Collect an NFT today! ...But Why, and What Kind?30.09.2021, 11:37
NFTs are a fascinating innovation taking over the internet. They allow for digital scarcity to exist. This means you can buy, trade and send rare or unique items, which can be traced to owners.
Proof of ownership of digital items can be a very powerful thing, and NFTs are really just that: 'proofs'.
Once you buy an NFT: you own it. You can display it. You can proudly declare you own it, just like a real painting. That doesn’t mean you have the rights to it. However, it’s unique, or at least a limited edition. You’re able to sell it on, should it retain some value, especially if it belongs to a treasured collection.
It might grant you a personal connection with its creator. Or automatic membership to a club such as the revered Bored Ape Yacht Club. If it’s part of an exciting art collection or movement, then it could go up in price over time. It could even allow you to expand on an idea, if it’s a metaverse item. You could always gift them to somebody.
Beyond this, the NFT value is still a bit vague. A lot of them are based on animals or pets, and involve code which makes each one unique. However, NFTs are getting more clever. There are now crypto-bonds which can mature. Also, games are beginning to bring extra value to them. A virtual racehorse game will alow NFT holders to breed new horses. There are writing NFTs, allowing you to own a piece of sci-fi, even a character, for example.
Do you already own a super-valuable NFT? Then maybe you'd like to fractionalise it, and allow multiple people to share in the investment by creating a token for it. You can see how big this will be for real-estate.
So just to recap: There are some different types of NFT: the unique, fine art ones, the randomly-generated-but-still-unique ones. The game-related ones, or breeding ones, which can allow you to breed (if you buy two) and then add its offspring to the collection. You get an extra one! And it could have rare traits which few others have.
There is no doubt the NFT market has seen huge growth, in a short time. New experiments in the technology or their capability cause a spike in value, and then a cool-off. Determining the ones which have ‘future’ value is really no easy task. A bit like trying to guess what web domain names will become valid in the future. Speaking of which, you can buy NFT domain names for Ethereum network (your new wallet address perhaps) and beyond.
The best thing, perhaps, is simply to buy something that interests you, (and doesn't cost a fortune) or that you’ve been personally involved with.
If you're looking to buy cheap NFTs, then switch to an alternative network, because Ethereum transaction fees are way too high just now. You can find Polygon NFTs on Opensea. Or BSC NFTs on Treasureland. The currency you'll need to send to your wallet for these, is MATIC for the former and BNB for BSC (BEP) NFTs.
How to change network in Metamask? All you have to do is find the Settings option, and input some extra settings for whichever new network you'd like to use.
Possibly good NFT investments (DYOR)
It's wise to do your own research. However, a good tip is to identify a popular platform like Pancakeswap, and grab a Pancakeswap collectible at Treasureland, while they’re still affordable. With a de-fi platform as popular as this, with its own NFT marketplace coming soon, owning one of these NFTs is a good bet.
You can also use NFTs as an avatar, for example if you’re a proud Pancake-flipper (someone who provides liquidity for early-stage crypto projects).
Hopefully, this article provides some starting point into the exciting, rapidly-evolving digital world - and real-world application - of NFTs. Collecting 'early stage' NFTs could be very rewarding, so good luck hunting down the next interesting collection.
It's not difficult to imagine a real world, in the near future, where every (expensive) item comes with a specially-glued QR code, which links to their digital NFT. That way, everything is traceable and exchangeable via the blockchain, alongside uniquely digital items, music, information - and even blog posts!
Here at Prizes Drop, you can swap points you've earned completing our simple mini tasks and convert them into leading cryptos like Bitcoin and Ethereum. Sign up for your free dashboard today!
note: main image is from Refinable Ade's Press collection