How To Invest In NFTs On OpenSea

How To Invest In NFTs On OpenSea

NFTs, typically known as non-fungible tokens, are digital representations of a wide variety of items. Such items could range from art to music, games, and even tweets.

These digital tokens have been the rave of the moment in the digital space, attracting a lot of investors to get their hands on one.

Key Highlights

🎯 NFTs are digital collectibles that are capable of representing a whole number of items with new items, joining the list every day.

🎯 OpenSea, as the number one marketplace, provides a variety of NFTs from different collections to investors.

🎯 Investing in NFTs should be done with absolute caution, and the funds used should be an amount that you can comfortably let go of should the worst happen.

🎯 Investors who buy high-quality NFTs do so mainly because of the bragging rights that come with them, and not necessarily because they want to make a profit.

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In terms of price, some NFTs have been known to be ridiculously expensive, as the most expensive NFT ever sold to date is the Merge, which was sold for $91.8 million.

Other high-quality NFTs on average go for $1–$10 million, which shows that they do not all come cheap after all.

Nonetheless, if you want to invest in NFTs on popular marketplaces like OpenSea, that can be done using a simple process, which I will be showing here in this article.

OpenSea calls itself the world’s number one digital marketplace, and it holds true to that by offering some of the best NFTs to investors to invest in.

Below are the steps you should take if you want to invest in NFTs on OpenSea:

Step 1: Start by researching the type of NFT you want to invest in

I believe that the first thing you need to do before anything else is to find out the kind of NFT you want to invest in.

Considering how many such NFTs are available for sale, the team behind the NFT, and even the amount of crypto you would need to purchase said NFT, it is very important.

You can find information about all these on the internet, and you could also join NFT communities on Discord to stay informed about that particular NFT.

If the NFT seems to command a reasonable amount of significance, then it will be listed on OpenSea.

Step 2: Purchase the NFT on OpenSea

The next thing you’d want to do after finding an NFT to invest in is to head over to OpenSea and set up an account if you don’t already have one.

You see, OpenSea is a platform that offers NFTs from different niches due to the large number of investors it has. As such, you are almost certain to find whatever NFT you wish to invest in on the platform.

All you need to do is simply use the explore tab or the search option. Then, after you have gotten the NFT of your choice, you click on “Buy Now” or “Make an Offer” should you choose to bid on the item, and when you checkout.

Note that after you have clicked on “Buy Now“, OpenSea will display to you the details of the NFT you are purchasing, such as the name and the collection it belongs to.

Then you choose a wallet; keep in mind that OpenSea supports a wide range of wallets, including Coinbase Wallet, MetaMask, and Trust Wallet.

After selecting a wallet, such as the Metamask wallet, OpenSea will display the details of your purchase, including the number of gas fees you must pay.

Gas fees can be reduced in cases where you feel that the fee is quite high, but bear in mind that excessive lowering of these fees may lead to failed transactions.

As such, you might want to check the recommended gas prices at the ETH gas station.

After that, confirm your transaction, and in no time, the NFT will be sent to your collection, where you can take a look at it.

Should I Invest in NFTs?

While NFTs might be the talk of the digital space at the moment, these types of assets are not for every investor.

Other than the price, which could be on the high side, especially for high-quality NFTs, the reason for its attractiveness recently can be attributed to people’s interest in it.

As you know, interests come and go, and NFTs could be digital fads, which means there is every possibility that their value can drop drastically if people no longer have an interest in them or consider them special.

So, if you are considering purchasing NFTs in the hope that their prices will rise in the future and you will make returns greater than what you paid for them, you might want to reconsider.

The best thing to do as an investor if you want to invest in NFTs is to buy them solely because of their uniqueness to you, just the same way you would buy art or paintings, not necessarily because you want to make money from them.

This way, even if the price drops drastically in the future, you won’t have regrets over it, and if the price increases in the future, even better.

NFTs are highly speculative assets, even more, speculative than cryptocurrencies and as a result, they attract higher risks as well.

Like I mentioned earlier, NFTs are only valuable so long as people still find them attractive. Once you are unable to resell an NFT you bought at a high price, the NFT becomes worthless.

This is why these digital tokens are best bought for their sentimental value and not necessarily for profit-making.

The NFT market is very risky, so always make sure that whatever amount you are willing to spend on an NFT is an amount you can afford to lose should the worst happen.

Final Thoughts

Investing in NFTs is a risky venture, which is why it is best left to certain types of investors.

If you want to buy an NFT because everyone seems to be talking about it and you want to join the trend and go even further, make sure you invest with an amount you can afford to lose in the worst-case scenario or go for very cheap NFTs.