Non-fungible tokens, or NFTs, have proved to be an exciting addition to the cryptocurrency world. NFTs allow simple tokenisation of physical and digital assets, opening up a vibrant new ecosystem where market participants can trade art, music, in-game items, and more.
In this guide, we’ll discuss how to invest in NFTs in detail, reviewing the best NFTs and the top trading platforms before showing you how to buy an NFT today – in four easy steps.
Are you looking to begin NFT investing right away? If so, the quick steps below will walk you through how to buy an NFT from the comfort of your own home.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
If investing in the best NFTs to buy seems appealing to you, it’s wise to first gain a broad understanding of what NFTs are and how NFT investing works. As noted in the intro, NFT stands for ‘non-fungible token’ and refers to a digital token used to guarantee ownership of a specific asset. The asset in question could be anything, although most NFT trading volume corresponds to digital art, music, and blockchain gaming items.
NFTs are hosted on the blockchain, which is the decentralised network behind many cryptocurrencies. Bitcoin was the first to popularise blockchain technology, although since then, many other exciting networks have sprung up that look to improve on the foundations that Bitcoin set. Ethereum is one of these networks and has become the leader within the NFT space, although Solana, Cardano, the Binance Smart Chain are also heavily involved.
If you’re interested in investing in NFTs, you can do so through an NFT marketplace. The best NFT marketplace provides an easy-to-use online portal where investors can browse NFTs that have been created by other users and then purchase them if they wish. Most of the time, NFTs will be listed for a fixed price or through an auction – with the latter allowing investors to make bids until someone wins the NFT.
Finally, since NFTs are based in the cryptocurrency ecosystem, you will need to obtain a crypto wallet to store your NFT post-purchase and also store the crypto necessary to facilitate transactions. The best crypto wallets can connect with NFT marketplaces and help users fund purchases, along with holding their assets safely.
So, is investing in NFTs a good idea? There are many factors to consider here, but let’s dive in and explore five of the main elements to keep in mind when researching how to invest in NFTs:
One of the main appeals of investing in NFT art is the potential value increases that may occur over time. A prime example of this is CryptoPunk 1422, purchased for $74 back in 2017. However, BusinessInsider recently noted that the NFT was sold in October 2021 for an incredible $2 million. This example highlights the potential that many NFTs have for dramatic price appreciation.
Investing in NFTs doesn’t just provide investors with a cool piece of art or music – it often includes scope to attain exclusive bonus content. There are many examples of this, although a prime example is when NFT collection creators will invite owners to events or provide additional NFTs via Airdrop.
High-end NFTs often allow owners to be part of exclusive ‘communities’, which adds an air of prestige to the assets. A famous example of this is Bored Ape Yacht Club, which operates a Discord server filled with other Bored Ape owners, including celebrities and high-profile names. Owners also gain access to ‘The Bathroom’, a community-driven graffiti board.
You may wish to purchase the best NFT to invest in so that you can support a creator that you’re a fan of. NFTs have proven to be a fantastic way for creators to publish work and for fans to show their support by buying the work.
Finally, since NFTs are ‘non-fungible’ by design, many NFT owners will display their assets as their profile pictures on social media. This highlights to others the prestigious NFT that they own – and the NFT cannot be copied because ownership is solidified through blockchain technology.
If you’re researching how to invest in NFTs, it’s crucial to gain an understanding of the top assets available to investors. Presented below are five of the best NFTs to be aware of and why they are highly sought after:
When exploring how to invest in NFT art, you’ll likely have seen CryptoPunks mentioned frequently. CryptoPunks was one of the first NFT collections and was initially launched in 2017. However, as the NFT craze took off, these ‘Punks’ became viewed as premium assets due to their ‘first mover’ status – and many have since been sold for millions of dollars.
Bored Ape Yacht Club is a collection of 10,000 pieces of NFT art that depict bored apes. Although the collection’s launch was understated, these ‘Apes’ became seen as a status symbol, with many celebrities and high-profile names getting involved. At the time of writing, Bored Ape Yacht Club NFT sales have breached the $1 billion, thanks to the likes of Eminem and Snoop Dogg making investments.
Mythia is a collection worth adding to your NFT calendar, as the drop comprises 3,333 pieces of unique art that showcase cyberpunk and anime characters. However, Mythia’s appeal mainly comes from the additional benefits, as all owners gain access to exclusive Discord servers that discuss upcoming NFT drops with huge potential. Owners can also access a suite of software tools that streamline the NFT investing process.
