How to Invest in NFTs and Gain From Their Explosive Popularity

Before we get too carried away with the finer details of investing in investing, it’s important to quickly clear up what NFTs actually are — but feel free to skip this section if that’s old news to you. 

NFT is short for non-fungible tokens, and the key element detail is the “non-fungible” element. When it comes to currencies like US dollars or Bitcoin, there’s no difference between one unit of that currency and another. 

But NFTs aren’t quite currencies, because they represent ownership of one specific thing. The concept also goes one step further than this, because smart contracts — mostly on Ethereum — ensure the ownership is enforced.

Once somebody buys an NFT and owns the associated item, the information gets put onto a public ledger that everyone can see, and it’s updated every time that ownership is transferred (aka when the original owner sells their NFT). 

How to Invest in NFT

1. Head to an NFT      exchange. 2. Fund your crypto wallet. 3. Use the funds in it to      buy the NFT(s) you      want. 4. Store the NFT(s) in your      wallet.

It really is that simple — provided you know how to go about each of the steps above. 

Each stage of the process has its own set of considerations. You can’t buy an NFT from an exchange until you know the type of NFT you want and the right marketplace to purchase it from. You’ll also have a choice of buying it for a fixed price or through an auction (some marketplaces offer both options and some just one).