How to Invest in NFTs: The Basics Explained

Where to Buy NFT

Have you heard the non-fungible news? Mark Zuckerberg says Instagram and Facebook will start testing NFTs this week.

With Twitter already on board, we are starting to see more and more big tech companies join in on this technology. Whether you are a collector or creator, you will want to learn what all the fuss is about.

Would you like to learn how to invest in NFTs? Read our guide below to get started.

What Is an NFT?

Before you learn how to invest in NFTs, let’s first understand what they are in the first place.

An example of something fungible would be Bitcoin or fiat currency (US dollar). You cannot differentiate between a satoshi, bitcoin, or dollar bill—they are virtually the same thing.

An NFT is a non-fungible. They are one of a kind with a finite amount. Most of the more popular NFTs are minted on the Ethereum blockchain.

These digital assets are represented as art, music, video, etc. A good parallel here is baseball trading cards or Pokémon.

Why Are People Investing in NFTS?

Can’t you just right-click and save these JPGs? Yes, you can, but that is missing the point.

While you can own a copy of the Mona Lisa, you don’t own the original, right? There is a bit of this at play with NFT investing.

A big part of this is bragging rights too. A lot of crypto enthusiasts use an NFT as their PFP (profile pic). Since the data of the digital asset was minted on the blockchain, that means you can see the provenance and when it changed hands.

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How to Invest in NFTs

Learning how to invest in NFTs isn’t difficult. You only need a few things to get started and know where to look.

Buying

Buying an NFT starts with setting up a crypto wallet and purchasing some cryptocurrency like ether. A popular wallet to start with is MetaMask.

Just be sure to write down your seed words and store them in a safe place. Anyone who has access to the seed words has access to the wallet.

Head to an NFT marketplace and browse by category. Once you have found the one you like, place a bid. The experience is very similar to an auction house.

Be mindful of the gas fees before you sign to buy.

Selling

Once you own an NFT, you are free to do what you want. Many people have a digital trophy case of their NFTs.

To sell an NFT you own, the digital asset will need to be uploaded to the NFT marketplace. From there, you can choose a set price or auction-style listing. Now all you have to do is sit back and watch the bids come in.

Learn by Doing With NFTs

When learning how to invest in NFTs, our best piece of advice is to try. See an NFT that has caught your eye, buy it. Show your friends and family your digital asset collection.

If you are a creator, you’ll want to learn how to mint your own NFTs and make some serious crypto. To stay up to date on all the latest trends in the crypto industry, be sure to browse our blog.

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Hi, I'm Raj Hirvate and I am a Tech Blogger from India. I like to post about technology and product reviews to the readers of my blog. Apart from blogging i'm a big Anime fan I Love Watching Naruto, One piece and Death Note.

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