What are NFT stocks? Are they different from NFT tokens? Are they the same? Let’s understand what NFT stocks are in this article.
Non-Fungible Tokens (NFTs) are digital assets that can be traded using blockchain technology, facilitating cryptocurrencies.
Ethereum blockchain is the most preferred technology to trade NFT stocks.
The term non-fungible means they are non-equivalent to anything else. For instance, currencies are fungible; if you trade one bitcoin with another or one dollar with other, you will still hold the bitcoin or dollar with the same value.
However, an NFT like an art piece will not have a similar value to another art piece.
While NFTs have existed since 2014, they have seen significant traction in the past couple of years, becoming a preferred way to buy and sell digital artwork.
In fact, according to reports, NFT sales volume has surged to a whopping $2.5 billion in the first half of 2021. But how exactly is the NFT stocks trading done?
How do They Work
Each NFTs are one of their kind and get a unique identifying code when uploaded on the blockchain network.
The identity and ownership of the digital asset are then verified with the help of blockchain’s proof-of-work algorithm.
You can then buy or sell the NFT by trading it with the cryptocurrency supported by the underlying blockchain technology.
The prices of NFTs can range from a few bucks to millions of dollars.
For example, we have witnessed the digital artist Beeple selling a digital collage at a whopping 69.3 million USD and Twitter CEO Jack Dorsey selling his tweet for 2.9 million USD.
How to Buy Them
You can buy NFT stocks or NFTs from the marketplaces that sell them.
The only thing you need to decide here is which blockchain technology you want to use, as it will determine what and how you can trade.
For instance, if an NFT marketplace supports Ethereum, you would need the underlying cryptocurrency, Ether.
You might also need to create a digital wallet to purchase and hold the cryptocurrencies you would use to purchase NFTs.
Thus, while buying an NFT is a straightforward process, selecting a reputable marketplace for trading is essential.
Most Popular NFTs
Once you have set up a digital wallet and added the cryptocurrency, there are numerous marketplace options where you can buy or sell NFTs. Some of the most popular of these marketplaces include:
OpenSea is one of the world’s first and largest peer-to-peer NFT marketplace. With over 300K+ users and 34 million+ NFTs, it is a trusted and reliable marketplace that you can use to buy or sell NFTs.
It recently hit a valuation of USD 1.5 billion in July 2021. All you need to do is set up an account and browse through the collections to buy an NFT.
Rarible is another open marketplace that allows trading NFTs through blockchain-backed protocols. The marketplace has raised USD 14.2 million in its Series A funding.
NBA Top Shot Marketplace
This marketplace features trading cards of NBA video clips. You can buy a single clip or collection, which is then stored in your wallet. You can also resell these clips on the marketplace.
What are NFT Stocks
While we have been talking about NFTs until now, what exactly are NFT stocks? Are they non-fungible stocks? No, they aren’t.
Put simply, NFT stocks are the stocks of companies dealing with NFTs.
The hype around NFTs is lifting the stock prices of several companies involved in blockchain or digital asset retail. Some of the best NFT stocks to buy now are:
Mattel
Mattel tops the list by announcing its Hot Wheels digital collectibles to join the NFT frenzy. With the hype around NFTs increasing constantly, it is evident that the stock price for Mattel is undoubtedly going to have an upward steep.
Dolphin Entertainment
Through its NFT division Dolphin Digital Studios, Dolphin Entertainment produces and distributes its and its clients’ NFTs.
The company’s shares have more than tripled in value, and it is a good time to invest in this NFT stock. It has also collaborated with FTX to create an NFT marketplace.
Funko
Funko is a Washington-based company that creates and sells digital figurines. Its NFTs are called the Funko Digital Pop that comes in two packages: Standard and Premium.
The Standard package costs USD 9.99 and contains five pop figures, and the Premium package costs USD 29.99 and includes 15 figures.
Summary
NFT stocks are fantastic to have in your portfolio, but it is wise to go for cheap NFTs.
Although there is a lot of hype around them, their future is uncertain. Many say it’s just a bubble, while many others think of it as the future of digital art.
Hence, adding NFT stocks to your portfolio depends on the amount of risk you can take.
Wondering what NFTs are? Here’s a guide on – What are NFTs
Want to get one yourself? Here’s more info on – Where to buy NFTs
Wondering how NFTs work? Here’s your guide.
How to invest in NFTs – Earn money from NFTs by investing, maybe?
How to buy NFTs – Buy an NFT yourself.
Also, check out the guide on – How to make money with NFTs
You could make an NFT yourself – Here’s how to make NFTs
And finally, read on how to sell NFTs. Useful stuff! 😉
