How to Invest in NFT Tokens – Beginner’s Guide

Non-fungible tokens, or NFTs, have proved to be an exciting addition to the cryptocurrency world. NFTs allow simple tokenisation of physical and digital assets, opening up a vibrant new ecosystem where market participants can trade art, music, in-game items, and more.

In this guide, we’ll discuss how to invest in NFTs in detail, reviewing the best NFTs and the top trading platforms before showing you how to buy an NFT today – in four easy steps.

NFT Investing Explained

If investing in the best NFTs to buy seems appealing to you, it’s wise to first gain a broad understanding of what NFTs are and how NFT investing works. As noted in the intro, NFT stands for ‘non-fungible token’ and refers to a digital token used to guarantee ownership of a specific asset. The asset in question could be anything, although most NFT trading volume corresponds to digital art, music, and blockchain gaming items.

NFTs are hosted on the blockchain, which is the decentralised network behind many cryptocurrencies. Bitcoin was the first to popularise blockchain technology, although since then, many other exciting networks have sprung up that look to improve on the foundations that Bitcoin set. Ethereum is one of these networks and has become the leader within the NFT space, although Solana, Cardano, the Binance Smart Chain are also heavily involved.

If you’re interested in investing in NFTs, you can do so through an NFT marketplace. The best NFT marketplace provides an easy-to-use online portal where investors can browse NFTs that have been created by other users and then purchase them if they wish. Most of the time, NFTs will be listed for a fixed price or through an auction – with the latter allowing investors to make bids until someone wins the NFT.

Finally, since NFTs are based in the cryptocurrency ecosystem, you will need to obtain a crypto wallet to store your NFT post-purchase and also store the crypto necessary to facilitate transactions. The best crypto wallets can connect with NFT marketplaces and help users fund purchases, along with holding their assets safely. 

Are NFTs a Good Investment?

So, is investing in NFT art or NFT games a good idea? With so many non-fungible tokens now on the market, from the best utility NFTs and the best NFT horse racing projects to the best NFT land projects, making the right decision can be challenging. Some providers have even started offering the best NFT giveaways as a new incentive.

Moreover, you’ll also find that some have become the most expensive NFTs after selling for unprecedented amounts, while others are marketed as the cheapest NFT projects on the market. As such, you might be interested to learn that many crypto traders are looking at an innovative blockchain-based lottery project known as Lucky Block. You can buy Lucky Block NFTs to stand a chance of winning a whole plethora of prizes and rewards. For more of the best NFT presales be sure to read our convenient guide.

Another great altcoin that offers access to the NFT buzz is Enjin coin. With a limited supply of 1 billion coins, now could be a good time to invest with discounted prices. For more details read our where to buy Enjin coin right now.

Read more: How to Invest $2,000 in 2023.

There are many factors to consider here, but let’s dive in and explore five of the main elements to keep in mind when researching how to invest in NFTs:

Potential Value Increases

One of the main appeals of investing in NFT art is the potential value increases that may occur over time. A prime example of this is CryptoPunk 1422, purchased for $74 back in 2017. However, BusinessInsider recently noted that the NFT was sold in October 2021 for an incredible $2 million. This example highlights the potential that many NFTs have for dramatic price appreciation.

Access to Exclusive Bonus Content

Investing in NFTs doesn’t just provide investors with a cool piece of art or music – it often includes scope to attain exclusive bonus content. There are many examples of this, although a prime example is when NFT collection creators will invite owners to events or provide additional NFTs via Airdrop.

Enable Participation in Elite Communities

High-end NFTs often allow owners to be part of exclusive ‘communities’, which adds an air of prestige to the assets. A famous example of this is Bored Ape Yacht Club, which operates a Discord server filled with other Bored Ape owners, including celebrities and high-profile names. Owners also gain access to ‘The Bathroom’, a community-driven graffiti board.

Can Support Creators

You may wish to purchase the best NFT to invest in so that you can support a creator that you’re a fan of. NFTs have proven to be a fantastic way for creators to publish work and for fans to show their support by buying the work.

Easy to Display Ownership

Finally, since NFTs are ‘non-fungible’ by design, many NFT owners will display their assets as their profile pictures on social media. This highlights to others the prestigious NFT that they own – and the NFT cannot be copied because ownership is solidified through blockchain technology.

What are the Best NFTs to Invest In?

