Non-fungible tokens or NFTs have gained enormous success in cryptocurrency and they’ve created an explosion in the investment world. In 2021 alone, approximately $41 billion worth of cryptocurrency was spent on NFTs.
What are NFTs?
Unlike other cryptocurrencies, NFTs are one-of-a-kind digital assets, which means there is only one of each token. NFTs are hosted on a blockchain, the most popular blockchain used for NFTs is Ethereum. While a few marketplaces accept money, most of them use cryptocurrency to buy NFTs. For example, an NFT made on the Ethereum blockchain will most likely be sold with Ether tokens.
An NFT is a digital asset in fashion, music, gaming, sports - or it can even be a tweet! This innovation is used to guarantee the ownership of an asset. The NFT world is governed by artists, collectors, and investors looking to make a high return on investment. For example, last month, Jack Dorsey - the CEO of Twitter, sold his first-ever tweet for $2.9 million. These tokens can be created, sold, and bought through NFT marketplaces, like the Jungle NFT Marketplace.
How to invest in NFTs?
If you’re looking to invest in NFTs, you’re in the right place. We’ll explain everything from how to buy cryptocurrency to how to invest in NFTs for potential profit.
Set up your wallet
In order to invest in NFTs, you’ll need to have a crypto wallet, which is a digital wallet used to store cryptocurrencies and sell or buy digital assets. It’s important to choose a wallet that is supported on various NFT marketplaces, a few popular ones include MetaMask and Trust Wallet. You can buy cryptocurrency from a crypto exchange like Coinbase, store it in your wallet, and start investing in NFTs.
Sign up on Jungle
Similar to Amazon and eBay, where you can buy physical assets, NFTs are digital assets sold in digital marketplaces. These rare tokens are bought, sold, and created on NFT marketplaces. The Jungle NFT Marketplace is a secure and private platform where you can safely store your collectibles. Signing up on Jungle is easy and doesn’t require verification or waiting, you can become a member of the community in minutes.
Invest in NFTs
Now it’s time for the fun part, browsing the marketplace and buying the NFTs you like. NFTs will either be listed at a fixed price or for auction. Auctions are virtual, and you can make a bid online. If it’s a fixed price, you can buy it in real-time with your crypto wallet. The prices of NFTs may change depending on the demand, the higher the demand the higher the prices are - like the CryptoPunks or Bored Ape collection, which witnessed a surge in price last year for its high demand.
Where to invest in NFTs?
Jungle is one of the safest marketplaces in the industry, ensuring your investments are secured and private. With a unique rewards program, the more NFTs you sell - the more the rewards you get! Jungle’s supported wallets include MetaMask, WalletConnect, Trust Wallet, and Fortmatic
Conclusion: Are NFTs a good investment?
NFT investments are relatively new and there’s no guarantee that you’ll make millions. But if you’re able to keep an eye out for the latest NFT trends early on, it’ll definitely pay off big time. When CryptoPunk started out in 2017, a token cost around $70 - now most of their tokens are worth millions of dollars. Additionally, NFT owners are often a part of an elite and tight-knit community, like Jungle’s community, and owners gain access to exclusive rewards, events, and more.
Is it profitable to invest in NFT?
Investing in NFTs can be very profitable, but it’s important to keep track of what’s trending early on and the latest drops so you can invest before it gets expensive. And since you’ll want to sell your NFTs at some point, it can be worth a lot. An NFT’s profitability depends on how in-demand it is.
Can you lose money with NFT?
There is no guaranteed method to predict the trajectory of an NFT, that is why it is important to know when to buy and sell NFTs - this will come with practice and keeping an eye on the market.
How do I invest in NFT stock?
Similar to cryptocurrency, investing in NFT stock is a safer and more regulated bet because it’s fungible. Investing in stock will give you better exposure to the market, which can be a bonus with NFT growth in the future.