Monday, January 24, 2022

Can you invest in NFTs

Can you invest in NFTs

The concept of an NFT marketplace is relatively new. It has only been around for a few years, but it has been a big hit with digital collectibles enthusiasts. The idea behind an NFT marketplace is that users can purchase, trade, and sell digital collectibles backed by the underlying value of tangible assets like property or art. There are only a handful of NFT marketplaces around due to the infancy of this kind of asset.

Good Reasons Why You Should Invest in NFTs Now

In recent years the share of investors with a long-term view of investing has increased significantly. Those looking for a longer-term investment opportunity might want to consider investing in NFTs. This post will cover what they are, how they work, and why you might want to consider stocking up on some of the more exciting options as they present themselves.

In many ways, the land can be monetized. Monetizing ways includes the creation of amusement parks, NFT museums, casinos, etc. Seeking from the investment point of view, this land can be bought to sell in the near future to earn a profit. Crypto investors can rake it in a lot of modes.

Virtual Reality Land

Developing real estate never disappoints. Non- fungible tokens can be invested in buying and selling virtual land. Virtual Reality Land enables to hold the ownership of digital land that is accessible through the blockchain connections. Virtual reality VR and augmented reality AR technologies can prove to be the king of virtual land in the coming times.

In many ways, the land can be monetized. Monetizing ways includes the creation of amusement parks, NFT museums, casinos, etc. Seeking from the investment point of view, this land can be bought to sell in the near future to earn a profit. Crypto investors can rake it in a lot of modes.

Decentraland and The SandBox are also the two most strong virtual reality ecosystems that can be looked upon to be invested.

Many investors have made millions of dollars from NFTs and many are planning to invest in these collectible assets. Approximately $174 million has been spent on non-fungible tokens since 2017. If you are tech-savvy and thinking of investing in NFTs, it is advised to avoid this new asset of the digital era, as it is not a worthwhile investment. If you are wondering why NFTs are not a good option for investment, here are some reasons you should avoid investing in this digital asset.

Final Thoughts on Investing in NFTs

There is no denying the fact that this type of blockchain technology has many advantages for investors compared to other traditional stocks. Many entrepreneurs are interested in starting a venture in the NFT world and making money online. For instance, you can create an online course, become a broker or create a white label platform. Launching an NFT app is one of the best app ideas that can be used for buying, selling, and minting NFTs.

Instead of looking for reasons to invest in NFT’s, I suggest waiting for future possibilities. If you are interested in investing in NFTs, do your research before making an investment decision. NFTs can be a risky investment, as it is a new type of digital asset with a lack of liquidity, making it a bit challenging for token holders who want to sell their assets. So, it is advised to thoroughly research how blockchain technology works and all the available options to approach these digital assets.

I know, that’s a lot of questions, but ChainTechSource will address all of these questions in this blog. Read along to know everything about NFTs, best NFT to buy and best NFT project to invest in.

Top 10 Best NFTs To Buy And Invest In

In this article lets take a look at the top and best NFTs to invest in for high future profits.

Keys to the Metaverse

Among all the crowd of repeated meaningless collections of punks and sharks, the Keys to the Metaverse is a refreshing set of innovative NFTs. The project sports a series of Pixelart Keys that carry a deep meaning. The head of each key has an iconic and traditional symbol ( ex: mythological creatures, symbols etc. ). Also it has some exotic animals and humans. While the Keychain or the Key fob displays a very futuristic concept like Spaceships, Quantum, Genetic DNA etc. Its like each key has a hidden message behind it to be decoded.

Apart from the art factor, the project itself seems to have some ambitious roadmap:

– Cross chain compatibility

– Programmable NFTs ( API Layer )

– Fractional NFTs for creating subkeys

– NFT based blockchain Game.

This for sure is one of the best NFTs to buy and hold for handsome returns.

Best NFT to Buy

Virtual Reality Land:

Real estate development never disappoints since it is considered as the best NFT to buy. Tokens that aren’t fungible can be used to buy and sell virtual land. Virtual Reality Land allows you to own digital land that you can access through blockchain links. In the future, virtual reality (VR) and augmented reality (AR) technologies may prove to be the kings of virtual land.

CryptoPunks:

The fact that CryptoPunks was the first non-fungible token initiative built on the Ethereum blockchain demonstrates its importance and proves that it is the best NFT project to invest in. This NFT allows you to own a one-of-a-kind pixel avatar.

