Non-fungible tokens (NFT) are relatively new and emerging investment options, and they are becoming popular because of the feasibility and reliability that it gives to its customers. NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.
NFT’s can include almost everything under the sun like Art, GIFs, Videos, sports highlights, Virtual avatars, video game skins, Designer sneakers, Music, and even tweets!!
So, let’s first get into the background of the NFT and how it works.
NFT’s does not have a tangible form of its own. There are two parties involved the creator of the digital content and the buyer. Unlike cryptocurrency, the value of the content is independent of any parameter; it solely depends on the buyer. For instance, Nyan Cat GIF was sold $580,000; although it is over-valued, it depends on the buyer and its buying power.
The only difference between a physical asset and NFT is that in NFT buyer gets a digital file in a token which is saved in the buyer’s wallet linked with the NFT exchange. The buyer has the ownership right, the duration of which depends on the smart contract. It is important to note that there can only be one owner of an NFT at a particular time.
Investing in NFT’s
To invest in NFT’s you have to follow these simple steps:-
Step 1-Choosing the right asset.
Choose an NFT: something that connects you with your passion or personal liking.
Step 2 — Storing the asset.
Choose a wallet that matches the blockchain of your non-fungible token.
Step 3 — Buy and resell tokens.
Buy it low, sell it high if an opportunity arises — the only formula for investment.
How to buy NFT?
The first thing that you need to do is to get a digital wallet that will allow you to store cryptocurrencies and NFT’s that you buy. Then you need to buy the cryptocurrency that your NFT provider accepts. You can do it using your credit card on the platforms like Coinbase, Kraken, eToro, and even PayPal. A percentage of your transaction is charged as fees by these platforms, which you need to keep in mind.
Where can you buy NFT’s?
Once you have got your wallet set up and funded, there are many marketplaces where you can buy your token. Some of the most popular NFT marketplaces are:
- OpenSea.io: This peer-to-peer platform bills itself as a purveyor of “rare digital items and collectibles.” To get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new artists. You can trade with Ethereum, DAI, USDC, REVV, Whale, and wBTC on OpenSea.io.
- Rarible: Similar to OpenSea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform enable holders to weigh in on features like fees and community rules.
- NBA Top Shot: this platform is exclusively for NBA fans. Here you can buy, sell and collect NBA officially licensed NFT’s. You can buy your favorite card directly using your credit card.
- Investing in NFT’s is not like investing in cryptocurrency or stocks where you only look into returns; it’s more of a pleasure that you drive through those assets.
- Choose a trusted provider for storing your investment.
- Consider your risk appetite and evaluate how much money you would be okay losing.