It can be hard thinking about which NFT might be right for you: there are so many kinds of NFTs from collectibles to profile pictures (PFPs) to NFT event tickets and song lyrics. One of the driving questions that you need to consider when sitting down to purchase an NFT is what kind of investment, if at all, are you looking to make?
If you are interested in collecting a certain type of memorabilia, perhaps the investment is more emotional or nostalgic, as you add a digital component to an existing collection. Or, maybe you’re interested in an NFT whose token status grants you access to in-person and virtual events, building a community with other NFT holders in the same series. But first, let’s review what NFTs are.
NFTs are non-fungible tokens, or tokens that represent ownership of a digital item. BEcause NFTs exist on the blockchain, or a virtual non-amendable ledger of transactions, an NFT cannot simply be copied and pasted. If you are the owner of the NFT, the blockchain ledger will show that, and that transaction history not only proves authenticity, but ensures that NFTs are unique items.
If you are looking to buy an NFT, then think about what kind of item you are seeking to purchase. Some of the categories of NFTs include: art, collectibles, sports memorabilia, video game assets, virtual land, tickets, and memes. This is by no means comprehensive, but gives you a general idea of the breadth of NFTs, and hopefully helps you generate what kind of NFT you would be interested in purchasing. Let’s look closer at some of the NFT types below.
Though, arguably, most NFTs could be considered collectibles, there are some that are more coveted than others. Collectible NFTs are usually higher priced NFTs that are launched within projects, and can include PFPs (profile picture NFTs) for use on social media, or be images in some relation to an affinity group. Do you have a favorite movie? Sports team? Era in history? There’s probably a collectible NFT out there for you that’s just waiting for you to say yes.
Just as digital tickets might be sold, NFT tickets are unique mintings of tickets for either in-person or virtual events taking place. Say goodbye to paper season tickets and hello to an endless unfolding of potential with NFt sports or event tickets. Imagine if you could get a ticket, and then resell the ticket as memorabilia from the event itself. The ticket could even include exclusive digital content connected to the event. Who knows? The possibilities are endless.
Probably one of the most popular categories – if not an all-encompassing category– of NFT is the art category. There is some distinguishing that needs to happen between NFTs that have been minted as artworks and NFTs that are creative or image-based.
Some NFT artworks are sold and exist primarily on art NFT marketplaces like SuperRare and Foundation. A lot of smaller, yet higher tier and more exclusive, NFT marketplaces are curated specifically around a group or team of artists that have been invited to create work to be specifically minted on that marketplace.
The most recent trend in NFTs are membership passes, where purchasing the NFT unlocks continuous benefits. It is your digital proof, like an ID card, letting you into a gated area. Brands and clubs are using membership passes to host events, provide exclusive merchandise, airdrop digital gifts and vote. How is an NFT membership pass different from a traditional program? Think of traditional memberships like renting an apartment: you pay each month and have nothing to show for it. With an NFT, it is an asset you own, like a house. At any time you can sell your membership to another interested buyer.
Perhaps you’re interested in owning virtual land, instead of an item. While virtual land bridges the gap between an NFT item and virtual land in the digital worlds that comprise the metaverse, it still operates on the market the same way. Virtual land, depending on where you purchase it from, is a spot in the metaverse upon which you can develop and build – just as if you were on real-life property.
If you’re a fan of nostalgia or history, then NFTs that deal with internet culture may be for you. Whether you’re interested in the hottest meme of 2015, an iconic tweet, or celebrity screenshots, internet culture has pervaded the NFT marketplace in hilarious and profound ways. Some of the most lucrative NFT sales have been around internet culture and history, especially those that crossover formerly-viral content with the NFT marketplace.
Selecting the best NFT for you is all about what your financial priorities are, and what kind of NFT you’re most interested in investing in. Lover of digital land? Interested in preserving a moment in internet history? Die-hard sports fan? There’s an NFT for you, and it’s all about whether you’re ready to go and get it.
Prepare your digital wallet; load it with the right cryptocurrency (most NFTs accept Ethereum, but there are dozens of other cryptocurrencies that can be used for purchase), join a few marketplaces, and browse for an NFT of your liking. It’s up to you what kind of investment you make; perhaps you want to increase your presence as an online gamer or feel compelled to.
Image Credit: Blockchain cryptocurrency vector created by pikisuperstar – www.freepik.com
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