Guide to NFTs: When and how to invest in NFTs
Did you know that last year a non-interchangeable token (NFT) was sold at Christie's auction for $69 million?
Total NFT sales have grown from $250 million in 2020 to more than $2 billion in 2021 – it's obvious why investors are trying to find the best NFT stocks to invest in this year.
This article will tell you what NAT stocks are, analyze some of the best NFT stocks you should pay attention to this year, and how to invest in them.
NFT is one of the most important cryptocurrency trends of 2021-2022. These are so-called non-interchangeable tokens that cannot be exchanged for others. These assets are unique because there are simply no analogs now.
Some NFT projects bring colossal income, which helps attract investors. Thanks to these investments, people have good opportunities to increase their capital.
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You can find more of our articles about NFT in our blog.
Now let’s find out what NFT is and how we can invest in it.
NFT – what is it? What are NFT stocks?
You may still need to become familiar with the term non-interchangeable token (NFT), so let's first figure out what it is.
What is NAT, in simple words? An NFT or non–interchangeable token is a unit of data that allows you to confirm the authenticity of digital information in a blockchain (digital ledger). NFT data units are usually represented as digital files, such as images, audio fragments, and videos.
What are NFT stocks? NFT shares are publicly traded shares of companies that directly or indirectly work with non-interchangeable tokens (NFT). These companies can participate in the creation, distribution, or promotion of NFT or help maintain the NFT marketplace where you can buy and sell NFT.
If you can invest in TAE stocks, the answer will please you: yes, you can! Take a ride- the company or TAE shares are listed on a public stock exchange, and you can invest in them.
The Best NFTs to Invest in
Novice investors often ask the question: is NFT a good option for investment? It may be so, but it's always worth remembering that stocks move up and down. Therefore, risk management is essential here, especially in new sectors such as NFT, which can seriously increase volatility.
That's why in the list of NFT stocks below, we avoided the stock runoff of NFT stocks, as they can be highly volatile and unsuitable for most novice investors.
Determining the best NFT stocks requires careful research. However, what turns out to be the best option for one investor will not be the most profitable for another. It is essential to determine your level of risk-taking and the type of positions you want to see in your portfolio before choosing which NFT stocks to invest in.
Below you can find a list of some of the best stocks of NFT companies that are worth paying attention to this year. Based on this list, you can also build your research and analysis.
1. Coinbase (COIN.US ) – Probably the best NFT marketplace promotion in the future
In October 2021, one of the world's largest cryptocurrency exchanges, Coinbase, announced the launch of Coinbase NFT. It is a peer-to-peer marketplace that will allow users to create, buy, display and search for NFT.
Coinbase has already announced a deal with Mastercard that will facilitate the purchase and sale of NFT. One of the world's largest companies in the field of payments, cooperating with potentially the world's largest NFT platform – this prospect is exciting to investors.
Currently, the process of buying NFT is long, inconvenient, and involves the use of different accounts and platforms. Coinbase is an interesting NFT promotion that can significantly benefit against the background of the NFT boom, as the company plans to provide a universal solution. If you already have a Coinbase account, you can perform all operations with NFT in one place.
After the IPO (initial public offering) of Coinbase in April 2021, the stock price remained significantly volatile. The recent fall in global stock markets and cryptocurrencies has led to Coinbase shares trading well below the IPO price.
Many analysts say that Coinbase needs to diversify its revenue stream and not just rely on the commission it receives from its users buying and selling cryptocurrencies. Creating the largest NFT platform can become an essential source of income for the company.
More and more companies are planning to enter the NFT market, and cooperation with such a well-known exchange as Coinbase can create an impetus for the growth of the price of its shares.
According to 20 analysts surveyed by MarketBeat, the highest target stock price is $600, and the lowest is $220. Considering that at the moment, the price is trading at about $185, the growth of Coinbase shares, even to the lowest target price set by the surveyed analysts, represents considerable potential.
2. Calvaria: Duels of Eternity is a game in the setting of a mythological afterlife, where three unique factions are constantly fighting.
As players expand their deck and receive rewards, the plot and secrets of the afterlife will be revealed to them. All cards in Calvaria are NFT and depict a specific character of a particular faction. Each NFT hero of the game has a particular set of skills and characteristics.
Players can join any group of heroes, and then they need to create an army of soldiers who can battle a treacherous enemy. Users need to win on the battlefield using defensive or offensive strategies, teamwork, and fighters' skills. The winner receives rating points and the currency of the game – RIA.
Calvaria is inspired by the legends of Mexican mythology and is made in a full 3D format. The title will include battles between players and a single-player campaign.
Players will fully own their cards, resources, and assets thanks to the Play-to-Earn mechanics. You can buy and sell resources in the in-game store.
The main advantages of Calvaria: Duels of Eternity are:
- Colorful design and excellent animation of maps-NFT;
- Free-to-Play and Play-to-Earn mechanics. The game can be played for free. Calvaria also provides an opportunity to earn money just by playing a title;
- Availability. So far, the game has been released only on PC, but the mobile version of the project will be released soon;
- Fascinating gameplay mechanics;
- Players who have bought the RIA token will be able to get the right to vote in the DAO and participate in Calvaria's development.
