Non-fungible tokens had been around for some time. However, it gained popularity during the lockdown period. Today, Jack Dorsey’s first tweet in 2006, Cloudflare, Beeple’s digital arts, amongst other NFTs worth billions of dollars. The market is rising and still has more potential for rising in the future.
The NFT market had seen a meteoric rise. According to DappRader, the first half of 2021 had over $2.5 billion NFT sales. This is a big jump considering that NFT sales in 2020 had been only $94 million. This shows that 2021 has been the NFT year.
Many artists, speculators, artists, collectors have flocked to the NFT market. Celebrities like Jay-Z and Kate Perry had been exploring NFT. Both of them had planned to launch a Fan NFT token. So, what is the buzzword all about?
What Is NFT
An NFT is a unit of data stored on a blockchain ledger. NFT ledgers usually store a unique piece of art that is confirmed by the ledger as unique. It is used to store digital assets with a unique address. The owner of the digital asset has the only key to the original copy of the NFTs. These digital assets stored on a Blockchain ledger could be artwork, character, or property in a video game, music, or videos.
The foremost Blockchain for NFT solutions is Ethereum, other small-scale competitors to Ethereum include Solana and Polkadot. It is also important to know that non-fungible tokens don’t hold a certain value. That is, a piece of NFT is not equal to another piece of NFT. Each NFTs has its unique prices and specifications.
How Do You Invest In NFT
Buying An NFT
NFT can be bought on the NFT marketplace where only non-fungible tokens are sold. This marketplace allows NFTs to be bought at a fixed price or a virtual auction. Just like stocks and cryptocurrency, the rate of demand for an NFT usually determines its price. The higher the demand, the more auctioneers are involved, which increases the price of the NFT.
However, unlike cryptos and stocks, NFT is non-fungible. That is, a unit of NFT isn’t equal to another unit. Each has its unique prices depending on demand and supply. A share of Ether token is equal to another Ether token the same way one share of Alibaba stocks is equal to another share of its stocks. NFTs are not like that.
So, to buy or sell in an NFT marketplace, you will need an NFT crypto wallet. This digital wallet would store the cryptocurrencies that the NFT would be purchased with. Also, it is where the NFT earning goes if you are the one selling them. For example, you can trade only buy NFTs on Ethereum with the Ether token.
There are many NFT marketplaces available. Some of them include Super Rare, Raible, OpenSea, NBA Top Shot amongst others.
Selling An NFT
You have to create a unique digital asset to own an NFT. Once you own it, you can keep it on the Blockchain ledger as a collectible. It could be displayed as a part of a digital project or a standalone digital asset.
Anytime the creator feels like selling them, he can list the NFT for sales. The NFT price would be determined by the price listed by the asset owner, gas fees, and demand rate for the product.
After the NFT is listed on the marketplace, the creator can choose whether he wants a fixed price or auction sales for the NFT. The buyer places bids and the best bidder gets the NFT. The NFT purchase would be transferred to the creator’s wallet after removing the listing fees.
Not everyone that goes into NFT buys or sells them. There are many other alternatives. Investors can also invest in promising NFT stocks. Here are the big potential NFT stocks you can buy
Top NFT Stocks To Invest
Funko (NASDAQ:FNKO)
Funko is a toy production company that is based in Washington DC, USA. The toy dealer’s products include housewares, toys, apparel, accessories, amongst others.
Currently, Funko is now into NFTs space. As pointed out by its CEO, Brian Mariotti, Funko wants to use the NFT space to serve its customers better. He said “We have the ability to disrupt this space in a way that nobody else is doing right now. We can tie digital NFTs to our fan base and link entities with physical products.”
As an investor, putting your money into Funko could be the right option. The company is just getting into the NFT space. When exploited, the company could multiply its value over the coming years.
Dolphin Entertainment (NASDAQ:DLPN)
Even without NFT, the Florida-based entertainment company had been doing well. It made a $24 million revenue in 2020 while its highest value during that time was $76 million. The company partnered with another entertainment company, Hall of Fame Resort & Entertainment in March to explore NFTs. Just after it announced its plan to go into NFT, the company shares started rising.
Moreover, it partnered with FTX to create a big NFT marketplace. This allows Dolphin Entertainment consumers to explore sports and entertainment events on the NFT. If you are looking for the best NFT stock to buy, Dolphin Entertainment (DLPN) could be the right option. As the NFT adoption continues to increase over the years, DLPN stocks would see significant spikes.
ZK International: (NASDAQ:ZKIN)
ZK is a company that produces stainless products made from steel. The company had been looking to get involved in new digital technologies in recent years.
It started investing in Blockchain technology as far back as 2018 when it created an xSigma Corp. This arm is tasked with investing in NFTs, Defi and cryptocurrency derivatives. It also launched an Ethereum based NFT marketplace in 2021.
Moreover, there is xSigma Collectibles, a lifestyle brand launched on its NFT marketplace for a brand named MAXIM. With its exploration of NFT opportunities, it is safe to say that ZK International stock is going on a rally over the coming years.
Conclusion
Other NFT stocks to invest include Mattel, Twitter, Cloudflare, Takung Art Co. Ltd, Cinedigm Corporation, Hall of Fame Resort, And Entertainment, amongst many others.
The bottom line of exploring the NFT is knowing what to invest in. You can buy an NFT and sell it at a later date, you can create NFTs and auction them on its marketplace. You can also buy NFT stocks and watch them rise over the coming years.
