Heard of NFTs but don’t know what they are? Unsure of how to approach the world of cryptocurrencies, blockchain technology and digital assets? Don’t worry, it’s not as daunting as the market jargon makes it sound and NFT sales are an exciting and robust market that you should be paying attention to. Let’s talk about the how and why of NFT sales in 2022, and how you might find a place in this exciting and diverse market.
What are NFTs?
Non-fungible tokens may sound like a mouthful, but NFTs are really just digital assets, or tokens, that exist at varying price points, meaning that they are non-fungible, or not all equivalent. An NFT cannot be replaced by something else, just as cryptocurrencies or fiat and paper currencies can. NFTs are unique digital assets, most commonly appearing in the form of digital images, videos, and photographs.
NFTs hit the market a few years ago, but in recent years with cryptocurrency and blockchain technology expanding rapidly, NFTs have seen an explosion in growth. Now, the international NFT market is worth billions of dollars and connected through a series of markets that vary in their NFT listings and structures.
Are NFT Sales Growing?
The answer is a resounding yes. Just in the past year alone, NFT sales have significantly increased. With so many different kinds of markets, and varying price points and digital offerings, there seems to be an NFT for everyone.
Open markets like OpenSea, offer a wide variety of NFTs at differentiated price points, with relatively low minting and transaction fees. Other markets, like collectible or invitation-only markets, like Foundation or SuperRare, require artists or NFT minters to be invited to list their work on the market. These tend to have higher-priced NFTs, less artists listed, and can be curated around a select theme or niche interest.
Regardless of the market size or type, all of the NFT markets appear to be increasing. With an international marketplace connected by the internet, there’s nothing holding back the growth of NFTs in 2022.
Why Are NFT Sales Growing?
There are a number of reasons why NFT sales are growing, but one thing is for certain: sales are skyrocketing. Since mid-2021, NFTs for sale have rapidly expanded and they stretch all corners of the digital marketplace. From sports memorabilia to GIFs, tweets, and memorable moments in social media history, NFTs span the range of what digital assets can be – and become– in a rapidly expanding market that is decentralized.
NFTs for sale may be growing because of their flexibility and connections to real-world assets. With several NFT projects, an online community is fostered, an investment plan (or roadmap) is laid out, and access to digital and in-person events with other NFT owners are included in the purchase of a digital asset. Other people invest in NFTs because of the status that some NFTs have come to represent, especially those marketed and sold as profile pictures for social media sites.
Thinking About Buying an NFT? Do it.
What’s stopping you from starting the process of buying an NFT? Particularly if you are interested in supporting artists, making an investment into a digital asset, or own or are looking to purchase cryptocurrency for use, buying an NFT could be the next step for you.
The process of buying an NFT is relatively simple. You can acquire cryptocurrency first, store it securely in a digital wallet, and then start looking for NFTs to purchase. Most of the digital marketplaces don’t allow you to join the market community as a buyer unless you have a digital wallet connected, so be sure to do your research about what kind of marketplace you are joining and what their accepted forms of cryptocurrency are before investing in crypto.
Since NFTs are non-fungible, there is no guarantee about their resale value, but with the way the markets are trending, NFTs are an investment into the rapidly-expanding world of digital assets.
The Bottom Line
If you’re skeptical about investing in cryptocurrencies or digital assets, that’s okay. It’s good to be skeptical as you approach investment opportunities and that skepticism may help guide you through your research and towards an NFT that works for you. Figure out your priorities: are you interested in acquiring a rare work of digital art? Eager to connect with other collectors around a niche subject or area of interest? Perhaps you want your NFT to act more as a token for access into virtual and in-person events and activities.
Whatever your priorities may be, be sure to conduct your research thoroughly. Though NFT sales have rapidly expanded and show no signs of slowing, it’s still important to invest wisely and with significant thought. Like any market, NFTs involve risk. The reward, however, is significant.