How to Invest in NFTs
Based on everything you now know about NFTs, it might seem rather difficult to purchase one. It isn't as simple as just buying ether, the native cryptocurrency of the Ethereum blockchain.
You can't buy NFTs through crypto exchanges (although Coinbase is working on its own marketplace for NFTs), so you'll have to look elsewhere. Here's a step-by-step process of how to buy these
digital tokens.
Set up a crypto wallet and buy some cryptocurrency. You'll need one that's compatible with the Ethereum blockchain because NFTs are almost always on Ethereum. Once your wallet is set up, buy
some ether.
Look at some NFT marketplaces. The most popular one right now is OpenSea.io, which touts itself as a seller of "rare digital items and collectibles." Other reputable NFT marketplaces include
Mintable, and Crypto.com.
Search for the NFT you want to buy. Most of the above marketplaces allow you to browse NFTs by category.
Place a bid on the NFT you want. Most NFT marketplaces function like an auction house.
One thing you should pay attention to if buying NFTs is the gas fees. If you haven't transacted in ether before, you should be aware that they come with an additional gas fee, which is the amount
of money paid to carry out the transaction. Some NFT buyers have paid more in gas fees than they did for the NFT, so you might want to hold off on your purchase if gas fees are high to see if they
come back down.
If you don't want to buy NFTs outright, you could consider investing in them in other ways, like through an investment in a venture capital fund that's investing in NFTs and crypto infrastructure.
However, you will have to be an accredited investor to go the VC route.
If you aren't accredited, you have other options, like buying an NFT-focused exchange-traded fund like the Defiance Digital Revolution ETF, which invests in blockchain, cryptocurrency and NFT stocks.