What Are The Best NFTs To Buy?

Last Updated March 29th 2022
17 Min Read

If you're looking for the best NFTs to buy you're in the right place. Here you will find 5 of the top NFTs to buy now, read on...

If you haven't heard of NFTs yet, you're missing out on the growing popularity of digital art. This year, NFTs hit the headlines with some selling for millions of dollars. You may wonder why anyone would spend millions on NFTs, but it's happening. On every NFT marketplace, digital art is attracting investment for crazy sums of money.

So how do you know what are the best NFTs to buy? Are NFTs available at affordable prices for the small investor and, if so, how do you find them?

For 13.5 years, Mike Winkelman, an artist known as Beeple, posted a digital picture every day, which resulted in 5,000 images that he put together into one image and sold as an NFT for over $69 million at Christie's auction house. The NFT, known as "Everyday, the first 5000 days", was minted explicitly for Christie's.

Christie's is renowned for fine art and was the first auction house to sell digital art with an NFT and receive Ether as payment. The impact of this sale on the NFT market was staggering. Today, some of the top NFTs sell for significantly more than some of the world's most famous and expensive paintings.

Even Nasdaq believe that "blockchain technology will change the world."

In a recent article about NFTs, Nasdaq, the global electronic marketplace for buying and trading securities, said,

" Previously, digital assets were largely worthless because they could be replicated and distributed, without anyone knowing what the "original" digital asset was, thereby rendering the original worthless…

But with the blockchain and its signature immutable digital ledger, artists can now create digital assets that can be validated as originals, thereby giving those originals the same value as, say, an original art piece.

This authentication lays the groundwork for the NFT market to boom over the next decade. We're not just talking digital art. We're talking digital real estate. Digital toys. Digital trading cards. Digital assets in general.

We firmly believe that this digital asset market will be as big as or even bigger than the physical asset market in the long run."

Incredible.

The question we're all asking is why? Why are NFTs so popular? Why do NFTs sell for so much, and how do NFTs gain value? And how will NFTs change the world?

Assuming you're here because you want to buy NFTs to sell for a profit, this post takes a deep dive into the world of NFTs, learning about what makes an NFT profitable and how to find the best NFTs to buy.

Contents

What Is An NFT?

NFT is an abbreviation for non-fungible tokens.

Fungible means an asset can be mutually exchanged or traded for equal value. An example is you can exchange $1 for $1, 1 ETH for 1 ETH etc. But non-fungible means there is no mutually exchangeable goods for an NFT. 

NFTs are each unique and cannot be exchanged like for like. No two NFTs are the same, hence the term non-fungible. You can buy and sell ownership of NFTs and track who owns them via the blockchain, which keeps a unique record.

NFTs are a form of cryptocurrency, like Bitcoin, but rather than money, NFTs are considered an asset, much like a rare, tangible work of art.

What Is An Example Of An NFT?

There's a wide range of different types of NFTs, which will likely expand as NFT popularity grows. Current examples of NFTs are:

  • Photo
  • Gif
  • Memes
  • Video
  • Audio files
  • Toys
  • Trading cards
  • Items in video games
  • A tweet

A tweet?

Yes, hard to believe a tweet in the public domain sold for a staggering $2,915,835.47 in March this year on an online platform called Valuables by Cent, where you can buy tweets "autographed by original creators."

Twitter CEO, Jack Dorsey, created his first-ever tweet on March 21 2006 -  "just setting up my twttr - jack (@jack) March 21, 2006". It sold as an NFT within two weeks to Sina Estavi, the blockchain company Bridge Oracle CEO.

Are we a world gone mad, or are NFTs the next big thing?

Check Out: 3 Crypto Projects That Are Shaping The Future Of NFT

How Do NFTs Work?

NFTs work similarly to other crypto tokens on a blockchain, but you cannot exchange directly with another NFT as you can with crypto tokens.

NFTs use the Ethereum network, but other blockchains will adopt NFTs primarily because of the potential for profits. NFTs are pieces of software code stored via smart contracts. They all contain individual identifying information, which means they are easily verifiable and traceable.

What Makes NFTs So Popular Today?

