The popularity of non-interchangeable tokens continues to grow. Experts told how to understand the developing field and learn how to identify NFTs that can be resold for more
Interest in non-interchangeable tokens (NFT) continues to grow. According to Google Trends, the number of search queries on this topic in early December updated the historical maximum, now it is close to record values. Amid the growing popularity of the topic, a major computer game developer Ubisoft has announced the launch of its own NFT marketplace. It will sell digital goods called Digits, each of which will receive a unique number.
Athletes, musicians and other celebrities produce their own NFTs, which popularizes the sphere of non-interchangeable tokens. Against this background, the market is actively growing, but it is extremely difficult for an untrained person to understand it. Experts told how to choose NFT for further sale and is it possible to make money on it?
How to choose NFT?
In the classical art market, there are art critics who evaluate works and set a certain price. Art lovers, collectors buy creations based on trust in professionals, said Elena Buidalina, product manager of Erachain.
There is no authoritative figure in the world of crypto art (the ideology of decentralization is manifested in this, there is no master of the situation, dependence, patronage and rules), the expert added. The artist puts the NFT at his price, then the next buyer puts his price and waits for someone to agree with it.
When choosing NFT, Buidalina advised visiting marketplaces that have curatorial selection. You can subscribe to famous illustrators, designers and buy their works — 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 NFT.
Senior Analyst Bestchange.ru Nikita Zuborev proposed two strategies for choosing NFT:
The first strategy involves buying NFT from little-known but promising artists, illustrators and developers. However, such a strategy implies a great deal of expertise in some direction so that the prospects of the authors can be assessed. This is comparable to the work of a football coach who is trying 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 following the growth in popularity of their author 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, for upgrades, reproduction or the creation of new “artifacts”. In the case of game tokens, you should collect collections and use the internal mechanics of games to increase their value before selling. This method brings less revenue, but the transaction cycle in them is much shorter. But it will take a lot of time to study the mechanics of games and profitable ways to combine tokens into some more valuable collections.
Is it possible to make money on the resale of NFT?
Buying and selling NFT as earnings is somewhat similar to ordinary collecting, Zubarev believes. According to him, in theory, it is possible to put the 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. It can bring a lot of money in a moment, but only if you’re lucky. such a thing cannot be called a stable source of income, such as trading with interchangeable tokens, the expert is sure.
One of the ways to earn money on NFT is to become a crypto-art dealer, Buidalina believes. In order to buy from you and agree with your price by all means, then there is only one way — to develop your taste, immerse yourself in the world of art, be the new Sergey Shchukin of the crypto industry and collect the best collection of modern digital art, the specialist concluded.