Historically, investing in art was something only the nobility and the wealthy enjoyed. However, with the emerging market for NFT art or crypto art, more and more companies, auction houses, artists, celebrities, collectors, and investors are getting in on the act, seeing considerable returns on investments in crypto-collectibles and other digital assets.
Choosing the best fence wall design can be huge. It requires a lot of work. So, if you wish to save some effort, you can always opt for cheap custom stickable picture tiles. They personalize and enhance the look of your gallery wall. With that said, let us explore the top designs. With some pieces being auctioned off at traditional auction houses like Christie’s and Sotheby’s, and even other inspiring pieces appearing on the markets with technology about to completely transform the digital art world, there is no longer any reason to ask whether NFT or crypto art is a good investment. But you need to know about how to buy NFT art or crypto art and all the terms related to them. It is necessary for investment purposes.
NFT stands for non-fungible token. Each NFT has a digital signature that makes it impossible for it to be exchanged for another NFT (therefore non-fungible). An NBA Top Shot clip containing highlights of Lebron James, for example, is not the same as Beeple’s Everydays: The First 5000 Days, simply because both are NFTs. (In that case, an NBA Top Shot clip is also not necessarily the same as another NBA Top Shot clip.)
Beeple’s digital artwork Ocean Front, which sold for $6 million, is not the same as Twitter CEO and co-founder Jack Dorsey’s first-ever tweet, which recently sold for over $2.9 million, precisely because each NFT is unique, and have different values.
Celebrities like Grimes, Lindsay Lohan and Paris Hilton are getting on the NFT wave, releasing digital artworks, memories and unique moments as NFTs.
You can compare NFTs like physical collector’s items, but instead of putting a painting or other historical item on the wall, the art buyer or collector just gets a digital file with a financial or monetary value.
What is NFT art or crypto art?
Just as Decentralized Finance (DeFi) mimics the financial products of banks – loans – NFT art mimics the world of art galleries, stores and museums. Without expensive and risky mediators.
This is possible with smart contracts (dApps), originally born in Ethereum. This kind of programmable blockchain can serve a wide range of decentralized applications. In other words, NFT marketplaces are dApps that bring the entire NFT economy to life by connecting content creators and artists directly to a buyer or collector. This makes it much easier for both parties to enter the market, thus eliminating the usual barriers to entry.
Market capitalization of NFT art
It is difficult to estimate the current size of this emerging market because of the way NFTs are structured. By their nature, each NFT piece has its own value, and its own individual market. However, according to reports from NonFungible.com, an online database of collectibles, metaverses, utilities, art, sports, games, and DeFi, estimated that the global market for NFTs was worth over $2 Billion during the month of August 2021, NFT art in turn, moved over $650 million.
Why would anyone buy an NFT?
This is usually one of the most frequently asked questions about NFTs: Why would anyone pay for content that, in many cases, can be downloaded? There is a difference between downloading an NFT image and having it on your computer or mobile phone, and owning the original supported by NFT technology.
The image or video you downloaded has no monetary or financial value, while the NFT supported image is an artist’s original work of art. Just as you can go online and download the Mona Lisa image or even buy a Mona Lisa poster, the image and the replicas or copies will never be worth anything close to the verified original. You can even download an image thousands of times, but they are all irrelevant because you don’t own the NFT linked version that verifies that you own the original artwork.
The WePlay Collectibles for example are for people who want to be part of Esports events and show that they like players and talents in a different way, besides merchandising. The WePlay Collectibles are part of a platform, where you can buy items with NFT technology – both digital and physical. They are rewards and items associated with a specific tournament.
Find more information about the platform and NFTs at WePlayCollectibles.com
Can you make money with NFT?
The answer is yes. Blockchain technology and non-fungible tokens (NFTs) offer digital artists and content creators a unique opportunity to monetize their digital creations and digital products.
What makes NFT art so spectacular is that an artist or content creator who creates his artwork on the blockchain does not need an art gallery, store or museum. He also does not need an agent or even a large number of followers on social media to make money.
The other differential is that the artist can receive compensation, usually between 5 to 10% royalties when his work is resold on the secondary market, as well as his copyrights are protected.
And finally, since Ethereum is the second-largest cryptocurrency, it has a market value of over $420 billion. Selling a digital artwork today for 1 ETH (which, at the time this article was written, is about $3,500 USD), can be more valuable over time if 1 ETH appreciates to $10,000 USD. (Just like it is to buy shares for example). NFT art can also be considered a short and long-term investment.
Is NFT a good investment?
While collecting NFTs still requires mostly cryptocurrency, there are many examples where a relatively small investment has the potential for big returns.
Trevor Jones, for example, is a traditional artist who moved into crypto art in 2019. His first NFT piece was EthGirl, a digital painting depicting an animated collage of the Ethereum logo that reveals a face. The NFT art was initially sold for 70 Ether (ETH), equivalent to $10,000 at the time. Two years later, in 2021, with the NFT hype, the artwork was valued at over $8 million.
The value of an NFT or crypto art is determined by the same principles as all other assets. The old law of supply and demand.
As the online community of collectors or buyers and investors grows over time, demand increases. At the same time, as more artists see NFT art as a better option for their creations, the supply increases.
As is the world of traditional art, rare pieces by popular artists are the ones most likely to be appreciated, collected or purchased. There is more demand for 1/1 works than 1 of 100. Auction and secondary sale prices for these art pieces can increase significantly along with collector demand.
