NFT’s, otherwise known as non-fungible tokens, are the new craze in the digital world for the past few years. Essentially unique digital assets, or collectibles that are created using blockchain technology, NFT’s are changing the art world forever. This same technology also provided a platform for cryptocurrencies to be created, therefore creating publicly accessible decentralised data.
To put it simply, these unique NFT assets are the digital version of a rare and expensive Monet painting sold at Sothebys. Although it may seem as though these assets can be copied and pasted anywhere online, only one person holds ownership of the digital asset. This means that these owners can also programme royalties for themselves into the metadata before they decide to sell it on. This allows them to receive a percentage of the future profits, helping to secure a profitable investment.
To become one of these investors, it is important to do research on the NFT market. Intense research is necessary to truly understand what is currently popular in the NFT world, what is likely to increase in popularity and price and what is losing value. Understanding the history of the artist, the story behind the art and the meaning of it all, all contribute to understanding whether that particular NFT is an investment piece or not.
Tips for finding the best NFT’s to invest in
- Firstly begin by exploring sites that house NFT’s that are available to buy, such as Opensea and Rarible. These sites will give you access to a wide variety of NFT’s, providing categorisation to help understand them better.
- Once familiarised with these sites, it is time to look into individual NFT’s and the properties they hold. These will help you to understand the rarity of the NFT and therefore how profitable it can become.
- It is also worth looking into whether that particular NFT creator has a community or not. This will help determine how popular the NFT will get.
- Find out how rare the NFT in question is – how many versions of the NFT did the creator make and is there anything distinctive about this one?
The NFT world already ballooned to a $41 billion in 2021, and predictions show that this is only set to rise by a considerable amount in the next few years, with some experts estimating a growth of another $35 billion this year. Therefore, if you are interested in investing in NFT’s, now would be the time.
To find out more information on NFT’s, the growing market and the important things to look out for, then check out YouTube, Discord and Twitter. These social media platforms are where the majority of NFT enthusiasts spend their time.