Non-fungible tokens have made lots of headlines for the incredible prices some of them have garnered. In December 2021, for example, an NFT created by the artist Pak dubbed “The Merge” went for a collective sum of $91.8 million. This followed the previous record-setting $69.3 million that Beeple’s “Everydays – The First 5000 Days” sold for in March 2021.
Figures like that make it seem like NFTs are the path to easy wealth, but, as with other investments, the reality is that getting rich by investing in NFTs isn’t easy. In fact, most NFTs are nothing more than speculations at this point.
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Adding to the complexity, NFTs have been on the decline since their 2021 peak. For example, in July 2023, the weekly traded value dropped to approximately $80 million — just 3% of the August 2021 volume, according to dappGambl.
Despite this sharp fall off, NFTs can still be a sound investment. Since it has become an extremely high-risk market, the importance of doing your homework before making a purchase decision cannot be emphasized enough.
If you apply the same discipline and investment principles that you use when buying stocks, however, you may be able to generate long-term wealth in the NFT space.
Start by Getting in the Game
It’s hard not to view NFTs as another playground of the rich and famous when some of them sell for tens of millions of dollars. Yet, while it’s true that many wealthy and well-known individuals have dabbled in the NFT marketplace, 41% of the top NFTs are priced between $5-$100 — according to dappGambl — putting them within range of the average investor.
In other words, you might never be able to afford the most expensive NFTs, but it doesn’t mean that you don’t have plenty of options to choose from.
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Do Your Research
If you’re just getting into the NFT game, start by looking at some of the more popular marketplaces and NFT brands. OpenSea, for example, is the first and largest NFT marketplace, and it’s also a vast resource for those looking to learn about what’s hot in NFTs.
Some of the most popular NFT collections that…
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