Earnings from NFT tokens have gained popularity among blockchain enthusiasts since 2021. One of the main options that first comes to mind is buying tokens, which may become relevant in the near future and whose price, by all accounts, should rise. The editors of digiitallife.com will tell you how to choose really promising NFT tokens for investment, but you should understand that this is a risky industry. Hopes in any case can fail, so any investment should be made wisely.
What is NFT
NFT (non-fungible tokens) are digital assets which carry identifying information embedded in a smart contract. This is what makes each NFT unique, so one such token cannot be replaced with another, as is the case with cash bills or common cryptocurrencies such as bitcoin or ether. No two NFTs are the same.
In addition, usually such a token is not shareable, you can’t send a piece of it to someone else. Although there have been experiments with the concept of fractionated NFTs playing the role of something like securities.
Non-exchangeable tokens have unique attributes, and they are always tied to a specific external asset. Thus, their main advantage and way of use was immediately formed: as proof of ownership of something on the blockchain or even in the physical world, although the latter is not yet common.
How to choose a promising NFT
Crypto market experts offer some advice about investing in NFTs:
- Pay attention to marketplaces that have curators. The classical art marketplace has art critics who can determine the value of a piece and its fair value. In a crypto marketplace, however, the artist simply puts up a price, and the buyer can agree or disagree with it.
- Subscribe to popular designers, illustrators, contemporary artists. But not knowing the subject at all, it is difficult to determine who is waiting for success, so it is worth a little dive into the industry, go to exhibitions.
- You can buy NFTs for blockchain games. Their usefulness in a particular ecosystem will ensure that their value grows along with the popularity of that ecosystem. This is especially true for items with rare attributes or those that could only be obtained in the initial stages after a game launch.
- If you give enough time to the process and do not stop learning to identify promising projects and authors, it is possible to put NFT trading on stream and get good money at some points. However, the stability of this type of income is difficult to expect.
Promising projects with NFT tokens
Examples of well-developed and promising NFT-projects, among which are games, meta-villages and other useful and interesting sites. Arranged by the capitalization level of their underlying tokens, according to CoinGecko as of February 2022.
- Token: MANA
- Capitalization: $4,165,782,920
- Project type: meta-universe
A virtual universe where you can buy and sell territory, create unique items and trade them, conduct business. This platform has long been noticed not only by ordinary users, but also by large companies. News regularly appears that one company or another has bought a plot of land in the metaverse and, for example, has opened a digital store or a representative office there.
- Tokens: AXS and SLP
- Capitalization: $3,763,053,356 (AXS) and $715,386,715 (SLP)
- Type of project: blockchain game
A bright and addictive game, a mix of several genres, offers to breed fighting pets and participate in battles in the arena. Battles are organized as a card game. To improve the chances of winning, the player can buy or mine resources, as well as breed rarer and stronger beasts based on the laid down rules of genetics.
- Token: SAND
- Capitalization: $3,446,534,753
- Type of project: Metaworld
Another virtual universe where creative people can realize and monetize their skills by creating both individual objects and entire games on Ethereum blockchain. Of course, almost all objects are in the form of NFT, which means that they are subject to inalienable ownership.
The Theta Network
- Token: THETA
- Capitalization: $2,917,608,081
- Project type: Video platform
A decentralized video streaming network. TDROP NFT liquidity mining tokens were added relatively recently to its other features. Tokens will be earned by users each time they make a purchase using TFUEL on the ThetaDrop NFT trading platform or through a third-party NFT app built on a smart contract.
- Token: OMI
- Capitalization: $2,925,533,478
- Type of project: Marketplace
ECOMI is a secure digital wallet for cryptocurrency. It is closely linked to the VeVe app, which is a premium digital collectibles marketplace. Users can purchase common, rare or even one-of-a-kind digital objects, organize virtual exhibitions, and trade with other users.
- Token: GALA
- Capitalization: $1,900,758,790
- Project Type: Blockchain Gaming Platform
Gala is a complex of blockchain games, the main principle of which is that the use of blockchain is almost invisible, and the interest comes first. There is a community in Discord, where developers are constantly interacting and consulting with an interested audience, which, no doubt, has a positive effect on development.
- Token: FLOW
- Capitalization: 1 849 125 129 $
- Project Type: Blockchain for web3 applications
Flow is a fast and developer-friendly blockchain that is ideal as a foundation for next-generation games, the tokens that power them, and NFT. The network is based on a multi-purpose architecture and serves up efficient scaling without sharding, allowing for higher speed and throughput while maintaining a developer-friendly ecosystem.
