If you’ve been wondering are NFTs a good investment? You should know the popularity of NFTs is at an all-time high. They have taken the digital world by storm from the Metaverse to art and music. With the popularity comes a high price: quite literally.
Opensea: A platform for buying and selling NFTs
Finding a great NFT collection can be a complicated thing to do, so let’s take a look and see if the complications can pay off. Please note that this is not financial advice, it is instead to serve as an eye-opener for what is possible.
NFT Collections That Exploded
If you are familiar with NFTs, then you must know of Bored Ape Yacht Club (BAYC) and Crypto Punks. These are two of the most famous NFT collections that have paved the way for what we know as NFTs.
From a floor price (the minimum you can buy it for) of $119 to some selling for millions of dollars, you can see why it is important to do your research and choose a good collection to believe in.
Where Can I Search For NFT Collections?
From Twitter to Instagram, you can see a plethora of options on social media. Personally, a site that I like to look at for new collections that are announced before their minting is nftcalendar.io.
Here you can find out about the team and their project, as well as join their Discord and/or Telegram. This is a great way to see verified collections that will be released on various marketplaces and check the hype around them.
When To Buy An NFT?
If you want to invest in a collection, make sure to do it when they are minting them (at the official sale date). This is when the price is set because after that, the floor price can keep rising.
You need to take a look at the road map of the project. BAYC for example, is now coming out with their own Metaverse as well as other perks for their NFT holders. You need to think about how owning a project’s NFT can benefit you.
To Buy And To Hold… Or Sell
When BAYC and Crypto Punks were first released, they had to wait for a period of time for the price to jump. Some sold before the price increased and some held their NFT for dear life.
Those that did hold them own a piece of digital art that is now worth tens of thousands of dollars. Investing in NFTs isn’t an easy task, you need to have some idea of what you wish to do with it.
Some Things To Look Out For
As with crypto, scammers always exist, so make sure you know what and who you are buying an NFT from. Make sure to check the wallet addresses and the transactions that have occurred.
Also, when on a marketplace like OpenSea.io, for example, always go and check that the page is the original collections page. Some individuals can open a profile with the same name and sell them as fakes.
Are NFTs A Good Investment?
Now that we have talked about how to decide on a collection, let’s go through why they can be a hit or miss investment. Don’t get me wrong, NFTs will be used in many ways in the future, especially in the Metaverse, so if that is your plan you can go ahead and stock up.
If you are looking to make fast money, this can also be done but it is risky. I’m sure you have seen many individuals sharing on Instagram how they make thousands of dollars reselling NFTs. It’s not impossible, it just can come with a risk if you don’t invest carefully.
The thing with NFTs is that you can never be 100% sure that you can flip it for a profit, so make sure you have enough leeway saved so you don’t have to worry financially if something goes south.
So if you see an NFT that you are in love with and know you can make use of it, go for it. If you are just buying to buy, I wouldn’t suggest it. You always need to know what you are getting, as it is your money at the end of the day.
So there you have it, folks. We hope we’ve answered the question are NFTs a good investment. Let us know your thoughts in the comments section below. And while you are at it, drop your email to get insights into your inbox.
