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The popularity of non-fungible tokens continues to grow. Experts told how to understand a developing area and learn how to identify NFTs that can be resold at a higher price.
Interest in non-fungible tokens (NFT) continues to grow. According to Google Trends, the number of searches on this topic at the beginning of December renewed its all-time high; now it is close to record values. Against the background of the growing popularity of the topic, a major developer of computer games Ubisoft announced the launch of its own NFT marketplace. It will sell digital goods called Digits, each of which will receive a unique number.
Sportsmen, musicians, and other celebrities are issuing their own NFTs to popularize the non-fungible token space. Against this background, the market is actively growing, but it is extremely difficult for an unprepared person to understand it. Experts told how to choose NFT for further sale and can you make money on it?
How do I choose an NFT?
In the classical art market, there are art critics who evaluate works and set a certain price. Art lovers, collectors trust in professionals to buy creations, said Elena Buidalina, product manager of Erachain.
There is no authoritative figure in the world of crypto art (this is the manifestation of the ideology of decentralization, there is no master of the situation, dependence, patronage and rules), the expert added. The artist exposes the NFT at his own price, then the next buyer sets his price and waits for someone to agree with it.
When choosing NFT, Buidalina advised to visit marketplaces that have a curatorial selection. You can subscribe to famous illustrators, designers and buy their work – in this case, you will have to start to understand the topic a little, visit a couple of exhibitions of contemporary artists, many of them are trying to sell their NFTs.
Senior Analyst Bestchange.ru Nikita Zuborev proposed two strategies for choosing NFT:
First strategy involves buying NFTs from obscure but up-and-coming artists, illustrators, and developers. However, such a strategy implies the presence of a large expertise in some direction, so that the prospects of the authors can be assessed. This is comparable to the job of a football coach trying to spot young talent. In any case, such investments will not bring a lot of money in the short term, but successfully purchased tokens can grow exponentially following the growing popularity of their author in a few years. This is the strategy of the ordinary art collector transferred to the digital world.
Second strategy implies the purchase of gaming NFTs that are used in a particular ecosystem: for example, for upgrades, reproduction or the creation of new “artifacts”. In the case of game tokens, collections should be collected and internal game mechanics should be used to increase their value before selling. This method generates less revenue, but the transaction cycle is much shorter. But it will take a lot of time to learn the mechanics of games and profitable ways to combine tokens into some more valuable collections.
Can you make money by reselling NFTs?
Buying and selling NFTs as earnings is somewhat similar to ordinary collecting, Zuborev said. According to him, in theory it is possible to put an activity on stream and turn it into a profitable business, but this requires expertise and high involvement. Just as a hobby, this method is unattractive. This can bring a lot of money in the moment, but only if you are lucky. such a thing cannot be called a stable source of income, such as, for example, trading with fungible tokens, the expert is sure.
One of the options for making money on NFT is to become a crypto-art dealer, says Buidalina. In order to buy from you and agree with your price, there is only one way – to develop your taste, immerse yourself in the world of art, be the new Sergey Shchukin of the cryptoindustry and collect the best collection of modern digital art, the specialist concluded.
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