As the value of NFTs continues to rise, it creates interest from investors and the public. Here are a few examples of NFT sales:

  • Kings of Leon were the first band to sell NFT tokens, one with their recent album, one with live concert privileges and another that is audio-visual art
  • William Shatner, Star Trek actor, sold 90,000 virtual trading cards as NFTs in 2020 for $1 each
  • Grimes, an electronic musician, sold $6 million of her digital art
  • Lindsay Lohan sold an NFT image of her face
  • Clips of Lebron James, NBA star, dunking are selling for around $225k
  • Virtual land in video games is selling for crazy figures. A plot on the online world, Decentraland sold for $900k at Reuters
  • A 2011 gif of Nyan Cat  sold for $600k

Anne Spalter, a digital artist and former NFT sceptic, sold her art as tokens. She said, "NFTs have opened up art to a whole bunch of people who never would have gone to a gallery."

What makes NFTs valuable? Primarily, the rarity of each item adds to the collectable value. Each NFT has a certificate of authorised ownership, much like a tangible collectable asset.

What Are The Best NFTs To Buy?

You're not going to want to buy an NFT photo of a dog with three ears off an unknown artist. If you planned to buy a collectable work of art, you wouldn't dash off to Walmart to look for cheap fine art. Buying an NFT is an investment, and all investments require a bit of research and education.

With thousands of NFTs springing up on NFT marketplaces, how do you know the best NFT to buy?

Think about it logically. For instance, any future NFT from Mike Winkelman (Beeple) will immediately start a bidding frenzy. With a history of selling an NFT for $69 million, every investor wants to buy digital art from this guy.

Are we saying that you don't buy NFTs from unknown artists? Not necessarily, but there is some groundwork to do before you buy an NFT.

  1. Research the artist or team behind the NFT
  2. Look at past work, the history of the team or artist
  3. Can the team afford to fail? Public figures are more invested in the success
  4. Does the NFT project have an excellent marketing protocol? Are they attracting interest pre-sale via social media, NFT marketplaces etc.? If no one is interested in an NFT, there's little point in buying it
  5. Does it have a strong community? Check out the NFT project social media channels to see if there's a buzz building
  6. Can you cope if the ETH prices drop significantly after your NFT purchase? Right now, ETH is the payment option for most NFT purchases. Crypto prices are notorious for volatility, so you need to hold onto your hat when this occasionally happens in the crypto market.

Before choosing an NFT to buy, run through the above checklist. The five best NFTs to buy, right now, listed below are all established NFTs with trading history and popularity.

Don't Miss: The Top 10 NFT Protocols And Tokens

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Five Of The Best NFTs To Buy Right Now

There are many thousands of NFTs on the market. It can seem like a minefield trying to work out what type of NFT you want to buy.

1. Decentraland (MANA)

Decentraland is one of the best NFTs to buy. It's a virtual reality project for developing and monetising content. The most innovative feature is that you can purchase and own virtual plots of land as NFTs, which can be developed and sold online in the same way as physical land.

Decentraland also has a native token, MANA, which pays for goods and services in Decentraland. The scope for Decentraland is enormous, especially after a virtual plot of land sold for $900k.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Chiliz (CHZ)

If you are a fan of the sports sector, you'll love Chiliz, a blockchain that connects sports teams with fans who purchase and trade using the CHZ NFT tokens, which helps develop their favourite clubs. In return, fans receive rewards based on levels of engagement.

The International Tennis Federation (ITF) and the Davis Cup Kosmos organisers teamed up with Chiliz to create and launch the DAVIS fan token, which has added to Chiliz appeal.

Adding Chiliz to your NFT portfolio could be a good idea because sporting memorabilia NFTs are much sought after by collectors and fans.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. NBA Top Shot

Another popular sporting-based NFTs is The National Basketball Association (NBA), a licensed blockchain application for trading NFT sporting collectables with Dapper Labs using video clips of memorable game moments. Top Shots has become the go-to place for sporting memorabilia collectables, including limited packs.

NBA Shots have formed impressive partnerships. Top NBA player Kevin Durant recently linked up his media network company, Boardroom, with Dapper Laps.

