Cryptocurrencies have taken the world by storm and sparked interest in DeFi’s (decentralized finance) potential.
Thus, it should come as no surprise that crypto art has become one of the most interesting assets to come along in recent times.
So, what is crypto art?
There are two schools of thought when it comes to crypto art.
The first being works of art such as literature, paintings, or music that revolve around cryptocurrencies or blockchain technology.
The second, more common description of crypto art refers to digital art such as music and images that have been transferred onto the blockchain. Thus allowing these works of art to exist in the form of a non-fungible token (NFT).
Why have NFTs become so popular?
In 2021, Beeple’s Everydays – The First 5000 Days was sold by Christie’s at auction for $69.3 million, making it the most expensive NFT to ever be sold in history.
Ever since then, the market for NFTs has exploded with artists and investors taking a keen interest in digital art.
Besides that, another reason why NFTs have seen an increase in their valuations is that they have the potential to change the way we think about digital ownership.
And this is because NFTs exist only on the blockchain where information regarding the asset’s ownership and originality are stored.
This means that while the artwork associated with the NFT can be copied or duplicated, true ownership of the asset remains with the NFT holder.
Should you invest in crypto art?
So the question on everyone’s mind is this – should you invest in crypto art?
The answer is a bit more complicated than just a simple yes or no.
Crypto art is something of a niche for most of us and may end up being difficult to liquidate in the long run.
Also, let’s not forget that there have been plenty of detractors who have pointed out that the NFT market could suddenly crash as a result of several external factors.
But on the bright side, can be said to be a trend of a new generation… One that embraces digitalization and is moving away from physical assets.
For example, the sale of the first Twitter tweet, for $2.9 million and the popularity of digital artwork from the likes of Beeple and Mad Dog Jones should be a sign of things to come.
There’s also the intrinsic value of NFTs to certain investors. Some collectors snap up NFTs for their own personal reasons. Where others enjoy the feeling of owning a truly original copy, others believe that NFTs let them connect with artists on another level entirely.
Finally, given the amounts of money being thrown around, it would be folly to ignore the market for NFTs.
At the end of the day, the decision to invest or hold your money is dependent on your risk appetite and objectives.
Ask yourself the following questions – are you a fan of digital art? Would you be comfortable owning an entirely digital asset?
And what are you looking to get out of your investment?
How to buy crypto art?
Buying crypto art is surprisingly easy when you think about it.
Let’s take a look at how you can get into the market for NFTs.
1. Sign up for a digital wallet
Before anything else, the first thing you should do is to sign up for a reputable digital wallet. This will be necessary for storing Ethereum (ETH) as NFTs are transacted exclusively using Ethereum.
2. Buy Ethereum (ETH)
Once you’ve set up your digital wallet, it’s time to start shopping around for a crypto exchange. Crypto exchanges are online marketplaces that let you exchange fiat currency for cryptos like Ethereum which will then be stored in your digital wallet.
3. Visit a reputable auction house
And now, you’re finally ready to start shopping for NFTs. NFTs are usually sold at a variety of auction houses. These sites will have a selection of NFTs on display and you’ll be able to bid for them.
But always remember to only use reputable auction houses such as:
- SuperRare.com
- Portion.io
- Crypto.com
- Opensea.io
- Foundation.app
You can find other trustworthy marketplaces to buy crypto art here: https://blog.tezro.com/top-crypto-art-marketplaces-platforms/
Closing Thoughts
Investing in NFTs is one of the ways in which you can profit from the cryptocurrency market. So, if you’re looking to get your collection started, this guide will be more than enough to show you the way.
