How to Invest in NFTs: Quick-Start Guide for Beginners
1. Do Your Research
Google searches for NFTs will present you with a mind-numbing amount of information! But it’s always best to know more than less about any investment. Twitter can also provide reliable information on NFTs because of their active creator, collector, and fan community. Other platforms like Discord or Telegram offer chats on people’s feelings about specific NFT projects. Finally, search for “Rarity Tools” or “NFT Catcher IO” for upcoming NFT listings released on the ETH or SOL blockchain. Note when sales are taking place, what cryptocurrency is used, and the number of NFT sales scheduled—this helps to gauge current and future values and the rarity of a particular NFT.
2. Buy Your Cryptocurrency
Many NFT platforms use Ethereum (ETH) as their primary cryptocurrency, but notable exceptions exist.
Cryptocurrency is sold through online brokerages like Coinbase, Kraken, Robinhood, Gemini, or Binance (US).
3. Set Up Your Digital Wallet
- You require a “wallet” to store cryptocurrency and NFTs, and as we discussed, digital or hardware wallets are available.
- You always require adequate cryptocurrency to complete transactions. This amount includes purchases and transfers or converting cryptocurrencies.
- Although some NFT marketplaces like OpenSea are trying to find ways around the increasingly high fees for the electrical power needed to record blockchain transactions, gas fees can still be an issue.
- Always review an online utility provider’s safety standards carefully for how they secure wallets online. Some NFT investors prefer hardware wallets offline for greater security.
4. Select a Platform
After funding your wallet with cryptocurrency, prepare to go shopping for NFTs!
Most famous NFT Marketplaces 2022
The following NFT marketplaces are currently the largest and most popular:
Questions and Answers
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NFT stands for a non-fungible token, and every token is unique—that’s what non-fungible is (money is interchangeable or fungible).
Real-world digital art, music, videogames, or app purchases become NFTs with blockchain technology, and when NFTs get sold, the buyer’s data is embedded in the token to prove ownership.
As NFTs got more popular and transactions sped up, some owners managed NFTs as they’d always done with cryptocurrency. For example, they used mobile apps for web-based cryptocurrency exchanges like Coinbase Global, Inc., Binance, or FTX.
While managing NFTs on a smartphone is easy, it’s also more convenient for scammers to hack into these sites and steal NFTs.
There are definite opportunities to create wealth through NFT investing, and it’s more accessible and more secure, thanks to the benefits of tokens and blockchain technology.
Be careful when adding NFTs to your investment
portfolio and limit any single-asset risks that could derail your wealth-building.
