Why Should You Invest in NFT?

NFTs have been incredibly popular during the pandemic, driving many investors to wonder how to buy them. Artists and speculators have all been attracted to the trend as the value of cryptos and other digital assets have surged.

The judgment is still out on whether this is the beginning of a new long-term, high ROI investment or an unstable bubble almost certain to burst. NFTs, on the other hand, hold great promise for artists and have economic benefits.

Unsure what NFTs are? or how to get started to invest in them?. We have provided you with everything you need to know to get started.

What Are NFTs?

An NFT is a digital asset representing real-world artifacts such as music, in-game purchases, and media in digital form. Their basic encoding is similar to many cryptocurrencies, and they can be bought and sold online on the NFT marketplace, usually with bitcoin.

Even though they have been around since 2014, NFTs continue to grow in popularity as a method of digital trading art. Over $174 million has been spent on NFTs since November 2017.

In addition to being uniquely numbered, NFTs are usually one-of-a-kind or limited-edition.

Digital objects, on the other hand, tend to come in an almost infinite amount. By reducing supply, you can potentially raise the value of an asset in high demand.

For example, a renowned digital artist named Mike Winklemann, also known as Beeple, created EVERYDAY: The First 5000 Days,” probably the most influential NFT of the age, and was sold at $69.3 million.

Viewing individual images online free of charge, or perhaps the complete college is possible. Consequently, we must ask, why do people spend so much money on something they could easily download or screenshot?

As much as the item itself, collectors prize their digital bragging rights. because the buyer can own the actual product through an NFT. Additionally, it provides built-in authentication to confirm ownership.

Why Should You Invest in NFTs?

NFTs have consistently proven to be profitable as an investment alternative. The following are the reasons for this:

1. Anyone Can Invest in NFT

Everyone has the opportunity to invest in tokenized assets. With an NFT, asset ownership can be transferred more conveniently and efficiently between persons around the globe.

2. Creates Tokenized Asset Values

Physical items, like artworks, are tokenized using NFTs. This prevents art from being duplicated and gives the artist sole ownership. As a result, it contributes to creating artwork rarity and value.

3. NFT Has a Decentralized Marketplace

NFTs are a unique investment option, but artists can profit directly from their efforts because they are a decentralized market. NFTs eliminate the need for intermediaries and the royalties they must pay, which benefits investors.

As a result, the original developers of an NFT will be able to earn a referral fee if the NFT changes hands. This decentralized method distinguishes the NFT marketplace from others.

4. Offer More Liquidity for Investors

When you need it, tokenized assets provide liquidity to you, the investor, when you need it. If you own virtual land and elect to rent it to advocates or advertise for a fee, you are still the holder of the virtual land, but just a portion of it is liquified as rent.

5. NFT Ownership Is Secured Through Blockchain

Through blockchain technology, is it possible to securely signify the investor’s asset ownership? Asset ownership can potentially be made more transparent via blockchain technology.

6. Huge Development & Growth Potential

As previously said, NFTs have boundless potential for expansion and development in the land sector.

Owning and managing virtual lands gives you the power to determine what to do about your land in the real estate market. You can either rent it or use it to create an online marketing or advertising company.

7. NFT Provides Reselling Opportunity

The majority of people buy NFTs to resell them and make a profit. Because some of these collections are rare, investing in the correct NFT can significantly gain.

NFTs have great potential to reward you with tremendous earnings if you can make effective investments.

How To Invest in NFT: Step by Step Approach

We have provided you with three simple curated steps to invest in your first NFT. Follow carefully.

Step 1: Conduct Thorough Research on NFTs

You should choose an NFT that you believe has the potential to increase in value. The NFT can be a piece of art, musical, multimedia, or even a video game component. NFTs can be found by searching Google or Twitter.

While searching for the upcoming NFTs, note to observe these points:

1. When the sale starts from?

2. What are the cryptocurrency requirements?

3. How many NFTs have been sold till now?

You should double-check the following details about the NFT:

1. The team behind the NFT: you need a renowned group that can help increase the NFT\’s worth.

2. Whether it’s on or off the blockchain: Off-chain uses centralized servers, which means that if the server is down, the image will be lost.

