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What is NFT – How to invest in NFT crypto with Top 4 Strategies?

NFT stands for Non-Fungible Token. NFTs are actually cryptographic assets based on blockchain technology. NFTs have unique identification codes and different metadata which distinguish them from each other. The thing which we have to consider is that NFTs are not like other cryptocurrencies because cryptocurrencies are fungible and can be traded and exchanged anytime. NFTs can represent ownership in almost anything, it can be digital art or a virtual real state.

How to invest in NFT crypto – History:

In 2012, Meni Rosenfield released a paper that introduced the concept of ‘colored coins’ for the blockchain Bitcoin. The basic idea of this concept was to describe a class of methods for managing and representing real-world assets on top of bitcoin. Later on, In May 2014, McCoy and Anil Dash created the world’s first known NFT named ‘Quantum’.

From 2017 to 2020, these are the years in which the NFT goes mainstream. In 2017, an American studio larva labs developed a series of digital characters’CryptoPunks’ which traded through NFTs, and from this, the NFTs starts growing. Later, the turning point of NFTs was when the Ethereum network introduced a set of token specifications that enabled developers to create their own tokens. Then afterward 2018, there was a boom in blockchain-based virtual games. One of the examples of these types of games is crypto kitties.

After these all developments, there is no going back for NFTs. NFTs started growing immensely and 2021 was declared the year of the NFT. Similarly, frequenc is declared as the best NFT marketing agency.

Are NFTs a good investment?

Are NFTs a good investment

As we all know the future is all about digital currency, digital wallets. So, there is no doubt about whether NFTs are good for investment or not. You just have to invest carefully. If you are investing in crypto then you have to make sure that you are investing in good coins. Similarly, in NFTs, you have to make your strategy good. Frequenc is the best NFT consulting services provider. If you want to invest in NFTs, then contact Frequnc and make your strategy right.

Strategies to invest in NFTs

Now having a brief understanding of NFTs and knowing about its history. We have to make strategies to invest in them to gain maximum benefit. NFTs include any digital asset, it can be avatars, event tickets, and digital and non-digital collectibles. Following are some investment strategies:

NFT Digital Art Investment:

NFTs are quite popular because of their ability to trade digital artworks online. So you can artworks such as posters, movies, paintings, newspaper articles, music, etc.

NFT Digital Art Investment

 

Prior to the existence of cryptocurrencies and NFTs, ownership of digital art was not possible. But now the creators can display their artwork. They can rent them or even sell them. If a creator wants to sell his artwork then he/she has should some legal ownership of their artwork, and how does this be possible in digital art. There comes the use of blockchain. When an NFT art is created, it gets tokenized on the blockchain and a unique identification number is assigned to it. The Blockchain is a digital transaction system that records data in such a way that it is very difficult to hack or scam.

That’s how this is the best strategy to invest in because your artwork is preserved and there you have ownership of your digital art. In fact, digital artworks are the pioneers of the NFTs and the most sold ones.

NFT Real Estate Investment:

NFT Real Estate Investment

Real estate is a huge industry with a lot of high-volume trade. As we discussed earlier the concept of ownership in digital artwork is easy but the concept here is quite complicated. As we all know in real estate there are many third parties like banks, authorities, and financial institutions. So NFTs are the solution to this challenge, we can convert the legal documents into NFTs, and then it secures the ownership. Therefore it becomes a safe investment.

In the real state there are two types of tokenization involved:

  • Entire asset (EA)
  • Fractional ownership (FO)

FO means that you’re not only the owner of the property in fact it is shared and you have a portion of the asset. FO tokenization is simple and it is similar to crowdfunding platforms. Each owner holds a specific number of tokens. These tokens will represent your shares in that property.

Entire asset tokenization is somehow different. In this, a single person is the complete owner of the property. And in EA tokenization, the whole property deed is turned into an NFT. This is still a challenge for the NFT industry to create a new asset that will deal with EA tokenization.

From an investment point of view, real estate is a very good option. This is a very safe and long-lasting investment which guarantees you a good profit. We are the best influencer marketing agency and we can guide you about investing in real estate NFTs.

NFT Games Investment

If you are into gaming then this is the perfect niche for you. After digital artworks, this is the field you should look for from an investment point of view. Games are considered a core of the NFT industry. The most highlighting feature of this strategy is that players can earn while playing games. Sor for youth and gamers, apart from the entertainment you can now easily earn money and enjoy too.

Earning money while playing games is achieved by blending video games with finance, these games use NFTs and later the people can earn by selling these games to collectors and players.

Many new protocols are being introduced in NFTs gaming such as yield pooling, stalking, and many others. These protocols are making this niche very competitive and therefore many young people are now in this field. Due to linking games with monetary benefits, we are seeing a craze in both the gaming industry and the NFT industry. There are many NFT-powered games such as Splinterlands and Axie Infinity, these games are now leading toward the metaverse. There is one more opportunity in this niche: fitness games will also be introduced in this and as a result of which people can earn money, keep themselves fit and enjoy themselves all by just playing games. This is particularly a new niche in the NFT industry but we’ve seen a boom in this in 2022 which makes it the best investment option.

NFT Marketplace investment

This is the greatest of all. It is the perfect investment option for users. Because all of the activity is happening in this field. Selling, purchasing, and trading of NFTs, all are happening in this. NFT marketplace has become a great business opportunity for all the entrepreneurs out there.

This platform is the backbone of all the other activities which were discussed earlier. If there is no marketplace, there would be no trading, no selling, and similarly no buying which makes it the perfect choice for investment.

For our consideration, NFT marketplace is just like any other eCommerce platform such as Amazon,eBay, etc but the difference in the NFT marketplace is all the transactions are done by NFTs. Moreover, the NFT marketplace is not as simple as it seems it has different types. NFT marketplaces are now giving rise to NFT business models.

There are different types of NFT marketplaces such as Digital collectibles: which deal with digital artworks and that kind of stuff. Then there is another marketplace that deals with the gaming and the famous game characters which are turned into NFTs. Digital marketing agency is also a part of these marketplaces which creates digital artworks and then sell it as NFTs

Then there is the real estate marketplace: it only deals with the real estate matters such as buying, and selling of properties. There is also a marketplace that deals with music tokens.

In the NFT marketplaces, the revenue is generated through listing fees, minting fees, and auction fees. So considering all these points, it becomes the perfect investment option.

Conclusion:

In this blog, we have discussed several investment strategies for NFTs and as of now, NFTs are the epitome of digital success. It has evolved into a fantastic investment platform, and it is anticipated to new heights in the future. Because of the potential of blockchain and NFT, the digital domain has become a fantastic investing field for crypto and digital enthusiasts and businesses.. In our opinion, NFTs are the best platform where you can invest and you’ll be in a win-win position. 

FAQs

Is NFT coin a good investment?

NFTs are digital assets that can be used as secure ownership certificates, and they could be an excellent investment for collectors.

Does frequenc provide consulting services?

Yes, as frequenc is the best NFT consulting services provider. So you can invest in NFTs artworks such as posters, movies, paintings, newspaper articles, music, etc.

What are examples of NFT games?

Here are some of the NFT based games are saxie infinity,sorare

evolution, land gods unchained , and crypto kitties.

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