If you're a crypto enthusiast wishing to make a kill in the NFT (non-fungible token) marketplaces, the growth of nfts in 2021 was exponential, and the trend is still promising in 2022. Starting with the record-breaking sale of pieces of digital art auctioned at $69.3 million in early March 2021 and celebrities getting in on the trend, NFT is revolutionizing the creative industry.
As an interested investor, you'd wish to know what nfts have in store for you. Luckily, this review will help you get started with the trading of nfts for a profit. So whether you want to know what NFT means, the best nfts to invest in or where to buy nfts, this review has got you covered. Let's get rolling.
What is an NFT?
NFTs are cryptographic assets that represent unique digital items such as artwork, music, videos and real estate stored on a blockchain. Unlike cryptocurrencies such as Bitcoin, NFT art is not interchangeable. Fungible tokens such as dollars and cryptocurrencies can be exchanged. For example, you can exchange a dollar bill or bitcoin for another with the equivalent value. In contrast, non-fungible tokens are unique, meaning that one can distinguish one digital asset from another.
When nfts are bought or sold online, transactions are recorded on a blockchain, ensuring that every digital asset is unique from the rest. Once an NFT is transferred from one person to another, blockchain technology creates a digital trail to verify transactions from seller to buyer. Once the transaction is confirmed, the new owner (the buyer) gets ownership rights of the asset.
Which are the Best NFTs to Invest in?
Typically, non-fungible tokens are created, stored and traded on the Ethereum network. When investing in nfts, your wish is to invest in those that maximize your profits. Below is a list of lucrative NFTs you can get started with.
- CryptoPunks
CryptoPunks was launched in 2017 and is one of the oldest NFT digital assets. It has over 10,000 collections of pixel images that exist on the Ethereum blockchain. The most valuable CryptoPunks are aliens and zombies, distinguished by their unique aesthetics. The value of a CryptoPunk is derived based on the length of time it has been in the market.
- Bored Ape Yacht Club
Bored Ape Yacht Club is one of the most popular NFTs among investors. There's a collection of 10,000 nfts representing 'Bored Apes'. While these digital art pieces represent bored apes, they have attained incredible attention from various investors. Once you become a Bored Ape owner, you become a 'Yacht Club' member, where you can access impressive benefits such as an exclusive Discord server. The most affordable Bored Ape costs around 6 ETH.
- Pudgy Penguins
This is another NFT that has taken the crypto world by storm. Pudgy Penguins has a collection of 8,888 nfts, with each NFT detailing a fun and unique cartoon. Most investors prefer trading Pudgy Penguins due to their meme potential. They can kid with folks who're still trying to figure out Penguins trading.
- Decentraland
Decentraland is an NFT you can invest within the 'metaverse'. Decentraland owners play an open-world blockchain-based game where they create in-game avatars and buy NFT plots of land. While Decentraland is hosted on the Ethereum blockchain, it uses MANA as its native currency. Investors can use MANA to buy land parcels, art, weapons, apparel, among other digital assets.
- Meebits
Meebits was launched by Larva Labs, the same creators of CryptoPunks. Meebits has gained popularity, thanks to the appeal of their creators and an extensive collection of 20,000 characters. These characters exist in 3D and are rendered in pixels. Each Meebit includes a combination of unique eye colors, glasses, shoes, tattoos and more. Besides owning unique digital art, investors can animate and render their nfts, thus using them in the metaverse platforms.
Best Places to Buy NFTS
If you're looking for lucrative markets to participate in buying or selling non-fungible tokens, there are dozens of marketplaces out there. Here is a list of lucrative NFT marketplaces to join.
- OpenSea
OpenSea boasts of being the largest NFT marketplace. Its platform has all kinds of digital assets investors want, and one can freely browse to take advantage of the extensive offerings. The platform is also ideal for creators and artists who want to mint their digital assets. In addition, OpenSea supports over 150 payment tokens and is a reliable market for everyone.
- NBA Top Shot
This is a marketplace for trading art, video clips and play highlights in the National Basketball Association and Women National Basketball Association. NBA Top Shot is a closed marketplace, meaning that you can only trade on the Top Shot using the Flow blockchain.
- SuperRare
SuperRare is a market for digital creators and artists. The platform has videos, 3D images, and art traded using Ethereum. You can buy or sell SuperRare nfts on OpenSea.
- Rarible
Rarible is a large market for non-fungible tokens. The platform has all kinds of digital assets, including art, videos, music, and collectables. However, trading in this marketplace requires using their token Rarible (CRYPTO: RARI).
- Foundation
Foundation provides investors with a convenient way of bidding on digital art. In addition, the platform invites artists and buyers to purchase digital art using Ethereum. The marketplace has dozens of artwork buyers can peruse when selecting their best choices.
Bottom Line
Non-fungible tokens are revolutionizing the trading of digital assets. Whether you want to join the market as a buyer, seller or creator of nfts, there's a lot to explore. Consider the best nfts to invest in and the marketplace to start trading for a profit. However, do your homework before trying any NFT or joining any marketplace.