Start here if you're just getting started with investing.
If you're looking for NFT company and product reviews, we will be adding more soon, so check back frequently.
We'll be adding more NFT guides and articles soon, so stay tuned!
Investing in NFTs was the hottest trend of 2021 - 2022, and it looks like it’s just getting started.
Trading NFTs has become more and more accessible and popular since 2020, and a host of new tools and websites have come online to make buying and selling NFTs easier than ever.
With the explosion of popularity in trading cryptocurrencies, 2020 - 2021 saw the rise of a new kind of crypto asset: NFTs (Non-fungible Tokens).
In this guide, we’ll go over the basics of NFT investing, explore different kinds of NFTs, trading platforms, and more.
What Is An NFT?
An NFT is a cryptocurrency asset that represents digital ownership over online and offline assets like art, music, items in video games, real estate, and more. They are purchased and traded online, often using cryptocurrency, and are built on top of the same underlying blockchain technologies that popular cryptos use to immutably store information online.
NFT Meaning: NFT stands for "Non-fungible Token." Fungible is a term that describes the ability to exchange one item for another identical item (mutually interchangeable). For example, a dollar bill is equal to any other dollar bill, therefore you can exchange one dollar bill for another without any loss of value or ownership. NFTs are by nature non-fungible, meaning each NFT is 100% unique from all other NFTs and cannot be replicated, reproduced, or copied.
Investing In NFTs - An Overview
Investing in NFTs can be highly rewarding, and very risky. These unique digital assets can represent ownership in almost anything, online or offline. The most typical use-case for NFTs as of 2022 has been to represent ownership in digital art. Famous examples include collections like Crypto Punks, Bored Ape Yacht Club (BAYC), and others.
Investing in these digital tokens consists of buying them low, and selling them high. Unfortunately, NFT markets can be so volatile, that making money with NFTs can be hit or miss and very risky.
An NFT marketplace is a platform where people can buy and sell virtual goods. These digital assets can be anything from in-game currency to virtual items.
The main difference between an NFT marketplace and a regular online store is that the store itself (the marketplace) doesn’t own the product. Instead, the platform merely provides the infrastructure for buyer and seller to transact, with the platform taking a commission on the sale.
The most common type of NFT marketplace is for digital art. These include websites like Opensea.io, MagicEden (for Solana NFTs), and others.
There are also NFT marketplaces that are built specifically for games. These platforms allow players to buy in-game items from other players. There are even NFT platforms that are built specifically for eSports players who want to buy and sell virtual items from other players or teams.
The main benefit of a NFT marketplace is that it allows people to buy and sell virtual goods without 3rd party oversight.
Top NFT Marketplaces
2022 saw an explosion of NFT marketplaces.
Here’s a few of the top NFT exchanges:
BEST NFT MARKETPLACES - See Our Top 4 Choices
How To Start Investing In NFTs?
Investing in NFTs is a great way to start investing in the cryptocurrency markets.
The main advantage of investing in NFTs is that it is an easy way to get started and is usually more accessible to beginner investors. Buying something tangible like art is often easier for beginner investors to understand.
There are several ways to start investing in NFTs. One of the most popular ways is through an NFT marketplace like Opensea.
Here are the steps to get started investing in NFTs:
Download a decentralized wallet like MetaMask or Phantom (depending on the NFT you are buying). You’ll need to store your private keys and information offline so there’s no risk of losing access to your wallet. If you lose access to your wallet, you won’t be able to access your funds or NFTs. There are different wallets for different types of Cryptocurrency. For example, MetaMask is used to store Ethereum (ETH) and Erc-20 tokens and NFTs. Phantom is used to store Solana and Solana NFTs. There are tons of other wallets to choose from, so do your research first.
Fund your new wallet. Using a crypto exchange like Coinbase, Kucoin, or Gate.io, purchase the cryptocurrency you will need to buy your chosen NFT. Depending on the NFT and the marketplace, you’ll most likely be purchasing the token using Ethereum, Solana, Matic, Cardano, or some other altcoin. Make sure you know what cryptocurrency you need to fund your wallet. Once you’ve purchased crypto, send it to your new wallet.
Related: learn more about cryptocurrency investing here.
Connect your wallet to the NFT marketplace and create an account. For most decentralized NFT marketplaces, connecting your wallet is likely all you need to do to create an account. Some marketplaces may ask for more information like your email address.
Buy your NFT. Next you’ll need to find and purchase your NFT. Sometimes you can buy them outright with a “buy it now” feature, but you may need to bid on the asset. If you’re in a bidding war, you’ll want to determine what your max price you want to pay is and stick to your strategy.
What Makes An NFT Valuable?
An NFT is a non-fungible token. The value of an NFT is determined by its utility, market demand, and the regulatory landscape in which it operates.
For example, an NFT may be valuable if it is used to transfer money or assets or digital art between parties. An NFT may also be valuable if it can be used to store value or gain access to new financial services.
In addition, an NFT may be valuable if it can be traded on a public exchange. This is because it allows investors to buy and sell an NFT in a regulated environment.
Finally, an NFT may be valuable if it can be exchanged for other cryptocurrencies or fiat currencies. This is because it allows investors to diversify their cryptocurrency portfolios.
In short, an NFT is valuable if it meets the following criteria:
It is non-fungible. It can be used to transfer money or assets between parties It can be traded on a public exchange, or It can be exchanged for other cryptocurrencies or fiat currencies.
How Do You Make Money With NFTs?
If you're thinking about investing in NFTs, you're probably wondering if you can make money with them. The answer is yes, but it's not always easy.
Here are a few things to consider before you buy NFTs:
1. NFTs are still a relatively new phenomenon, so the market is volatile and prices can fluctuate rapidly.
2. NFTs are often stored in a digital wallet, so you'll need to be comfortable with decentralized wallets like MetaMask.
3. NFTs can be difficult to sell (illiquid, few buyers) so it's important to have a plan for how you'll exit your investment if you need to.
Overall, NFTs can be a profitable investment, but you need to be aware of the risks before you buy. If you're comfortable with those risks, then NFTs could be a great way to make money.
Are NFTs A Good Investment?
NFTs, or non-fungible tokens, have taken the digital world by storm. These unique digital assets are unlike anything that has come before, and they have the potential to revolutionize the way we interact with online content.
Recently an artist Beeple sold his NFT for $69 Million.
Naturally, given all the hype around NFTs, many people are wondering if they should invest in them. The answer is: it depends.
There are a few things to consider before investing in NFTs. First, it's important to understand what an NFT actually is and how it works.
Second, you need to evaluate the risks and potential rewards of investing in NFTs. And third, you need to decide whether or not you're comfortable with the volatile nature of the NFT market.
If you're willing to take on some risk and you believe in the long-term potential of NFTs, then investing in them could be a wise decision. However, if you're risk-averse or you're not sure about the future of most NFTs, then it's probably best to stay away.
How Much Does It Cost To Start Investing In NFTs?
Getting started investing in NFTs can be very expensive, or it can be very cheap. It all depends on the NFT you’re buying.
If you're not familiar with blockchain technology, you may want to consider taking a course or two on the subject. It will help you understand how NFTs work and how to buy them.
The price of NFTs can vary widely, so it's important to do your research before you list your items. You'll also need to set up a payment method so nft buyers can do nft purchases.
Conclusion - Should you invest in NFTs?
NFT investing is a new and exciting way to make money in the digital world, but it's important to understand the risks before getting started.
There are many different ways to get involved with NFTs, and the cost of entry can vary greatly depending on the project.
Be sure to do your research and invest wisely!