After years of operating as a niche or exclusive asset for techies, Non-fungible tokens (NFTs) have become mainstream and are now seen as a way to earn revenue through trading. NFTs are digital assets created through blockchain technology to represent real or virtual items for which someone holds the copyright. NFTs cannot be replicated and represent things like paintings, real estate, digital artwork such as gaming avatars, and more.
Digital market insights from Statista show that 2023 NFT trends are positive. According to their findings, revenue from the NFT segment is expected to reach about USD 3,546.00 million in 2023. Other NFT trends from Statista suggest that user penetration will be 0.7% this year, with the average revenue per user at USD 70.46. Predictions show that user penetration will be 0.8%, amounting to 64.45 million users, with revenues projected to rise to over USD 8,068.00 million by 2027.
We share the dark side of NFTs in Asia and beyond
Thus, it is clear that NFTs are here to stay. Further data from Statista on Google Trends searches for the word “NFT” between December 2021 and November 2022 showed much consumer interest worldwide. People from Asia were more interested in NFTs than their counterparts in other regions. One area that has grown from that interest is NFT trading.
NFT trading 2023 statistics show that in the first week of the year, NFT sales increased by 26.01% from the prior week to reach approximately USD 208.99 million. While this segment thrives and gives people opportunities to earn money, it is also fertile ground for avoidable mistakes, that may cost someone a lot.
NFT Trading mistakes beginners should avoid
There are several things NFT trading beginners should do to avoid losing money:
- Not advertising your NFT
Many people obtain the rights to NFT items but refuse to promote them. The assumption is that the NFT is valuable and worth the price. NFTs are widespread now, and you must do something to make your NFT stand out.
Demand for your NFT will drive up its price, enabling you to trade it for a higher amount. Failure to do so might result in a loss if the value of the NFTs you own goes down.
2. Poor timing
While flipping your NFT can bring in a quick profit, it is risky to try to time market fluctuations to sell your NFT. Keeping your NFT for the long term ensures that once market prices rise, you will be there to benefit.
On the other hand, holding on to NFTs that have low value may not work in your favour either since the market may fail to recover, and you will have spent money on worthless NFTs.
3. Buying from shady sellers
Going to the wrong NFT marketplaces may expose you to cybercriminals who want to steal your NFTs. You will encounter scammers and hackers along your NFT journey, and you must ensure you protect your passwords and avoid downloading unknown files or clicking on strange links.
Furthermore, some marketplaces operate without any supervision. Thus, if you are not in a controlled marketplace, you could lose money buying fake NFTs.
4. Ignoring technology
Take advantage of technology to get the best deals for your NFTs. Visit the trusted NFT marketplaces, as they have the right technology to keep your trades secure.
Emerging NFT trends in Southeast Asia
With NFT trading becoming a vital part of the crypto and NFT communities, finding and using reliable marketplaces is crucial. OpenSea is the largest marketplace for NFTs. Others include CryptoPunks and TopShot. TheUpsideSpace uses NFTs and blockchain on its digital arts platform and spotlights artistic works created in Southeast Asia, South Asia, and the Middle East.
Developments in the NFT field are bringing in more people, but challenges are still being faced, for example, with how NFTs are created. Blockchain technology consumes a lot of energy, which affects the environment negatively. Regardless, blockchain and NFT trends show that many people are focused on improving blockchain, cryptocurrency, and NFTs to work better and cause less environmental damage.
Many of the 2023 NFT trends may revolve around Game Finance (GameFi). The GameFi sector is prevalent in Southeast Asia, with companies like Sky Mavis in Vietnam popularising NFTs and trading digital assets within games. Other solutions may emerge for investments, funding, online trading, copyright protection, and more.
Because of the strong appetite for NFTs in Southeast Asia, startups in the sector are emerging and will help build the ecosystem to innovate and solve consumer needs. NFT trading 2023 will likely bring onboard new traders to the NFT marketplaces, enhancing the user experience and earning profits while safeguarding the environment. Policymakers and stakeholders must create a conducive regulatory environment for NFT use and safety for the sector to thrive.