added, “The process is just like buying mutual funds or stocks or other financial assets. You need to do your research, consult with your family, your financial consultants before making an investment.”

Well, now that the process has been clarified, let us hope we make smart investments and not lose our money in scam NFT projects.