If 2021 was the year the world collectively tried to get its head around what NFTs are, 2022 is the year to consider getting involved. Whether you’ve been browsing Twitter and got jealous of all the Bored Apes Club profile pictures or you’re interested in the grassroots power of NFTs to support artists, maybe that’s the conclusion you’ve come to as well.
But you get started, you’ll need to know how to invest in NFTs. The good news is that understanding how the investment process works isn’t quite as complex as figuring out how NFTs work in the first place, especially if you’re familiar with investing in cryptocurrencies and storing them in a wallet. But it does involve a few extra steps.
To make sure you’re an expert on the topic, I’ll run through: – The basics of NFTs – Choosing between types of NFTs – Deciding where to buy NFTs – Whether investing in NFTs is a good idea
Before we get too carried away with the finer details of investing in investing, it’s important to quickly clear up what NFTs actually are — but feel free to skip this section if that’s old news to you.
NFT is short for non-fungible tokens, and the key element detail is the “non-fungible” element. When it comes to currencies like US dollars or Bitcoin, there’s no difference between one unit of that currency and another. You can buy the same things with the $5 in your pocket as you could with the $5 in somebody else’s pocket.
I could give you a brief summary of how to invest in NFTs in a few steps: 1. Head to an NFT exchange. 2. Fund your crypto wallet. 3. Use the funds in it to buy the NFT(s) you want. 4. Store the NFT(s) in your wallet.
It really is that simple — provided you know how to go about each of the steps above.
Each stage of the process has its own set of considerations. You can’t buy an NFT from an exchange until you know the type of NFT you want and the right marketplace to purchase it from. You’ll also have a choice of buying it for a fixed price or through an auction (some marketplaces offer both options and some just one).