The digital art market has boomed to over $25 billion in the last couple of years by using NFTs to buy and sell digital artworks. Purchasing NFTs through a blockchain network is a reliable and low-risk way to buy digital assets. Investing in NFTs is like investing in a piece of art in real life. If you want to diversify your investment portfolio, here is everything you need to know about NFTs.
Investing in Art
Art is an excellent long-term investment if you want to put money away for several years. Investing in art can protect your money against inflation and add diversity to your investment portfolio. Many small investors believe that investing in art is exclusively for the ultra-wealthy, but accessing art markets has become easier than ever with the creation of the digital art market and the exchange of NFTs. Investing in digital art is just like investing in art in real life; the asset you purchase will generally appreciate over time, and experts suggest holding your art asset for at least ten years to see profitable returns. The great thing about investing in art is that the value of that piece doesn’t fluctuate with the economy. The value of your artwork can rise and fall dramatically as the artist’s career changes, their collections become more popular, etc. Over time, art assets can be highly profitable if you purchase the right art piece now. If you choose to invest in NFTs, you can rest assured your asset will be encrypted and fully secured on the blockchain network.
NFTs & Digital Art
A non-fungible token or NFT is a unique digital asset housed and exchanged on a blockchain network. NFTs are non-interchangeable and can represent both digital and real-world assets. In the last several years, artists have utilized NFTs to encrypt and encode their digital artworks to prove their originality online and add value to their artworks. Once you mint a digital artwork into an NFT, you encrypt the code of that work and your information as the artist, so no matter where the NFT goes, it can always be traced back to you as the artist. The artist never loses credit for the work, and the investor’s asset is guaranteed to be original and unique. NFT marketplaces such as FTX even offer the artists an opportunity to collect royalty payments each time their NFT is resold, so they can continue to profit from their work as their career grows.
How You Can Invest in NFTs
The digital art market has boomed to over $25 billion in the last couple of years, using NFTs to buy and sell digital artworks. Now, when you’re searching where can I buy NFTs, you’re presented with a wide selection of NFT marketplaces to choose from. Before you purchase your first NFT, be sure to research the different collections that your favorite artists have and understand how well each collection may perform in the future. Select the artists you are most interested in and who you think will continue to see success in their art careers. When you’re ready to purchase the NFTs, you can open a crypto wallet and fund it with the cryptocurrency of your choice. Be sure the cryptocurrency you chose to fund your wallet is compatible with the NFT marketplace you want to purchase from. Once you’ve funded your wallet, you can enter the NFT marketplace and begin bidding on and buying NFTs.
Investing in art in 2022 is simple and safer than ever through NFT marketplaces. NFTs are a great way to invest your money and accrue value over time. Add digital art to your investment portfolio today.