How do I create an NFT art investment portfolio without being a millionaire?

NFT, ART, DIGITAL, ARTCHIPS

Mandee McFerren

 

Snimok ekrana 2021-10-29 v 14-41-39

Image: https://unsplash.com/photos/ZVprbBmT8QA

 

More and more, we are hearing about the cryptocurrency and NFT craze – people making thousands (or even millions) from buying digital assets. While some are getting rich, others are confused as to what an NFT even is. And while we hear of many people making money through crypto and NFTs, often the people we hear about are already rich. So is the NFT art marketplace just an extension of the exclusive art markets of the past, only for the affluent? Or are the claims of a democratic marketplace where anyone can buy art true?

 

To answer the question, it’s a bit of both. It’s true that when you hear of NFTs selling for millions, the people collecting them are, in fact, millionaires. And parts of the NFT art world have become a strong area of speculative investment for large-scale investors. But this does not mean that the NFT marketplace is exclusively for the rich, or the super tech-savvy. While the NFT technology and marketplace are young, they were built on ideas of democracy, of paying digital artists what they’re due, and of circumventing traditional ‘rich-exclusive’ auction spaces – all values that can be furthered by buyers.

 

You might be thinking, “Okay, that’s all great to say, but if NFTs cost thousands of dollars and I’m on an average income, then this really doesn’t seem like something I can invest in” – and that’s valid! However, there ARE ways to invest in NFTs (and make a profit) without being a millionaire.

 

First things first: What are NFTs?

NFTs are certificates of ownership of a unique digital item such as a video, recording, or cyber artwork that reside on the blockchain. Once NFTs are “minted,” with a unique corresponding code for the digital item being permanently woven on the blockchain, the NFT can be bought or sold using cybercurrency on a variety of digital marketplaces.

 

Why are NFTs worth investing in?

When you buy an NFT, it’s different from buying a piece of physical art. You can’t necessarily take it home with you, or touch the original work, but you do own the rights to the unique token on the blockchain, owning the NFT version of the art. You also usually get some basic usage rights to the digital item. For some, this may be a novel investment, a one-off for fun. For others, it’s a way to give credit and income to many digital or physical art creators who decide to market their work as NFTs. And further, it’s also a new way for people to invest, with the possibility of trading or selling the NFT in the future for a higher price.

 

When you buy an NFT, you have the power to sell it later on through various online marketplaces. Just as with the physical art market, NFT art can rise exponentially in value (like a rare painting) and will be paid for by those who want it. And again, similarly to the art market, an investment in an NFT artwork could be an investment that grows in worth over time.

 

Okay, but not all people who invest in art get rich off of it. How do I choose what to invest in?
Just like any other investment, NFTs carry a certain amount of risk. However, there are still pros to investing in NFT art. For one, you get to support artists you like, and within a more democratic realm than the traditional high-end art market – any artist can sell an NFT, without dealing with the bureaucracy of the art world.

 

However, it’s a fact that often wealthy investors have an advantage in investing, as it is easier to make educated decisions on purchases with the help of advisors, which the wealthy often have. It’s also true that currently, many of the high-level NFT circles revolve around NFT art drops that are quickly bought by a small group of crypto-savvy collectors. However, there are plenty of new potential NFT buyers and sellers joining the marketplace everyday, and with resources such as online forums, personal research, and assemet of the marketplace, there is still ample space for buyers and sellers who are not millionaires. As within any market, there will be both the people who buy because they love the product and those who buy to resell. What you buy will probably be determined by which category you want to be in.

 

What if I’m not totally comfortable trusting my own research? Is there a way to safely invest or get professional advice?
Yes, there is! There are online platforms that vet the NFTs they sell – including ARTESSERE. All NFTs sold on ARTESSERE’s ArtChips NFT platform have been chosen similarly to how professional auction houses and some galleries operate, obtaining third-party valuation through external parties or museums by experts in the particular artwork’s genre (taking into account the artist, the time period, medium, etc.). This valuation is cross-checked with internal estimates. When purchasing an NFT through ARTESSERE, ownership of your holdings is protected by cryptographic keys, ERC 1155 or ERC 721 standard, which are virtually impossible to crack if you do not share your keys with third parties or do not thoroughly save them.

 

What if I don’t have enough for a full price NFT artwork?

Again, online platforms have a lot to offer. ARTESSERE ArtChips is a new method in the art democratization process using fractional ownership. Through ARTESSERE ArtChips, you can purchase shares of an NFT artwork you love for a much lower price than buying an entire NFT of a famous work. Working directly with the company, you can choose which artwork you’d like to invest in by buying an ArtChip (or share.) Most importantly, just as with a full NFT, you have the freedom to trade your ArtChip NFT token anytime on liquid asset selling sources and platforms, potentially earning money on the NFT. Moreso, when the original artwork the NFT is minted from is sold, you receive a portion of the profits!

 

So in conclusion, the NFT artworld is NOT just for the rich, but for everyone!

 

There are many easy ways to invest in NFTs and create your own modern art portfolio in this exciting and growing market. The market is still young and can go in many different directions – making the choices of buyers integral to the shaping of the NFT universe.

To find out more about ARTESSERE ArtChips, visit https://artessere.com/artchips

 

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