What is a Step-by-Step Guide For Investing in NFTs?
NFTs, or Non-Fungible Tokens, are a type of cryptocoin that is not divisible. This means that each token has its own value and can’t be split into smaller parts — it’s either all there or it isn’t.
NFTs are the next step in crypto collectibles which have become popular recently with games like CryptoKitties and PepeDogs. NFTs differ from fungible tokens because they’re more than just tradable assets; they represent ownership of something concrete, whether that’s physical property (real estate) or digital property (a song). Some examples of these “something concretes” might include: an individual share of Apple stock, the deed to your house, or a virtual sword in an online game.
NFTs are often issued on top of the Ethereum blockchain because it allows any type of token to be created using smart contracts that define ownership, price, and other rules for each token. NFTs can also be used by artists to sell digital goods like songs or animations — they’re even being used in games like War Riders to represent vehicles.
The number of NFTs is growing rapidly, but there are a few key players that have emerged as market leaders. Among these are Rare Pepe cards, CryptoPunks, Decentraland Land Parcels, ChibiFighters, CryptoKitties, and ERC721 tokens.
Are NFTs a good investment?
NFTs can be a good investment by viewing them as a long-term asset. When investing, people usually take into account the three factors: price, supply, and demand. If the supply of an item is low and the demand for it is high, then its value will look promising. NFTs are unique in this regard because there is no limit on the number of tokens that can be issued. This means that as more and more users create NFTs, the value of each one may rise or fall dependent on individual usage and popularity. Before you invest in any type of crypto collectible like NFTs, we recommend doing your research first to determine whether this type of cryptocurrency makes sense for your portfolio.
How to start invest in NFT?
If you want to invest in NFTs, then the first thing that you need to do is to create an account with an exchange where you can buy tokens. We recommend Coinbase because it provides a secure gateway for purchasing cryptocurrency. After you’ve created an account, follow these steps:
- 1)Open your browser and go to Coinbase.com. Log into your account or create one if needed.
- 2)Click ‘Buy/Sell’ on the left side of the page near the top of the screen. On the Buy/Sell page, select ‘Cryptocurrency’ from the drop-down menu next to ‘Select product’. Please note that this will only appear if you have not bought or sold any crypto assets before.
- 3)At the top of the page, you will see a search bar. There, type in ‘NFT’.
- 4)You should now be on a page that shows you NFTs available to buy. At this point, we recommend doing research before choosing which one you want to purchase since prices and supply may fluctuate. When you’re ready to buy, click the ‘Buy’ button next to the token of your choice. On this page, you’ll see two options: buying with a Credit/Debit card and buying with Bank Account (ACH). You can use either method; we recommend using bank account to avoid credit card fees and cut down on time.
- 5)After you’ve purchased an NFT, they’ll be stored in your Coinbase wallet and can be seen under ‘Accounts’. To access the assets you purchased, simply click on the ‘Overview’ page and select which currency you want to view. This will take you back to the ‘Buy/Sell’ screen where many more options are available.
Tips for investing in NFTs as a long-term asset
There are a few things that you should take into consideration when investing in NFTs:
- 1)Investing is risky and can lead to loss. Anything that we tell you, we cannot guarantee because markets change fast. All investments carry risk and there is no such thing as guaranteed profit. You’ve been warned!
- 2)Do your research before buying any tokens. Read the whitepaper and look at other reviews before you buy anything so you know what you’re getting yourself into! Research is king when it comes to investing.
- 3)Only invest money that you can afford to lose. While not all investments result in a positive outcome, remember that losses can always be recovered with time and research if they’re done right.
- 4)If you do want to buy a token, make sure that they have a real-world use case. A good example of this is Etheroll. The DICE token used in the game has an underlying value because it can be used within the game and thus doesn’t just depend on people wanting to trade it.
- 5)Store your tokens in an offline hardware wallet (if you use and didn’t know about wallets, visit this blog post to learn more). Most popular options include Trezor and Ledger Nano S. This is the safest way to store.
I hope you’ll join me on my Discord server https://discord.gg/SEK7FfudgW where we can chat about art, crypto, and everything in between. You can also find links to my OpenSea collections there. Thanks for reading!
