How to invest in nft (Non-Fungible Token)

One of the most trending investment and business in which many are currently investing in today is the non-Fungible tokens widely known and pronounced NFTs. The investment token surprisingly took a new turn in the year 2022. This investment has proved to be viable and those who are already into the investment are making their profits while some are still trying to figure what the program is all about. NFTs comes in form of art, music, papers, and other forms of digital assets which are fast selling for thousands and millions of dollars. While many are still trying to figure the idea and process of such investment, those who are already acquainted with the latest form of trade are trading into profits. In this article/post, we are going to have the meaning of NFTs, brief history of NFTs and how to invest in NFTs.

NFTs

The question of whether NFTs is here to stay has stayed relevant in the mind of investors. While many are still doubting the longevity of such investment, others believe it is here to stay and will help in redefine the 21st century investment. According to Forbes, NFTs are digital assets which represents and identify itself with real world objects or items such as music, art, games items, videos, papers, notes. These objects or items are bought and sold online frequently with cryptocurrency as the mode of exchange such as bitcoin, Ethereum, etc. NFTs are generally encoded with the same underlying and foundational software of most cryptocurrencies. Despite the emergence of NFTs in 2014, the form of investment start gaining worldly attention and focus recently become one of the popular of trading digital artworks and assets. Real facts showed that over $174 million has been invested on NFTs since 2017.

Arry Yu, the chair of the Washington Technology Industry Association Cascadia Blockchain Council made a comment on NFTs stating the NFTs essentially create digital scarcity of digital assets. They are also one of a kind investments and at least one of a very limited span having unique identify codes attached to them.  The statement by Arry Yu stands in a firm contrast to most digital creations that are infinite in supply always. Nowadays, many of the NFTs are digital creations, content or items that already exist in a form somewhere including video clips, pictures, arts that may already be floating on the social media platforms. One of the famous digital artists known as Mike Winkleman “Beeple” crafted a composite of about 5000 daily drawings which was sold at a staggering and record-breaking price of $69.3 million thereby creating the most famous NFT of the year 2021.

Why should anyone buy when one can actually view the pictures, videos or arts for free online most times? Why pay thousands or millions of dollars for digital contents or creations that are freely available and downloadable? This is mainly because having an NFT will allows the buyer who is making the purchase have and own the original item displayed and will contains in-built authentication serving as proof of ownerships. Most buyer value those digital rights more than the item itself most times.

Similarities and differences between NFTs and Cryptocurrency

The similarity between NFTs and cryptocurrency is that NFTs are generally built using the same set and style of programming as used for cryptocurrencies. Cryptocurrencies are fungible in the sense that it can be traded and exchanged for one another for insrtance one bitcoin will always equal one bitcoin. This characteristics make crypto a trusted and reliable means of making transactions on the blockchain platforms while NFTs are different as each digital assets have a digital signature which makes it impossible for the equality of NFTs to exist hance the non-fungibility. For instance, one top shot clip will not be equal to another top shot clip just because they are NFTs unlike crypto which accommodate equality.

How to invest in NFTs

Non-Fungible Tokens (NFTs) exists on blockchain, a distributed public ledger for recording transactions and are typically held and reserved on the Ethereum blockchain although its not limited to only this blockchain. They are created or minted from digital objects including GIFs, graphic arts, sport highlights, virtual avatars, collectibles, designers, music and tweets as well. Co-founder of Twitter sold his first tweet as NFT for over $2.9million. They are just like physical collector’s items as you wont be getting a physical or actual assets but a digital file instead giving you exclusive ownership right limited to one individual only making verification easy through the use of blockchain technology.

Buying or start NFTs trading will require you to acquire some key items to aid the process

1. You will need to get a digital wallet with allowance for storing NFTs and cryptocurrencies

2. Purchase of some crypto such as Ethereum depending on the currency the NFT provider accepts.

3. Crypto buying platforms with credit card include Coinbase, EToro, Kraken, PayPal which will enable easy movement to wallet of choice

4. After setting your wallet up and funded; go to the NFT marketplaces to shop for NFT and the current NFT marketplace include Opensea.io, Rarible, Foundation where you will need to create an account before you commence buying and selling.

5. Make your own research before you buy as there are thousand of creator and collectors with some of them as impersonators.

6. Lastly, let the buyer beware when shopping for NFTs as buyers protection appear to be sparse at best due to the inconsistency in verification among NFTs platforms for owners.

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