An NFT is a digital, unique object based on the blockchain. NFTs have become increasingly popular in the crypto market in recent years and have now reached the mainstream. Also in the bear market, NFTs provide a good opportunity to make a profit. But how can I invest in an NFT in 2022?
In this article we will discuss how you can invest in an NFT at the moment and give you the most important tips for dealing with NFTs.
What are NFTs?
NFTs are non-fungible tokens. These are digital, unique objects based on blockchain technology. These objects are non-fungible, i.e. they cannot be reproduced. On the other hand, for example, the Bitcoin is fungible, it can be reproduced extremely often.
The special thing about the NFTs is that they are unique and cannot be copied. As a result, NFTs have become extremely popular, especially on the digital art market in recent years. Digital art auctions were created. The advantage is that the ownership relationships can be clearly proven by the blockchain and that counterfeiting is almost impossible.
What blockchains are NFTs based on?
The most decently important blockchain for the NFTs is the Ethereum blockchain. Ethereum was the first blockchain to introduce smart contracts and thus be the basis for decentralized applications. The Ethereum blockchain is the basis of a large part of the NFTs on the market.
Another blockchain that has made extreme progress in the field of NFTs in recent months is the Solana Blockchain. Solana has the advantage that the transaction speeds are extremely high compared to Ethereum. The NFT collection “Degenerated Apes” triggered a massive increase in the SOL token of Solana in 2021.
There are numerous NFT platforms that mainly offer NFTs based on the Ethereum blockchain. There are also specialized NFT platforms for Solana NFTs where you can invest in an NFT in 2022. You can find out more about this later in the article.
What kind of NFT can you invest in?
The largest market in which NFTs have gained an influence is the digital art market. In recent years, digital works of art have been created that are offered on digital marketplaces. Especially popular are collections of cartoon characters, such as the Bored Ape Yacht Club.
Furthermore, the area of gaming should be mentioned here. Meanwhile, you can play decentralized games and purchase NFTs within these games. You can invest in an NFT that gives you special privileges or advantages within a game.
The metaverse is a topic, which has been closely confused with the NFTs since 2021 at the latest. The metaverse is a digital space where you can purchase NFTs. In the future, companies such as sporting goods manufacturers could use this to offer digital products in the form of NFTs.
Where can I invest in an NFT in 2022?
If you want to invest in an NFT, you should use one of the major NFT platforms. You can find an overview of the NFT platforms here.
In the following, we would like to briefly introduce you to the most important NFT platforms in 2022:
OpenSea is probably the most well-known NFT platform in 2022. On OpenSea you can invest in an NFT and also create and sell new NFTs. OpenSea has existed since 2017 and is considered the first NFT trading platform. You will find a large number of different NFT collections there. You can purchase the NFTs on OpenSea if you connect your Ethereum wallet to OpenSea.
Have a look at our OpenSea instructions! If you want to get started with OpenSea directly, click here!
Rarible is an NFT exchange that focuses primarily on the creators of the NFTs, i.e. on the artists. However, you can also invest in an NFT from the collections there, buy it and sell it again. Rarible was opened only at the beginning of 2020. The marketplace is clearly designed and focuses on the creation process of NFTs.
We also have instructions for Rarible. If you want to buy NFTs directly on Rarible, click here!
Binance is the world’s largest cryptocurrency. Founded in 2017, the platform has become the #1 in crypto trading in recent years. It is also possible to invest in an NFT in 2022 on Binance. The NFTs are traded on the Binance blockchain. The Binance Coin is available as a payment option.
With Binance, you have a huge marketplace available to invest in an NFT. To get to Binance, click here!
4. Magic Eden
Magic Eden is one of the largest NFT platforms offering NFTs based on the Solana blockchain. Here you can invest in an NFT if you are a fan of the Solana Blockchain. You pay with the SOL Token.
We have created a guide to Magic Eden. Here you can find the article.
If you want to know more about NFT platforms for Solana NFTs, have a look at our article about it!
What should you consider when investing in NFTs 2022?
The NFTs have entered the mainstream in recent months and years. With the digital works of art, sometimes six-figure sums are realized. However, with popularity, scammers are also becoming more and more widespread. Therefore, you should follow some rules so as not to lose your money:
- Buy only on established trading platforms for NFTs!
- Do not buy on unfamiliar platforms that do not have reviews and are not used by the mass of traders!
- Don’t fall for supposedly extremely profitable deals that are aggressively touted!
- Do not trade with private individuals outside of more well-known trading exchanges!
If you follow these simple instructions, you should be relatively safe from NFT scams.