Non-Fungible Tokens (NFTs) are the big solution to the issue of digital asset ownership. Due to their strategic storage on specific networks of blockchain technology, they are highly protected assets. Hence, NFT owners can gain royalties on their NFT tokens as long as it remains valuable within the NFT marketplace.
However, the major downside to these NFTs is their tendency to lose value rapidly. Hence, many NFT owners watch their assets go dust right in front of them! This has become a major concern to owners and traders of NFTs over time. Thus, without innovative processes such as NFT swapping, the NFTs can be quite unreliable as assets to be held onto for a long period!
As with other problems under the sun, a suitable solution has been found! The method to override this trend in NFT marketing is termed ‘NFT swapping’ in the NFT marketplace.
Now, do not get this twisted. NFT swapping is more of a trading technique that enables the NFT merchant to make reasonable returns on NFTs within their possession. It is not a new technique in the fintech place, however, it is just being introduced and applied to the NFT marketplace. By the day, it keeps being promising and valuable within the NFT space, so much that it only gets better by the day!
To swap NFTs, you need to have NFTs in your possession! Your first NFT could either be acquired in the NFT marketplace or created by you. NFT acquisition via purchase is quite straightforward. The NFT can be acquired once an equivalent amount of money (or other valuable) has been deposited into the NFT merchant’s account. Creating an NFT from scratch is not as straightforward anyway. Still, there are various means by which NFT can be created with little or no stress.
What is NFT swapping?
This is the process of buying an NFT while at a low price and reselling it at a high price (when it appreciates). You can think of it as buying stocks or cryptocurrencies while they are new on the market and available at a low price, with a potential to appreciate over time. Once the stock appreciates the owner then sells it off at a profitable margin.
Therefore, this process requires careful study and examination of the history and potential of the NFT in question. This prediction on the probable increase in value of the NFT to be swapped might not be correct at all times. Hence, there is a risk that the NFT swapped by an individual might not give a return on investment at the end of the day if the collectible did not eventually emerge as a big hit among collectors.
Hence, NFTs are swapped when the value increases or the floor price of the token has increased exponentially. At this point, the NFT holder quickly sells it off and goes on to hunt other NFTs with the potential to appreciate over time.
NFT swapping can take the form of:
- NFT to NFT swapping
- NFT to Cryptocurrency swapping
- NFT to Cryptocurrency + NFT swapping
Apart from the application of NFT swapping to works of art and music, gaming nfts are becoming much more relevant and significant in the NFT marketplace. As the gaming industry is waxing stronger, so also is its value increasing in the NFT marketplace. NFT swapping has been of immense value to the gaming industry as it helps to protect the integrity of the game.
How to swap your first NFT
NFT swapping us becoming more lucrative by the day! This development is due to a continual boom in the amount of NFT projects launched every day. Hence, the pool of NFT collections keeps getting larger than it used to be, therefore, the NFT trader who wishes to take part in NFT swapping has to be shrewd and skilled at circling out the NFT collectibles with the highest potential to return a decent amount upon swapping.
It is advisable to secure NFTs from new collections. This is because, most times, hopping in on newly released NFTs gives the most returns on investment. While this might not be the case at all times, newly released collections have a great tendency to appreciate quickly since they come into the market at a floor price which is bound to increase with time and attention from NFT collectors.
Below are some steps you can follow to successfully swap your first NFT:
Step 1: Once you have decided to engage in NFT swapping, you would have access to two libraries. The first is usually the library of the NFTs belonging to you while the other contains the NFTs or tokens you would love to swap with.
Step 2: Now, choose whether you want to Swap an NFT or Token.
Step 3: If you choose NFT, then from the library, choose the particular NFT you want to swap.
Step 4: Now, from the other library, choose which NFTs/ tokens you want in exchange for your NFT.
Step 5: Once your listing is ready, you can initiate the swapping.
Step 6: Complete your NFT Swap
Yes, it is as simple as that! Once all these steps have been dutifully followed, you can start expecting your first mouth-watering margin from NFT swapping if all goes well in the NFT marketplace as predicted.
Conclusion
NFT swapping has proven itself to be of immense value in the NFT marketplace as it has been a major source of income for many NFT marketers and is still on the increase! Therefore, the initial problem of NFTs – rapid loss of value over a short period, is being properly addressed by this NFT swapping technique. This means that the NFT marketplace is gradually becoming more like the stock market where speculations are made over what stock would appreciate over time and what items would depreciate in the long run. Once the steps outlined above are properly valued, you would well be on your way to making your first interest in NFT swapping.