Before you decide to buy that NFT, have you considered that you may not necessarily have all the information that would guide you into making an informed decision?
To avoid scenarios where you you’d have to learn from your mistakes instead of learning to avoid them in the first place, Click Clone Cash shares some useful tips you should know before diving into the NFT space.
Making money off NFT is cool until you fall to the scam of profiteers on the different platforms, so stay at alert by arming yourself with the necessary information.
Click Clone Cash shares five tips spread across the different questions of this interview.
It’s easy to identify a good NFT that is worth your money. There are a few things you should look out for and these include verification of the seller. This will further reassure you that you are buying from a credible account.
Beware of imitation projects, some are deliberately copying the design of popular NFTs to market as their own, this is why you should put a little more effort into verifying your prospective NFT before purchasing.
On the Ethereum network, you are charged a certain fee known as gas fee for every transaction. However, this fee varies from time to time, depending on the volume of use on the platform at every time.
If you are lucky enough to hack your way into know when the network is at its lowest usage, you are already one step ahead and would only pay the minimum amount as gas fee for each of your transactions.
I think it has to be the fact that it’s not as easy for you to convert your NFT to fiat currencies as it is for Crypto assets. Basically, liquidity is not fully encouraged with NFTs. Reason for this?
The sale of NFT to get cryptocurrencies in return may take longer than necessary unless you find someone who is interested in peer-to-peer sale, it comes with a risk to the buyer too as there is no way to verify the authenticity of the piece.
You can also list it on popular auction websites, but this too comes with a downside, you will be charged ERC-20 network fee for selling on a secondary platform.
Do I have to pay taxes on NFTs?
NFTs are not taxable but when sold for a profit, the cryptocurrency derived from it becomes taxable by the IRS.