There are many different ways to achieve success in crypto, and one of them is called simply — NFT. It was a real buzzword about a year ago and is still quite a prominent player you should keep an eye out for. Is it a bubble or something promising after all? To know more about the topic, let’s uncover the concept.
What is an NFT?
NFT stands for a non-fungible token, which means it’s a one-of-a-kind item having unique identifying codes, an asset that can be used as an investment, a collectible, or anything else. Let’s say you want to have your documents or records in digital form, then you can transform them into an NFT.
They first appeared in 2014 but became really popular several years ago, mainly thanks to artwork.
Fiat and digital money are “fungible,” meaning they can be traded or replaced for one another. They’re also equal in value—one dollar equals another dollar, the same with Bitcoin, Ethereum, and other cryptocurrencies.
One NFT doesn’t equal another; they are different, so they can’t be easily traded.
How to buy and sell NFTs?
To buy an NFT, you need to get a digital wallet to store NFTs and cryptocurrencies. Then you need to buy some cryptocurrency, like Ether (ETH) or Bitcoin (BTC), depending on what currencies your NFT provider aims to get. There are several ways to buy crypto — using a credit card on platforms like Coinbase, Kraken, eToro, SimpleSwap now, and then transferring them straightly to your wallet. You have to pay fees that can vary from one exchange to another. Notice that a wallet needs to have the crypto required to buy an NFT you want. In two words, an NFT built on the Ethereum blockchain technology might require its purchase in Ethereum (ETH).
Find a marketplace and start looking for your perfect NFT. All the NFTs have a fixed price, or you can bid on them instead.
If you have an NFT, the digital asset is entirely yours, and you can do whatever you want to do with it. Keep it as a collectible, allow others to view it, use a part of something more prominent, maybe a project of yours, or just sell it to make some money. Where can you do that? There are many marketplaces out there, but keep in mind, they charge a fee for NFT sales. You can also have a look at our article about NFTs marketplaces.
If you are a Solana fan, then you can be interested in Magic Eden, Solsea, Solanart, Digital Eyes, Wax-oriented people would be happy to use Atomic Hub, and the most famous platform Binance can offer you Pancakeswap or Altura.
So if you aim to sell your NFT, get a wallet (by the way, SimpleHold’s wallet supports viewing your NFTs option and is user-friendly for beginners), choose a marketplace, upload your piece and decide if you want to set a fixed price or put it on an auction where buyers can place their bids.
When it’s uploaded, the chosen marketplace verifies it. If your NFT is sold, the marketplace will manage the transfer of the NFT from the seller to the buyer and will also transfer crypto funds directly to your wallet. To find out more about wallets, read the following article.
How to mint NFTs?
Anybody can turn something into an NFT and sell it on an appropriate marketplace.
The minting essentials look like this although there are slight differences depending on the marketplace:
- Get a crypto wallet funded with cryptocurrency.
- Choose an appropriate marketplace and blockchain platform where you want to mint an NFT.
- Find and click the "create" button within the marketplace and share your work.
- Place the NFT for sale either for a fixed price or for an auction.
If you're sticking for more information on the minting process, then take a brief break and read the article. No double, you'll find something helpful in there.
Pros and cons of NFTs
Why it's a great idea to buy an NFT:
- Certain physical collectibles (mostly art) can grow in their value and price.
- Buying and selling digital assets as NFTs widens the crypto horizons and creates more opportunities for the market.
- The "Smart contracts" mechanism ensures that artists and creators get paid based on the use and resale of their pieces.
Why it's not that great to purchase one:
- As NFTs are mostly static assets, they don't generate any income on their own and depend on a buyer's demand. As a matter of logic, their sky-high prices may fall toat any time.
- Minting and selling NFTs isn't free, the fees can be even higher than the cost of an NFT asset.
- NFTs can be considered environmentally unfriendly they use up a great amount of energy to create and verify transactions.
5 investment strategies
NFT Digital Art
NFTs get their massive popularity from digital artworks. Why so? Because they gave an opportunity to trade digital art and secured its ownership in the blockchain. Actually, the opportunity to secure ownership is the main reason why people mint, buy, sell digital artworks as NFTs.
