Safety measures to keep in mind while purchasing NFTs

NFTs are very common and are also getting very popular in the crypto world. Many real-world assets are not getting converted to NFTs which makes it easier for people to sell and trade. In a way, it is very good but there are also so many scams around this. People sell fake NFTs and try to make money. Not everyone understands how to be careful about this. I thought I will cover some safety aspects in this article.

Research the project before buying

The first thing to check is for a whitepaper. Most of the crypto projects would have a whitepaper that should provide an overview of the concept and what people can get from the NFTs or the cryptocurrency. Make sure you understand the NFT project and the founder behind it. Look for reviews, ratings, and feedback from other buyers. Sometimes we may not be able to do all the research but others would have done the necessary research and shared their thoughts. That can be very useful.

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Use a reputable marketplace

It is very important to choose the right marketplace to view and purchase any asset. Buy from a trusted marketplace that has a good track record of protecting its users and providing customer support. The project should have enough support for us to feel good about the project and at the same time, we have to make sure the marketplace is also good and reputable.

Verify the authenticity of the NFT

There are so many fake NFTs going around everywhere. Check the smart contract address, the metadata, and the history of the NFT on the blockchain to ensure that it's legitimate. It is good to make sure we are purchasing the correct NFT and there is no harm in getting help from people who know better or people who have already bought an asset.

Be cautious of phishing scams

Sometimes people might approach us on Discord servers saying that they would like to trade for cheap because they need cash immediately. They would demand we send the NFTs first. It is good to stay away from such offers even if it is exciting. People might take our NFTs but never give any money in return and we would end up being cheated. Watch out for phishing attempts that may mimic legitimate marketplaces or wallets. This can even happen while we are making a purchase. It is always good to double-check the URL and verify that you're on the correct site.

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Use a secure wallet

Where we store our NFTs is also very important. Sometimes we might receive it in a common wallet or something. It is good to store your NFTs in a secure wallet that you control and keep your private keys safe. Don't share your private keys with anyone. Even if we don't know more about securing private keys, it is good to learn than get help from someone who is capable of compromising our keys and NFTs. There is always a high risk and we have to be very careful.

Be mindful of transaction fees

Transaction fees are one of the most painful things when it comes to crypto trading. This applies to NFT transfers and trading too. Transaction fees can be high, so make sure you're aware of the fees before making a purchase. It is also good to search for NFT assets on free transaction chains like Hive blockchain. We don't have to purchase NFTs cheaply and end up paying a huge price for transaction fees.

All these concepts are still very new and the markets are evolving. Be very cautious and try to read more about whatever you are doing. Otherwise, it can be hard to be safe.

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