Investing in NFT Art: What is it and How does it work?

Irreversible Tokens (NFTs) have been a hot investment topic over the past few years. While various use cases for these cryptocurrency-based assets are still being developed,  investing in the arts was one of the first winners of the NFT utility.

Traditional arts investment has largely been reserved for the super-rich, but the NFT has opened the door to the sale of art to the public. But before we start, there are a few things you need to know, including what the best NFT art  looks like right now.

NFT Art Investment

Think of an NFT or non-fungible token as a digital certificate that guarantees ownership of an asset. Most NFTs are built on the Ethereum network (CRYPTO: ETH). For our purposes, this certificate guarantees ownership of the digital artwork.

What is NFT Art?

There are all types of NFT art. This can be a photograph, an image taken with digital media (using a computer screen and software instead of the traditional canvas and paint), a video, composing, writing, or even a video game. Basically anything you can think of as digital art, digitized physical art, can be transformed into an NFT.

How does NFT art work?

Anyone can get creative, convert them to NFTs, and then sell them on one of dozens of NFT marketplaces. Whether you want to become a digital art collector, have exclusive rights to use your digital art, collect royalties for others to use your digital art on the internet, or use the same marketplace to purchase NFTs to secure ownership. can.

NFT art has so far been largely speculative. Because traditional art collection and investment can also be a speculative game. The value of a creative work is subjective and is determined by various intangible factors such as the artist's reputation, the rarity of the work, the quality and originality of the work, and the  demand and  price agreed upon by art lovers. Pay per piece.

The key difference between NFT art and traditional art is that NFTs can be displayed and manipulated daily through markets if they wish. As a result, the value of these works of art  can be determined at a much higher frequency than traditional works of art that can be stored for years in a private exhibition or vault, where the true present value is unknown.

Best NFT Art Now NFT art can vary significantly in cost. Some new works are offered for free or sold for just a few dollars, and some have been auctioned off for millions of dollars. Here are some of the best NFT art features:

1. CryptoPunks

Created by Larva Labs, CryptoPunks are 10,000 unique pixel portraits of various characters. Larva Labs is one of the first successful examples of NFT technology based on the Ethereum blockchain. Originally released for free in 2017, the cryptopunk collection has gone viral since then. Some portraits have been resold for millions of dollars.

2. Beeple

Artist Mike Winkelmann, better known as Beeple, is NFT's Lead Producer. In fact, the NFT-based painting Every Day: The First 5000 Days was auctioned off by Christie's  in March 2021 for over $69 million and helped bring NFT art into the mainstream. Viple continues to produce digital photos every day, a tradition that has been going on for more than 13 years and where his new work sells at high prices.

3. Bored Ape Yacht Club

Bored Ape Yacht Club (BAYC) is a collection of 10,000 unique cartoon-style monkey portraits. Each item can be used not only as a collectible, but also as a digital membership card that gives the owner access to a virtual world created for the monkey character. NFTs are sold out but can be purchased from existing owners through NFT marketplaces such as OpenSea. The most expensive BAYC sold for millions of dollars.

4. Axi Infinity

Axie Infinity is a blockchain-based video game built on the Ethereum network. Players are trained and bred with Axie shards (crypto tokens powered by Ethereum-based gaming currency) to create new Axies, and compete using Axie, a fantastic creature that can be bought and sold. Axie Infinity attracts hundreds of thousands of  players from all over the world every day, and the most expensive Axies can sell for thousands of Ether Dollars.

NFT Early days of  art and digital creators.

NFT art is a speculative activity and collectors and investors should not bet on money they cannot afford to lose. Digital art and collectibles can fluctuate widely in price, and their value is subjective depending on how much a potential buyer is willing to pay.

However, this is the beginning of the NFT movement, and the technology of the NFT was one of the first use cases for blockchain-based technologies. NFTs can change the meaning of artists and help creators monetize their work in unprecedented ways.