Bored Ape Yacht Club:

Similar to CryptoPunks, online avatars are the specialty of this NFT investment. Many cartoon apes appear in this project. Bored Ape Yacht Club can be versatile thanks to the crypto ecosystem. Bidding for these avatars is always above the line.

Rarible – RARI COIN:

The Internet is awash in NFT investments that support the arts. The NFT market has a strong need for digital artwork. Rarible is a well-known art-selling portal and the best NFT project to invest in. It stands out from other virtual arts because of its unprofessional and immature photography content. It does not include any opulent nudity.

Enjin Coin:

Investing in Enjin Coin is also highly profitable as it makes it easier for businesses and brands to use NFTs in the market. It’s a clever gaming cryptocurrency, which the gaming products on the blockchain are linked to. The main functions of Enjin network participants are chatting, hosting, and designing websites.

OpenSea:

In terms of scale, OpenSea is the largest marketplace and it features lazy NFT minting. It has roughly 50 different business categories to invest in, making it the best NFT to buy. OpenSea’s major focus is on buying and selling digital art and game development.

NBA Top Shot:

The National Basketball Association (NBA) is responsible for bringing NFTs into the mainstream. ‘NBA Top Shot’ has a collection of memorable game moments and footage and perhaps the best NFT to buy. Prices fluctuate according to the rarity of the material.

CryptoKitties:

CryptoKitties is a fairly new type of investment. CryptoKitties’ main asset is a digital kitten, which is the best NFT project to invest in. It’s a blockchain game developed by Dapper Labs, a Canadian startup. Investing in such NFTs can be extremely lucrative.

Pudgy Penguins:

Owing to its unique meme-creating component, this NFT investment is highly intriguing. Meme buzz is real in 2021, and no one can deny it. These Penguin figures are used all over the internet.

Worldwide Asset eXchange (WAX):

WAX enables decentralized NFT trading. It’s a blockchain that doesn’t emit any carbon. In the crypto market, the Worldwide Asset eXchange (WAX) has a peer-to-peer trade. Several other platforms, such as Huobi, Bittrex, and Bancor Network, accept Worldwide Asset trading (WAX) tokens for exchange.

In terms of the year 2021, the digital ecosystem is really strong and highly competitive. The NFT investment streams presented above are based on basic business principles and their popularity in the current times. Benefits, products, customer service, security, and user experience are used in the ranking of these platforms; however, any of these NFT platforms has the potential to be the next big thing for investors.

Non-Fungible Token is one of the most transient terms in the cloud. The majority of people are unfamiliar with the term NFT, but it is worth investing in. So, what is NFT? Is the hype around NFTs justified? What’s the deal with the internet storming after NFTs? Why should you invest in NFT? Is it ideal to put your money into NFTs?

I know, that’s a lot of questions, but ChainTechSource will address all of these questions in this blog. Read along to know everything about NFTs, best NFT to buy and best NFT project to invest in.

Non-Fungible Tokens are used to describe tokens that are not transferable. The legitimacy of their blockchains may be verified. These fungible tokens are similar to trading cards in that they can be exchanged but not replaced. The NFT trade volume in 2020 was $12,000,000, whereas the trade volume in 2021 is $500,000,000.

Why are NFTs an Ideal Investment?

Investing in the NFT industry can be tremendously lucrative. The reason for this article on the top NFTs to buy. It adds value to the assets that have been tokenized. The material of the owner remains integrated, lowering the danger of content duplication. By establishing smart contracts during NFT development, new owners selling their NFTs gain royalties. As a result, NFT enterprises have an advantage over other physical businesses and can prove to be the best if new investors participate in them.

What’s coming next?

5 reasons why you should invest in NFTs

NFTs (non-fungible tokens) — or scarce digital content represented as tokens — are driving a new wave of crypto adoption.

Thanks to the Ethereum blockchain, artists, game companies, and content creators alike use token standards that attribute provenance to uniquely no fungible assets. NFTs first made headlines in 2017 when Dapper Labs’ game CryptoKitties accounted for 95% of Ethereum network usage at its peak. While someone paying $170,000 for a digital cat seemed like an anomaly, what’s happening today blows that headline out of the water.

Platforms like OpenSea, SuperRare, Rarible, and very much anticipated Hoard Marketplace are fast becoming the leading players for creators and gaming geeks to monetize their work in a digital world.

Collectibles craze

Just as we’ve seen an alternative asset class form around physical collectibles like Pok√©mon cards, NFTs are starting to show what this universe of rare brands looks like online. Polkamon’s, which represent NFT’s similar to Pokemons, have been around for a week.

