Recently, the discussion of NFT in the cryptocurrency community has been increasing. Following the DeFi sector that has continued since the second half of last year, the industry generally believes that NFT will become a new round of growth point for the entire currency circle in 2021.
In the field of collectibles, data statistics website CryptoSlam showed in February that in the past 30 days, the total turnover of NBA TOP Shot exceeded 180 million US dollars, an increase of 1239.72%. Followed by CryptoPunks, the total turnover in the past 30 days exceeded 67 million US dollars, an increase of 1573.64%. The data of these bloggers' eyeballs is also slowly making NFT "out of the circle".
This reflects the positive trend of the entire industry. The Canadian analysis company NonFungible released a report predicting that 2020 will be a new bull market for the NFT industry. There is no doubt that NFT is forming a craze.
In another wave of NFT boom in 2021, how can we participate in the NFT field and get a share? The following article will focus on this issue and introduce four NFT investment methods to help you formulate your own investment strategy.
1. Buy and sell NFT assets
Buying and selling NFT on the trading market is the simplest and most common way to participate in the NFT track. This kind of gameplay is equivalent to moving the collection and sale of artworks from offline to online. Take the most popular NBA Top Shot as an example. NBA Top Shot is a digital version of NBA star cards, but this time what you collect is not the cards, but the "wonderful moments" of the stars. Players can collect these "star cards" by purchasing card packs and participating in the snap-up when the rare card packs are on sale, and each card has its own unique number, rarity, video content, etc. When you have these collectible cards, you can sell them at the price you want and make a profit from them.
Regarding how to purchase NFT, there are many regular NFT platforms on Ethereum, such as OpenSea and Rarible, which integrate NFT in the ecosystem, and players can purchase various NFT assets in their application interface. There are also some specialized NFT marketplaces, such as SuperRare and Nifty Gateway, which specifically target NFT encrypted artwork. In addition, the corresponding NFT assets can also be purchased through the official website of the NFT product.
Platforms like OpenSea support multiple token settlements, but mainly settle in ETH. Therefore, you also need to download a wallet plugin like MetaMask. When you have the funds and wallet ready, you can buy NFT. Choose a platform, connect your wallet, and start your NFT collection journey.
It is worth noting that the value of NFT is very subjective, depending on its attractiveness to other investors, and its liquidity is poor, you need to be prepared to hold it for a long time.
2. Buy potential NFT tokens
Many NFT projects have launched their own native tokens. For example, MANA is the native token of the NFT project Decentraland. Ethereum ERC20 tokens can represent anything through asset tokenization, so we will see many ERC20 tokens around the NFT ecosystem. For example, governance tokens like Rarible's RARI or Axie Infinity's AXS. These are all NFT-focused projects, and thus likely to benefit from the NFT boom: If these NFT projects do well, their governance tokens will grow accordingly.
There are also utility tokens, which are called utility tokens because they provide some advantage or utility to the holder, and some functionality cannot be accessed without holding them. For example, Meme Protocol is an NFT liquidity mining project that requires users to stake MEME tokens to receive NFT airdrops. These assets capture the growing demand for these NFT projects, so they are another alternative investment route.
The final type is split ownership tokens, such as NIFTEX’s sharded NFT, or Metapurse’s B20 token. NIFTEX is a platform that allows users to convert their NFTs into easily tradable and liquid ERC20 tokens, so when it comes to splitting the ownership of NFTs, NIFTEX is a good avenue, it currently has about 20 NFT shards The market is available. If you think the underlying NFT has room to appreciate in value, buying split-ownership tokens is also an easy way to make a profit.
3. Provide loans for NFT users
4. Buy NFT index funds
NFT index funds make it easier to invest in NFTs, the most representative of which is NFTX, a platform for generating ERC-20 tokens backed by NFT collectibles on the Ethereum blockchain. Known as the Fund (Fund). And (like all ERC20s) they are fungible and composable. With NFTX, create and trade funds based on your favorite collectibles like CryptoPunks, Axies, CryptoKitties, and Avastars from a DEX like Uniswap.
NFTX opens up a whole new way to view NFTs and their value. Transferring NFTs has traditionally been a tricky process. NFT can be valued, but the important thing is that it needs to be purchased by another party to realize the value. NFTs used to be an illiquid asset class. But NFTX just reversed this view.
This article only represents the personal views of encrypted notebooks and does not constitute any investment opinions or suggestions
This article only represents the personal views of encrypted notebooks and does not constitute any investment opinions or suggestions
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