To play safe in NFT
Bear in mind again - high return means high risk
if you cannot figure out why that image is worth that price, don’t invest in it
high volume doesn’t always mean it’s a blue chip, it could be certain price manipulation
a lot or pump & dump activities occur in NFT, most eventually drop to zero price & volume
Be aware of fake roadmap & partnership
projects generally write a year long roadmap, but mostly no more action right after minting
partner with famous brands highly increase NFT’s value, only when it’s a real partnership
How to avoid them
do you own research - verify the legitimate of the team, project, vision and roadmap
try judging the value is because the art + community or it’s just purely good marketing
never overtrade - as the volatility of NFT is much high than any crypto assets, holding an NFT far more than the amount you can afford you won’t be able to trade rationally
Stay away from NFT scammers
Scammers are especially active in NFT space as the ‘reward’ is high per ‘deal’, they may approach you via:
Discord
send DM with fake minting link / phishing link
hack discord server and post fake minting link
To avoid: block direct message, check the validity of links with server mods
Opensea
loads of fake creators & collections that reupload pirated copies of other NFT collections
people place bid in wrong currency to mess you up, e.g. place a 1 DAI bid for a 1 ETH item
airdrop malicious NFT that contains harmful contract interactions
To avoid: verify opensea link from twitter/discord; double check before accepting any offer; never interact with unknown NFT people sent you
Sudoswap
scammers send fake sudoswap link so you sent yours item to them for free
put pirated copies NFT to imitate the real one
To avoid: always create your sudoswap link by your own from official website; alternatively, pay fee to opensea to ensure you get want you trade
Wallet signature/access request
pop-up signature/access request from phishing site
call your action repeatedly if you enable auto-approve (on Solana wallet only)
To avoid: only sign/approve what you clearly understand
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