How to invest in NFTs in 2022?

What is an NFT?

NFT or a Non-Fungible token is a way of confirming and tracking identities or ownership through blockchain technology. They are different from cryptocurrencies but utilize the same technology. Bitcoin (BTC), for example, is a fungible token meaning you could trade a BTC for another BTC and it would exactly be the same. Nothing changes for you. However, NFTs are unique and cannot be exchanged in this manner. So, they are different but because they store data on a public ledger, this feature can be used to identify and track ownership of practically anything. This attribute makes NFTs reliable for industries where fraud is rampant and duplicate items need to be tracked. Art, digital music, collectibles, identity verification cards, passports, and global supply chains can all use NFTs. NFTs are also used by the gaming industry to identify plots of land or other collectibles which can be earned or sold inside the gaming ecosystem. Any industry where it is important to identify a particular owner and track transfer of ownership can make use of NFTs. 

 

While NFTs have become very popular and are being sold for millions in the art market, they have multiple use cases. The major reason why the art market has adopted NFTs is that the industry is frequently exposed to theft and fraud. A public ledger in the form of NFTs eliminates the risk of fraud. How can you steal something when anybody can verify who is the true owner in a few clicks? NFTs also eliminate the need for middlemen and thus provide a fair and larger share to the original artist. Artists no longer need auction houses or agents to sell their art pieces. It can all be done digitally through an online marketplace. NFT is an ingenious solution and can remove duplicate products and fraud which has become an entire industry lately. 

As per Tech Crunch, the OpenSea NFT marketplace was valued at $1.5 billion last year. The site had tweeted, “NFT market OpenSea hits $1.5 billion valuation.” Source: Twitter.

NFTs can also help in fighting against counterfeit products. Many industries such as the wine industry and sneakers have been plagued by cheaper and fake versions of their products for a long time. NFTs are being used to verify the original products in such industries. In the future, NFTs may be used for many other industries including physical items.

Are NFTs worth investing in 2022?

Let us consider some numbers first. The first YouTube video called, “Charlie Bit Me” was sold as an NFT for $761,000. Crypto Punks NFTs frequently attract sales in millions of dollars while Beeple’s Everydays sold for a record $69 million. Beeple is a popular NFT artist whose work has attracted huge investments through the NFT marketplace model. 

But why are people paying huge amounts for a digital art piece? Because ownership is guaranteed. Nobody can steal it. If ownership is easily verifiable, it means that you can also resell it easily. There is no need to waste time finding an agent or specialist who will do the hard work of identifying it as an original piece etc. The selling process is as easy as the buying process. How cool is that! 

Critics of NFTs point out that anybody can right click and save the file and claim it as their own. Well, good luck with it! How will a thief also change the NFT ledger? That is why NFTs are so valuable. 

Ethereum blockchain network is one of the most popular and frequently used instruments for NFTs deployment but other blockchains such as Binance Smart Chain, Polygon, and Tron also support NFTs. The artist is free to choose any blockchain. The entire market is decentralized just like the cryptocurrency marketplaces.

5 Most Popular NFT'S in 2022

Now that we know what NFTs are, let’s discuss the five most popular NFT collections that investors should research. You can buy NFTs easily on marketplaces such as OpenSea. You can transact in cryptocurrencies such as Ethereum or also use US dollars. The acceptable currency and mode of payment differ from platform to platform. Below, we will discuss five of the best NFTs to invest in 2022.

1. CryptoPunks: Without a doubt, CryptoPunks is one of the biggest NFT collections that you can invest in. They demand a fortune but the return is also handsome. CryptoPunks are NFTs deployed on the Ethereum blockchain. Each NFT is a unique design and there are a total of 10,000 limited characters. The cheapest CryptoPunk NFT currently available is valued at $188,285. 

2. Bored Ape: This is one of the recent NFT collections that comprise of 10,000 unique bored looking apes. Each character has a different facial expression. The designs are pretty cool and have attracted many investors. Bored Ape NFTs have sold out and you will need to purchase them on the secondary market through OpenSea. Buyers get access to a board game and there will be more incentives in the future. So purchasing a Bored Ape NFT provides a digital membership to goodies and other merchandise offered by the company. 

3. Doodles: It is a collection of 10,000 digital art pieces. Doodles have become very popular and the team behind it created the hugely popular CryptoKitties NFTs. The artists go by the aliases Burnt Toast, Poopie, and Tulip. Buyers get to vote on community events and get a share in deciding the future roadmap. 

4. Decentraland and Axie Infinity: Both are games and part of the metaverse. Each has a cryptocurrency token but both games also offer NFTs. Decentraland offers LAND, an NFT token that represents ownership of a land plot inside the gaming universe. Axie Infinity offers characters called Axies and land plots in the form of NFTs. These NFTs can be sold and as these two games become popular, the value of the NFTs should also see some price appreciation. Angel, an Axie NFT sold for a record $1.1 million last year. 

5. Galaktic Gang: Created by Chris Dryer, Galaktic Gang is a collection of unique characters sold as NFTs. There are a total of 5,555 such characters and all have sold out. A part of the sale (10%) is used to fund charity efforts. The Galaktic Gang series is well known for the unique inimitable look that is difficult to replicate. Owning a Galaktic Gang NFT provides exclusive benefits such as access to merchandise and other products or events offered by the community. The team has also promised a detailed roadmap that will provide more use cases for their NFTs. 

You will need to access OpenSea or other similar platforms to purchase NFTs. It is important to research the artist behind the creation. Well-known artists often command a much higher price. Limited collection NFTs are rare and sell for a huge premium if you can manage to get one. An NFT that has been owned by a celebrity will also often go for a much higher price. It is important to remember that NFTs offered by gaming metaverse ecosystems are more valuable since they will be used by players. NFTs that have some inherent use cases such as membership of clubs or communities will also remain valuable in the future. Remember to keep these things in mind before deciding to invest in an NFT project. You will also need a wallet to store the purchased NFTs securely. 

NFTs have provided a huge opportunity to investors looking for an alternate source of investment. There is no limit to what can be sold as an NFT. Jack Dorsey, the Twitter CEO, managed to sell his first tweet as an NFT for $2.9 million. 

Remember to do your own research (DYOR) as NFTs are a volatile investment instrument.  

how to buy shiba inu in Australia
coinspot review image

See our coinspot Review for 2022

Top Exchange Reviewed Crypto Joe - Founder

Latest posts by Crypto Joe (see all)