If you’re like most people, you’ve probably never heard of NFT (Non-Fungible Tokens) before. But that’s okay – in this blog post, we’ll explain everything you need to know about them!
NFTs are a new type of asset class that is quickly gaining popularity and for good reason. They offer a number of advantages over traditional assets like stocks or bonds, and as the market for them grows, now is the perfect time to get involved. I
n this article, we’ll discuss what NFTs are, how you can invest in them, and the many ways you can enjoy using them!
So, what are Non-Fungible Tokens? Simply put, NFTs are tokens that are unique and cannot be replaced by another token of the same type. This is in contrast to traditional assets like stocks or bonds, which can be traded on exchanges and have a global market value.
NFTs are designed to provide something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork). A Banksy print, for example, is available to everyone. Only one person, on the other hand, may own the original.
Ok now I get it, where do I buy an NFT? Using an NFT supermarket?
NFTs are digital assets that can be bought, sold, or traded on a blockchain. The most popular NFT platforms include OpenSea and Rarible; however, you can also find them at other exchanges like Crypto.com and Coinbase for those who prefer more mainstream centralized exchanges.
Centralized v Decentralized exchanges
In the context of NFTs, centralized exchanges are those that allow users to trade tokens directly with each other. Decentralized exchanges, on the other hand, work by matching buyers and sellers through a decentralized network of computers. This takes away the need for a third party, like an exchange, to mediate the transaction
So now that you know what exchanges you can use to trade NFTs in, let’s take a look at some of the top centralized and decentralized exchanges.
Decentralized
OpenSea was founded in 2017, and since then, it has expanded to become the largest marketplace for NFTs, with a trading volume of over $10 billion.
Rarible is known as “the world’s first community-owned NFT marketplace.” Furthermore, it has a trading volume of over $274 million, with a total of more than 1.6 million users.
SuperRare officially launched in 2018, and is an NFT marketplace with a trading volume of $169.44 million.
Centralized
The Binance Exchange was founded in 2017, and offers more than 500 cryptocurrencies and virtual tokens to trade-in. Furthermore, it has taken the top spot with a 24-hour trading volume of over $10 billion.
Crypto.com supports trading, investing, NFTs, and more, while offering more than 150 cryptocurrencies with low transaction fees. Moreover, it has a 24-hour trading volume of $2.8 billion.
Coinbase is an easy-to-use exchange that offers support for over 100 cryptocurrencies, and it has a 24-hour trading volume of over $2 billion.
What to look for when buying NFTs?
It seems that you might be aware of the basics now, and you might be wondering what to look for when purchasing NFTs. Well, here is a step-by-step guide that has you covered.
Step 1: Do your research
When you are looking to buy NFTs, it is imperative that you have a complete grasp of both the NFT and its market. Therefore, it is important that do your research before making an investment. Consequently, one of the first things you can do is to see whether the NFTs are being sold by a well-known seller. For instance, on OpenSea a verification tick is distributed to verified sellers.
This highlights that they are not impersonator accounts, and can be trusted. Also, it would not be a bad idea to check the seller’s account for previous sales. This will give you a good idea of price volatility, and whether or not the NFTs have value. You would also want to check out the transaction fees of the platform you are looking to buy an NFT from, along with the market volume of the NFT industry.
Step 2: Find projects with vibrant communities
Many people don’t pay attention to whether or not the NFT collection has an active community. Consequently, many fall prey to scam accounts or get stuck with NFTs that do not have any investment potential. Therefore, to avoid this it is important to check if the token offers any reward to its holders, or if its liquidity is locked.
Step 3: Look for uniqueness
You should check how unique each NFT is, i.e., seeing how common it is in comparison to other NFTs in the collection. All you have to do is check out the properties section on the NFT’s page. This can also be used as a safety measure, since scam accounts cannot replicate the properties of the NFTs they are duplicating. Thus, by following these steps, you are making sure to make the most out of the NFT craze that has taken the world by storm.
Top 10 NFT projects by volume 2022
- Bored Ape Yacht Club – This is the most popular NFT collection being sold on OpenSea, and the price of the lowest ape is at $250,000.
- Crypto Punks – Getting one of these can be difficult, as you won’t find that many willing to sell theirs. Like Bored Ape they are one of the most expensive NFT collections out there.
- Mutant Ape Yacht Club – They come with a funny design, and were given as dividend to the holders of the Bored Ape Yacht Club.
- CoolCats – Cool Cats come with the floor price of 10.9 ETH, and they quickly became popular due to their unique design with funny traits.
- RTFKT – This collection comes with an amazing concept, which is basically centered around high-quality sneakers that you can buy and take to the Metaverse.
- Punks Comics by Pixel Vault – Punks Comics is made by a company that is both creative and wants to gamify the NFT space with a theme of comics.
- Adidas: Into the Metaverse – Here, Adidas brings another unique NFT collection to the space while collaborating with both Bored Ape and Pixel Vault.
- Decentraland – This is basically one of the oldest Metaverse projects, and is an Ethereum-powered virtual world where you can buy plots of land.
- SANDBOX – Here NFTs are represented as plots of land that you can buy and then use to create a gaming experience for others.
- Apocalyptic Ape – This is considered to be one of the most successful NFT projects where it initially sold out in just a few minutes, and then later hit the secondary market.
Final Thoughts
With this guide, and this list, you will easily make the most out of your NFT investments, i.e., you will not lose out on the craze that has taken the world by storm.