With the NFT market experiencing a slight lull currently, there is a lot of discussion and think pieces coming out on the various trajectories that the market can take. This slump in interest in NFT digital art was quite predictable, as anything that generates such palpable hype is not going to be able to maintain it for such a considerable length of time.
As the general populace moves on from being fascinated and obsessed with the high-octane NFT art auctions and the over-publicized earnings of NFT artists, there is space opening up within the market for the dedicated observers who have been considering making their first NFT investment for a while. With NFTs becoming more affordable due to the dip in the market, it can be safely assumed that now is an ideal time to get your hands on available NFTs or units of a cryptocurrency.
So, in this blog, I will be recapping some of the ways you can go about investing in NFTs, as an artist or just as an investor, without wasting your time or hard-earned money!
Exploring NFT Marketplaces
As someone who has now minted art NFTs of their own, the digital marketplace was quite intimidating initially. This was mainly due to the learning curve that everybody experiences when getting into cryptocurrencies and investing in digital art online. However, as I discovered various platforms that dealt with the buying and selling of NFTs such as OpenSea and Foundation, the user-friendliness of their interface and their online community helped incredibly in bridging my knowledge gaps. These platforms are constantly being refined and updated to be more accessible who are looking to invest in art NFTs.
I would highly recommend visiting my profiles on Foundation and OpenSea to get an understanding of what these platforms offer and how easier it can be to start exploring the digital art realm and acquiring pieces that connect with you and also provide you with an investment opportunity.
If you are an artist, looking into NFTs….
- Before you even start doing anything with NFTs, read and watch as much content as you can about NFTs. You do not want to get into NFTs on a whim. This will only result in a loss, so understand how is an NFT created/minted, what are the various NFT marketplaces and their pros and cons and all the additional costs associated with creating your own NFTs.
- Be prepared to invest heavily in setting up your NFT minting and creating infrastructure initially. As creating and minting NFTs require specialized hardware and considerable computer processing power, we will have to take on the financial burden of these costs in the beginning, however, take these costs as investing into the “future-proofing” of your art business.
- Network. Network. And Network some more. You will NEED to connect with your local NFT communities in order to build up value for your NFT artworks and also build a support system for yourself, so you can stay updated with the latest happenings in the NFT world. As someone who is part of numerous NFT communities, I cannot begin to emphasis how helpful it is to have a community to turn to where knowledge sharing, and troubleshooting is done collectively.
If you are a collector, looking into NFTs…
- Invest according to your risk appetite. If you are risk averse, try not to bite more than you can chew because the regret of losing money over something that you were not completely sold on initially will only put you off the whole thing. So, invest with what you are comfortable with: I suggest start small and build up your investment from then on.
- You need to get over the steep learning curve of investing in NFTs and strive to stay updated on the NFT trends before you even open up your actual wallet to create a crypto wallet. Understand the kind of NFTs that are in demand and could be in demand in the near future, then start investing accordingly.
- If your resources allow, it will be a wise move to hire the help of an investment consultant who specialize in NFTs that can support you in navigating the intricacies of digital investments and meticulously follows digital creators. Go for a consultant that has a track record of effective management of NFT investments and preferably comes with referrals.
There you have it: a quick recap of all the ways that you can get into the NFT art market and take advantage of the current market conditions. Please keep in mind to read and watch as much content as you can about NFTs. You do not want to get into NFTs on a whim. This will only result in a loss, so understand how is an NFT created/minted, what are the various NFT marketplaces and their pros and cons and all the additional costs associated with creating your own NFTs. Check out some of my previous blogs for these topics as I have covered almost all of them.
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