The Boardroom website plans to feature NBA Top Shot on the site with

  • Giveaways
  • Spotlights of memorable sporting moments
  • Feature stories and new features
  • Fan-to-fan trading
  • Behind the scenes video content

This significant exposure can only mean increased popularity and higher prices for NBA Top Shot sporting packs.

4. Theta (THETA)

With the exponential growth of video over the last year or so, the costs are rising for CDN (content delivery network) for streaming high-resolution streams like 4k and 8k, which is the problem the THETA NFT token set out to resolve.

Theta incentives users to share bandwidth and computing resources in return for tokens. As a result, video quality improves and engages users in streaming video services. Therefore, Theta enables an efficient, decentralised video streaming ecosystem powered by users.

500 hours of video is loaded up to YouTube every minute. Businesses are realising the power of adding video content to their marketing. Because of this expanding market, adding THETA to your NFT portfolio could be a good idea for investment.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

5. CryptoKitties

Cryptokitties is a blockchain video game launched in 2017 by Dapper Labs. It was the first of its kind to the NFT market and rapidly became popular. Much like having a real, live kitten, game players raise their CryptoKitties and then sell them on the Ethereum network for profit.

Each kitty is unique and cannot be replicated, which has led to some high-ticket sales for rare CryptoKitties. But in 2018, the game's popularity ended because it caused significant congestion on the Ethereum network.

Image: Google Trends shows that CryptoKitties value was next to nothing for over two years.

But, recently, in September, over $7 million worth of CryptoKitties sold in less than 24-hours. Some kitties are extremely rare because of caps or limits, and some of them are difficult to create.

Now could be the right time to look for a kitty or two of your own. If you end up buying one with a limited production, in the future, you may have a rare crypto kitty worth a lot of money to a collector.

How many types of NFTs are there?

There are three main types of NFTs:

  1. Original NFT or a copy - documented on a blockchain network or DLT (Distributed Ledger Technology)
  2. Native NFTs -  have ownership rights to the digital work constituting the NFT
  3. NFT metadata – involving the NFT providing ownership representation for metadata files related to the internet.

Try not to get hung up on types of NFTs to buy. Nobody really knows what makes an NFT popular. That said, NFT games, virtual reality and sporting memorabilia appear to be the NFTs driving the market right now.

How To Clarify What Is An NFT

If you are new to NFTs, it may seem a little unclear regarding the difference between an NFT platform and an NFT.

Because of the unique diversity of NFTs, it may not be clear to establish an NFT marketplace from an NFT. It's easier to understand NFT tokens because they are 'in-house' payments for NFT goods or services, similar to crypto tokens.

For instance, Dapper Labs (the company) created Cryptokitties NFTs and NBA Top Shots NFTs.

You can buy CrypoKitties and Top Shots from multiple online NFT marketplaces

Larva Labs (the company) created Cryptopunk NFTs, which are available on multiple platforms

It's not dissimilar to a physical company creating a product and then distributing it to multiple wholesalers.

How Do You Make Money With NFTs?

The simple answer to 'how do you make money with NFTs?' is you buy at a lower price than you sell.

How can you tell how rare an NFT is, and where can you find rare NFTs?

We won't beat around the bush with a long answer. The best place to find out about rare NFTs is a site called Rarity Tools.

Rarity Tools is a dedicated website that ranks generative art and collectable NFTs by rarity.

Currently included NFT projects on the Rarity site are:

  • CryptoPunks
  • Hashmasks
  • Waifusion
  • Chubbies
  • Bored Ape Yacht Club

How do you make money from studying rare NFTs?

Study the NFTs on Rarity Tools and figure out the secret sauce to what made them popular. Human beings have vast and eclectic tastes in art. What appeals to one collector may not appeal to another.

Learn about supply and demand because people become interested in an item when someone else is interested in it in a bidding market. That is, after all, how eBay became the massive auction site it is today.

As NFT bidding begins, watchers get carried away. When outbid, they become emotionally attached to wanting that item.

Watch a few NFT auctions and see how the bidding evolves.