If you’re researching how to invest in NFTs, it’s crucial to gain an understanding of the top assets available to investors. Presented below are five of the best NFTs to be aware of and why they are highly sought after:

1. CryptoPunks

When exploring how to invest in NFT art, you’ll likely have seen CryptoPunks mentioned frequently. CryptoPunks was one of the first NFT collections and was initially launched in 2017. However, as the NFT craze took off, these ‘Punks’ became viewed as premium assets due to their ‘first mover’ status – and many have since been sold for millions of dollars.

2. Bored Ape Yacht Club

Bored Ape Yacht Club is a collection of 10,000 pieces of NFT art that depict bored apes. Although the collection’s launch was understated, these ‘Apes’ became seen as a status symbol, with many celebrities and high-profile names getting involved. At the time of writing, Bored Ape Yacht Club NFT sales have breached the $1 billion, thanks to the likes of Eminem and Snoop Dogg making investments.

3. Mythia

Mythia is a collection worth adding to your NFT calendar, as the drop comprises 3,333 pieces of unique art that showcase cyberpunk and anime characters. However, Mythia’s appeal mainly comes from the additional benefits, as all owners gain access to exclusive Discord servers that discuss upcoming NFT drops with huge potential. Owners can also access a suite of software tools that streamline the NFT investing process.

4. Embers

Embers is another collection worth considering for people looking to begin investing in NFTs. Like many other collections, Embers NFTs are seemingly simple art pieces, each containing unique traits and aesthetics. The collection is set to release soon, with a total of 5,555 NFTs up for grabs and a stellar roadmap for the future.

5. Pudgy Penguins

Finally, Pudgy Penguins is a collection of 8,888 randomly-generated ‘Penguins’ that investors can purchase and display as their profile pictures. The collection was launched in July 2021 and has totalled over $140 million in trading volume since then. Although the Penguins are available for only 0.03 ETH at the time of minting, certain Penguins have gone on to sell for massive amounts – with one being sold for over $450,000!

Where to Invest in NFTs

Now that you’ve got a solid understanding of the investment landscape, let’s discuss where to invest in NFTs.

1. NFT LaunchPad – Top-Rated Marketplace Offering Exciting NFT Collections

Our pick for the best NFT investment platform is NFT LaunchPad. NFT LaunchPad has emerged as the ‘home of Web3’, offering a vast selection of digital assets to purchase. These include art, animations, games, metaverse items, music, trading cards, and much more.

NFT LaunchPad’s collections are denominated in Wrapped BNB (WBNB), making them widely accessible. In addition, the platform is compatible with leading crypto wallets such as MetaMask and WalletConnect, both of which can be linked to NFT LaunchPad in just a few clicks.

There are various in-demand projects listed on NFT LaunchPad, with Lucky Block NFTs being one of the most prominent. Lucky Block’s team recently launched an innovative ‘NFT competitions platform’ which gives NFT holders the chance to win exclusive prizes, including luxury holidays, a Bored Ape NFT, or even $1 million worth of Bitcoin.

The NFTs needed to enter these exclusive prize draws are available to purchase on NFT LaunchPad and vary in price depending on investor demand. However, there are other notable listings on NFT LaunchPad, including abstract art from Calamity and several CryptoPunks, considered some of the most expensive NFTs on the market.

NFT LaunchPad even allows creators to mint their own NFTs on the platform, offering low (or no) GAS fees. Creators can also set their own rarity levels, with support provided for various formats. Finally, the entire buying/selling process on NFT LaunchPad is incredibly streamlined, with assets available for either a fixed price or via an auction.

Your capital is at risk.

2. Crypto.com – Established NFT Investment Platform with Top Collections

Whether you’re interested in investing in NFT stocks or are more inclined towards NFT art, it’s vital to partner with a platform that can facilitate transactions safely and cost-effectively. With that in mind, we recommend using Crypto.com to make your NFT purchases.

Crypto.com is one of the best crypto exchanges globally, offering a low-fee trading environment for all users. The platform launched its own NFT marketplace in 2021, which now features NFTs hosted on the Crypto.com blockchain and the Ethereum blockchain. The great thing about Crypto.com is that there are no fees to purchase NFTs – which is in stark contrast to many other NFT platforms. Plus, it’s constantly adding the best upcoming NFTs to its marketplace.

What’s more, investors can buy NFTs using their credit or debit card, meaning that it isn’t necessary to hold crypto to facilitate an NFT purchase. The investment process is straightforward with Crypto.com, as you can sign up in minutes and verify your account via SMS or by connecting to your Crypto.com trading account (if you have one). Finally, Crypto.com even has one of the best  NFT apps, ensuring users can operate within the market whilst out and about.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

How to Invest in NFTs

If you’re wondering how to invest in NFT crypto or purchase NFT art, it’s vital to understand the investment process before diving into the market.