Big markets, like the gaming industry, will incorporate more and more NFT’s into their games. For example, in the future, gaming games such as World of Warcraft, Counter-Strike, or Monster Hunter by Capcom will use NFT’s. How are NFTs used here? Basically, you invest gaming time to get an NFT. You can then sell it on OpenSea.

Niche collectibles like CryptoPunks — which are 10,000 unique collectible figures with rare features and characteristics — now have a base price of around $18,000 each. Just recently, Punk 4156 sold for 650 ETH, which equates to about $1.3 million at today’s prices.

Gaming industry

With NFT’s in the gaming space, there is an implicit contract that what you buy is unique. There is only one of these tokens, and the only one who has the right to use that token is you. This allows you to create unique weapons, armor, and accessories in gaming, and you can even earn money with it! A new way to live to game.

Many people will be able to build up a side income and live off it later.

Therefore, every amateur gamer can earn money with gaming and not only the professionals.

Creating scarcity

It still seems hard to get used to the idea of spending money on nothing tangible. Would anyone pay money for NFTs that say they “own” the Brooklyn Bridge or the entire earth or the concept of love?

People can create as many NFTs as they want, about anything, over and over again.

You could theoretically create your own NFT claiming to own the Mona Lisa and record it on the blockchain, and no one could stop me.

Crypto-art paradigms

Graphic designers and 3D designers find new platforms to showcase their work, with marketplaces like SuperRare enabling sales of exclusive digital art. Mad Dog Jones recently set a record for art worth $3.9 million in one sale, beating the previous record held by Beeple with his Everyday 2020 Collection for $3.5 million. No wonder top art galleries like Christie’s are asking to collaborate.

With Bitcoin and Ethereum reaching all-time highs and investors looking for new places to invest their capital, the crypto-art movement has given power back to creatives.

Musicians such as Linkin Park’s Mike Shinoda and Fort Minor have released NFTs as part of their strategy for his new single “Happy Endings,” featuring pop star Iann Dior.

NFT as Lending Collateral

Hoard is about to launch its solution where users can define their fungible assets’ value, and then credit protocols that accept NFTs as collateral will be used.

The lending protocols, i.e., the NFTs themselves (e.g., ERC-721 tokens), will accepted as collateral. Using Hoard, NFT’s can then be lent, and for the duration, the lender gets rewards through the HRD token.

The advantage of this is that the lender can use the functionalities of NFT (e.g., in-game). Also, a lender can earn additional money by renting out the NFT to third parties or collecting the profit that the NFT generates (e.g., rent if it represents ownership of a virtual weapon).

NFT Future Madness

What’s coming next?

Maybe the conversion of a luxury car into a non-fungible token, who knows.

Luxury watchmaker or Breitling issuing digital certificates on the Ethereum blockchain. Many things are possible with NFT’s. In every conceivable area, NFT’s can be used. Most potential in the gaming industry and the art and music industry. Many platforms, such as Hoard, which run on the Ethereum chain, offer the masses opportunities to earn money with NFTs in the long term.

The house is comparable to an NFT, just in the Blockchain. You can’t physically touch it. But it’s there; it’s there with all the cat gifs and moving rock photos NFT has to offer. Like your house is unique, NFTs are too. No two tokens can be the same.

How to Sell Your Art as NFT?

You need to register yourself on the NFT marketplaces first. Following successful registration and initiation of your digital wallet – which will later be used to hold your NFTs – you are ready to start enlisting your arts.

Create an online catalogue on the same platform that you have your digital wallet on and enlist pieces on the marketplace that you want to go live on a predefined date and time.

Selling NFTs requires a blockchain transaction and for that, you need to pay a fee to the miners who are keeping the ledger. Which can be paid through ETH or other cryptocurrencies as per your convenience.

The Bottom Line

NFTs present an opportunity to digital creators by opening them up to the exotic art marketplace, which was somewhat limited to wealthy individuals till now. You, as an investor, can take advantage of the new platform to gain profits or can even show off your possessions to a lot more people; mostly through a website.

While the art pieces only hold value while the internet decides they do, that doesn’t guarantee the diminishing value of every art piece. It’s quite possible for the art piece to go balloon in the near future.

February 2021 was a milestone month for the TSX, because it launched the world’s first Bitcoin exchange-traded fund (ETF) for …

Bottom line

It’s still extremely early in the blockchain industry, but already there is a tonne of innovation going on, especially with NFTs. Even major companies like Adidas have hosted fashion shows in collaboration with Decentraland, a virtual reality and destination platform, where fashion designs were auctioned off as NFTs.

