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8 Factors to Consider Before Buying NFTs in 2024

Cem Dilmegani
Updated on Jan 11
3 min read

29% of adults in the US are interested in purchasing NFTs but making an investment requires making correct decisions and having sufficient knowledge of market dynamics. In this article, we will explore factors that you should be aware of before buying NFTs. 


Choosing the correct blockchain is an important decision because blockchains differ in terms of: 

  • Security
  • Transaction speed
  • Transaction cost 
  • Volume of NFT trading

Transferring NFTs across different blockchains is not easy. Solutions such as NFT bridges that utilize oracles in smart contracts have been developed to facilitate cross-chain interoperability. However, bridges can be complicated and risky to use.

In order to understand more about NFT blockchains, read our Top 3 NFT Blockchains article. 


Marketplaces are where NFTs get traded and listed. OpenSea is the largest NFT marketplace but there are other marketplaces. Factors that you should consider before choosing an NFT marketplace are: 

  • Commission fees
  • Supported blockchains
  • Supported cryptocurrencies
  • Types of NFTs traded

To learn more about marketplaces, read our NFT Marketplace article.

Choosing the NFT 


Rarity is a concept that determines how rare the characteristics of an NFT are. This is important in collectibles and gaming NFTs because for collectibles, it is the characteristics that make them special in a collection. In gaming, they can have different game-altering effects. Rarity can have an effect on the appeal and the price of an NFT. 

Services such as Rarity Sniper and Rarity Tools offer rarity ranking of NFTs.


Check the seller’s previous transactions, how much their NFTs have been sold, and what has been their price performance. If you are buying from the artist directly, check their previous works and collections. If an account or a collection has been verified, that is a good sign that they have been audited before. However, not all accounts have verification badges but it does not mean they are inauthentic, it just means that you should do more due diligence before transacting with them. 


NFTs can offer both digital and real-world utilities such as discounts, VIP tickets, community access, etc. It is worth checking if an NFT offers any utilities. For example, buyers of Time’s magazine NFT were granted unlimited access to Time’s website, and Time’s in-person events.



There are many instances of fraud happening in the NFT market. Frauds use different techniques such as :

  • Rug pull
  • Phishing 
  • Pump & dump

Be aware that if an opportunity sounds too good to be true, it probably is. 


NFTs like arts and collectibles are illiquid investments. There can be a significant time gap between the time an NFT is listed for sale and the time it is actually sold (if it is sold). Research from Cointelegraph has shown that many of the NFTs in some of the major collections have not been sold even once. 

Figure 1. Sale count per token


NFTs prices are volatile. NFTs are denominated in cryptocurrencies, usually in Ether, and cryptocurrencies are subject to significant price swings. Prices of NFTs also change based on demand. There are numerous instances of NFTs which have dropped in value significantly. For example :

  • NFTs issued by American rapper ASAP Rocky have dropped in price. One of the NFTs was originally issued at $2,000 but it was last sold for $407.
  • Elion Musk’s wife, Grims, issued an NFT for $7,500 but it was last sold for only $50.
  • Jack Dorsey, one of the Twitter founders, sold his first tweet as an NFT for $2.9 million but when the buyer tried reselling it, the offer went up to only $6,800.

Further reading 

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Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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