Lucky Block NFT should be named as a successful project using these assets. Holders of such tokens get access to the drawing of additional prizes. The NFT is used here as a ticket.
It is noteworthy that purchasing one token entitles you to participate in these sweepstakes for life. Each week, holders of these assets can win a part of the prize pool of 10,000 euros.
This token also allows you to count on a double jackpot. At least, for the owners of such an asset, there is a potential opportunity to hit the jackpot. Using NFT, you can trade in NFT Launchpad. Well, a kind of "cherry on the cake" becomes participation in drawing a Lamborghini car.
The project is trendy, and the number of participants continues to grow. Today, the number of the community reaches 50 thousand people. This is a great investment opportunity.
To join the project, you need to perform several sequential actions:
- Install the MetaMask wallet.
- Top it up with wBNB tokens.
- Go to NFT LaunchPad.
- Select Lucky Block NFT and make a purchase.
This is a straightforward and intuitive algorithm with which you can easily and quickly join the project. The wallet is available in mobile and browser versions. If you install it as a Google Chrome extension, it will be easier for you to purchase NFT.
BNB tokens can be transferred from another wallet or a third-party service. The purchase of NFT is carried out on the official trading platform of the project. The transaction is confirmed using a special pop-up notification.
How is the investment carried out
To start investing, you need to go through the following steps:
- Search for a suitable NFT.
- Preparation for purchase.
- Acquisition and storage.
First, you need to decide what exactly you will do with the asset. This significantly affects the search for a suitable token. The choice here is made depending on the tasks that you are going to solve.
For example, you want to buy a token for further resale. In this case, projects with high profitability will be well suited. Purchase tokens at the launch stage, and sell them to another user after a while. It is imperative to avoid making a mistake with the choice of the project and determine the right time for sale.
Refrain from chasing after the maximum possible profit because you risk failure. It is necessary to sell the asset in time because it is likely to fall in price. This is the fate of HYIP projects. But you can also choose some other NFT.
Suppose you intend to purchase an NFT for a collection. Here, pay attention to projects that already have particular popularity among the audience. You can also buy NFT tokens for practical use. This format is beginning to be used in games.
If investments in NFT are made to preserve savings, you must choose projects with positive dynamics. Having invested in an asset with an unclear prospect, you will face unreasonable risk. So many investments should be reliable.
You can search for NFT tokens through ads on social networks. To do this, pay attention to the accounts of large projects. Tokens for practical use can be found on particular platforms.
While preparing for the purchase, you must evaluate the conditions and follow the suggested steps. Usually, you need to register on the site and attach a wallet. At the same time, in many cases, the user remains anonymous. On some platforms, tokens can be purchased for fiat currency.
When the acquisition of NFT becomes a fait accompli, you should solve the storage issue. It is better to think about this point in advance to know precisely where your tokens will be located. For example, a MetaMask wallet is provided for the Lucky Block NFT project. The choice of a particular method also depends on your preferences.
Other tips for investing in NFT
When you have already decided what you will invest in, proceed to the practical implementation of your plans. What principles should be followed?
- Decide how much you intend to invest.
Invest according to your financial situation. Be reasonable: you should still have an "airbag." Therefore, invest only the money that you are not afraid of losing. An experienced investor understands such things well, and a beginner must clearly understand this principle.
- Evaluate your willingness to take risks
Any investment involves risks. There is no safe way of investing. Determine for yourself what level of risk will be acceptable for you. The answer to this question will allow you to understand how suitable the NFT option is and which project is better.
- Study the cryptocurrency market well
Invest money only in the area that you understand. Therefore, you need to learn how to navigate the world of cryptocurrency. It is necessary to know the subtleties and nuances of this money. Once you understand the technology, you will clearly understand virtual coins' pros and cons. Understanding this market, you will learn to distinguish promising projects from dummies and one-dayers.
NFT investments have their specifics. To do this, you need a certain amount of knowledge. So with understanding cryptocurrency as such, successful acquisitions will work.
- Pay attention to security.
The blockchain has a high degree of security. So you can stay calm during transactions with NFT and any cryptocurrency. However, we must remember the observance of basic principles. Do not store NFT tokens and other coins in places with a public address. It is better to use a cold wallet. This increases the level of your protection.
- Study the project well
Let's go back to the Lucky Block example. This is a successful cryptocurrency lottery that is starting to attract many participants. If the project seems promising, you should join it and purchase its NFT tokens. If you are simply attracted to earning money but need more confidence in the project, this investment approach cannot be called correct.
As already noted, this area has excellent prospects. This is due to the growth of the cryptocurrency market and the development of NFT. A lot of change is possible in this industry. Holders of NFT tokens will be able to receive a high income. This area is mainly being examined, and its capabilities are being evaluated.
Follow the latest news from the world of cryptocurrency and NFT. You can do it on our blog. This will help you to react to the changes promptly. In some cases, you will get a good income. In others – protect yourself from losses or minimize them.
Of course, there should be no extremes when you study the market around the clock and lose normal sleep. A system is needed, but a healthy balance is necessary. Also, check out our NFT and Blockchain solutions, such as NFT Reality and others, to keep your time and money - let professionals do your work.