NFTs are a high-risk, speculative asset. There are no protections if things go wrong, and you should be prepared to lose all of the money that you put in to purchasing NFTs.
There are steps you can take to learn more about NFTs. This may help you make better choices when it comes to which NFTs to buy, sell, or trade:
1. Explore the community. X is the #1 social media for NFT, web3 and blockchain. Sites such as MagNFT keep you up-to-date with the latest news, and the community openly discusses a wide array of topics and questions.
2. Do your own research. Found an NFT collection that you admire? Before you do anything else, conduct your own research into that collection. Do not rely on third-party sources. Who is behind these NFTs? What have they done before? Are there any red flags that stand out?
3. Stick to what you know. From blockchain games and NFT art to on-chain music, there’s an endless number of niches in the NFT space. By sticking to what you know, you will have a better idea of what to expect – and will be able to more easily spot something that feels incorrect.