The famous British artist Damien Hirst, announced in mid-July the launch of his NFT collection, called ” The Currency “. 10,000 coins were offered to the public, and they were purposely shaped in a way that resembled legal tender.
The originality and generality of this project are that these coins force their holders to make a choice. They can decide to keep the work in physical form or as an NFT stored on the Ethereum ledger. Thus, whenever one form is chosen, the other is destroyed.
The project has been successful: more than 32,000 people have requested 67,000 of these NFT works, almost seven times the number available. At $2,000 each, the sale should reach $20 million.
On the other hand, NFTs are very interesting options for art collectors, because you are buying and investing at the same time in a new revolution and also in the art itself.
Some believe that NFTs will completely change the art world as much as Bitcoin (BTC) and Ethereum (ETH) will change the financial system.
Like all investments, however, as an investor, you need to research the NFT market well. Not all NFT platforms and markets are as safe and reliable as others like OpenSea, Foundation, Nifty Gateway and SuperRare, for example.
For potential investors, there are well-known and well-managed NFT-only art-based trading platforms such as SuperRare, Nifty Gateway, Rarible and Foundation. The NFT market is also very transparent. You can view trade data or past transaction history for individual pieces, artists and, even more usefully, collectors
How to buy NFTs?
If you want to start your own crypto art collection, you will need to acquire a few important items: First, you will need to obtain a crypto wallet or digital wallet (such as Metamask, TrustWallet, or Coinbase Wallet) that allows you to store non-fungible tokens (NFTs) and cryptocurrencies. You will also need to buy some cryptocurrency , usually Ether (ETH), depending on which currencies the NFT marketplace chooses to accept as payment. You can buy cryptocurrencies using your credit or debit card on crypto exchanges such as Binance, Coinbase, Kraken, and Gemini. You can then move it from the crypto platform or exchange it to the crypto wallet of your choice.
Note: You should consider fees when buying cryptocurrencies. Most platforms and exchanges charge at least a percentage of your transaction when you buy cryptocurrencies.
Popular NFT marketplaces
After setting up your wallet and depositing Ether into it, it is now time to connect your wallet to an NFT marketplace to finally buy your first NFT. Currently, the biggest NFT marketplaces are:
OpenSea
OpenSea is the first and largest marketplace for crypto assets and digital products. To get started, all you need to do is log in with a Metamask wallet to browse the NFT collections. You can also filter pieces by sales volume and price to discover new artists and assets.
Rarible
Similar to OpenSea, Rarible is an open marketplace that allows artists, creators, collectors and investors to create, buy, sell or collect NFTs. This is also the first platform to create its own governance token that allows RARI token holders to evaluate features such as fees and community rules.
Foundation
For NFT artists and creators to upload their digital artwork and sell NFTs on Foundation, they must receive “positive votes”, either be approved by the Foundation team or simply receive an invitation from other established artists to post their art.
Because it is an exclusive community, where NFT artists or creators pay “gas fees” to create NFTs – it means that digital artworks are extremely expensive. For example, Nyan Cat creator Chris Torres sold the animated GIF of the meme in NFT on the Foundation platform for $580,000.
Because this is a platform where prices are higher – it is not necessarily a bad thing for an artist, NFT creator, collector, investor, or anyone seeking considerable profit, assuming the demand for digital collectibles remains at current levels, or even increases over time.
What is the best NFT to invest in?
Investing in non-fungible tokens (NFTs) is a personal decision. If you have money to spare, it is worth considering NFT art, music, sports, DeFi, crypto collectibles, gaming items, virtual worlds, or metaverses, especially if a piece is meaningful to you or simply financially supporting an artist.
Investing in crypto art, especially if you believe in the value, is somewhat less risky. For you know that the digital piece is authentic, you know who made it, you can trace ownership, and you know whether it is an edition or not.
On the other hand, all the questions that you as an art buyer or investor will have to ask yourself when collecting NFT.
But remember that by default, the intrinsic value of an NFT artwork is based on what another person is willing to pay for that particular item. Therefore, demand drives the resale price of NFT art, rather than fundamental, technical, economic indicators, as well as internal and external environments of a company, which typically influence stock prices and, on the other hand, form the basis for demand from potential investors.
That said, approach crypto-collectibles as you would any traditional investment: do your research, understand the NFT market, understand the risks – including that you could lose all your investment money – and if you decide to take a chance, go for it, but with a good dose of caution.
It is not a good idea to invest in NFTs or crypto assets because you are afraid of missing an opportunity or because your neighbor is investing or collecting CryptoPunks or Cryptokitties. It only makes sense to invest in NFTs if you consider the options below:
You fully understand the traditional art market
You are already an art collector – of sports stickers, trading cards, art or any historical item.
You are not trying to make quick money, get rich overnight, or build wealth around this emerging market, but you are considering making a long-term investment.
On the other hand, NFTs are good investments if you think they are the future because they democratize access to art ownership. Crypto art or NFT art provides a better option for those with less capital to invest in digital pieces.
Digital art ownership has proven to be a revolution since the advent of the internet. NFTs can solve just that, allowing a secure way to create, store, buy, sell, collect and trade digital assets, prove intellectual ownership, protect copyrights and allow direct access to royalties.
