Making the most of your NFTs in 2023

Non-fungible tokens (NFTs) are digital assets that are bought, sold, traded and verified on blockchain networks. They represent a variety of digital items, such as art, music, videos and other types of digital content. Each NFT has a unique ID code that distinguishes ownership. 

NFTs have become increasingly popular in recent years as more people look for ways to make money in the burgeoning cryptocurrency space. 

With the rise of NFT marketplaces such as OpenSea, investors can now purchase and trade unique digital assets in all forms. In addition, these marketplaces provide a platform for users to buy and sell rare items with ease and security, including verified sale confirmation and proof of ownership.

Understand the market

With the rise of digital art, creating your unique digital artwork and collectables has become more accessible. You can create your own digital collectables or artwork with a few clicks. Understanding the marketplace is the key to making money from NFT ownership and making the most of your digital art.

Many people who have invested in cryptocurrency over the last few years do not understand digital assets. That may sound strange, but you probably know people who have invested in cryptocurrency who couldn’t explain the concept of Bitcoin to you. 

The same applies to NFTs. Yes, they can be suitable investments, and they are digital art, but some investors need to understand that what they hold is essentially a commodity. A full and detailed breakdown of NFTs can be found at https://dappgambl.com/nfts/, where the experts will give you a great understanding of their uses.

In the same way that physical art can fluctuate in price, so can NFTs. Knowing when to buy and when to hold are two of the most crucial points regarding NFT ownership. 

Unfortunately, nobody knows how to time the top, but if you buy your NFT at a reasonable price and then set a sell limit, you can make the most of your own purchase simply by knowing when to cash in and take profit.

Follow NFT news

Despite there being plenty of negative market sentiment to discourage investors in 2022, some investors still made serious gains in the NFT space. For instance, two former Barclays bankers made a 700% return on their NFT investments. 

Contrary to what you may read in the media, there is plenty of scope for profit in the cryptocurrency space.

However, as previously mentioned, understanding the marketplace is imperative. Many pieces of economic news can send prices spiraling. The bull run in 2021 provided substantial gains for many who entered the NFT space early enough. 

You can also explore the concept of minting your own NFTs. If you believe you have an excellent digital art idea, this can be an excellent way to invest in this space. 

Digital art is the newest field where collectors are willing to pay big money for the right pieces, so if you can create something of value, you could be looking at a considerable return. If you use the news to your advantage, you can also quickly buy and sell your NFT and make a profit.

Utilize and understand the blockchain

Is your NFT running on the Solana (SOL) blockchain? Or Ethereum (ETH)? Or Polygon (MATIC)? It is best to find out, as the price of these individual cryptocurrencies can impact your investment heavily. Ethereum is the most widely used and trusted blockchain for those looking to buy and sell their digital collectable. 

Suppose you buy an NFT for 1 Ethereum, and the Ethereum price is $2,000. Your NFT could rise in value to 2 Ethereum. It may appear as if your investment has doubled. However, if the Ethereum price has dropped from $2,000 to $900, you are looking at a $200 loss. 

Conclusion

Making the most of your NFT involves the same variables as a physical art collection. The key takeaways are to: 

• Keep track of the market.
• Keep track of the value of that specific NFT collection.
• Explore other works by that digital artist to see if they depreciate.
• Understand that the blockchain you are using has a native token that is volatile.

As much as many investors and analysts like to overcomplicate NFTs, digital assets and digital asset ownership, it is a relatively simple process. Ensure you look for value and understand the market. You could be in an excellent position to make money if you enter the space at the right time.