To help streamline this process, the steps below will show you how to buy NFTs from the comfort of your own home, using the Lucky Block ‘Platinum Rollers Club’ collection as an example.

Step 1 – Set Up a MetaMask Wallet

Lucky Block NFTs are available to purchase through NFT LaunchPad, one of the most exciting new digital asset trading platforms within the space. However, NFT LaunchPad can only link to a MetaMask wallet – so you’ll need to set one of these up.

To do so, head to MetaMask’s website and click ‘Download’. On the page that appears, follow the on-screen instructions to set up your wallet and add it to your browser.

Step 2 – Add BNB Chain to MetaMask

MetaMask is only connected to the Ethereum blockchain by default – so you’ll have to link it to the Binance Smart Chain (BSC) manually. To do so, click ‘Add Network’ in the wallet’s settings menu and enter the following information:

• Network Name: Smart Chain
• New RPC URL: https://bsc-dataseed.binance.org/
• ChainID: 56
• Symbol: BNB
• Block Explorer URL: https://bscscan.com

Once entered, click ‘Save’ to link the MetaMask wallet to the BSC.

Step 3 – Obtain Wrapped BNB (wBNB)

Lucky Block NFTs are denominated in wrapped BNB (wBNB), which is similar to regular BNB, yet conforms to the BEP-20 standard used by the BNB Chain. wBNB can be obtained through PancakeSwap, one of the best DeFi exchanges on the market. Once you have purchased wBNB, transfer your holdings into your MetaMask wallet.

Step 4 – Link Wallet to NFT LaunchPad

Next, head over to NFT LaunchPad and click the ‘Connect Wallet’ button on the homepage. A pop-up box will then appear, in which you can follow the instructions to link your MetaMask wallet to the platform.

Step 5 – Buy Lucky Block NFT

Finally, browse the Lucky Block NFT collection and choose the number of the NFT you’d like to purchase (these range from 1 to 10,000). On the NFTs listing page, click ‘Buy Now’ and then confirm the transaction. The NFT transfer will then commence, which will result in your new NFT being placed in your MetaMask wallet.

Your capital is at risk.

Investing in NFT Companies

Although investing in NFTs directly will provide clear exposure to a specific asset’s value, you may wish to gain exposure to the growth of the wider NFT sector. A good way of doing this is by investing in NFT companies. As the name implies, these companies either have direct or indirect exposure to the NFT sector, enabling equity investors to speculate on the sector’s growth.

For investors wondering how to invest in NFT technology, these companies can provide a simple route of doing so. NFT companies could be brands that have developed NFTs and sell them through reputable marketplaces, or they could be video game companies that are dipping their toes in the NFT space. At present, there aren’t many companies that base their entire business model on NFTs – although this may change in the future.

Like when you buy Bitcoin, investing in NFT companies is still highly speculative. The NFT market is relatively young compared to other markets, so investors are still trying to figure out the intricacies of how asset value is affected by certain factors. As such, purchasing shares in these companies will likely be of greater appeal to risk-seeking investors rather than risk-averse investors.

Are NFT Stocks a Good Investment?

Even if you’re only interested in how to invest in NFTs directly, purchasing NFT stocks can help you gain exposure to the market more broadly. However, much like day trading crypto, operating in this area of the market tends to be more volatile than purchasing established stocks.

That being said, there are still a few benefits of buying NFT stocks. These include:

• Broader Exposure to the Market: Investing in an NFT stock such as Coinbase would provide wider exposure to the growth of the NFT market. Thus, if the market were to expand in the years ahead, it would likely positively impact Coinbase’s revenues – which could drive the share price upwards.
• A ‘Safer’ Way to Invest in NFTs: Since the equity market is well-established, investors may be more comfortable purchasing NFT stocks than buying NFTs directly. Equity markets are also highly regulated, whereas the NFT market is not.
• Easily Accessible with FIAT Currency: Finally, publicly-listed NFT stocks can be easily bought and sold through a reputable broker. Furthermore, these brokers operate in FIAT currency, meaning it’s simple to link your card and purchase stocks in minutes. 

Best NFT Stocks to Invest In

To deepen your understanding of your options within the equity market, detailed below are five of the best NFT stocks to invest in with the highest price potential:

1. Coinbase (NASDAQ: COIN)

If you’re wondering how to invest in NFTs through equities, then buying Coinbase shares is a good way of doing so. A recent blog post from Coinbase announced the upcoming launch of ‘Coinbase NFT’, a P2P marketplace for minting, trading, and showcasing NFTs. The marketplace will feature Coinbase’s popular user interface, making NFT trading simple for beginners. Once this marketplace goes live, it’ll likely add another substantial stream of revenue for Coinbase – which may positively affect the share price.

