Did you know that in April 2021, an NFT was sold for over $4 million? As more people continue to create and sell NFTs, more individuals become interested in investing in them.
But, investing in NFTs isn’t as straightforward as other digital assets, so investors need to carefully consider each step.
Would you like to learn how to invest in NFTs? If so, we invite you to stick around as we break down the fundamentals of NFT investments.
Can I Invest in NFTs?
The first step in your NFT journey begins with knowing if you can invest in non-fungible tokens (NFTs), and even though the answer may seem obvious, it’s good to understand the implication of investing in NFTs.
Like cryptocurrency, NFTs are located on the blockchain, meaning they have a lot in common when stripped down to their bare bones. The difference is who creates them since programmers create cryptocurrency while artists create NFTs.
That means anyone can invest in NFTs no matter where they live, as long as they have an internet connection and have an account on one of the many NFT-based websites similar to this web page.
So, if you want to invest in NFTs, you’ll need to make sure you have a stable internet connection, an account with a reputable NFT company, and a decent amount of investment funds (preferably cryptocurrency).
How Do I Invest in NFTs?
Now it’s time to learn about the extensive NFT market, where artists upload their creations and investors/collectors participate in an intense bidding war. Not all NFT markets are the same, so you might find some with a set price for a specific piece of digital art. Make sure you find one where you feel comfortable purchasing NFTs.
In most of these NFT markets, you’ll need to bid with cryptocurrency, with Bitcoin being the most popular one.
But some markets allow investors to bid with lesser-used cryptocurrencies like Carando or Stellar Lumens. You may find some sites that let you bid with Stable Coins (Tether, Binance, or USD Coin), but those are usually rarer to find.
Which NFT Is Worth the Investment?
There are many good NFTs to invest in, but you’ll need to be careful and not purchase too many at a time. The best you can do is start small by investing in cheaper NFTs from lesser-known artists. You’ll want to choose NFTs that appeal to your artistic taste as well.
And if you’re not the creative type, you can always hire a consultant to lend you a hand.
Investing in NFTS Is Easier Than Ever
As you have seen, investing in NFTs is not complicated, mainly if you use this guide to help you during your investment venture. Be sure to always research before investing in NFTs since it’s a volatile market. And don’t forget to bookmark this guide for future reference!
Did this NFT guide help you in expanding your portfolio? If so, we invite you to browse through our other NFT-related posts before you go!