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Digital Tokens: A Guide to Investing in NFTs

Non-fungible tokens are ownership proof on the blockchain. These are the digital tokens you can use for trading and transactions. People all over the world are stepping into the NFT world. NFTs are digital assets that have created a great impact at present.

Surprisingly, almost everything (that can be uploaded and minted) is being sold over millions in the NFT world. A piece of work, a comment, a video, everything has admirers. The craze of NFTs is all over the place. The rising trend demonstrates the impact and growth potential of NFTs. 

So if all this is making you wonder about investing in NFTs, this article is for you. You will learn about how and where to invest your hard-earned money in NFTs and their pros and cons throughout the entire guide. 

Why Should You Invest in NFT? 

NFTs are one of the most captivating digital investments people are choosing these days. Because of the unique features and never-ending demand of the NFT market, they are a commonplace choice presently. If you are someone who has the desire to invest in unique kinds of stuff, NFTs are the best option for you. Here are some of the reasons why investing in NFTs is a good decision and why you should go for it.

1. Direct Transaction

Do you know what is one of the most disturbing things about real-life transactions? You have to depend on a middle person or organization for concluding your transaction. NFT transactions are decentralized in nature. It requires you to have no media to get through with your transaction. 

You can conclude the NFT transactions directly. You can go through the transaction process with the only person involved with it. All your earnings from the NFT marketplace will remain with you. Not only this but also, you can get rid of any required commission as.

Do you know what is one of the best things regarding NFT tokens? Your profit doesn’t end once you sell it. When you are the original owner of the token, you will earn a commission each time your token gets exchanged. And this unique feature helps the NFT marketplace to get distinguished from the rest.

2. Unique in Nature

NFT are unique in nature which makes them suitable for investing. These tokens are special because they are not interchangeable. You cannot replace these tokens with anything. However, you can make copies of them. 

Say, for example, you went to a shop, and a shoe fascinated you. The shopkeeper tells you that there is only one piece left. You can call this an NFT because it has the scarcity feature. NFTs are scarce and unique like this. 

When you get hold of an NFT, it means you are the owner of this unique work. The more unique pieces of NFT you can collect, the more you’d want to. Unique NFTs are in high demand in the NFT marketplace.

3. NFT Has a Resale Value

In the real world, people buy gold and diamonds with the hope that they can sell them in need with a greater value. NFT tokens of the real world are such properties you can possess. NFTs have a chance of increasing in value with time. You can earn a profit owing to this characteristic of NFT. 

Many people buy NFT out of their hobby to collect cryptos. At the same time, other people do this because they want to support their favorite celebrities. But there are also other people investing in NFT only intending to earn more profits in the future. If you are smart enough to make the right investment, you can be a gainer in the future. 

While investing in NFTs, try to go for the scarce and unique ones. These tokens will have a greater resale value than the less fascinating ones. Find the right opportunity to resale the token you have. With the right resale, you will earn the profit you desire. 

4. Secured System

You surely worry about the security of a site at first while going through any online operation. And why wouldn’t you? This world is full of swindlers waiting for an opportunity to hack down your important system. No online site is fully free from the risk of getting into the hand of scammers. 

In the case of NFT, you don’t have to stress about security issues. The blockchain secures your system perfectly. There are lots of factors that a scammer has to break down to steal your personal details, which makes it extremely difficult. As a result, you can be assured of safety. 

However, you always need to be alert when handling NFTs. There are sites and links which you need to avoid. The scammers make compelling duplicate websites (a rip-off of popular ones) where you could end up entering your personal information without even realizing it. 

5. Proof of Ownership

Isn’t it heartbreaking when your hard work gets stolen or replicated by others? The NFT world is safer in this case. You do not need to worry about losing your work or your identity. As a result, no one else can claim your work as theirs. 

NFT tokens work as a certificate of your ownership. They are a certificate that works as proof of your ownership. There can be so many assets related to your token. You will be the sole owner of every asset related to your NFT.

The Ethereum blockchain saves all your information in it. Not only your information, but it also saves your art. You do not have to fear losing your work. Also, gaining access to your NFT is the toughest job for any hacker, so you can rest assured. 

6. NFT Market Is Growing with Time

The NFT market is the craze of the present world. People from all around are interested. It is not just about limited creators. People of various backgrounds and professions have begun to NFT to their benefit. 

Presently, pieces of music are being sold for billions in the NFT world. The surprising fact is, in this world, anything can be valuable and termed as NFT. It can be a meme, a comment, a work, or absolutely anything and everything. 