2. eBay (NASDAQ: EBAY)

eBay is another established company looking to tap into the NFT craze. The platform announced in May 2021 that it would begin offering NFTs through its online marketplace, which can now be purchased using FIAT. At present, eBay only offers art NFTs from a selection of verified sellers. However, various reports are emerging that eBay may soon begin accepting crypto payments – which would pave the way for a greater choice of NFTs on the platform.

3. Funko (NASDAQ: FNKO)

Funko is a US-based company that produces collectibles related to pop culture. The company is well-known worldwide and has licensing deals with established companies such as Marvel, Disney, Nickelodeon, and more. In August 2021, Funko released its first digital collectibles in the form of NFTs called ‘Digital Pops!’. Since then, Funko has released further NFT collections and is one of the first companies to adapt its business model to benefit from the growth of digital assets.

4. Dolphin Entertainment (NASDAQ: DLPN)

Dolphin Entertainment is a marketing and PR firm that provides services to film studios, celebrities, social media influencers, and more. An August 2021 article by Variety reported that Dolphin would be partnering with West Realm Shire Services to launch an NFT marketplace for sports and entertainment brands. Once this marketplace goes live, it’ll enable Dolphin to generate revenue from trading fees. So by investing in Dolphin Entertainment stocks, investors can gain a broader exposure to the growth of the NFT market.

5. Plby Group (NASDAQ: PLBY)

Another option if you’re wondering how to invest in NFTs through the stock market is Plby Group. Plby Group is a media and lifestyle company best known for operating Playboy magazine. The company entered the NFT space in late 2021 when it launched ‘Rabbitars’, a collection of 11,953 NFTs designed as 3D rabbits and pay homage to Playboy’s roots. However, Plby Group isn’t stopping there, with rumours heating up that the company is set to bring the Playboy Mansion into the metaverse, making Plby one of the top NFT stocks to consider investing in.

How to Invest in NFT Stocks

Now let’s turn our attention to how to invest in NFT companies. When investing in equities, it’s vital to partner with a respected broker that can facilitate your investment quickly and cost-effectively. We recommend eToro for this, as the platform is regulated by multiple top-tier entities and charges no commissions when stock trading.

With that in mind, presented below are the four quick steps to follow if you wish to buy NFT stocks with eToro today:

Step 1 – Create an eToro Account

Head to eToro’s website and click the ‘Join Now’ button. Provide a valid email address and choose a username and a password for your account.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Step 2 – Verify Account

Click ‘Complete Profile’ and complete eToro’s KYC checks. Following this, upload photo ID (e.g. passport) and proof of address (e.g. bank statement) for verification.

Step 3 – Deposit

Next, deposit at least $10 into your trading balance. eToro currently accepts the following payment methods:

• Credit card
• Debit card
• Bank transfer
• PayPal
• Skrill
• Neteller

Step 4 – Buy NFT Stocks

Search for the NFT stock you wish to purchase and click ‘Trade’. Enter your desired position size in the order box (minimum $10) and click ‘Open Trade’.

68% of retail investor accounts lose money when trading CFDs with this provider.

Best Wallet for NFT Investing

Before rounding off this discussion of how to invest in NFTs, it’s wise to touch on crypto wallets. As noted earlier, you will need a crypto wallet to store crypto for NFT purchases. We recommend using eToro Money for this, which is eToro’s dedicated crypto wallet app. This wallet is incredibly useful, as you can buy Ethereum (or any supported crypto) using the eToro exchange and then instantly transfer your holdings to the wallet.

The wallet is easy to use and available on iOS and Android. It supports over 500 crypto assets and features an unlosable private key and advanced DDoS protection. Finally, you can even exchange one coin for another from directly within the wallet’s interface – making it easy to buy NFTs that are denominated in different digital currencies!

How to Invest in NFT Tokens – Conclusion

In conclusion, this guide has taken an in-depth look at how to invest in NFTs, covering all of the critical points related to NFT investing and showing you how to make your purchase today.

If you’re looking to invest in NFTs today, one of the most exciting projects that has launched in the past few months are the collections from Lucky Block. These Lucky Block NFTs act as entry tickets to exclusive prize draws, with holders given the chance to win holidays, game consoles, houses – and even $1 million worth of BTC.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

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