Embers is another collection worth considering for people looking to begin investing in NFTs. Like many other collections, Embers NFTs are seemingly simple art pieces, each containing unique traits and aesthetics. The collection is set to release soon, with a total of 5,555 NFTs up for grabs and a stellar roadmap for the future.
Finally, Pudgy Penguins is a collection of 8,888 randomly-generated ‘Penguins’ that investors can purchase and display as their profile pictures. The collection was launched in July 2021 and has totalled over $140 million in trading volume since then. Although the Penguins are available for only 0.03 ETH at the time of minting, certain Penguins have gone on to sell for massive amounts – with one being sold for over $450,000!
Now that you’ve got a solid understanding of the investment landscape, let’s discuss where to invest in NFTs.
Whether you’re interested in investing in NFT stocks or are more inclined towards NFT art, it’s vital to partner with a platform that can facilitate transactions safely and cost-effectively. With that in mind, we recommend using Crypto.com to make your NFT purchases.
Crypto.com is one of the best crypto exchanges globally, offering a low-fee trading environment for all users. The platform launched its own NFT marketplace in 2021, which now features NFTs hosted on the Crypto.com blockchain and the Ethereum blockchain. The great thing about Crypto.com is that there are no fees to purchase NFTs – which is in stark contrast to many other NFT platforms.
What’s more, investors can buy NFTs using their credit or debit card, meaning that it isn’t necessary to hold crypto to facilitate an NFT purchase. The investment process is straightforward with Crypto.com, as you can sign up in minutes and verify your account via SMS or by connecting to your Crypto.com trading account (if you have one). Finally, Crypto.com even has one of the best NFT apps, ensuring users can operate within the market whilst out and about.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
If you’re wondering how to invest in NFT crypto or purchase NFT art, it’s vital to understand the investment process before diving into the market.
To help streamline this process, the five quick steps below will walk you through how to buy NFTs using Crypto.com – all with no transaction fees.
We recommend using eToro to purchase the crypto needed to facilitate your NFT investment, as the platform offers all of the leading NFT-related cryptos as tradeable assets, including ETH, SOL, ALGO, ADA, BNB, and more. Furthermore, eToro offers tight spreads on its tradeable cryptos and offers FCA, ASIC, CySEC, FinCEN, and FINRA protection.
Once you’ve signed up for eToro and verified your account, you can proceed to make a deposit (minimum $10). Following this, search for the crypto you’d like to buy, enter your position size in the order box, and confirm the trade.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Next, you’ll need to set up a crypto wallet. There are numerous that you can use, although it’s vital to open a wallet that supports the blockchain network of the NFT that you wish to purchase. Some top NFT wallets to consider include MetaMask and WalletConnect.
Once you’ve opened your crypto wallet, you can transfer your crypto holdings from eToro into the wallet. You’ll need to download the eToro Money app to do this, although you can complete the entire process in minutes.
Once the crypto is in your crypto wallet, it’s time to create an NFT marketplace account. Our recommended marketplace is Crypto.com, thanks to its stellar reputation for safety and minimal trading fees.
Head over to the Crypto.com NFT marketplace homepage and click ‘Sign Up’. After this, enter the required personal details and choose a username and a password for your account.
You can now verify your NFT marketplace account in one of two ways:
Now it’s time to make your NFT investment. You can browse the Crypto.com NFT marketplace and click on any listed NFT you wish to purchase. NFTs will be listed for auction or a fixed price – and you can make purchases using the crypto holdings in your wallet via the Crypto.com Pay feature.
Once purchased, your NFT will be placed in the ‘Collectibles’ section of your account, where you can view it or send it to an external crypto wallet.
Your capital is at risk.
Although investing in NFTs directly will provide clear exposure to a specific asset’s value, you may wish to gain exposure to the growth of the wider NFT sector. A good way of doing this is by investing in NFT companies. As the name implies, these companies either have direct or indirect exposure to the NFT sector, enabling equity investors to speculate on the sector’s growth.
For investors wondering how to invest in NFT technology, these companies can provide a simple route of doing so. NFT companies could be brands that have developed NFTs and sell them through reputable marketplaces, or they could be video game companies that are dipping their toes in the NFT space. At present, there aren’t many companies that base their entire business model on NFTs – although this may change in the future.
Like when you buy Bitcoin, investing in NFT companies is still highly speculative. The NFT market is relatively young compared to other markets, so investors are still trying to figure out the intricacies of how asset value is affected by certain factors. As such, purchasing shares in these companies will likely be of greater appeal to risk-seeking investors rather than risk-averse investors.
