How to Trade NFTs Securely

how to trade NFT

One of the biggest strengths of web3 and NFTs is that it is a decentralized ecosystem. Without the traditional gatekeepers, this latest iteration of the web has seen individuals innovate around art, finance and community. However, that strength in decentralization can create complications for people looking to trade NFTs in a secure way. This article examines some of the reasons to avoid trading NFTs directly with another anonymous user and demonstrates why sudoswap.xyz is such a valuable platform to trade NFTs.

The Problem with “Trust” on the Blockchain

With the rise of public adoption of NFTs, we have unfortunately seen the rise of scams, particularly when it comes to trading NFTs. Typically, what will happen is that a user may post to Twitter or Discord their desire to trade one token for another asset. Soon, someone may swoop in and offer a trade that either seems (1) too good to be true or (2) completely reasonable and offer to trade the assets directly with each other.

As the old adage says, if it is too good to be true, it probably is. If you feel your “Spidey sense” begin to tingle when you’re on the receiving end of an offer that just seems overwhelmingly in your favor, chances are that it is a scam. This is enough for most to back away from the trade. However, the instance when the offer seems reasonable can be equally damning. After a little bit of back-and-forth negotiation, you may agree to a trade in principle, but you quickly discover that you’re at an impasse of the mechanics on how to trade NFTs.

Love blog articles like this? Subscribe to the NiftyPins.io newsletter now!

Because the blockchain is immutable and irreversible, this will be the first question you’ll have to tackle: who should send over their NFT first? If you are to transfer your asset to an anonymous individual, how can you verify that they will actually hold up their end of the bargain and trade NFTs with you? This situation feels like the scene in Pulp Fiction at the diner where everyone has their guns drawn but someone must make the decision to put down the weapon first.

Often, a scammer might give you multiple reasons why you should send your asset over first. In the event of one of those “too good to be true” trades, they could say that since their asset is worth more, you must send yours over first. They could appeal to your emotions and use a little bit of PsyOps by telling you a sob story of how they’ve been burned before and really don’t trust anyone. Or they may just present themselves as a nice guy and come off with a golly-gee-shucks folksy attitude and ask you to trade first.

Regardless, when you rely on trust of an anonymous individual when trading NFTs and transfer your asset first, you are putting yourself at risk of being scammed. There is no centralized entity to reverse that trade and help you get that asset back—once it is transferred from your wallet and confirmed on the blockchain, you no longer own the NFT.

Sudoswap.xyz is the Trustless Platform for Trading NFTs

So how can you trade NFTs with a person if you can’t trust them? What is the best way to protect yourself when trading NFTs and ensure that you don’t get scammed in the process? The answer is that you need a trustless system like sudoswap.xyz for trading NFTs.

The sudoswap.xyz homepage—this is a trustless platform that is a solid place to trade NFTs.

A trustless system means that you can interact with an anonymous individual and ensure that you can achieve a given outcome without having to “trust” them to uphold their end of the bargain. So, if someone does want to make an NFT trade, you have the ability to create a swap for the exact assets that you want on the sudoswap.xyz platform.

Simply connect your wallet and select the assets that you want to trade, they can include the following assets:

  • ERC-20 Tokens: these are crypto tokens built on the Ethereum network that can include Wrapped Ethereum (WETH) or other tokens such as AGLD, MUSE, XMON, ASH, and more. These types of tokens have an “amount” that can be specified.
  • ERC-721 Tokens: these NFTs tokens are from a “single” collection, meaning that there is one owner for a given token and would include assets such as Bored Ape Yacht Club, Blitmap, 0xmons and more. These types of tokens have a specific ID that denotes which token it is.
  • ERC-1155 Tokens: these NFTs are from a “multiple” collection, meaning that a multitude of individuals can own a given NFT, this would include some of the Ghxsts tokens as well as Sugar (Genesis); however, sometimes the creator can cap an ERC-1155 token at just a single owner (such as Gutter Cat Gang). These tokens not only have a specific ID to denote which token it is, but also an amount of tokens that are to be transferred. 
An example NFT trade on sudoswap.xyz.

After making the selection, you not only have the ability to see a thumbnail that represents what NFT you are trading, there is also a link to view it on OpenSea (more on this later). Going through that similar process, you can then select the assets that you want to trade for by selecting the types of tokens that will be part of the trade. Finally, you set an expiration on the trade and can select a specific wallet address that can complete the NFT trade—this is particularly important if you are requesting an ERC-1155 to prevent another individual with a token from that multiple collection to make that trade.

Reviewing a Sudoswap.xyz Trade Proposed to You

While creating the NFT trade is one way to ensure that you’re receiving the exact NFTs that you want, a user may find themselves on a receiving end of a sudoswap.xyz trade. If this is the case, you will want to verify that all the assets are from the correct collection—note that a bad actor may try “spoof” a particular NFT in a bogus collection. To ensure that the NFTs that are being proposed in a trade are the genuine deal, you should click the OpenSea link and do the following:

  1. Validate NFTs from a Verified Collection—if it is an NFT from a “verified” collection, such as Bored Ape Yacht Club, there should be a blue check mark next to the collection.
  2. Double Check the Contract for Non-Verified Collections—if it is from a newish project or one that has not seen a lot of secondary sales, it may not be verified on OpenSea. In this instance, you should do your level best by validating that the NFT is from the correct collection; the best place to start is connecting with the creator of the collective via Discord or Twitter.

As a person receiving a sudoswap.xyz NFT trade you must realize that the system ensures that you will receive the assets that were proposed in the trade. However, you should double check that the NFTs offered in the trade are from the genuine collections.

Completing an NFT Trade on Sudoswap.xyz

To agree to a trade on sudoswap.xyz, you will have to sign a transaction and pay the gas fee for the trade. When both parties accept the NFT trade, sudoswap.xyz will seamlessly transfer the given assets to both individuals. This completely removes having to “trust” the anonymous individual on the other side of the NFT trade to hold up their end of the bargain. And in using sudoswap.xyz, you are interacting with a platform that has been through rigorous audits and is created by 0xmons, a technologist and artist wildly respected in the web3 community.

So when you look to trade NFTs, be sure to protect yourself from would-be scam artists by using a trustless system like sudoswap.xyz.  

Leave a Reply

Your email address will not be published. Required fields are marked *