If you don’t know what NFTs are yet, we would recommend you to first read ‘What are NFTs?’. This will enable you to understand Non-Fungible tokens, their value (in general), their utility and the current hype around them.
It’s completely understandable you’re looking to buy your first NFT, after seeing the recent surging interest around them as well as increasing value among a lot of them.
NFTs are still relatively new. This means they come with early risks, because there’s still a lot to learn and understand about them. It’s difficult to value physical art, and it’s even more difficult to value digital art, making NFTs a very risky investment.
The value ultimately depends on one thing, just like any other item, namely how much one is willing to pay for it. This is easier to do for NFTs that have a higher supply and have been trading for a while, as these somewhat have established a price ‘floor’. Whereas for 1/1 or low mint editions, it can be more difficult because there’s simply less volume, liquidity and trading happening.
If you’re interested in buying an NFT regardless of its risks, it is recommended to set a budget that you’re willing to use. This budget (as with any other investment) should be money you are able to miss in case things go really south.
NFTs are especially interesting for artists, those who are interested in (digital) art, for gamers and for people that simply love to buy and hold unique things. As unique it is for sure.
How do I get started with buying NFTs?
As mentioned, all of this is still relatively new. Currently, the NFT market is somewhat fragmented between different marketplaces, communities and platforms.
Here is a shortlist of marketplaces you could use to get started:
- OpenSea.io: OpenSea is the largest and probably the earliest NFT marketplace. Anyone can create their own marketplace, pull market data through APIs, buy and sell NFT tokens and more. Anyone who has a ERC-20 wallet can interact with it.
- Rarible.com: Rarible built an incredible artistic community. It’s an exciting marketplace that also integrated OpenSea. The platform can be used to buy, sell or collect digital art. Featuring top sellers, hot bids, random exploring modes and more.
- NiftyGateway.com: NiftyGateway launched a little later and especially recently saw a surge in usage and exposure. This marketplace offers special highlighted launches by artists, including open editions (time slot in which an NFT can be purchased, no limit) and limited edition auctions. As well as peer2peer marketplace for any item that has been listed there.
- SuperRare.co: SuperRare is also a platform used by many artists and collectors.
These four are likely the marketplaces you’d initially be looking at when exploring the world of NFTs.
How can I find the best NFTs?
This question can be answered in many ways. If your goal is to find NFTs you would be most interested in yourself to buy and hold, then I’d recommend you to simply explore these above marketplaces until you find NFTs that you like and can afford.
If your purpose is to purchase them as an investment. Then the answer is, it’s difficult to know for sure it’s a good purchase. However, having invested in various NFTs myself (TMod_Marco), I generally found these through multiple ways:
- Find an artist that’s popular on Twitter or on marketplaces and learn more about them and their art. Learn about their past drops, upcoming drops and see if you can find any of their art that seems undervalued compared to the other ones.
- The NiftyGateway marketplace also shows the most popular NFTs. Their starting price, and their current price. I kept my eyes on this page and have purchased multiple ones on this page that seemed to be climbing the latter. As a result, overall I profited from these purchases so far.
- Find out which communities are very active around NFTs. Learn what they’re interested in and why. By doing so, you’ll learn to spot early opportunities which you can capture.
Good luck in your adventure, let us know your results! And let us know if you have any comments or questions.