Non-fungible tokens have become popular recently as a way of selling and purchasing digital assets, so it was only a matter of time until those who are interested in making money from them turn it into a lucrative field. Today we have many former traditional investors or individuals who are completely new in investing, but they are all making significant amounts of money from NFTs.

What is an NFT?

So, what is an NFT project? Non-fungible tokens or NFTs are digital or physical assets people can sell or purchase on one of many NFT marketplaces. The technology behind this is the blockchain which is allowing not only the NFT marketplace to operate, but also the cryptocurrencies that are being used to purchase any of the NFTs available.

When it comes to types of NFTs, you can find anything from a tweet converted into an NFT and sold for several million dollars to an oil painting in a digital form. Besides these, you will also be able to find sports, celebrities, and many famous brands creating their own NFTs and selling them on NFT marketplaces. Some use the money from the purchase for charity, while others invest in improving their business or a certain area of it.

Because of its huge potential, non-fungible tokens have been utilized in different industries for various purposes.

Using NFTs in Different Industries

One of the valuable use cases is an NFT and DeFi combination. Decentralized finance is providing an alternative solution to traditional financial services by eliminating the need for intermediaries. This is achieved with the help of smart contracts that allow network users to interact with each other and perform quicker transactions.

NFTs can also be used to patent or transfer patent ownership, which is also being done with smart contracts. This way, all the records about patenting and patent holders are stored there and cannot be altered or changed in any way. Once a piece of new information is added about the transfer, it is stored on the new blocks, not over the existing ones.

Also, NFTs are already being used in real estate. Virtual real estate allows users to purchase and sell virtual land and make money from it. Actually, it is one of the most popular ways currently how to invest in NFTs.

Maybe not the first use case you will think about, but the event and ticketing industry has improved tremendously once it started using NFTs. For companies that are selling tickets as NFTs, blockchain technology that supports NFTs ensures that there will not be counterfeit tickets. This not only protects the ticket-selling companies but also the buyers to avoid scams.

Steps to Investing in NFTs

Whichever NFT field you are most interested in, you will need to follow certain steps to be able to invest in NFTs. If you’re looking to purchase NFTs and later sell them for a better price, here is what you will need to do.

First, you will need to open a crypto wallet, a digital version of a traditional wallet. Each person that is either buying or selling NFTs needs to have a crypto wallet. Once you open your wallet, you will need to fill it up with crypto money. To do so, the first check is which cryptocurrencies are supported on the NFT marketplaces. You will use your money to purchase cryptocurrencies and put them into your wallet.

Then, you will need to connect your crypto wallet to the NFT marketplace you choose to purchase NFTs and later sell them. You will be able to either purchase an NFT for a fixed price or via a virtual auction. Once you purchase an NFT, you will become its only owner. You will have all the rights of the NFT, meaning you can do whatever you want with it. If you decide to sell it, you will need to decide whether you will sell it for a fixed price or via an auction.

Either way, once someone purchases the NFT that was in your possession, the NFT marketplace will transfer you the crypto money in your wallet and at the same time, transfer the NFT to the new owner. Simple as that!

Author's Bio: 

I am a computer science professor. Being a tech enthusiast I keep close tabs on trends and will be glad to share and discuss the latest wrapups in the field with the community.