About 250,000 people trade NFTs every month on the OpenSea platform. That doesn’t count the dozens of other NFT trading platforms.
Are you looking for NFTs to buy? Not every NFT is an automatic winner. Last year, a tech exec bought Twitter founder Jack Dorsey’s first tweet for $2.9 million.
He tried to sell it and the best offer he received was for $6,800.
You might not have millions to lose on buying NFTs. You can learn how to become a savvy NFT collector and leverage NFTs as a way to diversify an investment portfolio.
The question is how can you collect digital art and see its value grow over time? That’s what this article is about.
You’re about to learn what the best NFTs to invest in are and how you can discover great investments before anyone else.
NFTs vs. Stocks
What exactly is an NFT? These are non-fungible tokens, which are digital properties that can be purchased, sold, or traded just like anything else.
Are NFTs like stocks? Not exactly. They have a common thread in that you have a sense of ownership in something when you purchase them.
With stocks, you own shares in a company. With NFTs, you own a digital version of a product, usually art, games, or some other type of collectible.
You can buy, sell, and trade both stocks and NFTs using specific brokerages and marketplaces.
There are a couple of big differences between the two. NFTs aren’t regulated and stocks are heavily regulated. That means that you’re on your own if you get misled and make a bad investment in an NFT.
The other key difference is in the value of stocks and NFTs. The value of NFTs gets set according to what other cryptocurrency community members will pay for them.
Stocks have a variety of factors that determine their value. Benchmarks like revenue, cash flow, and the lifetime value of a customer help stock traders determine the true value of a stock.
Since these benchmarks are widely available in stock filing documents and industry analyses, you have an easier time finding the market potential of a stock than an NFT.
Instead of looking at NFTs as an investment like stocks, think of them as collectibles. These are items that you find interesting and the value can increase or decrease in time.
Best NFTs to Invest In
Now that you know the difference between a stock and an NFT, let’s look at potential investment opportunities. There are some NFTs that are taking the art world and NFT community by storm.
CryptoPunks is one of the first Ethereum NFT collections, released in 2017. It’s a set of 10,000 unique characters with each one owned by one person.
CryptoPunks has a history attached to it, which means that it will continue to increase in value. The problem is that the value increased like the real estate market – many would-be investors got priced out.
The exclusivity of the collection makes it appealing, too. Only 10,000 people can say that they own a significant piece of crypto history. That drives the value up.
This is a relatively new NFT that seeks to transform how people use blockchain technology. There is a limited edition of 1 of 1 NFTs. You’re encouraged to hold on to the NFT after purchase to earn SparkPoint Fuel.
View this as a long-term project and hold onto this NFT. It will be interesting to see where this project ends up.
Atali’i O Le Crezent
You wouldn’t think of a short film and dance as an NFT project, but Brendan Canty made it happen. The film was shot in Auckland, New Zealand, and is based on a play by Villa Junior Lemanu.
It explores what would happen to the fabric of a community if developers came and reshaped the neighborhood.
The NFT features the first-released clip of the film. Read on here to learn more about the film and how you can get your hands on this NFT.
If you’re into play-to-earn games, Battle Infinity might be what you’re looking for. It’s one of the best NFTs to buy right now and its presale holds that promise.
It’s a fantasy sports game on the blockchain. It’s a different take on play as you earn games and NFTs. That’s the draw and a big reason why the presale exceeded everyone’s expectations.
Bored Ape Yacht Club
This is another collection of 10,000 unique characters on the Ethereum blockchain.
Why is Bored Ape Yacht Club in demand? In the digital world, you have a unique collectible item. The team at Bored Ape Yacht Club decided to blend a few real-life benefits with the NFT.
You’re a member of the club, so you get access to exclusive parties where you can mix and mingle with the rich and famous.
Are you a fan of horse racing? Silks is another play to earn NFT that will capture your attention. You can buy, trade, or hold your NFT to earn rewards.
This functions like a fantasy horse racing game, but it’s based in the metaverse. Your virtual horse has a real-life counterpart and your horse’s results are based on the results of the real-life horse.
Just like in real life, a new crop of horses gets minted every year, the same way that yearlings get born at the stables.
Platinum Rollers Club
Lucky Block has a solid reputation in the crypto community. The Platinum Rollers Club is a set of 10,000 NFTs that rank as one of the best NFTs to buy this year.
The NFT functions like a lottery ticket. You’ll get access to daily draws and may walk away with a sweet jackpot.
Do you love coffee? You’re probably aware of the fair trade issues that plague the industry as demand for coffee soars around the world.
The creators of Crypto Baristas seek to do something about those issues.
The first collection of Coffee Baristas was made up of coffee-loving character NFTs. It was successful enough to build the first NFT-funded coffee shop in New York City.
A second set will be released to fund trade and transparency projects with a coffee farm in Honduras.
How to Find the Best NFTs
Why do you want to invest in NFTs? There’s nothing wrong with collecting NFTs because it’s from your favorite football team. FC Barcelona has an NFT of club legend Johann Cruyff.
It’s one thing to buy because you want to support your club. However, be wary of football NFTs if you want to turn a profit.
Liverpool supporters and NFT investors who purchased the club’s “Heroes” tokens in March 2022 saw the value of their NFTs drop by about 48 GBP a few months later.
Stories like this are rampant in the football world, so you need to make sure that you have a clear head when you decide to make your investment.
Understanding why you want to invest sets your expectations. If you buy an NFT because it’s something that you want, that’s fine.
If you go in with the expectation that you’re going to make money from it, then you need to be sure you do your research like any other investment.
Set Investment goals
Investment goals help you pick and choose NFTs that align with your goals.
It’s important to remember that the market drives NFTs. Most people buy and sell based on emotion. Your job as a successful investor is to remove as much emotion from the transaction as possible.
It also prevents you from overbidding at a virtual auction.
Set a goal based on the return on investment you’d like to see. A reasonable ROI is between $50 and $100 to start with. Don’t go for home runs and try to make a million with your first investment.
It could happen, but the likelihood of that is very small.
Be sure to assess the level of risk you want to take before buying an NFT. Ask yourself if you’re OK with losing all of your money on that investment.
The most valuable NFTs have several things in common. Look for each of these items before investing in them.
How many of them get minted? There should be a limited number of NFTs.
Is there a time limit to purchasing them? That could drive the value up initially but can fade over time.
Are there features or perks that encourage holding on to the NFT for the long run? This can provide more value to buyers and increase the market value over time.
Discover the Best NFTs to Buy
What are the best NFTs to buy? It depends on your goals and reasons for buying an NFT. Start with the best NFTs to invest in on this list and get started in the world of NFTs.
Check out the other articles on the blog for more exciting content today!