NFT is one of the most powerful concepts in the digital world and its market is growing exponentially. It is expected that within 2025 the market value of NFT will reach around $80 billion. With the exponential growth and huge market value scamming are also growing rapidly in the NFT market. Scammers use different methods and techniques to cheat investors and buyers. In our earlier post, we discussed the most common scams. In this one, we will share how you can easily avoid those scams and make a profit from NFTs.
NFTs are all a craze now. Many investors and buyers come to NFT marketplaces to buy or invest in NFTs without proper knowledge or some people don’t even know what to do here. They just heard the word NFT and come on marketplaces. These types of people mostly fall into the trap of scammers. But NFT experts always suggest that before buying one must investigate that NFT to avoid scams.
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The most common scams are:
- Rug Pull Scams
- Phishing Scams
- Bidding Scams
- Counterfeit NFTs
- Pump-and-dumps
Now let’s know how we can avoid these scams to enjoy the digital world of NFTs. If you don’t know the details of these scams, we suggest you read our previous blog “5 Most Common NFT Scams to Avoid”
How To Avoid Common NFT Scams
How to Avoid Rug Pull Scams
The first thing to check to avoid rug pull scam is the developers behind the project to see if they are bona fide developers that have received good reviews over social media. If you see that they have a large number of followers but low engagement it could be a sign of a tell-tale. You can use a burner wallet to limit the number of funds you want to commit to particular purchase-including crypto for transaction fees. This will limit your transaction risk also.
How to Avoid Phishing Scams
To avoid phishing scams, you should never share your wallet’s keys on any pop-up ads or suspicious websites. You should always go directly to verified websites for your crypto transaction. Don’t use any links, pop-ups, or your email to enter your wallet’s key information.
How to Avoid Bidding Scams
Before listing your NFTs on any marketplace check the currency. You should double-check the currency used for bidding before selling your valuable assets. Don’t sell or transfer ownership of your NFTs without properly checking the currency type just by viewing the amount.
How to Avoid Counterfeit NFTs
Before investing in any NFT from any marketplace you must do some research work to identify that you are buying NFT from a verified account and the real artist. Without proper research, you may get a valueless NFT which may bring no profit to you. Most legitimate NFT sellers will have a blue checkmark beside their usernames on the marketplaces.
How to Avoid Pump-and-dumps
Before buying or investing in any NFTs you must check the transaction history of that NFT and the contact information of the creator in question. Transactions that center around one date could indicate a sign of a pump and dump scam.
Final Words
Avoiding these scams may help you to buy profitable and authentic NFTs but remember scammers always use new methodologies to cheat NFT buyers or investors. As an investor, you must have good knowledge of NFT to avoid scams. You could take our expert suggestion to grow your NFT businesses.
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