If you’re familiar with the crypto world, you’ve heard of NFTs. Non-fungible tokens are becoming increasingly popular in the last several years as more celebrities and artists continue to endorse the NFT marketplace.
NFTs are becoming a part of pop culture and will most likely continue to grow in popularity as new and ambitious crypto projects are created, such as the metaverse project. If you’re interested in investing in NFTs, here’s everything you need to know about navigating the NFT market.
What is an NFT?
A non-fungible token is an immutable record of ownership over a digital or real-world asset. These records are encrypted and secured on a blockchain network, making them immutable and easily exchangeable between owners.
Because NFTs are unique and cannot be tampered with, digital artists have found utility in minting their digital artworks into NFTs to add inherent value to their work. Today, there is a vast NFT marketplace where digital artists of all mediums can mint and sell their artworks. Anything can be bought and sold as an NFT, including music, videos, artwork, real estate, etc.
How to Purchase NFTs
Because NFTs are held and secured by blockchain networks, you will need to invest in cryptocurrency before accessing the NFT marketplace.
Selecting Your Platform
The NFT market platform you select will significantly determine the ease of minting, purchasing, and bidding NFTs. There are many options for NFT marketplaces, so do your research before opening a digital wallet. If you’re an artist, consider an NFT marketplace built with artists in mind, like the FTX marketplace.
If you’re an investor, consider the top NFT projects and which platforms have seen the highest exchange rate in recent years. No matter why you’re investing, be sure that the platform you select is compatible with the cryptocurrency you will purchase, and consider the utility of that particular blockchain in the future.
Once you’ve selected the platform you want to use, you can open a digital wallet and fund it with the compatible cryptocurrency. You can then enter the marketplace and mint your artwork for a fee or begin bidding on NFTs on the market.
Some top NFT projects have sold for millions of dollars in crypto. If you’re unsure which projects to invest in, consider joining an online community of NFT owners and crypto investors who can offer you insight into the anticipated NFT drops and which collections are getting the most buzz.
Many celebrities like Snoop Dogg and Steve Aoki have recently heavily endorsed the NFT market, even going as far as creating their own NFT collections for auction. Once you’ve purchased or minted an NFT, it will stay in your digital wallet until you’re ready to resell.
Future of NFTs
Though the NFT art market will continue to grow as more celebs and artists continue to participate in and popularize NFTs, other digital projects are being developed that offer further opportunities for investors to take advantage of NFT assets. The metaverse is a major digital project that will utilize NFTs.
When completed, the metaverse will be a large, interconnected, and synchronous network of digital universes where users can create and exchange digital assets in the form of NFTs. The metaverse aims to overlap our real lives with our digital experiences and create a virtual environment for people to interact and participate in exchange.
These projects are backed by crypto and blockchain technologies to develop self-sustaining digital economies of scale. Projects like these offer investors the opportunity to purchase digital experiences, assets, and even virtual real estate as NFTs.
Start doing your research today and join crypto communities to stay on top of the latest in crypto news and events. Start investing in your favorite NFT collection today, or get involved in the metaverse and build your digital portfolio of NFT assets.