Also, decide what you want to achieve from buying NFTs. Do you want to make money buying and selling NFTs? Or would you prefer to be the privileged owner of unique digital art with no intention to sell?

How To Create An NFT

How do you create an NFT? Easy. If you have digital art, you can make an NFT.

Are you a designer or artist and would quite like to make millions for your art? It may or may not be possible, likely not, but you can mint an NFT of your own and try to sell it.

Be warned, there are costs involved, and you could end up losing money creating an NFT.

How much does it cost to make an NFT? How do you sell your art as an NFT? It's easier than you might think.

How to create an NFT of your own

  1. Choose your artwork and create a digital file – you know your NFT can be a photo, digital painting, music, audio file or anything that can convert to a multimedia file.
  2. Buy some Ether - Ethereum is the most used marketplace for NFTs as Ether is the regular payment option. You require an amount of ETH you can comfortably afford. The Ethereum mining process is highly volatile and expensive, so have at least $100 of ETH available. In the future, Ethereum gas fees will reduce, but you could pay $70 or more in fees right now.
  3. Get a secure wallet to store your ETH – later in the post, we'll share a list of recommended NFT/crypto wallets.
  4. Choose your NFT marketplace – OpenSea and Rarible are two of the most popular NFT marketplaces but see the next section of this post for a complete list. OpenSea is free to join, and content is unmoderated, so you don't have to be approved as an artist to sell on the platform. The downside of such flexibility means you're launching your NFT into a market full of digital garbage that nobody will ever buy, and your beautifully crafted NFT could disappear in the crowd of poor digital content.
  5. Connect your ETH wallet to the NFT platform – follow the instructions from the wallet and the platform you chose.
  6. Create your NFT – on OpenSea, click on create a collection, new item and complete the details and click create. That's it! You've created and minted your very own NFT.
  7. Click on sell – you have a choice of a fixed price or auction, and you can set the royalties you wish to receive from sales. You must use your ETH to pay at this stage.
  8. Market your NFT - Don't expect sales to come pouring in. if you have social media accounts, plan a marketing campaign for your NFT. You can't rely on your mum and your best friend for sales, so keep plugging away, sharing your new digital art.

You may lose money because of high gas fees. But, in 2022, the Ethereum network hopefully completes the ETH2 upgrade, which promises lower transaction fees. The other scenario is that more payment options could be available in the future as more NFT marketplaces become accessible.

The Top 5 NFT Wallets

After buying your NFT, it's essential to have a safe, secure wallet to protect it. But which wallet is best for NFTs?

Here are five of the best NFT wallets in order of popularity.

1. Metamask

Metamask is a popular wallet for NFTs. It's easy to set up with a simple interface, so you can create an Ethereum wallet to connect directly with Ethereum-based platforms to allow minting and trading NFTs. There is a mobile version, or you can connect via the Metamask web extension or in-built browser

2. Coinbase Wallet

Coinbase has an excellent reputation for providing and supporting users with a beginner-friendly NFT wallet. You can send and receive NFTs with a username instead of using a public wallet address. You can also store your crypto tokens, including ERC-20 tokens.

3. AlphaWallet

AlphaWallet is an Ethereum-based, open-source wallet that supports minting and collecting NFTs. Applications supported include CryptoKitties, OpenSea and ChainZ, and the wallet is compatible with Ethereum in-game assets. The AlphaWallet is only available on mobile, but it is popular with art creators, developers and businesses who benefit from the variations available for blockchain-related tokenising. It also has functionality for decentralised apps and other DeFi applications.

4. Enjin

Enjin is a blockchain-based wallet used for collecting in-game NFTs and other collectables. It has a marketplace to trade digital assets requiring the Enjin native token, ENJ. Enjin has a one-click browser giving you access to Ethereum based decentralised apps such as DeFi. It has a customer support desk, an option not widely available for other NFT wallets.

5. Trust Wallet

Trust wallet is a popular mobile NFT wallet with over 5 million users. You have access to a broad list of decentralised apps, using one-click access to NFT applications such as OpenSea, Axie and Infinity.

The wallet doesn't enable NFT transfers, but it is excellent for storing and managing your digital assets. The wallet allows native integration to public chains like Binance Smart and Ethereum Classic.