Tip: Avoid NFTs which are held entirely off-chain. Make sure that the custodian can be trusted with your critical NFT.

Join the recommended Telegrams groups of NFT’s Discord to learn more about the projects and get a sense of what others are saying about this specific line of NFTs.

Step 2: Select an Exchange To Purchase a Crypto

To obtain the NFT, you must first purchase the cryptocurrency. The majority of NFTs are acquired with Ethereum, with a few anomalies. A specialized crypto brokerage or exchange, such as Coinbase (COIN) and Robinhood (HOOD), can help you buy Ethereum and other cryptocurrencies.

• Cryptocurrency Brokers: A company or individual who acts as a middleman to facilitate the purchase and sale of cryptocurrency.

• Exchange: Buyers and sellers engage with each other on an online platform depending on current market circumstances.

When purchasing cryptocurrencies, please remember that charges are essential. For a trade of $10 or less, Coinbase charges $0.99. The more considerable trade, the higher cost. SoFi Active Invest charges up to 1.25 percent for cryptocurrency trading.

Fees can be a flat rate per transaction or a percentage of an account’s 30-day trading volume. Analyze the costs based on the transaction quantities you intend to undertake to understand how much you’ll spend.

Step 3: Select a Marketplace To Purchase Your NFT

The NFT is purchased and exchanged on the NFT marketplace. You register and connect your crypto wallet once you’ve selected the marketplace where your NFT will be traded. Each marketplace will have its requirements for crypto-wallets.

Among the most popular marketplaces are:

• OpenSea
• Larve Labs
• Rarible
• Axie Marketplace
• NBA Top Shot Marketplace

Purchase and transfer fees and the price of exchanging one crypto for the other. Ensure you have enough cryptocurrency to complete the transaction, including any charges. The fees paid for mining in return for the computer power they employ to record events on the blockchain are known as gas fees.

Remember that the published price or the most recent bid for an NFT does not equal the total purchasing price. Due to gas fees, the final cost of an NFT sold at the equivalence of $40 in Ethereum might even be $150 to $200.

Top 3 NFTs To Invest

When considering how to invest in NFTs, you need to understand the most significant assets available. Here are five of the top NFTs to be aware of, as well as why they are so popular:

1. Crypto Punks

You’ve probably come upon CryptoPunks when looking into how to invest in NFT art. CryptoPunks was one of the first NFT collections, debuting in 2017.

Due to their first-mover status, these Punks became considered premium assets as the NFT craze grew, and many have since been auctioned for millions of dollars.

2. Mythia

Mythia is a drop worth noting on your NFT calendar, as it includes 3,333 pieces of original art featuring cyberpunk and animation characters.

However, Mythia attraction stems mainly from the added perks, as all owners have access to private Discord servers where they can discuss impending NFT drops with enormous potential.

Owners also have access to technological tools that make the NFT investment process easier.

3. Embers

Embers are yet another collection to consider if you’re just getting started with NFTs. Embers NFTs, like many other collections, are seemingly simple pieces of art with distinct characteristics and aesthetics.

The collection will be available soon, with 5,555 NFTs available and a promising future roadmap.

4. Bored Ape Yacht Club(BAYC)

Due to Eminem and Snoop Dogg investments, Bored Ape Yacht Club, NFT sales had surpassed $1 billion at writing.

5. Pudgy Penguins

Lastly, Pudgy Penguins is an assortment of 8,888 randomly created Penguins that investors can buy and use as profile images.

Even though the Penguins are only accessible for 0.03 ETH at the minting stage, several have gone on to sell for huge sums — one was being sold for above $450,000! Since its inception in July 2021, the collection has generated over $140 million in trade volume.

Best Way to Invest in NFTs

This guide has given you an in-depth glance at how to invest in NFTs, addressing all of the important issues and teaching you how to get started right away.

If you want to buy NFTs, we propose collaborating with Crypto.com.  There are no fees when purchasing NFTs on Crypto.com, and users can even invest in NFTs using a credit or debit card. Additionally, Crypto.com now offers Ethereum-based NFTs, guaranteeing that investors have access to the best collections.