NFTs (Non-Fungible Tokens) are a hot topic in 2022. These digital assets based on blockchain technology have gained more popularity recently. Due to this, there has been an increasing desire to know the different types of NFTs.
People have become interested in the rising economic potential of NFTs other than their ability to transform asset management. The growth of the NFTs sector will create new opportunities for both creators and investors. Thus, knowing the different types of NFTs available will help you make sound decisions in your NFT journey.
Digital artworks can be replicated and redistributed with ease. NFTs are digital artworks that cannot be replicated. NFTs cannot be copied or replaced.
Different types of NFTS
The use of NFTs to tokenize art can confuse many NFT beginners. It’s worth noting that NFTs are not restricted to representing art on the blockchain. There are different types of NFTs with distinctive use cases. This leaves many NFT lovers with questions like:
What type of NFTs are selling?
What type of NFTs sell the most?
How to know the best NFT to buy?
The following is the list of NFT types available in the market today:
This is the most common type of NFT. If you have been asking yourself:
What type of NFTs sell the most?
Art is the answer. The launch of NFTs was meant to help artists sell their work online just the way they do it physically. So far, NFTs with the highest prices in the market represent pieces of art. Luno data shows that the most expensive NFT sold was “EVERYDAY’S: THE FIRST 5000 DAYS” by artist Beeple. It was sold for $69 million.
Video art NFTs also sell well. Short videos and GIFs are hotcakes in the NFT marketplace. For example, a 10-second video named “Crossroad” that depicts Donald Trump lying naked on the ground was sold for a price of $6.6 million.
Next on our list of types of NFTs is music. Music is a fungible item, as it has been recorded and sold on cassettes, records, CDs, and digitally. Of late, DJs and musicians have started to sell their work in the form of NFTs, with some making millions of dollars in just hours.
Musicians only take home a fraction of the money their music generates due to deductions by music streaming platforms. With NFTs, musicians can pocket almost 100% of the money generated by their music, and that’s why most of them are turning to NFTs.
- Video game items
These are other types of NFTs that one can consider venturing into. Companies don’t sell the entire game as NFTs. Instead, they sell in-game items such as characters, skins, and others.
With the traditional approach, many copies of downloadable content are sold to players. NFTs make content unique and owned by only one person.
- Collectible items/Trading cards
NFTs are similar to digital trading cards. The NFT market operates like the limited edition baseball cards that have cost even thousands of dollars. With trading cards, people can purchase their digital versions and keep them just like keeping the physical object. Some trading cards can be sold for millions of dollars just like the real asset.
All types of collectible items can be sold on the NFT marketplace, not just the trading cards. This means that any type of collectible can be listed on the NFT marketplace.
- Big sports moments
Some NFTs represent memorable events in the sports world. Short clips showing significant events in sports can be bought and sold as NFTs. Some of these clips can be only 10 seconds long but they can fetch prices of up to $200,000.
NFTs have made the internet more interesting as it is now possible to buy and sell memes. In most cases, the person in the meme happens to be the real seller. Examples of popular memes include Disaster Girl, Bad Luck Brian, and others, and some have managed to sell at a price of up to $770,000. The Doge meme remains the most valuable NFT meme up to date, having been sold for $4 million.
- Domain names
Domain names have not been left out in the NFT technology. You can now make money by registering your domain name and selling it on the NFT market. Domain names are usually bought from third-party companies, which also take the responsibility of managing them. After buying a domain name from the NFT marketplace, you will get sole ownership over the NFT and eliminate the need to deal with middlemen.
- Virtual fashion
Virtual fashion is last on our list of NFT types. The NFT marketplace involves the sale of virtual assets, and fashion should not be different. However, instead of wearing what you buy, you dress up online avatars with your fashion NFTs.
Although this sounds ridiculous, fashion NFTs can be very expensive, with the famous Doge meme costing $4 million. Fashion NFTs are good types of NFTs for individuals with a passion for fashion.
If you are looking for types of buying NFTs, consider the above options.