The highest NFT sale ever was in December 2021 when “The Merge” by Pak sold for $91.8 million.
Despite being a very new concept, NFTs have exploded in popularity in recent years, and have become very popular amongst artists, collectors, and even celebrities.
So what are NFTs? And are they worth it? If you’re interested in investing in NFTs, you can get started by reading through this guide.
What Are NFTs?
NFTs (non-fungible tokens) are assets that can’t be replicated or reproduced in any way. They’re typically digital assets that are bought, sold, and traded using blockchain technology.
How Do NFTs Work?
NFTs are usually represented as pieces of digital artwork, but they are often more than just that. NFT ownership can be verified instantly as all records on the blockchain are publicly accessible. NFTs often have utilities, which means the owner may be able to access a range of benefits.
These benefits often include things like event invites, access to certain groups, and passive income in the form of tokens or crypto. NFTs are hosted on a chosen blockchain, and people can buy and sell them through online marketplaces. Many people invest in NFTs because they believe they’ll be able to sell them later on for a profit.
Investing in NFTs
If you’re thinking about buying an NFT, the first thing you’ll need to do is set up a crypto wallet and buy your chosen cryptocurrency from an online exchange. There are plenty of wallets and exchanges available, so you should look into the various options to decide which best suits you.
Once your set up, you can use your crypto to either mint an NFT (from the creator) or buy it on a secondary marketplace (from the current owner). SuperRare is a popular marketplace on the Ethereum blockchain. Click here to take a look at the available artwork.
Should You Invest in NFTs?
NFT investments can lead to significant financial gain, but they can also lead to losses. The value of NFTs and cryptocurrencies can be very volatile, with prices going up and down very rapidly. If you are going to invest, make sure you do a good amount of research so that you fully understand what you’re doing.
There are various investment strategies that you can use to try to minimize the risk involved. Plenty of websites also have a lot of content that can be helpful when starting out, especially sites like YouTube. One of the most important things to remember is that you should never invest money that you can’t afford to lose.
The Future of NFTs
With how things have gone in recent years, it seems like NFTs are only going to get bigger moving into the future. Investing in NFTs now, or even just understanding how they work, could be very beneficial as more people move into the space.
For more crypto articles, check out some of our other blog posts.