Even if you’re only interested in how to invest in NFTs directly, purchasing NFT stocks can help you gain exposure to the market more broadly. However, much like day trading crypto, operating in this area of the market tends to be more volatile than purchasing established stocks.
That being said, there are still a few benefits of buying NFT stocks. These include:
To deepen your understanding of your options within the equity market, detailed below are five of the best NFT stocks to invest in with the highest price potential:
If you’re wondering how to invest in NFTs through equities, then buying Coinbase shares is a good way of doing so. A recent blog post from Coinbase announced the upcoming launch of ‘Coinbase NFT’, a P2P marketplace for minting, trading, and showcasing NFTs. The marketplace will feature Coinbase’s popular user interface, making NFT trading simple for beginners. Once this marketplace goes live, it’ll likely add another substantial stream of revenue for Coinbase – which may positively affect the share price.
eBay is another established company looking to tap into the NFT craze. The platform announced in May 2021 that it would begin offering NFTs through its online marketplace, which can now be purchased using FIAT. At present, eBay only offers art NFTs from a selection of verified sellers. However, various reports are emerging that eBay may soon begin accepting crypto payments – which would pave the way for a greater choice of NFTs on the platform.
Funko is a US-based company that produces collectibles related to pop culture. The company is well-known worldwide and has licensing deals with established companies such as Marvel, Disney, Nickelodeon, and more. In August 2021, Funko released its first digital collectibles in the form of NFTs called ‘Digital Pops!’. Since then, Funko has released further NFT collections and is one of the first companies to adapt its business model to benefit from the growth of digital assets.
Dolphin Entertainment is a marketing and PR firm that provides services to film studios, celebrities, social media influencers, and more. An August 2021 article by Variety reported that Dolphin would be partnering with West Realm Shire Services to launch an NFT marketplace for sports and entertainment brands. Once this marketplace goes live, it’ll enable Dolphin to generate revenue from trading fees. So by investing in Dolphin Entertainment stocks, investors can gain a broader exposure to the growth of the NFT market.
Another option if you’re wondering how to invest in NFTs through the stock market is Plby Group. Plby Group is a media and lifestyle company best known for operating Playboy magazine. The company entered the NFT space in late 2021 when it launched ‘Rabbitars’, a collection of 11,953 NFTs designed as 3D rabbits and pay homage to Playboy’s roots. However, Plby Group isn’t stopping there, with rumours heating up that the company is set to bring the Playboy Mansion into the metaverse, making Plby one of the top NFT stocks to consider investing in.
Now let’s turn our attention to how to invest in NFT companies. When investing in equities, it’s vital to partner with a respected broker that can facilitate your investment quickly and cost-effectively. We recommend eToro for this, as the platform is regulated by multiple top-tier entities and charges no commissions when stock trading.
With that in mind, presented below are the four quick steps to follow if you wish to buy NFT stocks with eToro today:
Head to eToro’s website and click the ‘Join Now’ button. Provide a valid email address and choose a username and a password for your account.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Click ‘Complete Profile’ and complete eToro’s KYC checks. Following this, upload photo ID (e.g. passport) and proof of address (e.g. bank statement) for verification.
Next, deposit at least $10 into your trading balance. eToro currently accepts the following payment methods:
Search for the NFT stock you wish to purchase and click ‘Trade’. Enter your desired position size in the order box (minimum $10) and click ‘Open Trade’.
68% of retail investor accounts lose money when trading CFDs with this provider.
Before rounding off this discussion of how to invest in NFTs, it’s wise to touch on crypto wallets. As noted earlier, you will need a crypto wallet to store crypto for NFT purchases. We recommend using eToro Money for this, which is eToro’s dedicated crypto wallet app. This wallet is incredibly useful, as you can buy Ethereum (or any supported crypto) using the eToro exchange and then instantly transfer your holdings to the wallet.
The wallet is easy to use and available on iOS and Android. It supports over 500 crypto assets and features an unlosable private key and advanced DDoS protection. Finally, you can even exchange one coin for another from directly within the wallet’s interface – making it easy to buy NFTs that are denominated in different digital currencies!
In conclusion, this guide has taken an in-depth look at how to invest in NFTs, covering all of the critical points related to NFT investing and showing you how to make your purchase today.
As noted earlier in this guide, we recommend partnering with Crypto.com if you’d like to buy NFTs. Crypto.com charges no fees when making NFT purchases and even allows users to invest in NFTs via a credit or debit card. Furthermore, Crypto.com now supports Ethereum-based NFTs, ensuring investors can get their hands on the top collections.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
This article was written for Business 2 Community by Connor Brooke.
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