NFTs have gained much popularity in the last several years, with major celebrities and artists enforcing the marketplace. If you’re interested in NFTs, here are some basics of how to buy and sell NFTs on the blockchain, as well as some investing tips that’ll help you get started with your own portfolio. Start your NFT collection today.
What is NFT?
NFTs are a type of digital collectible that have unique features. In contrast to fungible tokens, NFTs are non-fungible and tradable. Each token is unique and represents something different, such as a physical asset or digital file.
There are many types of NFTs available on the market today, including those from games like CryptoKitties and FTX’s marketplace for digital artworks. There’s also a wide variety of game items available in-game through different platforms. NFTs gained popularity by being a tool for artists to create digital scarcity and open a digital art market where they can sell their works as NFTs.
How to Invest in NFTs?
To invest in NFTs, you’ll need a digital wallet that can hold your tokens. Be sure the token you select to fund your wallet with is compatible with the NFT marketplace you wish to enter.
The next step is to purchase tokens on an exchange—a platform for buying and selling cryptocurrencies such as Bitcoin and Ethereum (which can be used to buy NFTs). You can use an exchange like FTX to access the most popular cryptocurrencies.
Lastly, you can buy NFTs from a marketplace—a website where you can find sellers interested in selling digital assets. FTX has a great NFT marketplace built to make it easy and convenient for artists and collectors to participate in the NFT exchange.
Where to Trade NFTs?
There are a few ways to trade NFTs. You can do so on centralized exchanges, decentralized exchanges, and peer-to-peer trading.
At this point, most people have heard of centralized exchanges such as Binance or FTX. These platforms allow users to buy and sell their cryptocurrency assets from the exchange itself (you never actually hold your own private keys). By contrast, decentralized exchanges are operated by a group of users who always maintain control over their funds. Decentralized exchanges do not work with intermediaries, meaning they typically have low or no fees involved, and all trades executed on the blockchain are automatically completed by smart contracts.
What is an NFT Airdrop?
NFT airdrops are a great way to get your hands on free NFT collectibles. Still, it’s also an excellent opportunity for companies and other token creators to build participation and hype around their new blockchain projects.
Since most people aren’t going to pay money for something they don’t know anything about, companies have found success in giving away free tokens and NFTs through airdrops.
An interesting thing about this method is that many people who hold these newly-issued cryptocurrencies will hold them for longer periods than if they had bought them directly from the company itself at full price. This is because there are no transaction fees associated with receiving tokens or an NFT via an airdrop; therefore, users may feel more inclined not to sell immediately after receiving the token.
NFTs are a lot of fun to invest in and a great way to diversify your portfolio. Do your research before investing in an NFT collection, and select the best marketplace for your needs. You can learn more about NFTs and access the NFT marketplace through FTX.
Disclaimer: This article is not financial advice. All investments carry some degree of risk. It is an individual’s responsibility to do his or her own due diligence. When in doubt, please do seek professional advice.
Featured illustration: Freepik (alekksall)/Vecteezy. Composite by Mikeshouts.