An NFT or non-fungible token is known to be a digital asset representing some practical objects such as music, art, videos, etc. NFTs are purchased and often sold online along with cryptocurrency. NFTs are unique in nature.
They usually are encoded with similar underlying software like various cryptocurrencies. But they are not identical to cryptocurrencies such as Bitcoin. As cryptocurrency is fungible, it is interchangeable, and thus an individual will be able to trade a Bitcoin for another. Instead, NFT is a digital emblem of a specific product that can never be created again or replaced.
NFTs can have multiple copies, may look identical, but they have different unique characteristics.
For example: Josie #14 and Josie #15, both look to be the same, identical but are and unique completely.
NFTs: History and The Current Trend
Before booming in 2020-21, NFTs were popular in 2017.
Cryptokitties took over the internet in 2017, and almost jammed the ETH network. It was a game where you could buy kittens, breed them and make a new cryptokittie. All the kittens are unique in characters. Dragon cryptokittie, a 9th generation crypto cat, was sold for 600 ETH (172000 USD).
There used to be a very few marketplaces for NFT back then. In 2021, we are experiencing a much bigger craze.
NFT Boom in 2020-21
MEME coin started the NFT craze in 2020.
Now as they are becoming a well-known way of buying and selling digital artwork, NFTs are earning fame. They being indivisible, a person can either have them all or not at all. People are seen to jump in the NFT market by purchasing few digital artworks of low price that are personally valued by them. You may not be able to sell it in the secondary marketplace, but as long as the investor will own it, it will be amusing.
Along with the current interest in cryptocurrencies such as Bitcoin, the interest in NFT has also expanded. According to a report, NFTs trading volume saw a 25x rise in March 2021 alone.
Recently Jack Dorsey, the founder of Twitter sold his first Tweet as NFT for 2.9M USD.
Want to Own a NFT? Get the Basics Right
Are you eager to make some investment in NFTs? Then it would help if you become aware of cryptocurrency, and you will require a digital wallet. It will let you store cryptocurrencies and NFTs.
Based on the currencies your selected NFT provider will accept, you will require to buy some cryptocurrency such as Ether. You can use it as a currency for NFT.
Then you can shift it from that exchange to your preferred wallet.
After it is in your wallet, browse some sites and get hold of the perfect digital artwork. Many sites will be showing you the prices for the digital artwork and event price history, if applicable.
If you do not have a wallet, set it up first and install metamask. Buy some ETHEREUM from any of the exchanges and transfer it to your ETH wallet, which will also be used to buy, store and hold your NFT.
How to buy an NFT?
The NFT marketplace is even now hugely decentralized. A very renowned NFT style, CryptoKitties is known to host its market like few other sites. A potential investor will wish to browse through all such sites before they commit to a certain investment style of NFT.
While some NFTs can be bought for $100-$150, some of the most famous are priced over $10,000. For individuals who wish to find out what the whole craze is about, purchasing a lower cost one will be much better than diving in with some high five-figure buy.
OpenSea
Opensea is one of the best NFT marketplaces. You can buy NFTs from various niches like art, domain names, virtual world, trading cards, collectibles, sport NFTs, utility and many more. It supports NFTs on the Ethereum network.
Rarible
Rarible is another ETH based NFT marketplace that allows users to create, mint, buy and sell NFTs. Like opensea, you need to have a metamask wallet with some ETH in it. Choose the one you want to buy, pay for it and store it in your wallet.
Kalamint
Kalamint in another marketplace based on Tezos. You can also mint, buy and sell NFTs on it.
NBA Top Shot
NBA Top Shot is a marketplace for NTA fans. Over 10 million top shot moments are listed for sale. You can buy top NBA highlights in the form of NFT, which you could later sale to another fan.
Buying and Selling NFTs for Profits: Is it advisable?
It is a personal choice if you wish to make investments in NFTs.
It will always be dubious that your experience with ETFs or stocks and cryptocurrency will assist you in becoming a profitable investor in this field.
If you make early investments in NFTs, there is a chance of making a fortune. But you may quickly lose all the money, if you find no buyer.
My personal opinion would be to stay away at this point from the NFT craze. If you get something for very cheap, or free, you could claim it or buy and hold it.
I personally think a heavy correction is due and many of the NFT projects may die in the long run. Wait for the things to settle in, and may be then take a dive in once you are confident enough risking your portfolio.
What are some of the best NFT projects?
There are quite a few NFT projects that I personally like where I have personally invested:
- Rarible
- Memecoin
- CHZ
- Decentraland
- Enjin Coin
NFT Project From GaryVee
VeeFriends
Veefriends is another NFT project that is to be launched by GaryVee. He plans to gift the users holding Veetokens gift multiple times in a year. Also the Veefriends NFT holders would get access to one on one chat with Gary Vee. Plus, there may be some PODCAST based NFTs. If you hold the NFT, GaryVee will appear on your podcast once a year. Since Gary has a lot of social presence and millions of followers, I expect Veefriends to be successful.