People are enthusiastic about flexing their talent in the NFT world. Emerging stars are making way for themselves in the NFT world. The continuous growth rate of NFT is proof that it will have a huge impact in the future. Thus, investing in NFT has a rare chance of being a loss as the market is growing smoothly. 

How Can You Invest in NFT?

You should not rush while investing in NFTs. If you invest wisely with proper cautions, you can earn a lot in return for your investment. Thus you need to know how you can have a good investment in NFT. Below is a short guide for you. 

1. Look For the Available NFT

Half of the work is done when you are good at research. Whenever you want to buy something, make sure you lookout for the best piece of it. The same is the case with NFT. 

Go to the NFT marketplaces and look for the available pieces of NFTs. Find out the rare and most unique NFTs from the marketplaces. The more unique a digital work is, the more value it will regain with time. You can look for the available NFTs in the marketplaces; however, make sure to choose the best of all. 

2. Look For a Brokerage to Buy NFT

In order to buy the token, you need to have a brokerage. This is for your safety to make sure your NFT doesn’t get stolen. This wallet will store your NFT collections safely. As a result, you don’t have to worry about losing your assets. 

Besides storing your NFTs online, you can also save them offline. In this way, it becomes safer to keep your assets intact. As long as you make a wallet for your collections, the blockchain keeps them safely with proof of your ownership. Thus, make a wallet first before buying NFT to be in the safe zone. 

3. Look For a Suitable Marketplace to Buy the Token

Choosing a good marketplace is important when you want to buy a token. There are unlimited NFT marketplaces out there in the NFT world. Their features and functions differ from one to another as well as their blockchains. You need to choose a marketplace that suits your preference, making your task easier. 

There are marketplaces where you need to pay a gas fee. Other marketplaces require platform fees. Some marketplaces are open for everyone, whereas other marketplaces are for some particular users. Thus, you need to go for a market that would be good for you. 

4. Create a Collection or Sell It

Some people prefer to collect NFTs as a hobby. There are so many fascinating NFTs that can make you feel like keeping them all. If you are a person who is only interested in gathering NFTs, make a collection of these.  

However, some people prefer investing in NFTs only to earn profit later on. The idea seems to be pretty useful as NFTs regain value with time. If you are in this category, make sure you grab the right NFT, whose resale value will benefit you greatly. Wait for the right opportunity to sell it off. 

What Are Some of the NFT Marketplaces You Can Choose for Investing in NFTs? 

Choosing a good NFT marketplace for investment purposes is a must. And so here are some of the suitable marketplaces for you to try out. 

Top 14 NFT Investment Marketplaces

1. OpenSea 

It is said to be the best marketplace to buy NFTs, currently leading all other marketplaces. You can find every type of asset you want out there. The best part is, OpenSea is very easy to use. Not only buying NFT, but you can also mint an NFT here easily. 

OpenSea welcomes every type of artist or investor in its platform. You don’t need to be highly qualified to sign up for the platform. You can sign up freely on this platform. You can look out for the vast number of offers free of charge. 

The payment method consists of approximately 150 token systems. You can choose any payment method you want. If you are new to the NFT world, OpenSea is the most suitable place for you to choose. You can benefit yourself with easy access. 

 2. Axie Marketplace 

Axie marketplace is a revolutionary platform for buying NFTs.This marketplace is an online shop of the video game Axie infinity. Video games are also NFTs as they can be unique and valuable to gamers. You can buy sell the Axie infinity tokens named Axie shards on many NFT marketplaces along with exchanging them for cryptos. 

What is an Axie? 

Axie is a mythological character that you can buy, train, and pit against another such creature for rewards. You can buy new Axie NFTs from this platform. You can also buy the lands and required items for the game on this platform. You can buy anything you want as NFTs to use for your game in the NFT world. 

3. Foundation

Foundation marketplace came into existence in the year 2021. This app is simple to use, and you can use it to bid on the NFTs you want to buy. It has already sold over 100 million USD worth of NFTs. It uses the blockchain Ethereum for sale purposes. 

This is a great platform for artists. On the other hand, If you are a buyer, the process to get started is quite easy. You just require a crypto wallet with some Ethereum to start buying NFTs that grab your attention. You will find plenty of quality artwork on this platform. 

4. Ghost Market

This marketplace is the first-ever NFT cross-chain site. The blockchain types of this marketplace are NEO and Phantasma. You can buy, sell and search for NFTs using these two blockchains. Phantasma is a highly secured, fast in service, and scalable blockchain. 

5. Arkane Market

This is the first digital collectible marketplace operating on the polygon. This marketplace is mainly for gamers, along with the general category of collectors. In this platform, you don’t need to pay with cryptocurrencies for any transaction process. They recently launched the action-packed racing game “Battle Racers” along with a special car named Arkane Hyperion.

