The popularity of non-interchangeable tokens continues to grow. Experts told how to understand the evolving field and learn how to identify NFTs that can be resold at a higher price.
- How to choose NFTs?
- Is it possible to make money on the resale of NFTs?
Interest in non-interchangeable tokens (NFTs) continues to grow. According to Google Trends, the number of search queries on this topic at the beginning of December has updated to a historic high, it is now at close to record highs. Against the backdrop of the growing popularity of the topic, Ubisoft, a major developer of computer games, announced the launch of its own NFT-marketplace. It will sell digital items called Digits, each with a unique number.
Athletes, musicians and other celebrities are releasing their own NFTs, and this is popularizing the field of non-interchangeable tokens. Against this background, the market is actively growing, but to make sense of it for an untrained person is extremely difficult. Experts told how to choose NFT for the further sale and whether it is possible to make money on it.
How to choose NFT?
In a classic art market, there are art critics who evaluate works of art and set a certain price. Art lovers, collectors on the trust of professionals buy artworks, said Elena Buydalina, product manager of Erachain.
In the world of crypto-art there is no authoritative figure (this shows the ideology of decentralization, there is no master of the situation, dependence, protection and rules), the expert added. The artist puts up the NFT at his price, then the next buyer puts up his price and waits to see who agrees with it.
When choosing NFTs, Buydalina advised visiting marketplaces that have a curated selection process. You can subscribe to famous illustrators, designers and buy their work – in this case, you have to start a little knowledge of the subject, visit a couple of exhibitions of contemporary artists, many of them are trying to sell their NFT.
Senior Analyst at Bestchange.ru Nikita Zuborev suggested two strategies for choosing NFTs:
The first strategy involves the purchase of NFT from little-known but promising artists, illustrators and developers. However, this strategy implies a lot of expertise in some direction, so you can assess the prospects of the authors. It is comparable to the work of a soccer coach who tries to discern young talents. In any case, such investments will not bring a lot of money in the short term, but successfully purchased tokens can multiply as their author’s popularity grows in a few years. This is the strategy of an ordinary art collector transferred to the digital world.
The second strategy involves the purchase of gaming NFTs that are used in a particular ecosystem: for example, to upgrade, reproduce, or create new “artifacts. In the case of game tokens, you should collect collections and use internal game mechanics to increase their value before selling them. This method generates less revenue, but they have a much shorter transaction cycle. But it will take a lot of time to learn game mechanics and profitable ways to combine tokens into some more valuable collections.
Is it possible to earn from reselling NFTs?
Buying and selling NFTs as an income is somewhat similar to regular collecting, Zuborev believes. According to him, in theory you can put the activity on stream and turn it into a profitable business, but it requires expertise and high involvement. Simply as a hobby, this method is unattractive. It can bring a lot of money in a moment, but only if you are lucky. it cannot be called a stable source of income, as, for example, trading with interchangeable tokens, the expert believes.
One of the options for making money from NFT is to become a crypto-art dealer, Buydalina said. In order to buy exactly from you and certainly agree with your price, there is only one way – to develop your taste, to immerse yourself in the world of art, to be a new Sergey Shchukin of the crypto industry and collect the best collection of contemporary digital art, concluded the expert.