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NFTs: how to get started

February 06, 2022

Hello, friends. Enough of the training articles already. It’s time to write a guide.

How to start getting into NFTs? How do get started making them? How to protect yourself from scammers? How not to make mistakes? How to evaluate the token and potential profit before buying? Today we will analyze the typical mistakes.

I remind you of the basic concepts:
  • blockchain is a decentralized database containing information about all transactions within the ecosystem. Records in the blockchain cannot be deleted, modified or damaged. The blockchain is alive as long as at least one computer of the ecosystem is alive.
  • non-fungible token (NFT) is a container on the blockchain that has been assigned a unique identifier. Anything can be in the container, most often it is a link to an object, or its hash. Sometimes (if NFT is Pure) this is the content itself together with the rights transfer agreement.
  • minting is the process of NFT “release” into the blockchain.
  • marketplace is a showcase where NFTs are presented.
  • provenance is the history of NFT ownership.
  • KYC/AML verification is an identity procedure for the security and protection of the buyer.
Reliability. Pure NFT standard
It would seem that an imade in Paint in five minutes is worth nothing. No, it is valued for its uniqueness and reliability. In fact, this is an attempt to return authorship to the author: by buying NFT, you know that the content was created by a certain person at a certain time. Blockchain is a reliable fixator of this fact.

Someone will start speaking about anonymity now. Like, which author, who is he, I don’t know him! I can also post something and say it’s mine. Who will check it?

That’s the first minus. Classic NFTs are not backed up by anything. These are links to objects, a set of letters and numbers, in fact. To buy the rights to them is imprudent. However, the problem is solved by the FOIL Network company with the Pure NFT standard, for many reasons:

1. The creation of such tokens is possible only after passing KYC/AML verification. Therefore, the blockchain records the authorship of a certain person, not an unknown anon. The numbers of scammers will decrease, because no one wants to be substituted if their data is in a "trusted center".

2. The Pure NFT contains the content itself. Therefore, you acquire the rights to it, not to the link.

3. The purchase and sale of Pure NFT is absolutely legal and correct, since inside, along with the file, there is a rights transfer agreement.

Well, what is all this for? – can you ask. After all, according to your own words, if the blockchain overcomplicates the procedure, it’s not needed.
In fact, it only sounds cumbersome. For the author, only registration will be more difficult than usual - due to the identity verification procedure. The buyer may not create a “person” at all, but simply buy an NFT in a couple of clicks. Everything is simple on both sides. But reliability increases hundreds of times. This is both fencing yourself off from scammers, and owning real rights to content ... So, Pure NFT is what you need if you have just started and have not yet invest money or create a digital art object.

How to choose a marketplace?
There are many platforms for trading NFT — OpenSea, Mintable, Rarible, SuperRare, Foundation, Nifty Gateway, Binance NFT… And everyone has the same problem - near-zero reliability. With all due respect to the security systems of the exchanges, there have been many stories of hacking, theft, etc. After all, if the NFT is stored not in the blockchain, but on the centralized server, this server can close, move, change the owner ... So, data security isn’t guaranteed. And it’s a hundred times easier to post someone else’s work if there is no identity verification system.

And... FOIL Network again. Firstly, verification allows you to upload only your own work. Of course, you can also use someone else’s, but if you get caught on this, access will be denied to a person, and not to anon account or computer. And, everything uploaded is stored in a truly decentralized repository — and its name is blockchain. Even if the marketplace closes, a person will lose only the showcase, but not the purchased digital art objects.

You may ask: why is this paragraph in the article, if the Foil is the only decent marketplace? Why do you need this article if it all returns to your own network?

Answer: FOIL is launching bridges between its own marketplace and everyone else now. In other words, Pure NFT can be bought on many exchanges, not just one.

How does it work? A person uploads Pure NFT to the FOIL Network, then uploads a classic NFT linked to Pure to the desired exchange, and here. Buying a classic NFT, you know that you also bought a similar Pure NFT - with content and with an agreement.

So, if the exchange supports an identity verification system, it’s good. If the NFT from it can be linked to Pure NFT on FOIL, it’s good. If there are any additional security measures, own ways to solve the problems of classic NFTs, it’s good.

