Anyone familiar with crypto has undoubtedly heard of NFTs and their wild popularity in recent years. The NFT marketplace has boomed from $95 million in sales in 2020 to over $25 billion in sales in 2021. The market continues to grow as more celebrities and artists endorse NFTs through investment and creating their collections. If you’re a collector, you should consider the benefits of exploring and investing in the NFT marketplace. Here are a few tips to help you understand the value of these digital collectibles.
Understanding NFTs
A non-fungible token or NFT is an immutable record of ownership over a digital or real-world asset. These tokens are encrypted on a blockchain, so they are highly secured and virtually impossible to tamper with. Though the NFT itself is simply the contract of ownership, often, creators of NFTs will encrypt the digital asset file within the NFT along with its proprietary information. NFTs, however, reach well beyond the digital art world. Major digital blockchain projects like specific NFT videogame projects and the Metaverse project utilize NFT technology to create self-sustaining virtual economies in which NFTs can represent any in-game item or digital asset designed by a virtual user. Though there are many opportunities for collectors to engage in NFT collection through NFT videogames, the most popular form of NFT collection is the digital art market, where NFTs by artists and other creators can be auctioned and sold directly to collectors worldwide. Any super NFT that existed had an extraordinary NFT promotion strategy and used a specialised crypto ad network, like Coinzilla.
Collectible NFTs
NFT technology allows any digital asset to have verifiable digital scarcity, adding inherent value to the digital artwork. Because blockchains record every transaction on the network, a history of proprietary information will also follow an NFT as it is resold to other collectors. These mechanisms have helped digital artists solve issues of valuation and provenance and have allowed them greater control of their digital intellectual property. For collectors, the security and rarity of NFTs are great incentives to invest. Many NFTs are entirely one of a kind, but many NFT platforms will list the rarity of an NFT on the marketplace. Depending on what you prefer to collect, there are many different options for types of NFTs that you can manage. Sports NFT drops are very popular among sports fans, but NFTs can be anything from music, digital artwork, gifs, videos, text, and more. No matter what kind of collector you are, you can find an NFT collection that suits you. You can join digital crypto communities like FTX to learn more about the latest NFT drops and popular collections about to be released.
How to Enter the NFT Marketplace
If you want to begin collecting NFTs or wish to explore the marketplace a bit more, you will first have to join the crypto world and open a digital wallet. Do your research before selecting the cryptocurrency or exchange you’d like to invest through. The coin, exchange, and NFT marketplace you choose to enter may impact the fees and regulations charged to your digital wallet. Be sure the NFT marketplace you select is compatible with the cryptocurrency you invest in. Once you’ve chosen your platforms, you can open a digital wallet, fund it with crypto, and enter the NFT marketplace to begin bidding and purchasing NFTs. The NFTs you collect will be stored and accessible through your digital wallet until you’re ready to sell them.
These are just some basics of the NFT marketplace and why collectors turn to this growing industry for their investments. The NFT market will only continue to grow as new blockchain projects and artists continue to develop and endorse this growing community.
