Investing in NFTs: does it pay off? Trends in various NFTs rise and fall every day, if you too want to start studying and understanding when and how it is best to invest in the market, follow us in this guide.
In the previous article I told you about what NFTs are and how they work. I also talked about their future in the world of the digital marketplace, given the huge number of investments that the big guys are making and the volumes of transactions that we see every day on the various marketplaces.
And if you are here, then I have moved your curiosity and you are ready for the next step: how to invest and make money with NFTs.
In this article we will discuss:
Investing in NFT and making money: how is it possible?
As you may have already realized, investing in NTFs and earning money is possible, but what will make a difference in your return is the time you devote to studying the various projects, and this is my most intimate advice to you.
In the still-expanding world of NFTs, there are many ways to earn money.
Let’s look at them together:
- Token appreciation value. The more a project is liked by the community, grows in visibility, increases in buyers and trading volumes, the more the token increases in value and can be sold at a high, or very high, price.
- Gaming. There are many blockchain-based games where you can earn money by playing and winning. In some video games, if you win, you get paid in cryptocurrency, which you can then convert to dollars; or in games like Illuvium, you can sell NFTs directly to the game’s internal market.
- Staking. This method involves buying and storing cryptocurrencies for a set period of time; in this way you can generate passive compensation by freezing the currencies.
All this, however, is just a hint, and today, in particular, we will look at where to invest on nft and start earning using the www.opensea.io platform, the most popular marketplace around.
The question arises: How do you get started, what are the first steps?
Where to invest in NFT and how: tools needed
Before we begin with the various steps to understand how to invest in NFT, let’s look at the tools you will need.
First, it is important, although obvious since you are interested in the digital world, to own a laptop or desktop computer that you will need to create and save the various accounts that you will need for this investment.
Then, you need to choose and create an online wallet, which is a digital wallet in which you will deposit your cryptocurrencies. I recommend Metamask over other wallets because of its ease of management and its security, which is very important when it comes to high transactions.
Next, you will need to fill your wallet with cryptocurrencies, but how? Where do I buy them?
Don’t worry, I will provide you with all the information you need.
To buy cryptocurrencies, you need to find an exchange platform that allows their buying and selling.
When you get to this point, you can choose between two alternatives: Coinbase or Binance. Both are decentralized exchanges to which you need to register your card and are very good. I, however, recommend www.coinbase.com for its completeness, intuitiveness and ease of use.
To create an account on Coinbase all you need to do is enter your information and verify your documents, this is for added security.
At this point you will be on the home page, where you can see your balance and trend. At the top left you will find the buy/sell button, click on it to deposit funds from your bank account.
Here, the site will provide you with a reference number to include in the reason for the transfer. Once the transfer is made, you can start buying cryptocurrencies!
To find out how to send your cryptocurrencies to your wallet, read on.
Finally, you need to choose a marketplace. Of these there are really many out there, today we will delve into OpenSea.
How to start investing in NFTs with: Metamask and Opensea
If you have come this far, there is no turning back because it is right now that your journey of investing in NFT and making a relative profit begins.
The first step I will explain step by step is to create a wallet, specifically on Metamask, which you will need to fill with your cryptocurrencies.
Next we will get into the nuts and bolts of OpenSea’s platform and take a closer look at how it works, how to value tokens from those with higher value to those with lower value, and how to buy them.
Metamask setup and notions
In order to create a wallet on Metamask, it is necessary to download it. Let’s see how.
First you need to go to the Metamask site (www.metamask.io), click on the download button and select your browser to directly download the wallet to your search engine.
Now you have to do the wallet setup, then click on “create” if you do not own a wallet (in case you own another one, you can import it).
Now you need to enter a password. WARNING. Since we are talking about a real and digital wallet, DO NOT use the password you usually use for other sites, even if you are tempted to.
You will now be given a secret phrase that will be the one you will need to make the various backups. This phrase is very important, so I recommend that you take a picture of the screen or write it down. DO NOT save it or send it to anyone, especially online to prevent it from being hacked. Finally, you will just have to confirm and select the words of the secret phrase in order.
How to send cryptocurrencies from Coinbase to the Metamask wallet.
Go back to your Coinbase account home page and click on send/receive. Here you will simply have to search for the crypto you bought, enter the amount and Metamask’s address (you can find it on the top right of the search bar by clicking on the fox icon). Now you will just have to continue and confirm with your e-mail or phone number, and after about ten minutes you will receive the currency on your wallet.
OpenSea Setup and Concepts
Where to buy and invest in NFTs? In the previous article we mentioned OpenSea as a marketplace where anyone who owns an NFT can sell it to anyone who is willing to buy it.
When you log in to OpenSea, the platform will tell you that you need a wallet to continue, but since you have already accounted to a wallet, you will simply have to click the Metamask button.
Then, you will need to confirm a contract and log in to the wallet platform. Through a small window at the top, you will be asked to confirm the account and the contract between your registration and OpenSea will be recorded.
On the homepage of the platform are a series of drops of the best-selling or most anticipated NFT projects, those with the most hype or the best sales trends. In addition, OpenSea contains so many token categories and you can browse all of them or the ones that interest you most: collectibles, art, music, domain, sports…
In the “stats” window and ranking section, you can find out which NFT projects are having the best statistics.
Through the filters you will be able to see the projects from the last 24h or the last 7, 30 days, choose the category, sales volume, token base price (floor price) and so on. For example, the project “Bored Ape Yacht Club,” in the last 7 days to the date I created this article, had a sales volume of 14,738.41 ETH (really a lot!)
This table is very useful to understand and study the best NFT projects and investments and then make serious evaluations of them. Keep it monitored!
Also in the stats window is the activity section, where you can see the latest activity there has been on OpenSea in the last few seconds.
Here you can see a huge exchange of NFTs, and you can understand how much this market is getting larger every second.
What do you think? Do you also feel like making a trade and accumulating NFTs?
If you are curious about a particular project you can also click on it to see all the information about an NFT and also its trend regarding sales volume. The dark blue line is the average ETH traded in transactions, while the lighter ones indicate the number of pieces sold.
How to purchase NFTs?
To purchase NFTs or bid on them, choose the category you are most interested in from the existing ones; then click on a project or an individual NFT.
If you click on a project, remember to select the filter, in the left bar, “Buy now” so you can see all the NFTs for sale. If, by removing the filter, the number of results increases, it is because some items in that project cannot be bought, but if you are interested in one of them, you can still make an offer and see if they accept it.
I would like to repeat that before you make purchases in this market, it is very important to study the project you want to invest in because going randomly might just be a loss in terms of time and especially money.
But how do I know if that NFT is worth more than the others? How can I avoid being wrong?
Don’t worry, because OpenSea gives you all the information you need and you can very easily adoculate which NFTs are worth more than others based on their data and statistics. You can find the metadata of the NFTs (non-fungible tokens) in the filter bar on the left.
For example, in the image project, I chose the Earring filter and selected the categories that have fewer NFTs, namely M1 Gold Stud and M2 Silver Stud. From the number of items in each category, you can guess how those with a lower number are rarer and worth more.
Finally, when you have found one or more NFTs that most caught your attention, study its properties and trend more closely. Remember that the design study is the most important step, so don’t underestimate it!
You may ask: Is that all there is to it?
Absolutely not! This is just the beginning of investing in NFT.
Now you are ready for the next step. 😉
If I’ve intrigued you with these concepts you can take a tour of my Blog to find more that might interest you!