The main beginners’ mistakes. Safety
Firstly, if you decide to buy NFTs, not create them, pay attention to the collections. As a rule, collectibles are in demand. And never buy only one token from set, otherwise you will not get a tenth of the real value for it.

Secondly, when buying a token, make sure that it is issued by the real author, not by a scammer or a team of scammers. It’s easy to find an author who knows nothing about NFTs, and start selling his works. This is what all kinds of scammers use — benefiting from the ignorance of users.

Everything again rests on the Pure NFT format. Firstly, collecting is possible only if the owner has real rights to his collection. This does not happen with classic tokens. Secondly, in the case of Pure NFT, the originality of the work is much easier to prove, since anonymity is killed. Each token has a history of ownership, which can be viewed at any time.

Technical aspects. Registration
On some exchanges, registration is not required at all — it is enough to log in via MetaMask. On some, the registration is only formal. The hardest cases are where proof of identity is required.

Let’s look again at the example of FOIL Network.

1. At the very top of the screen, select the Wallet point

2. Click "Register" in the upper right corner

3. Agree and click "Continue"
4. Come up with a password. Continue
5. Copy the LED (a set of letters and numbers) and save it where convenient. Download the erakey. The place of saving should be protected as much as possible. You will lose everything, if scammers will get access to that.
6. Continue. Enter the copied LED. Continue. I think you can do without a screenshot here.
7. This is what a newly registered account looks like.
8. Wallet — digital ID — verification
9. Fill in the fields - as much as you want. It will not be possible to change or delete the information in the profile. Therefore, you should not fill in the fields with foolishness — otherwise the account will not be verified.
10. Click at the bottom of the screen "Add person". Enter the email and an other contact. Click "Send" and wait for feedback from the registrar.
Don’t forget to copy the RAW code! It will still come in handy. In fact, this is all the data you entered, only in encrypted form.

11. Send the RAW code to the mail The data goes to a trusted center. If necessary, you will be asked for a passport and other documents. The employees/validators do not store this data. This is especially important for European users, due to GDPR.
Okay, I signed up. What’s next?

Then you have the opportunity to buy and sell, and in case of successful verification, even create your own Pure NFT. Not just to buy and sell, but to be the creator. This gives you a number of new features:

  • transfer unique rights to content;
  • get royalties from secondary sales;
  • sell the result of your creative work;
  • monetize creativity as such.

In fact, the FOIL project is conceived as a platform for authors who want to interact directly with the buyer. On other platforms, this is not implemented so vividly, but it still deserves attention.

How to sell, you ask? Understand what is in demand, and resort to the same methods. In particular, you can make a name for yourself on a new platform that someone has just created. It’s much easier. And having a certain reputation, you can wait a relatively constant flow of customers.

Question: if I am the buyer?

Answer: buy what famous people do. Then you can sell it for more.

Question: I do not know anyone here at all, I literally just arrived.

Answer: take a look around, check what is actually often bought from the author, and which items go from the same hands to others in a narrow circle. You should think about mass users, because it’s more likely that people will be bought things from you more expensive. Do NOT rely on niche things.

Question: and what to do with collections?

Answer: collect as many rare items as possible, then sell or keep to show off. Collectors are envious people, they will not resist.

Question: Which collections sell best?

Answer: collections made by famous people, collections of in-game items, collections on a popular topic. The main thing is to catch a wave.

Question: I am the author, what should I create? How to get started making NFTs?

Answer: grow in some way you want. The main thing is that the progress should be visible to the naked eye. Eventually, you will develop your own promotion strategy, taking into consideration your unique features. In the NFT world prices are much, much higher than usual. Because the author and the buyer interact directly, and everyone knows who created the digital art object and at what moment. Especially when it comes to Pure NFT.

So, we remembered the basic concepts, evaluated the reliability of Pure NFT, learned the criteria for the reliability of the marketplace, discuss about the main wrong acts, learned how to register on platforms and found out what is worth and what is not worth doing at the very beginning. See what people are interested in, try to follow the trends, and you will always be able to buy something and sell more expensive. As author, try to earn a reputation. The one way is to exhibit good works for adequate prices. In the crypto world, both those and other people are valued. There's a place for everyone.

In the next article, I will tell you in more detail how to make money on NFT, and what exactly makes the collection sell. Stay in touch!
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