So if you’re looking for a high-potential industry to get in on the ground floor, you’ve come to the right place as these assets, the use cases, and therefore popularity should only continue to grow in the coming years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

What do you suggest then? New to this world

Best way to invest in NFTs

What would the best way to invest in the growing popularity of NFTs? Would it be investing in a marketplace like rarible? Still very new to this whole space so sorry if I’m missing something super obvious. I would prefer to invest in something that covers NFTs in general not one specific avenue (if that’s even possible)

Despite the hype I don't think NFTs are are good investment. They are a fun way to distribute your ETH to artists and in short term it's a game that could land you some profits but long term it is very risky. Personal opinion.

You don’t think that there is more hype to come? All this hype without mainstream media really covering it and all the main big brands just showing interest

All views welcome.

What do you suggest then? New to this world

What I see happening at this point is an evolving market. There are lots of potential in the space akin to an art gallery, yard sale or an event for sales of real estate. One can easily point out that the immediate beneficiaries of NFTs are gamers, content creators and celebrities considering the clout they generate. In terms of preference, we are still early days in a rapidly evolving space.

All that you need to do is visit the exchange platform of your choice, register, pass the KYC verification checks, add a payment method, and that’s it - you’re one step closer to being able to buy NFTs!
Binance Holiday Sale

You can now get $100 Binance Voucher for completing simple tasks in this Binance Holiday Sale. Follow the link while the offer is still valid!

$100 BONUS

Binance Holiday Sale

You can now get $100 Binance Voucher for completing simple tasks in this Binance Holiday Sale. Follow the link while the offer is still valid!

Your Discount is activated!

$100 BONUS

Binance Holiday Sale

You can now get $100 Binance Voucher for completing simple tasks in this Binance Holiday Sale. Follow the link while the offer is still valid!

Your Discount is activated!

In this article, you’ll find me mentioning a variety of different terms - cryptocurrencies, NFTs, crypto wallets, NFT marketplaces, and so on. I’ll explain each one along the way, but it’s a good idea to have some sort of a benchmark to start learning how to buy NFTs from, right?

So, what do NFTs and cryptocurrencies have in common - are they the same thing? No, not quite. A cryptocurrency is a digital currency - unlike fiat money such as USD or EUR, however, cryptocurrencies exist on their blockchains (in the digital realm, so to speak), and cannot be “touched”, in a physical sense.

Buy NFT: physical representations of Bitcoin.

An NFT, on the other hand, is a “non-fungible token”. What this term means is that there is no replacement for the token in question - no other just like it. With USD, $1 will always be equal to $1, and you can exchange two banknotes at the shop - it wouldn’t make a difference.

The same applies to most cryptocurrencies, too. If you send your friend 1 BTC, and they send you 1 BTC back, is there an actual difference? No, not at all - you still have 1 BTC. Before you go out and buy NFTs, though, you should understand that these specific tokens are one of a kind - an NFT cannot be “replaced” with some sort of an equivalent, since there is none.

This is what creates scarcity, and, in a way, fuels the hype behind the market. It’s also part of the reason why people are suddenly looking at how to buy NFT crypto, as well.

How to Find the Right NFT to Buy?

Now that you have some of the fundamentals cleared and out of the way, the next question seems pretty simple - before you buy NFTs, how should you know which ones you should actually be looking at?

Admittedly, there are two groups of people in this regard - those who have already chosen their NFTs, and others who are not yet sure what it is that they want to buy, but know that they want to participate in the market, either way.

If you belong to the former group of individuals, the answer to the question is probably quite apparent. However, no matter what your stance in this regard is, one thing’s for sure - it depends!

Buy NFT: the top-rated NFTs on OpenSea

Do you plan to build some sort of an NFT collection? Are you only looking at the top NFT tokens? Perhaps you want to buy NFTs with the hope that they will rise in price in the future? Or maybe you’re actually looking at utility-driven tokens, such as concert tickets or music albums with unlockable content?

Depending on your answers to all of those questions, the best NFT for you is going to vary, too. Sure, you could always take a look at the top NFT tokens, and pick one that seems best for you, but if you already know what it is that you want, that’s even better!

Although NFTs are high in demand these days, it’s important to know that NFTs are relatively new and that their future is unpredictable, making these assets challenging to consider as a good investment.

