How to Choose and Purchase an NFT?

The NFT market is growing at a fast pace, with the first NFT collections reaching incredible prices. You can easily become an investor if you gather all of the info on the basics and, of course, understand how NFT may make you money in both the short and long term.

The following article is dedicated to everyone who wants to learn about NFTs. So be patient and pay close attention to the specifics as we explain what is an NFT, where to buy one, and how to invest in the right one.

What are NFTs?

NFT stands for non-fungible token. Non-fungible means that you cannot replace it with something completely identical. NFTs are one of a kind – each and every one of them is unique.

There are different kinds of NFTs, and we’ll divide them into categories for better understanding. The biggest group and the most successful one is the collectible art, but you also have the sports collectibles, music, property, and gaming tokens, which allow you to unlock treats and bonuses in online games. You can invest wherever you prefer, and you’ll have quite the collection over time.

Different kinds of NFTs

• Collectible art: This includes PFPs, which stands for profile pictures and it also all of the other unique arts, such as the Nyan Cat, a GIF that sold for $690,000. It also contains generative art, photograph, and unique pieces, for obvious reasons.
• Sports collectibles: As kids, we loved collecting cards with our favorite players, having posters in our room, T-shirts with their numbers on… as adults, we can now continue this fandom with many willing to invest in sports NFTs that are also unique. For example, the NBA top shots have surged in their poularity, featuring unique moments from the NBA league, with different basketball stars.
• Gaming: Many of the online popular gaming platforms offer you the chance to have your own unique character, weapons, clothes, or other bonus features that you can add in to your gaming experience. Although this might not be for everyone, avid gamers are making this type of NFT very popular to own and trade.
• Property: NFTs in the property niche can act as a legal paper document that will provide you with evidence of ownership.
• Music: With a Music NFT you get the opportunity to have rights over a music video or audio clip. But sadly you won’t find yourself with a Rolling Stones classic, this type of NFT currently only applies to newly produced music, owned solely by the artist.

Why Do People Invest in NFTs?

Both the artists and investors have great reasons to invest in and create NFTs.

Investors, particularly like NFTs and there are a variety of reasons why investors purchase them. Some people want to own the underlying asset, while others may see the item being tokenized into an NFT as valuable. Others may want to invest in NFTs in order to gain a better understanding of blockchain technology.

Artists on the other hand are creating those NFTs for both lucrative reasons, and for the love of their craft. So no matter if they sell well or not, these creative individuals want to create their own masterpieces in a modern digital time.

How to Choose the Right NFT for You?

Of all the groups there are, you need to choose only the most valuable ones to you. That way, you’ll be able to gather quite the collection, and you’ll have your money’s worth.

Remember that, no matter if you have ownership of an NFT, people can still freely use it. You just have the legal rights to it. Now that we explained that, let us proceed and talk about choosing the right NFT.

Always ask yourself the following questions before investing in a non-fungible token:

• Will there be an NFT market in the near future?
• Do I need to buy this NFT right now?
• Is the price too high?
• How much am I willing to spend, or how bad do I want to have it?

The good thing about NFTs is that they are unique, and two people cannot have one of the same kind. This will lead to many trade offers, selling, and purchasing new NFTs.

For any NFT you buy, there will likely be others that would want it too, but its value is only that in the eye of the beholder. Always invest only what you can afford, and be cautious when investing for the first time.

To trade NFTs, you can find people on social media platforms, such as Twitter and Facebook, but a more secure way is to trade and sell on an NFT marketplace, which is a well-trusted and verified place for all the tokens.

To invest in NFTs, you need to have an e-wallet with cryptocurrencies. Most NFT marketplaces require Ethereum. If you’re worried about investing in crypto, you should know that Ethereum is quite stable, and specialists only have positive predictions.

Start your NFT Collection

Now you know the basics on choosing an NFT you can start to build your own personal collection for investing and trading.

For more informative articles on NFTs, cryptocurrencies, and other investments, check out the rest of our blog.