NFT is still a relatively new concept. However, since March 2021, the low-key world of crypto and NFT has exploded. Celebrities like Shawn Mendes, Paris Hilton, and Eminem have invested in NFT to raise thousands of dollars. While some, even close to a million. Apart from big-name celebs, NFT has proved especially beneficial for rising artists. Beeple has made a smashing $69 million for his art using NFT tokens. Athletes have also been successful in earning from NFT tokens. In fact, within a year of launching NBA Top Shots, Dapper Labs is valued at more than $7.5 billion.
Therefore, given the rise in its popularity, more and more creators are trying to understand what NFT tokens are, and how they can create and sell their work to earn money through it. But, is NFT limited only to creators?
Of course not. Like every financial ecosystem, whether it is based on reserve money or cryptocurrency, investors play a significant role. So, if you are curious if it would benefit to invest in NFT, the answer is yes. And no.
Are NFTs a good investment?
Whether to invest in NFT is a good long-term investment or not, depends on your personal interest in them. Always remember four things. To begin with, do your own research. Like any other financial unit, NFT also requires doing research. Figure out if the project is stable and built to succeed. If the company launching the NFT is secure and can be trusted with your contribution. You have to believe in its potential before you decide to invest in NFT.
Secondly, never invest more than you can risk losing. Once you find an NFT you are sure of investing in, it is crucial to not go overboard. As the popular saying goes, investments are subjected to market risk. The cryptocurrency market is just as volatile as the traditional ones. Nothing is permanent. Hence, while risks may bring bigger rewards, in the end, they are in fact unpredictable.
Thirdly, never let go of your profits. Ask yourself if it is wise to hold on to an NFT when you have an opportunity to make a good profit. Even though there is a chance that it may yield you more money later, you want to be cautious of overtrading.
Last but not the least, always prepare your exit strategy. If you have a plan on how to invest in NFT, you should also have a plan for getting out of it. Hopefully, with the initial investment, and additional profits.
How to start invest in NFT
Firstly, decide on a marketplace. To get started you will need to do is to find a marketplace that is easy to navigate. Investors often lack the technical knowledge behind cryptocurrency to invest in NFT tokens. Therefore, a transparent marketplace with a user-friendly interface is advised when buying your first NFT.
Make sure the platform of your choice is accepting your wallet. MetaMask is the most popular wallet choice to invest in NFT. It is one of the foremost crypto wallets and, undoubtedly, most respected in the NFT community. But there are of course more options. Coinbase and WalletConnect are also, just as good alternatives.
However, do not share your wallet information (that you are not sure what it means) with strangers. As the blockchains are decentralized, if you lose your crypto once, it is pretty much impossible to retrieve it back.
The only left for you to know to invest in NFT is gas fees. NFT tokens are run on blockchain networks. The most used blockchain network is Ethereum. But, every blockchain network is going to charge you gas fees for an NFT transaction. Therefore, if you’re bidding on an NFT, you are putting a bit of your money at stake. Hence, your best bet would be to find a marketplace that offers the cheapest gas fees and minting costs.
NFTically is one such platform that can help you in trading your Non Fungible Tokens. In NFTically, you can open your store in just a few minutes. Minting, selling as well buying are the options that NFTically provides their users. All you require is to set up a wallet, build your collections, put in your NFTs (which can be an image, song, video clips, etc.), and at last, list those NFTs up for sale.