With the advent of blockchain technology tons of NFT marketplaces sprung up making the selection process dizzying. The first thing you should do is to decide what kind of digital asset you would like to invest in. If you’re unsure, look into OpenSea and browse their huge selection of categorized NFTs, which can give you an idea of what you want. Myth Market is perfect for those who like to collect trading cards while Enjin Marketplace is a haven for gamers – perfect for US players.

Set Up a Crypto Wallet

To buy and sell on the platform, you’ll need to link a cryptocurrency wallet to it. Crypto wallets are similar to a debit card in that your money isn’t held directly in an ATM but acts as a key that unlocks money from it. Private keys are stored in crypto wallets which provide access to the NFT on the blockchain. Ensure to store your private keys in a safe place while making sure no one finds about them.

Not all platforms are compatible with all crypto wallets so make sure you research this before you commit to either. Metamask is a safe company considering it is one of the most popular wallets out there and is compatible with all of the platforms mentioned before. Trust Wallet and Formatic are great choices too but make sure to look into their differences in fees, security, and compatibility. Once it’s all set up, you can fund it with fiat money (i.e.. Apple Pay, Debit card, etc.) or cryptocurrency.

Buy, Sell, or Create Non-Fungible Tokens

Once your crypto wallet is funded you can buy, sell, or even create NFTs of your very own through the marketplace that you signed up for. You’ll need to link the crypto wallet and the platform before you do anything though. If we use Metamask as an example, you would have to download its Chrome extension then sign into OpenSea. Navigate to your profile and you’ll see an option to sign in through Metamask. Once you do, the installed extension will automatically pair the wallet to the platform.

Now that you’re set-up, the only thing left to do is go to the marketplace where you can choose the assets that you want to buy. This is as simple as a click on the ‘buy’ button on the NFT of your choosing. NFTs will vary greatly in price so make sure you have enough funds in your wallet before you make a purchase. Once purchased, you can keep the NFT in your crypto wallet or sell it immediately to a customer – hopefully for a profit. Some investors like to hold on to it for a while with hopes of it increasing in value over time.

If you decide to put your NFT up for sale, it’s really as simple as hitting the ‘sell’ button on any of the NFTs that’s in your inventory. You’ll be prompted to select a selling method that usually involves a fixed price, auction option, or bundle. Beeple’s artwork that sold for millions was sold through an auction as with most digital art that fetched millions. The bundle option allows you to package multiple NFTs for an affordable price. If you want to make a profit from your flip make sure you know your market. NFTs are now mainstream so naturally, the NFT market has been flooded with people creating and selling their own collectibles and digital art.

All of the digital art and other related items that sold for high prices were creators of their own tokens. You too can create a digital only piece and sell it to clients just like celebrities do. Not all platforms allow you to create your own NFT so make sure to look for the ‘create’ button on each website you visit. After you’ve created your own NFT, make sure to let customers know that it’s open for investing.

Are NFTs The Right Investment?

Although NFTs are high in demand these days, it’s important to know that NFTs are relatively new and that their future is unpredictable, making these assets challenging to consider as a good investment.

Before you go investing in a token, ask yourself these questions. Can Jack Dorsey’s first ever tweet be resold to another customer in the future or was the buyer making a $2.9 million mistake? Is the $69 million Beeple artwork really worth it? Will blockchain and NFTs advance far enough where it becomes ubiquitous and overtake every aspect of our e-commerce? Are we in an NFT bubble? These are all great questions, but no one has the answer to them right now. It’s entirely possible that NFTs may become obsolete and be replaced by another technology. It’s also possible that government regulations could regulate DeFi and make the whole decentralization concept crumble.

On the flip side, none of this may materialize but one thing is for sure - the possibility of losing your money in an NFT investment is real. Investors of NFTs would be considered speculative considering their current climate and the fact that they have no intrinsic value nor any fundamentals to back up their value. Its value is derived from only what you or the public thinks it is. For example, intrinsic value comes from the stocks or bonds that ETFs, or exchange-traded funds, owns. NFTs work differently where it’s purely driven by market hype and people’s perceptions.

Do yourself a favor and research thoroughly and if you are going to invest in this risky asset don’t expect financial freedom and allocate only up to 5% of your investment portfolio while expecting losses. Otherwise, you might be better off making bigger gains through a 10 free no deposit bonus casino. In fact, with the many iGaming sites offering cash deposits and returns, there are just as many which use cryptocurrencies as a main payment method. Either way, it’s good idea to look into if you’re interested in NFTs and blockchain technology as a whole.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.