Tips for Investing in NFTs (Non-Fungible Tokens)

NFTs can represent anything from an actual piece of art to an imaginary creature in a virtual world. The most popular form of NFT is probably collectibles, such as CryptoPunks and CryptoKitties. But other types like NBA Top Shot and rare Pepe are growing fast.

The key thing that makes NFTs special is their uniqueness and non-interchangeability. This means they can be used to create markets for digital goods that didn’t exist before. The reason why there wasn’t an eBay for trading digital art before was that you could copy the original version onto your computer, leaving the “seller” with nothing.

 With NFTs, this problem is solved because each individual NFT represents its unique copy of the item. Therefore it can be bought and sold like any physical asset, with no risk that the value will be diluted by copying.

Below we have explained what is NFT, how they work, and how to buy them. Read on!

What’s NFT?

Non-fungible tokens are a new cryptographic asset created on the Ethereum blockchain. They are similar to Bitcoin in that they allow the transfer of value from one person to another, but they have some unique features that allow them to be used like digital collectibles. In particular, they can be used to create unique game items with genuine scarcity and ownership.

How NFTs Work

Non-fungible tokens (NFTs) are unique digital assets that can be owned and traded. They are similar to Bitcoin, but while all Bitcoins are the same, each NFT is different.

Non-fungible tokens are built on top of the Ethereum blockchain and have several characteristics that make them useful for a variety of applications. They are programmable like other Ethereum smart contracts, which means they can have additional features and functionality built-in. They’re also decentralized, publicly verifiable, and immutable.

An NFT is minted or created from digital items representing intangible or tangible items such as:

  • Art
  • Sports highlights and videos
  • Designer sneakers
  • Music
  • Collectibles
  • GIFs

Besides, tweets count. For example, Jack Dorsey, Twitter co-founder, did sell his first tweet for over $2.9million as an NFT. So, NFTs can be likened to physical items. But you won’t get physical oil paint for hanging your wall. Instead, you will get a digital file.

As the buyer, you will have full ownership rights. It’s important to note that only one person can own NFT at a time. NFT has unique data, making it possible to confirm ownership and transmit tokens between different owners. The creator or owner has the right to include other information inside their NFTs. For example, if you are an artist, you can sign your artwork by adding your signature to your non-fungible tokens metadata.

 Tips for Buying NFTs

If you plan to create a personal NFT collection, one of the must-have items is a digital wallet. You can use it to store cryptocurrencies and NFTs. You may also have to buy some cryptocurrency, such as Ether. It all depends on your NFT currencies. You can use a credit card to purchase crypto on platforms such as Kraken, Robinhood, PayPal, and eToro. You’ll be free to transfer it from an exchange in your preferred wallet.

Fees are important and they should influence your research decision. When buying crypto, most exchanges may deduct a certain proportion from your transaction.

Major NFT Marketplaces

After setting up and funding your wallet, there are a variety of NFT sites you can shop from. At present, the leading NFT marketplaces include; is currently the world’s largest NFT marketplace. It’s a one-stop shop for all types of NFTs – art, gaming items, sports cards, digital land – you name it.

One of the coolest things about OpenSea is the ability to create your collections of NFTs. You can also bid on other people’s collections as a whole. So if you’re looking to collect a specific set of gaming items or art pieces from a certain artist, this might be the place for you.


Rarible is a platform for creators to easily create and sell their NFTs. It’s the first NFT marketplace with a built-in crypto wallet and powerful NFT minting tools. Rarible is a DAO built on top of the Ethereum network, governed by RARI token holders and community votes.

Nifty Gateway

The most premium marketplace for buying, selling and discovering limited edition digital collectibles from the world’s leading artists and creators.


SuperRare is a social network for collecting and trading unique, single-edition digital artworks by today’s leading artists. SuperRare features an ever-growing community of pioneering artists & collectors participating in a decentralized ecosystem that enables art to thrive online.


Foundation offers a platform for collectors to trade CryptoArt NFTs. Foundation allows buyers to resell or auction these works while rewarding artists with each transaction.

While several NFT creators use these platforms, it’s vital to conduct extensive research before buying. Some artists have been scammed thanks to impersonators who impersonate them only to sell their work without their consent.

The future is difficult to predict, especially in terms of technology like blockchain. Despite this, the potential is clear-cut. There’s no doubt that blockchain will be more widely accepted and used in the future. The NFT seems like an effective way to implement this future tech. By applying knowledge of history and trends, investing in NFTs is worthwhile.

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