How NFTs Will Change The World

NFTs have created multiple opportunities for new business models. In the past, artists and musicians had little control over their creations, but with an NFT, they can stipulate conditions, so they receive payments each time their NFT sells. And each sale means an ever-increasing price. NFTs allow multimedia artists to provide enhanced media and special perks to fans while retaining control of their work.

A great example of this model in action is with a new art platform called Niio Art. When someone borrows or buys NFT art, it displays on a screen, so you are safe in the knowledge there are no copyright issues. The blockchain and NFT ensure authentic ownership. It's part of the reason why NFTs are the future.

A significant issue for tangible sports memorabilia was the abundance of fake items on the market, as high as 80% in many cases. Putting sports memorabilia into NFTs means every item has a transaction history, right back to the original creator, which means a buyer can authenticate an NFT.

But that's not all.

NFTs could change the rules of ownership.

Most traditional transactions involve middlemen to ensure a trustworthy transaction, to make sure contracts and money exchanges hands securely. But in the future, there may be no need for go-betweens.

On the blockchain, nobody can change information. Smart contracts replace lawyers and escrow accounts for both parties involved. NFTs convert assets into tokens which means they can freely move through the system.

Think about what this information could mean for markets like vehicle and property sales.

Read Also: Top 5 NFT Trends to Watch

Recap Of What Are The Best NFTs To Buy

NFTs have the potential to change life as we know it. And if that's not enough, NFTs could form a significant part of a solution for land ownership. 30% of the global population have legal rights to their property and land. That's 70% of the worldwide population without defined legal rights trying to overcome the challenges of accessing finance and credit with their unregistered land or property as collateral.

We believe that we're just scratching the surface with NFTs. The more time we spend in virtual worlds, the more things we'll buy and sell as NFTs. Future developments for NFT technology are unimaginable from what we know now. But it will undoubtedly be a much more direct and transparent market than it is today.

Are NFTs a bubble? We don't believe so.

Please note that the above information is not providing advice on tax, investment, or financial services. We provide the above information without consideration for risk tolerance and a specific investor's financial circumstances.

Trading or investing in financial instruments such as NFTs may not be suitable for all investors. It does involve risk and the possibility of a loss of capital. There are no guarantees for profiting from buying NFTs, and it's advisable only to risk what you can comfortably afford to lose.

FAQ

How big is the NFT market?

During the first half of 2021, the NFT market sales volume surged to over $2.5 billion. We suspect this boost for NFT popularity is just the beginning, and some NFT experts predict massive 1000X growth over the next year.

What is the best NFT marketplace?

Most NFT marketplaces announce new launches so that you can get ahead of the game. Here are a few established and popular NFT platforms: OpenSea, Foundation, CryptoPunks, Sorare, Axie Infinity, Rarible, Mintable, NBA Top Shot, SuperRare, Decentraland, Aavegotchi (Bazaar), Hic et Nunc. Leading crypto platforms are joining the exponential NFT craze, such as Binance, Coinbase, and FTX, soon launching an NFT marketplace.

How do NFTs gain value?

Much like a tangible asset, NFT value rises over time and with demand. If an investor or collector wants to buy your NFT, they will offer you a price greater than your purchase price. Think back to the $2.9 million Tweet. There is no value on a public tweet, but one investor wanted certificated ownership of it and paid a high price to get it.

How do I buy an NFT?

Buy some Ether (ETH) and open a secure wallet to store your ETH and NFT. Choose an NFT platform from the list in this post and Do your research. Decide on a budget you can comfortably afford and allow for the cost of Ethereum gas fees. Look at lots of different NFTs to see what types you prefer. Study new NFTs about to launch and check the history of the artist or team. You may not know which is the best NFT to buy, but take your time and find one you like and has bidders. If you intend to sell, it's best to buy an NFT with market appeal. When you're ready, place your bid. Set your maximum bid price and walk away until the auction finishes, so you aren't tempted to increase your bid. After buying your NFT successfully, put it into your secure NFT wallet and decide how long you want to hold it before selling or what price you would like to sell in the future.

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