Digital artworks were the first NFTs out there, and they are still the most sold ones in any marketplace. Buying an NFT artwork or buying multiple artworks from the same collection is an investing strategy that lets the investors sell them in the future when the price of those NFT assets grows up.
The concept of ownership in terms of dealing with properties is the most important thing. So no wonder that a transfer of ownership is quite a complicated process. That’s, of course, because intermediaries like banks, financial institutions, and brokers are involved. NFTs have changed that sphere a bit. By digitalizing the legal documents of the property into NFTs, a person claims and protects the ownership of the asset. That’s a much safer investment compared to a centralized version of investing in real estate.
Maybe the latest trend now, so still growing and developing. It’s about playing games and gaining profit from them. There are multiple options such as Axie Infinity, Guild of Guardians, Thetan Arena, Splinterlands, Coin Hunt World, and many others. Enjoy staking, yield pooling, gaining NFTs, and using other investing tools while having some fun.
Imagine that you have your own art gallery, how possible is that? Highly possible once we are talking about digital space. You can mint NFTs and sell them or buy the minted ones and “hang” them in your virtual gallery.
A person can invest in collectibles and art, but one should always remember that the value of the digital item is quite volatile and subjective. If you are lucky and have strong investing instincts, you’ll pick the best NFT to invest in and to sell for a higher price afterward, but if not, it will be just another NFT in your wallet.
Don’t forget that SimpleHold wallet gives you a great opportunity to hold and view all your NFTs and SFTs in one place within a minute.
- an SFT — is a semi-fungible token, that can be both, fungible and unfungible (NFT).
NFT marketing is almost the same as habitual marketing in the real world. Companies and organizations create and launch their collections, goods, services placing them on digital NFT platforms. NFT marketplaces are easily accessed worldwide and that’s one of the reasons why people are so into using those platforms.
NFTs are so popular now due to the necessity to be different and bright, to stand out from the rest. NFT marketing and promotion help a business increase its reputation by building stronger relationships with its audience and getting a better understanding of its demand and needs. Marketing is an excellent way to tell the audience about your product or even about the upcoming product, too.
NFT projects 2022 worth watching
There will not be a ranking thing here, as it’s pretty challenging to pick something particular. It’s way better to mention several options that could be interesting for you, and maybe you’ve not still seen these projects yet. It’s not a review, as well, as there will be several detailed articles about big projects in our blog, so that’s more like a brief sketch.
Let’s design high-fidelity sneakers that you can wear and take to the Metaverse. The idea got tremendous traction in the community where it convinced Nike to take action and acquire the company for an undisclosed amount.
Seems that there is something wrong with the cats but they are really successful even in crypto realities.
Cool Cats is an avatar project which is popular thanks to unique designs and funny-looking appearance. They became even more popular because some crypto influencers started buying them and using them as their avatars.
Those guys created the most expensive NFT collection of all time. It’s super difficult to own their NFT as they are costly, and there aren’t many people willing to sell them. They became a real rarity for those who have been into NFTs for a long time and for real.
Adidas began their NFT adventure by minting a 3D Version of their logo to see how much attention they get which turned out to be extremely successful. After that, Adidas collaborated with other gigantic NFT communities called the Bored Ape Yacht Club and Pixel Vault team to introduce their NFT Into the Metaverse Pass NFT. The NFT gives the holders access to 3 merchandise drops in 2022. That means only those who have those exclusive NFts could buy the merchandise.
It is one of the oldest metaverse projects started in 2017. There are only 10k plots of land available on Decenterland to buy, it’s not infinite whatsoever. You can walk around in the Decenterland, attend online Casino’s and place your NFTs for sales.
One of the most popular Metaverse projects started its history in 2021. Sandbox is a universe that empowers the users to create a game experience for each other. You buy land at SandBox in order to build your own world.
We must admit that NFTs could be a bit risky because their future is unpredictable, but one can always try their hand on it and invest some money to look at the dynamic if it’s positive or negative.
The point is that NFT’s value depends on what one wants to pay for it. So demand dictates the price rather than fundamental, technical, or economic factors.
Due diligence method stays on guard — do your own research, meditate on the risks involved, and don’t panic if you lose, investment is always about taking risks and responsibilities for your own decisions.