Cryptocurrencies have been the center of attention for many investors, as well as people who use digital currency as a trading medium. However, recently there’s been a huge spike of interest for a similar form of assets – NFTs. These tokens have been sold for a collective $25 billion in 2021, creating one of the largest markets in the world.
Everybody’s talking about NFTs nowadays, but some are still baffled by a simple question – what is an NFT? Let’s discuss some basic information about this trend, whether it’s a good investment opportunity, and how you can be part of the huge community.
NFTs vs Cryptocurrencies
As mentioned, NFTs and crypto are often mentioned together. Although there are some similarities between the two, there are key differences that should be noted. Whether one is a better investment than the other is still a topic of discussion, so let’s see the basic distinctions.
The first and most important difference is that NFTs are non-fungible, as the name suggests. Cryptocurrencies are fungible, which means that two coins of the same currency will always be worth exactly the same. In simpler terms, all Bitcoins (or any altcoins) are equal and they have the same value.
On the other hand, NFTs are unique. You can buy 10 tokens from the same collection, all of which can have different values. However, the resell price of an NFT is solely dictated by the buyer – if no one buys the token, it’s not worth much, if at all.
Why is crypto part of the conversation?
Despite the differences, the main similarity between the two types of digital assets is that they’re both built on a blockchain. Although the similarities pretty much end there, they have enough in common to attract the same type of consumer. In other words, a person who is well-versed in the crypto market is likely to understand the technology and potential behind NFTs.
Similarly, a person who researches NFTs will come across terms such as blockchain, Ethereum, digital wallet, etc – all of which are widely used in the crypto community. As a result, it’s not surprising that both cryptocurrencies and NFTs tend to go hand in hand when it comes to investment talk.
It’s also noteworthy that most NFT marketplaces tend to utilize crypto as payment. Although there are some exceptions, to auction or purchase these digital tokens – you’ll need to set up a crypto wallet. Let’s see our top choices for the best Crypto Wallets in 2022.
Best Digital Wallets for NFTs
How do you choose the best wallet? There are some things to look out for, and you may need to do a bit of research before you find the perfect match. First of all, keep in mind that the wallet should be compatible with your platform of choice (which we’ll mention in a minute).
Next, the wallet must be highly secured. Some NFTs are worth thousands, if not millions of dollars. Security should be a top priority for all investors, but especially for those who hold a lot of valuable items.
Finally, the ideal wallet offers multichain support. Although most NFTs are supported by the Ethereum blockchain, alternatives are popping up day by day. As a result, look for wallets that are compatible with as many chains as possible.
- MetaMask is our top choice due to its intuitive browser extension. It has an app for both mobile and desktop, both of which are nicely synced. It also has a handy feature that allows you to swap cryptocurrencies right in the app.
- AlphaWallet is another decent choice. It’s only available on mobile, but it has great support for NFTs. The app is easy to navigate and we recommend this wallet for beginners. However, keep in mind that you can only keep ETH on AlphaWallet.
- Trust Wallet is owned by Binance, a renowned trading platform. As a result, it’s highly secure, intuitive, and supports multiple blockchains (including Ethereum). Much like MetaMask, this wallet also has a built-in exchange feature, allowing you to easily swap currencies.
Best Marketplaces in 2022
Now that we’ve answered what an NFT is, let’s get down to the brass tacks – how you can get your hands on these popular tokens. Most NFTs have a launch date, and you can typically buy them directly from the company that released them. However, popular collections sell out fast, and these tokens end up on various NFT marketplaces.
Here are our top picks for the best platforms to buy NFTs in 2022.
- OpenSea is one of the most popular NFT marketplaces, as well as one of the oldest and largest. They support all types of NFTs, the interface is easy to navigate, and the fees are low. OpenSea supports various wallets, including MetaMask, Trust Wallet, and Fortmatic.
- Nifty Gateway is mostly used to buy and sell NFTs in the form of digital art. It is Ethereum-based, however, it is one of the rare platforms that allows you to buy NFTs with fiat currency, making the process a lot easier.
- Mintable is another Ethereum-powered marketplace. You can buy and sell NFTs, but also create your own! The platform supports plenty of types of NFTs, including video, music, and images.
All in all, it seems like everybody is talking about NFTs recently. Everywhere you turn, you will see numerous articles about the trend, and even celebrities coming out with their own collections. As a result, there’s no reason to believe these digital tokens are going to die out anytime soon.
As a result, there are strong indicators that NFTs are a viable investment opportunity. Buying NFTs is not as complicated as it sounds. Once you learn what is an NFT, you’ll quickly get the hang of the intimidating terms, such as blockchain and Ethereum.
In this article, we’ve given you some basic tips about buying NFTs – our favorite wallets, and most popular platforms, as well as some key information about the differences between NFTs and the ever-popular crypto world.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.