Trading NFTs has become wildly popular over the past few years.
With the rise of crypto trading, it's become prime time for anybody and everybody to get involved in some form of online trading. But out of all crypto trading, trading NFTs is at the moment the least regulated way to engage in crypto trading.
Trading NFTs works the same way that any online trading works. Buyers purchase or bid for a token, then try and sell that token for more money than they bought it for. Basic trade practices, right?
One big difference with NFT trading is that while the value of an individual NFT is solely based on demand, much like dog money for instance, there are hardly any tools to chart and monitor how the supply and demand for an NFT develops.
This means that the simplest and seemingly least valuable NFT you can think of, with the right audience, could be worth thousands, if not millions. It also means that the demand by an audience can be relatively easily faked at the moment, which creates a lot of risk for the NFT trader.
What Types of NFTs Can You Trade?
At the superficial glance, the world of NFTs is full of nostalgia, demand, exclusivity, and money.
But the reality is that there are literally NFTs for anything you can imagine.
The most popular ones NFTs to trade tend to be sports memorabilia, digital artworks like the Bored Ape, and video game characters. However, NFTs have made their way into pretty much every facet of money making, including adult entertainment. If that got your interest, by all means learn more about poker NFTs. The point is that there doesn't seem to be a place that is untouched by non-fungible tokens.
With the boom in online trading these days, it was inevitable that something as big as the NFT craze would extend its reach all through the online world.
Decentralized Trading… That runs on hype
The rise in popularity of NFTs and NFT trading has caused a monumental stir in virtually all spheres of societal life.
The richest and most powerful men and women in the world have realized the value that resides in the NFT market, especially once they get promoted by a celebrity with a loyal audience. Obviously they've not hesitated to get involved.
Names like billionaire Mark Cuban and influential marketing guru Gary Vee are a few examples of big-time celebs who have purchased NFTs. Even celebrities like Jay-Z and Tom Brady are in on the phenomenon selling their own exclusive collection of NFTs.
The NFT market doesn't stop at individuals, however. The NBA has even launched its own collection of basketball memorabilia and rarities for fans to purchase, and it's become one of the most popular NFT collections in the world.
Celebrity mentions and hype are very much what drives the hype effect that can drive NFT prices way north.
NFT Trading is Open to Everyone
You may see all the big-money moves that big-name celebrities are making in the NFT world and think to yourself, I'll never be able to get in on the game.
However, NFT trading is actually readily available to pretty much everyone.
It's also much simpler than you may think - there is no charting, no order books, and right now no KYC.
The first place to start would be heading over to one of the larger NFT marketplaces, like OpenSea or Rarible. On those you'll find thousands of digital assets to peruse over and decide what interests you. You can purchase whichever ones you want or bid for them in an auction, and they'll become yours to trade, sell, or keep, it's up to you.
On the other hand, you will often find that NFTs on smaller marketplaces are priced better.
What does it take practically to start trading NFTs?
Before you start flexing your purchasing power, however, you'll first need to get a crypto wallet. This is where you'll store your NFTs.
Most NFTs are on Ethereum, Solana or MATIC blockchains, so it would be wise to get a crypto wallet that can host all of them, like Exodus or Ledger.
Once you have a crypto wallet, you can simply sign up and create a profile on your choice of NFT marketplace, and then you're good to go.
There are no KYC forms to fill, as NFT marketplaces are non-custodial dApps, so there’s no need to worry about geopolitical restrictions and utility bills.
You can simply start buying and selling NFTs like it's nobody's business, or you could hold onto some of the lesser known NFT art tokens and promote them on Instagram to increase their perceived value, much like it is done with traditional art. The choice is yours.
NFTs, or Non-Fungible Tokens, have taken the world by storm in recent years, and there doesn't look to be any quelling of their demand anytime soon.
The best you could do if you want to start trading NFTs is figure out what your niche is, and plug into it. Don't go too crazy, be smart and patient with your tokens, and try to avoid stressing yourself out too much!