How to Invest In NFT Tokens?
Blockchain is constantly evolving, and one of the innovations is non-fungible tokens (NFTs). Artists make millions from digital paintings and tracks and meme characters sell their photos for fabulous sums. This technology keeps improving and the number of NFT marketplaces increases, and it’s time to invest in NFT tokens. Keep reading the new StealthEX article and find more about investing in NFT.
What Is an NFT?
Non-fungible tokens (NFTs) are unique digital certificates stored in blockchain, guaranteeing the originality of an object and giving you exclusive rights to it.
NFT tokens cannot be swapped, split, or replaced. The system is suitable for securing rights to a unique object, such as a work of art, real estate, or a game artifact.
How Does NFT Work?
Each record on the blockchain is called a token. In an open blockchain, all tokens are equal and interchangeable. That’s how cryptocurrencies work. For example, you can replace one Bitcoin with another and nothing will change.
However, NFT works differently. A non-fungible token is a digital coin that cannot be replaced by another one without changing the value and essence of the object.
Like cryptocurrencies, NFTs are created in a blockchain, which acts as a database to record all transactions. The blockchain guarantees the authenticity of non-fungible tokens. With this system, any user can verify the originality of a particular NFT through the blockchain.
By purchasing an NFT token, the user acquires a certificate for the work. The work itself doesn’t move anywhere. The certificate is a code confirming that the owner of the token is the owner of the original copy of the object. An NFT token is compared to a painting, which may belong to a gallery, museum, or individual, but the audience can see it in a catalog or at an exhibition.
NFT tokens are sold in marketplaces. Their creators put them on such platforms and wait for offers from buyers.
Everyone can create NFT tokens. You need to take a digital object (pictures, tracks, photos, and others), register in a marketplace, and upload the object with a description and price. On many marketplaces, you will have to pay a fee for the creation of a blockchain entry, that is a unique token.
How to Buy NFT Tokens?
Users can buy NFT tokens according to the following algorithm:
- Buy ETH. Most NFTs are Ethereum-based tokens, and users have to pay for NFTs in ETH. The fastest way to buy Ethereum is through cryptocurrency exchanges, and StealthEX is the most secure platform, letting everyone buy ETH for fiat or other digital assets.
- Connect a MetaMask wallet to a marketplace. Each website offers users its own collection of NFTs.
- Buy NFTs. Most marketplaces operate in an auction format, and all users who want to get a particular token need to submit their bits.
Where to Buy NFT?
Since the technology is evolving, more marketplaces for NFT investing appear. The most reliable ones are:
- OpenSea. The first NFT marketplace launched in 2017. Popular categories are art, sports, collectible cards, and projects from well-known artists. Audio and 3D objects are also available on OpenSea. The standard fee is 2,5% of the NFT value (charged to the buyer).
- Rarible. Users have bought almost 200 thousand tokens worth $139.87 million on Rarible. Unlike OpenSea, it uses its own Rari token.
- SuperRare. This marketplace focuses on artwork and digital paintings. On SuperRare, there’s detailed filtering, by which you can find a particular token.
- NFTrade. It’s similar to OpenSea but supports more chains for trade. It is easier for users to choose the token with the best fees. This site features numerous collections from different developers.
- Magic Eden. One of the few NFT marketplaces on the Solana blockchain. It operates on the principle of exchange and launchpad. Those who want to place their collection have to apply for listing first.
Pros and Cons of NFTs
NFTs have a great number of pros, including:
- The ability to buy and sell in minutes, the more unique the piece, the more valuable it is.
- Retention of copyright in perpetuity.
- There is no doubt in the authenticity of NFTs, as they cannot be faked.
- Increased opportunities in games.
However, before you invest in NFT, you should know some of its cons:
- A basic understanding of blockchain technology is required to buy NFTs.
- Ease of management depends entirely on the quality of scalability of the blockchain on which the token is placed.
The Future of NFTs
NFTs have a grand future. The beauty of the technology is that the information within it cannot be deleted or changed. Already now, NFTs can record the ownership of collectible paintings, musical works, real estate, land, or vehicles. However, tokens are best suited for the ownership of digital goods, including items in games and virtual universes.
Soon, NFT tokens will be used not only for art but also to validate important documents, such as an education diploma or a health certificate.
Are NFTs a Good Investment?
After all, investing in NFT is the easiest way to get a unique piece of art. Some of these tokens even help users improve their experience in games. A bit later, it’ll be possible to implement this technology in the industries where security is essential.
How to Buy ETH Crypto for Getting NFTs?
As mentioned earlier, the majority of NFT marketplaces use Ethereum cryptocurrency to buy and sell NFT art. Thus, if you want to join NFT community, you will need to stock up on your Ether tokens. The safest way to buy ETH is StealthEX. Select from over 400 cryptocurrencies or fiat money (USD, EUR, RUB, GBP), provide general information, and wait a bit to complete your transaction.
Get Ethereum by following these 5 steps:
- Go to StealthEX website. It will automatically guide you to the «Exchange» crypto» window.
- Choose the currencies you would like to swap. For example, BTC to ETH.
- Enter your crypto wallet address.
- Send the deposit to the address generated by StealthEX.
- Once deposit will be received, you will get your exchanged funds to the address provided in Step 3.
You can also buy ETH with your debit or credit card. To do so, you need to open the «Buy» crypto window instead of «Exchange» crypto in Step 1.
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
You are more than welcome to visit StealthEX exchange and see how fast and convenient it is.