What is an NFT Crypto Token? NFT Meaning & Definition
It’s no big secret that NFT cryptos (non fungible tokens) have been blowing up as of late. But unless you have your finger on the pulse of the crypto space you may not even know what NFTs are.
I’m not going to bother to give you the technical explanation about NFTs and how they work through the Ethereum network. There are millions of crypto sites and blogs that can do that for you in great detail. Basically all you need to see it as is like a digital Pokémon card.
NFTs allow people to create digital art that cannot be replicated or recreated at a later date. Collectables are a massive industry. One of the biggest industries in the entire world. And with everything going digital it was only a matter of time before a truly good way to create digital collectables existed. Of course people have been collecting digital items largely from popular video games and making a huge profit for ages, however this was always way too niche to truly reach the masses. With celebrities such as Grimes and Logan Paul constantly promoting NFTs as the new gold rush, people believe that they have found an amazing new investment opportunity. And they probably have.
The NFT Boom of 2021
The NFT marketplace is exploding. Just check Google Trends. Searches such as nft stocks, nft buy, nft price etc… are up 1000%+. People want in and there is a limited amount of opportunities.
Nobody really knows the best investments for NFTs which is what makes them so appealing. You’re in at the ground floor. You aren’t going to get abused by some big companies yet as they have no idea how to make money with this. But you will get abused by opportunistic people.
This is precisely what makes an NFT investing so difficult. Take a browse to an NFT marketplace like Opensea. Pretty much everything being sold is just some crappy card or art piece and it has been oversaturated to ridiculous levels. The options for good investments are so incredibly limited even though everybody knows that this will take off and that it’s the next big thing. We just don’t know when, how, or what is going to spark that NFT gold rush and what exactly it’s going to look like.
Realistically it’s going to take some major figures/companies to create something in the NFT crypto token collectable space to get the ball truly rolling. And it’s already happening.
NFT Crypto Price?
What is the NFT crypto price? A ridiculously popular search term and question we’ve been getting. People have been going to CoinGecko and CoinMarketCap in droves trying to find the price of NFT and how much it costs to buy the “nft token”. This is because they don’t understand what NFT is. They just want to be in on the next Bitcoin, and someone told them that this is it.
This is like me asking what is the price of crypto? Or what is the price of currency? It doesn’t work like that. Which crypto? What countries currency? There are hundreds of currencies. And there is quite literally hundreds of millions of NFT collectables.
Don’t get me wrong. Some of them sell for ridiculous amounts. Just the other day Miami based art collector Pablo Rodriguez-Fraile sold his 10 second video artwork NFT for $6.6 million dollars. The kicker? He bought that art piece for $67,000 in October 2020 while people laughed at him for making such a stupid investment (probably).
The price of NFT tokens vary from a dollar to millions of dollars just like any other collectable. A Pokémon card or some sports card is the best comparison to make. You can get a pack of cards for $0.10 or you can get some random Babe Ruth rookie card for $10 million (probably, I know nothing about sports). It’s just a collectable. Some collectables are worth more than others. Some collectables only exist to trick stupid people into buying them.
How To Invest In NFT Crypto?
What are the best NFT investment opportunities? How can we invest in the NFT marketplace? With the NFT stock (not really a stock) clearly going to the moon everybody wants to know how they can get in before the NFT bubble pops. But before people do that they have to understand the complexities of a crypto token such as NFT.
Yes we can speculate that there will be an NFT bubble and that it’s already begun, but it’s not the same as a bubble in something like a cryptocurrency or the dotcom boom. Just like every other bubble, when it pops it’s usually just the junk that falls with it. It’s an asset class. Some things get sold for way more than they are worth in the real world too. That does not mean everything is a bubble, although I’m sure there is some intellectual out there who would like to argue with me on that one. NFT is a way bigger concept than any simple cryptocurrency idea. This makes NFT investing a million times more complicated but also gives it heaps more potential.
Stay Up To Date With NFT Collectables
In order to invest in NFT’s you’re going to need to do constant research. It’s not as simple as me listing the up and coming NFT start-ups and projects. Events will come and go and they will sell NFT digital art and collectables. You will have to use your judgment to decide whether or not those collectables are good investments or just junk that’s being peddled to people who want the next big thing.
This is the exact same as any other collectible. It’s like you asking me 20 years ago which product you should buy in order to make a significant return on your investment when you’re an adult. Maybe if you bought some video game in 1992 and never opened it, it would be worth a million dollars today. But how were you to know that? We could’ve speculated, but most of the time we’d be wrong.
The Complications of the NFT Market
The answer is complicated, and no one can honestly give you a straightforward one. A lot of businesses are going to come and try to capitalize on the NFT gold rush. Binance is opening a Smart Chain NFT Marketplace as well as other cryptocurrency giants. Everybody is going to try to capitalize on this idea. Everyone wants a piece of the pie. And it’s much more understandable to consumers than cryptocurrencies ever were. Most people still don’t understand what bitcoin is, but it’s pretty simple to explain NFTs to them.
Most of these projects are going to be scams just like in the cryptocurrency world. I hate to break it to you. If you want to make money with NFT collectibles & art you’re not going to do that by just tossing it at anything that pops up with the word NFT in it.
Well that’s not entirely true.
There will probably be a period of time where all your investments look great, once the market starts gaining crowds. But eventually that traction will slow down and people will start sorting the junk from the treasure. NFT crypto coins are incredibly broad and complex and most people are going to get taken down with this traction.
How To Buy NFT Tokens?
Thankfully the question of how to buy an NFT token is significantly simpler than the question of how to properly and profitably invest in NFT tokens.
Buying NFT digital art and items can be quite easily done through a vast selection of marketplaces.
Best NFT Marketplaces
The following is a selection of some of the most popular and trustworthy NFT marketplaces. By no means is this a full list, or the best list. I will try my best to add marketplaces to this list over the coming months.
The OpenSea is the largest NFT marketplace and should probably be the first stop in your journey. This site has over 13.7 million NFT digital art tokens for you to search through. However the vast amount of NFTs that this site displays can make it a bit overwhelming.
Another popular NFT marketplace is Rarible. This marketplace is community owned which is very on brand in this new crypto industry. They have over 20,000 creators and also their own cryptocurrency $RARI.
Rarible Crypto Coin Price
Rarible’s own cryptocurrency RARI may prove to be a good NFT investment without having to actually purchase any NFT art or tokens yourself.
SuperRare is another popular NFT marketplace that specializes in… Well you probably guessed it. Super rare art work!
Should You Invest Into The NFT Marketplace?
Should you invest in furniture? Clothing? What about hockey cards? It’s all the same thing really. NFT is not a company or a cryptocurrency. There will be good investments and there will be terrible investments. Mostly terrible.
If you are down to research the best opportunities and are willing to put the effort in. Yes. You should undoubtedly be investing into the NFT digital art market scene. But if you just see that NFT is trending and think you can blindly jump onto the train I have bad news for you. You are almost guaranteed to lose whatever you invest.
The opportunities here are nearly limitless for the right person. Just make sure that’s you.