How to Invest in NFTs in 2022 (part II)

By SimpleHold | simplehold | 14 Feb 2022


How to mint NFTs?

Anybody can turn something into an NFT and sell it on an appropriate marketplace.

The minting essentials look like this, although there are slight differences depending on the marketplace:

  1. Get a crypto wallet funded with cryptocurrency.
  2. Choose an appropriate marketplace and blockchain platform where you want to mint an NFT.
  3. Find and click the “create” button within the marketplace and share your work.
  4. Place the NFT for sale either for a fixed price or for an auction.

If you’re sticking for more information on the minting process, then take a brief break and read the article. No double, you’ll find something helpful in there.

 

Pros and cons of NFTs

Why it’s a great idea to buy an NFT:

  • Certain physical collectibles (mostly art) can grow in their value and price.
  • Buying and selling digital assets as NFTs widens the crypto horizons and creates more opportunities for the market.
  • The “Smart contracts” mechanism ensures that artists and creators get paid based on the use and resale of their pieces.

Why it’s not that great to purchase one:

  • As NFTs are mostly static assets, they don’t generate any income on their own and depend on a buyer’s demand. As a matter of logic, their sky-high prices may fall at any time.
  • Minting and selling NFTs isn’t free, the fees can be even higher than the cost of an NFT asset.

NFTs can be considered environmentally unfriendly they use up a great amount of energy to create and verify transactions.

5 investment strategies

NFT Digital Art

NFTs get their massive popularity from digital artworks. Why so? Because they gave an opportunity to trade digital art and secured its ownership in the blockchain. Actually, the opportunity to secure ownership is the main reason why people mint, buy, sell digital artworks as NFTs.

Digital artworks were the first NFTs out there, and they are still the most sold ones in any marketplace. Buying an NFT artwork or buying multiple artworks from the same collection is an investing strategy that lets the investors sell them in the future when the price of those NFT assets grows up.

NFT Property

The concept of ownership in terms of dealing with properties is the most important thing. So no wonder that a transfer of ownership is quite a complicated process. That’s, of course, because intermediaries like banks, financial institutions, and brokers are involved. NFTs have changed that sphere a bit. By digitalizing the legal documents of the property into NFTs, a person claims and protects the ownership of the asset. That’s a much safer investment compared to a centralized version of investing in real estate.

NFT Games

Maybe the latest trend now, so still growing and developing. It’s about playing games and gaining profit from them. There are multiple options such as Axie InfinityGuild of GuardiansThetan ArenaSplinterlandsCoin Hunt World, and many others. Enjoy staking, yield pooling, gaining NFTs, and using other investing tools while having some fun.

NFT Galleries

Imagine that you have your own art gallery, how possible is that? Highly possible once we are talking about digital space. You can mint NFTs and sell them or buy the minted ones and “hang” them in your virtual gallery.

A person can invest in collectibles and art, but one should always remember that the value of the digital item is quite volatile and subjective. If you are lucky and have strong investing instincts, you’ll pick the best NFT to invest in and to sell for a higher price afterward, but if not, it will be just another NFT in your wallet.

Don’t forget that SimpleHold wallet gives you a great opportunity to hold and view all your NFTs and SFTs in one place within a minute.

  • an SFT — is a semi-fungible token, that can be both, fungible and unfungible (NFT).

NFT Marketing

NFT marketing is almost the same as habitual marketing in the real world. Companies and organizations create and launch their collections, goods, services placing them on digital NFT platforms. NFT marketplaces are easily accessed worldwide and that’s one of the reasons why people are so into using those platforms.

NFTs are so popular now due to the necessity to be different and bright, to stand out from the rest. NFT marketing and promotion help a business increase its reputation by building stronger relationships with its audience and getting a better understanding of its demand and needs. Marketing is an excellent way to tell the audience about your product or even about the upcoming product, too.

 

NFT projects 2022 worth watching

There will not be a ranking thing here, as it’s pretty challenging to pick something particular. It’s way better to mention several options that could be interesting for you, and maybe you’ve not still seen these projects yet. It’s not a review, as well, as there will be several detailed articles about big projects in our blog, so that’s more like a brief sketch.

RTFKT

Let’s design high-fidelity sneakers that you can wear and take to the Metaverse. The idea got tremendous traction in the community where it convinced Nike to take action and acquire the company for an undisclosed amount.

CoolCats

Seems that there is something wrong with the cats but they are really successful even in crypto realities.

Cool Cats is an avatar project which is popular thanks to unique designs and funny-looking appearance. They became even more popular because some crypto influencers started buying them and using them as their avatars.

Crypto Punks

Those guys created the most expensive NFT collection of all time. It’s super difficult to own their NFT as they are costly, and there aren’t many people willing to sell them. They became a real rarity for those who have been into NFTs for a long time and for real.

Adidas: Into the Metaverse

Adidas began their NFT adventure by minting a 3D Version of their logo to see how much attention they get which turned out to be extremely successful. After that, Adidas collaborated with other gigantic NFT communities called the Bored Ape Yacht Club and Pixel Vault team to introduce their NFT Into the Metaverse Pass NFT. The NFT gives the holders access to 3 merchandise drops in 2022. That means only those who have those exclusive NFts could buy the merchandise.

DECENTERLAND

It is one of the oldest metaverse projects started in 2017. There are only 10k plots of land available on Decenterland to buy, it’s not infinite whatsoever. You can walk around in the Decenterland, attend online Casino’s and place your NFTs for sales.

SANDBOX

One of the most popular Metaverse projects started its history in 2021. Sandbox is a universe that empowers the users to create a game experience for each other. You buy land at SandBox in order to build your own world.

 

Closing thoughts

One of the most popular Metaverse projects started its history in 2021. Sandbox is a universe that empowers the users to create a game experience for each other. You buy land at SandBox in order to build your own world.

We must admit that NFTs could be a bit risky because their future is unpredictable, but one can always try their hand on it and invest some money to look at the dynamic if it’s positive or negative.

The point is that NFT’s value depends on what one wants to pay for it. So demand dictates the price rather than fundamental, technical, or economic factors.

Due diligence method stays on guard — do your own research, meditate on the risks involved, and don’t panic if you lose, investment is always about taking risks and responsibilities for your own decisions.

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SimpleHold

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simplehold

Light wallet for #Bitcoin, #Ethereum and many other assets. Simple way to manage your crypto. simplehold.io

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