6. TreasureLand

This NFT marketplace is a part of the Binance Smart chain. It is the first and largest marketplace that allows you to buy and sell BSC NFT tokens. Buying an NFT on this platform is an easy and reliable task. Besides buying, you can also mine, trade, craft, and auction your NFT on this platform. 

7. Viv3

This general marketplace is associated with the Flow blockchain. It was created with the belief that our real-world ownership is shifting to virtual world ownership with time. Viv3 intends to make a space for people to create, trade, and invest in the world’s most valuable creations of Flow blockchain. It is an extremely composable as well as scalable smart contract platform. 

Not only artists’ game studios use this platform but also brands to mint their unique NFTs. Anyone can buy these tokens. In fact, you don’t have to be a fan to invest in their NFTs. If you are a digital asset collector or trader, you can purchase their NFTs too. 

8. Known Origin

Known Origin is a marketplace that is found in the Ethereum blockchain. This platform helps to motivate NFT users to discover, mint, and buy unique digital arts. It focuses on digital arts, not Avatars. You can buy your preferred NFTs on this platform. 

9. Rarible

This site is quite similar to that of OpenSea. You can buy all kinds of large impactful NFTs from here. In the Rarible marketplace, you can create, buy and sell any type of NFTs you want. The NFTs can be music, videos, arts, or any kind of collectibles as long as you find them unique and valuable. 

In order to buy or sell on the platform Rarible, you need to use their token RARI to conclude the buying or selling process. They have made a collaboration with some significant companies to promote themselves. Taco Bell has published its art on this platform recently. Also, the renowned software giant Adobe made a partnership with them for the benefit of protecting NFT artists’ artworks.  

10. Super Rare

Super rare was also built for the benefit of digital artists. You can use its Ethereum to collect the arts you want. Along with arts and videos, Super Rare contains 3D images too. Not only can you use this site to buy NFTs, but you can also create your artwork to sell here.

This site has its own token. The token is named Ethereum after its blockchain’s name. This token is used for the purpose of discovering new talents in their marketplace. You can buy and sell the NFTs of Super Rare to OpenSea as well. 

11. NBA Top Shot Marketplace

This is the national basketball association’s (including women’s) foray into the NFT world. You can look for everything related to basketball. Moreover, you can look for a moment that created hype around the world or highlights which are worth watching. You can buy valuable collectibles from the world’s premier basketball leagues. 

It works on the Flow blockchain, which came into existence through Dapper Labs. Earlier it was a closed marketplace with only buy and sell options. Now you can easily sign up to their website to directly buy the NFTs you desire. Interestingly, you can buy collectibles within a range of a few dollars only.  

12. NFT Showroom 

This digital marketplace came into existence on Hive. Hive is a competent blockchain that is fast, secure, and free. If you are an artist, you can trade your work by issuing it as a rare token. Moreover, this platform helps you to save a little cost of yours compared to the other platforms. 

13. Atomic Assets

This platform is a significant part of the Atomic Hub. Atomic assets mainly focus on WAX-related NFTs for their users. To sign up for this site, you need a WAX wallet. However, you can also use an anchor or scatter as an alternative for signing up. 

14. Binance NFT Marketplace 

It is presently the top-rated marketplace for investing in NFTs. This platform is not for creators only. Rather, every crypto enthusiast can sign up to this platform to step into and explore the NFT world. The renowned and leading artists globally create exclusive and premium NFTs out here. 

To buy NFTs using the Binance NFT marketplace, you need to make sure you have sufficient cryptos in your wallet. Then, visit the marketplace on the mobile app or the website through a browser. Once you finalize the NFT, you’d like to invest in, buy the NFT and complete the payment procedure. 

Are There Any Reasons Why You Should Not Invest in NFT?

Yes, there are apparently a few reasons which you should consider before investing in NFTs. Here are a few reasons why you might want to think twice before investing in NFTs:

1. Many NFTs are not capable of generating a profit by themselves. Their value depends on the public demand. However, with time this demand and value of NFT can fall drastically. 

2. An NFT loses its original value because of the gas or platform fees the creator needs to pay. Also, every time you sell the NFT you invested in, the former creator gets a commission from it.

3. Apart from investment and profit concerns, an important thing to remember is that NFTs are bad for our environment. The creation and verification of NFT consume a lot of energy that affects the environment negatively. 

In a nutshell, NFTs have both advantages and drawbacks when it comes to investing. At the end of the day, it’s up to you to decide whether you would like to take the plunge or not. Keep in mind all the key points that we have discussed so far to help you make the best decision on investing in NFTs

Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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