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How To Invest In NFTs

2022-04-28

Main takeaways: 

  • The growing popularity of NFTs is leading to an increased number of use cases in the digital asset space – such as community perks, in-game items and abilities, and much more.

  • The increased adoption of NFTs are opening new revenue opportunities for investors, collectors and digital creators.

  • With Binance, buying and selling NFT coins and digital assets is very simple.

As mainstream adoption of NFTs continues to grow, so do the use cases. Discover how you can get in on the action with Binance today!

NFTs have seen explosive interest ever since they joined the crypto scene, whether in terms of adoption rate, creation rate, or use cases. The expansion of NFT applications and utility enables NFT holders to access and unlock exciting possibilities in Web3. 

More importantly, this increased adoption has the potential to open new revenue opportunities for investors, collectors and digital creators alike. So let’s take a closer look and explore why you should consider getting involved!

How To Spot Good NFT Investments? 

There are many factors that you should consider before investing in NFTs. Below, we outlined three tips you can use when trying to spot-in-demand NFTs. 

Utility 

The utility of NFTs comes from their application in the physical and digital worlds. In addition to being a one-of-a-kind digital asset, NFTs can be used to perform a range of actions. For example, holding a Bored Ape Yacht Club (BAYC) NFT comes with benefits, such as exclusive access to a members-only space, airdrops, and early access to new NFT sales. 

To learn more about NFT utility, read our article on Top 7 NFT Use Cases.

Potential

You can estimate the growth potential of an NFT by looking at the supply and demand. 

NFT projects with a big community may become more valuable because the project is more likely to maintain traction over time. This tends to increase the demand for the NFT, possibly making the project more rare and valuable. 

Community Size 

Ideally, there should be a sizable active community of engaged investors for an NFT project to have good liquidity or lasting value. So, an NFT project with a big and active community is often a good indicator. 

Content creators can easily manipulate their social media following. So checking a project’s community engagement on Discord is a better way to gauge the strength of an NFT project.

How To Invest in NFTs?

Whether you’re a NFT collector or a crypto investor, there are a few different ways you can invest in NFTs. 

Investing in NFT Projects via NFT Coins 

NFT coins are cryptocurrencies created by NFT projects to be used within their ecosystem of GameFi and decentralized applications (DApps). Popular examples include AXS, MANA, and SAND. NFT coins have a range of use cases, from in-game currency to governance voting.

In some situations, investing in a NFT project’s native token can be less risky than investing in the NFTs. The fees for trading tokens are significantly lower than trading NFTs and the token markets often have better liquidity. As such, investing in NFT coins may be a suitable option for those looking to support a certain NFT project without buying NFTs.

Using Crypto To Buy NFTs

If you already have BNB or ETH in your wallet, you can directly purchase the NFT you’re interested in on an NFT marketplace. 

Binance NFT has a wide range of NFTs available on their marketplace, including NFT avatars, art collectibles, mystery boxes, and much more. 

Check out our article How To Buy NFTs In 4 Easy Steps for a detailed guide on purchasing NFTs on Binance NFT.

Top 5 NFT Coins on Binance

NFT coins have a range of utility in a range of metaverse projects and more. Below we’ve listed the top five NFT coins available on Binance that you can consider adding to your crypto portfolio.

  1. ApeCoin (APE), at a price of $19.22 and at a market cap of $5,471.69M*

  2. Dencentraland (MANA), at a price of $1.83 and at a market cap of $3,371.73M*

  3. The Sandbox (SAND), at a price of $2.52 and at a market cap of $2,919.40M*

  4. Axie Infinity (AXS), at a price of $38.49 and at a market cap of $2,344.32M*

  5. Green Metaverse Tokens (GMT), at a price of $3.84 and at a market cap of $2,310.00M*

* As of April 28th, 2022.

* This list is ranked by market cap and does not constitute a recommendation or endorsement by Binance to buy or sell any currency.

Learn more about the5 Most Popular NFT Coins & How to Buy Them.

How To Get Started

No matter which investment method you choose, you need to purchase crypto to get started. The NFT coin you choose to buy can be a native token of a metaverse project that lets you transact on the respective platform. For example, to buy land in Decentraland, you need MANA to buy LAND NFTs.

If you are looking to buy in-game items or any NFTs on Binance NFT, you will need to purchase BNB, BUSD, or ETH to make transactions on our NFT platform.

Buy Crypto On Binance in 2 Simple Steps

Step 1: Make a fiat deposit via an e-wallet transfer or bank transfer on Binance. Be sure to check the available fiat channels for your preferred currencies. For a more in-depth guide, see our tutorial on “How to Deposit USD via SWIFT”.

Optional: Convert the fiat currencies to BUSD or USDT so that you can trade a greater variety of tokens.

Step 2: Buy the NFT coin or cryptocurrency of your choice through a user wallet purchase or directly with a credit/debit card.

Conclusion

Naturally, as more people and major companies begin to recognize the potential of the metaverse and Web3, the use cases of digital assets like NFTs will continue to grow. 

Seeing as NFTs are a relatively new market, it’s important and needed to do your own due diligence before investing in NFTs or NFT coins. 

Start your crypto adventure with Binance.

Sign up for a Binance account or download the Binance crypto trading app. Once your account is verified, you can buy cryptocurrencies on Binance using fiat in three ways: from Binance via bank transfer, card channels, or e-wallets options.

Buy BUSD, BNB and cryptocurrencies with a Debit Card, Credit Card, or via Bank Transfer.

Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy Bitcoin and more than 200+ cryptocurrencies.

Disclaimer: NFTs are an emerging asset class that is still evolving. The information in this article should not be construed as investment or financial advice. Always do your own research before making any decision to buy, sell or trade NFTs.

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