What is NFT and How to Invest?
NFTs (Non-Fungible Tokens) are used to represent the ownership or usage rights of a unique digital asset. The digital asset can be a piece of art, audio, or an item within a video game. NFTs run the blockchain, the same technology that powers cryptocurrencies such as Bitcoin and Ethereum.
NFTs were founded on the Ethereum blockchain. However, other blockchain networks such as Solana and Polygon have started to support NFTs.
See an NFT as a virtual certificate just like a physical certificate that represents the ownership of a physical asset such as real estate. However, NFTs are proof of ownership of unique art and other digital assets. You can also use NFTs to guarantee the ownership of unique physical assets such as collectibles, property, or physical pieces of art. However, NFTs are mostly used to represent the ownership of virtual assets.
Cryptocurrencies such as Bitcoin and Ethereum are fungible, meaning that you can exchange or trade them for one another. They also have an equal value, for example, one Bitcoin equals another Bitcoin. This makes cryptocurrency coins trusted for carrying transactions on the blockchain.
On the other hand, NFTs are non-fungible. They don’t have an equivalent replacement. No NFT can be exchanged for another NFT for equivalence.
NFTs have created a great investment opportunity for blockchain users. If you are considering becoming an NFT investor, you have come to the right place. We will discuss everything that you should know to become an NFT investor, including how to get NFT venture capital.
How do you make an NFT?
If you have decided to become an NFT investor, you should learn the NFT venture process.
So, how do you make an NFT?
The process of creating an NFT is known as minting. The following are the steps necessary for you to make an NFT:
#1: Choose an NFT Marketplace
NFT minting is done on an NFT marketplace. The NFT marketplaces also facilitate the buying and selling of NFTs. There are many NFT marketplaces today that can help you to turn your digital asset into an NFT. Examples include OpenSea, Rarible, SuperRare, and Foundation.
After choosing an NFT marketplace, sign up for an account with it.
#2: Set Up a Digital Wallet
You need a cryptocurrency wallet to create an NFT. The NFT marketplace will require you to pay to mint an NFT on their platform. The payment should be done in cryptocurrency, mostly Ethereum. You need a crypto wallet to store Ethereum. MetaMask is the most popular crypto wallet.
#3: Fund your Digital Wallet
Fund your digital wallet with cryptocurrency. Since most NFT marketplaces accept Ethereum payments, it will be safe for you to fund the wallet with ETH tokens.
#4: Connect your Cryptocurrency Wallet to NFT Marketplace
Now that you have a funded digital wallet, link it with your NFT marketplace account. Most NFT marketplaces have the “Connect” button that lets you do the connection.
#5: Create your First NFT
It’s now time to mint your first NFT. Most NFT marketplaces have the “Create” button that you should click to create an NFT.
After clicking the button, you will be asked to upload the file to be turned into an NFT. The file can be in JPEG, PNG, MP3, MP4, or other formats. Different NFT marketplaces have different restrictions when it comes to the types and sizes of the files.
You will also be prompted to give your new NFT a title and description. Ensure that these communicate the purpose of the NFT.
Lastly, you will be required to set the NFT price. The NFT will finally be listed on the marketplace for sale.
NFT Project Funding
When creating an NFT, you may need to look for an individual or a firm for the NFT project funding. The good news is that there are many NFT venture capital companies and Staking providers that can support your NFT venture project by offering NFT venture capital and more. These individuals and firms are actively looking for how to invest in NFT companies.
The supporters offer legal advice, early liquidity, explorer & tooling, network, content, tutorials, and such. They can also connect your NFT venture project with research experts.
However, the supporters will consider several factors before they can decide to offer NFT project funding. For example, if your founding team is made up of experienced members, it will be easy for you to secure an NFT venture capital. It is also good for your team to have an extensive following in the NFT market.
The NFT team should have a clear vision to secure NFT project funding. Having a vision of what the team should achieve in the coming years will also increase the chances of getting NFT project funding.