In this article, I’ll show you what to look out for before buying an NFT.
Although the NFT market has been booming, not all traders are cashing out big.
Only the ones that recognize the NFTs that will do well are making large profits.
Now, if you don’t understand how NFTs work, I suggest you first read this article.
My goal here is to let you know what makes an NFT profitable so that you’ll invest your money wisely.
Also, I’ll be focusing on Binance NFT, one of the trusted platforms for trading non-fungible tokens.
Are you ready? Let’s jump right in!
Table Of Contents
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1. Indicators To Look At And Evaluate Before Buying An Nft
Binance is a renowned cryptocurrency exchange with many excellent services including Binance NFT.
On Binance NFT, artists, creators, and crypto enthusiasts come together to create and trade top NFTs.
But how do you know the right NFT to buy?
Check for these indicators:
a. Ranking
The Binance NFT marketplace displays three ranking boards:
- Single NFTS that have been traded the most and at the best prices (Top sales)
- Collection of NFTs that have gained the highest traction (Top Collections)
- Creators whose NFTs sell out very fast (Top Creators)
These boards give you a clear picture of how well an item is doing compared to others.
So, you want to go for the items that rank very high.
If you’re still unsure, you can browse the “Recommended Creators/Collections” on the Binance NFT homepage.
They are selected based on the quality, popularity, and recency of the creator.
Cool, right?
b. Floor Price
The second indicator you should check for before buying an NFT is the Floor price.
This is the lowest price available for an NFT collection.
It shows you the entry cost to own an NFT in a specific collection.
Knowing the floor price, you can confirm what your budget can get you.
Also, you can speculate how much profit you’ll make when you re-sale.
Additionally, you may want to monitor the floor price for some time before making a purchase.
A steadily increasing floor price suggests demand is rising, and that’s a good thing.
c. Trade Volume
Before buying an NFT, you should also check the trade volume.
This indicator shows a collection’s trading volume over the past seven days.
Generally, a high trading volume is a good sign that the collection is very liquid.
So, you can decide whether you’ll buy the NFT as a long-term investment, as an art piece to own, or sell in a few months.
d. Items
Here’s another indicator to check before buying an NFT.
“Items” show you the total number of NFTs in a collection.
That way, you see how many options you have.
Also, it helps you confirm that the creators are not minting more than what they initially stated.
e. Last price
Lastly, check the last price before buying an NFT.
Following the latest price an NFT was traded or sold for, is an easy way to know its value.
Then you can decide whether it is worth your money or not.
Note: you’ll find these indicators when you open an NFT Collections Page
Now that you know the indicators to check before buying an NFT, let’s see how you can buy one.
Tag along!
2. How To Buy An NFT
Follow these simple steps:
i. First things first, you need a Binance account. Don’t have one? Then create yours using my referral link.
If you have an account, just log in and select Binance NFT from the homepage.
ii. Using the indicators explained above, find the NFT you like and click on it.
iii. Next, you click on “Buy Now” to complete your purchase.
Bravo!
3. Conclusion
This is where we’ll draw the drapes in our discussion on what to check before buying an NFT.
Certainly, you can make huge profits from buying and selling NFTs.
Ensure you check for the indicators above to make the best choices.
Are you ready to start buying NFTs? Then click here.
Got any questions or thoughts on the topic? You can drop them in the comments section.
I hope this article was worth your time. Please share it with your friends.
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