There are many great investment opportunities when it comes to NFTs, but how do you decipher which ones are worth your time? In this review, we will be going over how to find NFTs, invest in them, and questions related to investments in NFTs without NFT experience.
An NFT Art marketplace, specifically built to handle blockchain transactions, is used to buy and sell NFTs due to NFT licensing. There is a wide range of costs when looking at buying NFTs- prices can be anywhere between a few bucks to a million dollars. To start the investment process it is necessary to create a digital wallet, specifically one that securely stores Cryptocurrency. Once you have created a wallet, you can purchase Cryptocurrency, which will enable you to start your investment journey.
After creating a digital wallet, the next step is to begin research on NFTs available on creditable marketplaces. Some well-known NFT art marketplaces include , Digital Art Marketplace V-ART, OpenSea, Async Art, and SuperRare.
When choosing an NFT, you want to look for one that you think has the potential to grow in value. NFTs are unique, so it may be wise to diversify your collection unless you have found your niche. NFTs can come in the form of art, music, videos, or even parts of a video game. While there are sites specific to selling NFTs, you can also find them on Twitter or Google.
After you have found an NFT that you like and believe may become popular/valuable, look into the details of the piece. Take a deeper dive into the price, when the item will be for sale (or if it already is), how many of the NFTs are for sale, and the cryptocurrency requirements for payment. These qualities can help you determine how valuable the piece is to you. It is also helpful to join discord or other social groups related to the piece or project you are looking to invest in.
How to invest in NFT: 6 main steps
If you have never purchased crypto before, fear not! Below are the steps to get you going in the right direction.
Step 1: Select a broker or crypto exchange
A Crypto exchange is a platform for buying and selling cryptocurrencies. This type of platform also provides storage for crypto, without the need for crypto mining. There are hundreds of crypto exchanges available, so you just need to find one that works for your needs and price range. Some well-known exchanges are Binance, Coinbase Exchange2, and Robinhood Crypto.
A Cryptocurrency broker is a suitable option for beginners. Generally, it is one person or a company that acts as the middle man when someone wants to exchange different currencies for crypto.
Step 2: Verify Your Identity
After you decide on which option best suits your needs, you will need to open an account and verify your identity. Each site may be slightly different, but the steps will be similar. You will need to upload your name and personal information, and then submit a photo of your identification.
Step 3: Set Up Funds
Your Crypto account will be similar to a bank account, you must ensure that there are sufficient funds in your account before you can purchase crypto. You can deposit and withdraw money the same way. Depending on the firm or broker, you may need to wait a few days before the money is available for use.
Step 4: Order The Cryptocurrency Of Your Choice
After your account is set up and there is money in your account, you are ready to order your currency. There are many options of cryptocurrencies to choose from, some widely known and others rather obscure. Here is a list of the most commonly used ones.
After doing research on what type of currency you would like to buy, you can enter the name and how many coins you would like in your account. Most exchange brokers will allow you to purchase fractional shares of crypto that cost more than you need/can afford.
Step 5: Store Your Purchased Crypto
Now that we have begun our discussion on how to invest in NFT without buying NFTs, the next step is storing your crypto. This process is going to be a bit different than storing money in your bank account. These exchanges and purchases cannot be backed or protected by the FDIC. It is crucial to have a secure place to store your crypto, and remember all of the information and passwords associated with your account.
Crypto exchanges often have more leeway in letting you decide how and where your Crypto is kept. Secure storage and transactions are a must! One of the most secure ways of storage is a hardware wallet. They are a form of offline storage that stores the user’s private keys and currency in a secure hardware device. These wallets are a needed extra layer of protection ranging from 50-300 dollars.
When an NFT is purchased, it is stored in either a crypto wallet on the same blockchain, on a different blockchain, or in decentralized storage. As a digital object, the NFT can only be displayed on a screen, usually as part of a website. In most cases, you don’t own the copyright on the original asset (the NFT creator does), so you can’t reproduce it, and you can’t sue someone for copyright infringement.
These wallets allow the storage of your crypto as well as the NFTs that you purchase from the marketplace.
Step 6: Select NFT Marketplace
Once you find an NFT marketplace, the next step is to connect your crypto wallet to the site. Each marketplace has its own requirements for your wallet. Some NFTs will be sold at a flat rate, some will be auctioned off, and others are sold privately so you may need to contact the seller with an offer.
Remember, it is simply impossible to invest to NFT without NFTs, so do your research and find one that you think will grow in value! There are so many opportunities available for investments in the world of digital art, it just takes patience, a good digital art marketplace, and security of your assets!