NFTs are not just the province of hardcore crypto geeks. Anyone can hop into the NFT market and start collecting—that’s the beauty of non-fungible tokens.
What is an NFT?
An NFT is a crypto token linked to a digital asset (image, GIF or game) or a tangible one (like a painting). Unique and non-fungible, with its own intrinsic value, you can’t trade an NFT like for like as you can with Bitcoin.
NFT collectors look to invest in rare, desirable and compelling assets which will grow in value over time.
What can be tokenised?
Just about anything, with blockchain users constantly pushing the boundaries of what’s possible.
Some of the most popular NFTs are found in digital art, music and real estate along with VR wearables, games, event tickets, blockchain domain names and tokenised luxury goods and even insurance policies.
2020 saw an explosion of digital art in the form of animation, GIFs, comics, collages and videos. Even Elon Musk got in on the act with some lights, music and—a bit of a song. You could call it ‘dank’—hot property, in NFT terms—or perhaps just daggy!
At the top end, prestigious original and limited edition NFTs can fetch millions at auction. Anything from humble GIFs to lofty statement pieces are up for grabs—at the right price.
Who collects NFTs then?
There seem to be two main groups of NFT collectors.
■ Seekers of ROI
Collectors wanting serious return on investment have their eye on the big prize. They want to buy pieces with ‘viral’ potential, so the creator they buy from becomes a recognised NFT influencer. This keeps the price of their artworks heading skyward.
■ Pursuers of dankness
This is pretty much the rest of us. Less ‘educated’ and more ordinary collectors look for pieces that catch the eye and radiant ‘dankness’—a term referring to digital images steeped in techie, meme and blockchain culture.
Where do I find the best NFTs?
The Mintable platform takes you step-by-step through the entire process—from creating a digital wallet to setting up an online store, then starting to trade (buy, sell, exchange).
Can you give me some NFT tips?
Okay, read on for a few pointers!
■ Identify gaps
Look for ideas, characters and themes that haven’t been fully exploited yet. Consider NFT collectible packs with novelty value—think humour, fantasy, animals, characters, locations and sports.
■ Think outside the box
Beyond static images, browse GIFS, videos, digital puzzles and mazes that have to be unlocked. Concentrate on the more unusual offerings and collections.
■ Uncover the story
Never underestimate the power of a story! Look for NFTs with genuine background, context and meaning. Look for items anchored in a specific place and time.
■ Educate yourself
Keep learning. Read up on NFTs, join dedicated groups and hone your eye for a bargain or long-term investment.
When it comes to NFTs, anyone can play. But you’re more likely to win if you study the house rules first.