Non-fungible tokens, or NFTs, have been a popular investment topic in recent years. Despite the fact that different applications for these cryptocurrency-based assets are still being developed, art investing has emerged as an early winner for NFT utility.
Traditional art investing is mostly reserved for the ultra-wealthy, but NFTs have made art buying and selling accessible to the general public. However, before you dive in, there are a few things you should know, including what the top NFT art currently looks like.
Purchasing NFT art
Invest in digital art NFTs
, or non-fungible tokens, to be digital certificates that guarantee ownership of an asset. The Ethereum (CRYPTO:ETH) blockchain network serves as the foundation for the majority of NFTs. Other blockchains, such as the Solana (CRYPTO:SOL) network, are expanding their presence in the NFT space. For our purposes, regardless of which blockchain it is built on, the NFT "certificate" guarantees ownership of a piece of digital art.
What exactly is NFT art?
NFT-based art can take many forms. It could be a photograph, a digital image (created with a computer screen and software rather than a traditional canvas and paint), a video, a musical composition, writing, or even a video game. Basically, anything that could be considered digital art — even physical art converted to digital form — can be considered.
How does NFT art function?
Anyone can mint a piece of creative work into an NFT and sell it on one of the dozens of NFT marketplaces. If you want to be a digital art collector, have exclusive rights to the use of a digital creation, or collect royalties from the use of digital art by others online, you can purchase an NFT to ensure your ownership.
So far, NFT art has been highly speculative, much like traditional art collecting and investing can be. A creative work's worth is subjective and determined by a variety of intangible factors. The artist's recognition, the shortage of their work, the pleasant and forte of the art, in addition to the demand and charge fellow art enthusiasts are inclined to pay for the piece, all have an impact on cost.
NFT art differs from traditional art in that it can be displayed and managed on a daily basis through a marketplace if desired. As a result, the value of these art assets can be determined much more frequently than the value of a traditional piece of art, which may be kept on private display or in storage for many years without knowing its true current value.
It is still early days for NFT artists and digital creators.
NFT art is a speculative endeavour, and collectors and investors should not put money at risk. Digital art and collectibles can have wildly fluctuating values, and their value is subjective because it is determined by what prospective buyers are willing to pay.
Nonetheless, it is early in the NFT movement, and NFT art has become one of the blockchain-based technology's first use cases. NFTs have the potential to reshape what it means to be an artist and enable creators to monetize their work in ways never before possible.