NFTs are the modern cash cow in the investment sector, where emotions and ideologies over the assets rule the trade. As a sector, the industry boomed and flourished in the year 2021. With over $41 billion under its belt, it is set to grow exponentially in the coming years. Many competing factors come into play when investing in good NFTs. Let’s take a peek into what makes an NFT investable and how they work.
- What is NFT?
- NFT marketplaces.
- Buy and sell NFTs.
- The game of speculation and logic.
- Standout features in an NFT project and their track record.
- Future of the sector.
- Also See:
- Create TRON NFT Marketplace With Optimized Development Services
- Why Not to Invest in Stock Market, But in Cryptocurrency?
- A Guide for Beginners to Invest and Trade in Best Cryptocurrency of 2021
A brief 101 starting with NFTs and how the marketplace plays a role in the investments. Some standout features of investable NFTs and marketplaces, do’s & don’ts, and the future of the industry in its current trajectory.
Non-fungible tokens are tokenized assets that compromise either digital native (digitally made) assets or digital copies of tangible objects that can be monetized. The assets, in their essence, are code. This aspect allows for seamlessly expanding and adopting various other industries into the division. The growth and scalability factor of the NFTs makes room for all kinds of creators to infiltrate the space positively.
NFTs are a by-product of cryptocurrencies, and it makes sense they are developed on the same blockchain that supports crypto. Imagine an online ledger that’s mutating records throughout instances placed over a net region that compromises a blockchain. This aspect makes it the most secure system to protect assets, especially digital assets. Due to the nature of the assets being digital, they are prone to duplication and replication. This can be prevented by the authentication and smart contracts drawn during minting. This extends to the exchanges and transactions – every aspect of the NFTs is recorded in the decentralized platform.
Marketplaces are the online repositories that almost act as the e-commerce storefront to the NFTs. But they entail a lot more responsibility and nuances than an e-commerce store. The marketplace can be categorized into the primary and secondary marketplace and have niche subcategories.
Buy and sell NFTs.
Many markets host a plethora of talent there, and since NFTs vary in their hosting abilities, so do the marketplaces. This begs the question, “how do you buy NFTs?” The answer is track record and research. Since its boom, many marketplaces have popped up, and it seems daunting to choose the right one that works for you. The conjectural decision of selecting an NFT marketplace brings you to choose the NFT piece from the project.
Though the NFT sector is filled with potential, not all projects and marketplaces guarantee a successful result. A few features and a keen-eye-to-detail aspect helps when buying the perfect NFT.
Standout features in an NFT project and their track record.
The many well-known projects out there obviously attract their attention for a reason. But, the flip side of the coin is that these projects can break your bank. This is not to say that these high-profile NFT projects didn’t start somewhere. That is exactly what the article is trying to get at, to look out for projects on the rise. This can be achieved with a little patience and developing the ability to “know where to look.”
The decentralized platform makes sure of the transparency factor. Yet, when buying NFTs, the marketplace should be upfront and transparent about the journey of the NFT. Transparent listings, primary and secondary owners, transaction history, roadmap, and utilities are some major factors to look into.
One other factor that helps is the name the project is attached to. It’s helpful to remember people are investing in the emotions and values behind the project as much as the art itself. Look out for emerging artists with great backstories behind the projects and their growth potential. Most of the lesser echelon deals are made on the gut instinct. One of the popular NFTs is from celebrities, sports personalities, and anyone with a popular brand. The projects attached to popular names are for sure investable in the realm, it goes without saying.
- Set up crypto wallets. Crypto exchanges and decentralized storage of the assets help a great deal.
- Research on the marketplaces and artists behind the project.
- Look for transparency and upfront listings.
- Expect protection, assurance, and future developments from the marketplace.
- Make hasty purchases based on speculation alone.
- Trust your wallets and fund transfer to third parties. Crypto trade is fundamentally a platform that cuts out the middleman.
- Buy NFTs from sketchy-looking marketplaces. Many knockoff sites pop up with the same layouts and similar workings of the trusted site. Only go through official channels.
One of the baffling aspects of the NFT sector is the trajectory that they are on. The exponential growth is unexplainable, but the positive takeaway is that they are here to stay, and the opportunities are rising along with the expansion of the sector. The sector is ripe for the taking for those who dare. Some of the NFT marketplaces that have made their mark in the Indian & global hemisphere are Beyondlife.club, Colexion, Rario, Bollycoin, etc.