- Token: ENJ
- Capitalization: $1,389,564,751
- Project type: NFT implementation platform
The main purpose of this project is to help introduce NFT and tokenization elements into applications to broaden the adoption of these areas. In mid-2021, the company joined the UN Global Compact’s Corporate Responsibility Initiative. As part of this initiative, Enjin believes it has a responsibility to ensure that the future of NFT is sustainable and fair for everyone in the industry.
- Token: CHZ
- Capitalization: $965,713,614
- Project Type: Fan Token Platform
Chiliz is developed by Socios.com, a leading service provider for interacting with sports fans in a blockchain infrastructure. The CHZ token is used to buy fan tokens of interested sports teams and to access other blockchain services. As for the teams themselves, they get additional monetization opportunities.
- Token: WAXP
- Capitalization: $554,885,717
- Project type: highly scalable blockchain
WAX is a complete blockchain ecosystem, with NFT tokens playing an important role. As such, it collaborates with many well-known game developers as well as creative people and groups. The promising NFT vIRLs used within the platform have a host of dynamic features, including app and game integration, marketing tools, and the ability to link to real goods.
The best NFT collections
Speaking about promising NFT, it is impossible not to tell about the collections that are in the greatest demand. According to OpenSea’s largest marketplace as of February 2022, the following 10 collections have the highest trading volumes of all time:
- Cryptopunks. Turnover: 843,900 ETH. Website: https://www.larvalabs.com/cryptopunks
- Bored Ape Yacht Club. Turnover: 399,200 ETH. Website: http://www.boredapeyachtclub.com/
- Decentraland. Turnover: 304,300 ETH. Website: https://decentraland.org/
- Mutant Ape Yacht Club. Turnover: 246,100 ETH. From the creators of Bored Ape Yacht Club.
- Explore Art Blocks Curated. Turnover: 231,000 ETH. Innovative releases by well-known artists, selected by the platform’s strict curators.
- The Sandbox. Turnover: 155,400 ETH. Website: https://www.sandbox.game/
- CLONE X – X TAKASHI MURAKAMI. Turnover: 127,400 ETH. Site: http://www.rtfkt.com/
- Azuki. Turnover: 117 100 ETH. Site: http://www.azuki.com/
- Rarible. Turnover: 99,600 ETH. Website: https://rarible.com/
- Decentraland Wearables. Turnover: 95,800 ETH. Items of clothing and accessories for the meta universe.
Where to buy, sell and store NFTs
The most popular sites for buying irreplaceable tokens are such as:
- Binance NFT
- Superrare .
There are dozens of them in all, and they allow you to work with tokens on different blockchains, not just the most popular Ethereum.
You can use wallets that support these asset standards for storage. For example: Trust Wallet, Metamask, Coinbase Wallet, MathWallet, Enjin.
What are the features of NFT tokens?
Non-fungible tokens provide unique digital rights on the blockchain for any digital or physical asset. Tokens cannot be equivalently exchanged one for the other due to the individual characteristics of the smart contract, and usually cannot be split into multiple pieces.
What is meant by prospective NFT?
Tokens that are tied to such works of art or other objects that are likely to grow in value and generate profits for the owner.
How do you choose a truly promising piece of digital art?
The two main options are either to be well versed in digital art and artists in order to pick out the most promising ones, or to choose strong projects with NFT, due to the growing popularity of which the demand for tokens will grow as well.
What are NFT projects?
Predominantly we are talking about blockchain games and meta-universes. In the format of irreplaceable tokens, almost everything is represented there: from weapons or combat pets, to territories where you can build objects and conduct commercial business.
What are NFT collections?
A set of pre-minted tokens in a certain quantity. All tokens are similar to each other in one way or another, but at the same time, each token is unique, some have rarer attributes and are therefore valued higher, etc.
Where can I buy irreplaceable tokens?
The most popular platforms for this are OpenSea, Binance NFT. They offer a wide range of items and collections, you can buy at a fixed price or on an auction basis.
Where to store the purchased assets?
Many web3 wallets support non-fungible tokens, like Trust Wallet and Metamask. Make sure the wallet supports the exact standard you need (ERC-721, etc.).
Promising NFT tokens are those that can bring good resale profits in the future. Of course, identifying such assets in advance is very difficult. Even experts sometimes make mistakes. Therefore, investments should be as deliberate as possible, on free money. You can not invest all of your savings in digital art, this with a high probability will lead to a negative finale. If you are interested in this topic, try to learn as much as possible about digital artists, new interesting collections, especially from well-known creators. With them, the chances of success will be significantly higher.