NFT Stocks: What to Know and Which Companies to Watch
The rise of NFTs has proved a boon for many artists and creators worldwide. But they have become incredibly lucrative investment opportunities for those looking for a quick – and sometimes large – return on their investment.
But there is a problem. Unless you have several thousand dollars to throw at a boring app, cryptopunk, moonbird, etc., it takes a while to find good bets on margin. a lot of work. To really get a pulse of what’s happening in the space, you practically have to go live on Twitter or Discord. Information moves quickly in the NFT space, and likewise the value of any given NFT, once a project or artist starts picking up steam.
Fortunately, there may be a solution for you intrepid NFT investors taking your first steps into these foreign waters. Look no further than NFT stocks.
what are you waiting for is NFT stocks?
Simply put, buying an NFT stock means buying shares of a publicly traded company that has sunk its claws deep into the Web3. NFT stocks in short are just that – regular stocks of companies involved in the NFT market
Qhile investing in crypto and NFTs, which are strictly digital assets, may be a relatively new concept, investing in stocks is not.
This is why NFT stocks are a great way for beginners who are mostly interested in the speculative nature of crypto and NFTs to dip their toes into the web3 vast ocean. Essentially, NFT stocks provide a way for any savvy investor to bet on NFTs and Web3 without needing any insider knowledge to get started.
How do I buy NFT stocks? And how can I invest in them?
Like any other stock, NFT stocks do not rely on blockchain technology – but they are linked to the NFT market. Thankfully, gone are the days when you needed to know a guy to start buying and trading stocks. Nowadays, you have all-in-one apps like Robinhood to get you started. At that point, it’s a matter of choosing which stocks to invest in — and for how much.
If this seems like a simple matter, it is not. While these are helpful for beginners, it goes without saying that investing carelessly is one of the worst things you can do with your hard-earned cash. if you really You want to be careful as you start, you don’t have to dive right in. Another option is to engage in contracts for difference (CFD) trading.
With this method, you won’t necessarily have to own The stocks you invest in, however, remain privy to the income it generates over time due to price changes. Apart from that, you will be able to invest in shares at a lower cost than paying by buying shares directly. This method of stock investing does not come without downsides, however. All investments carry a certain degree of risk. With CFD trading, these risks include “potential lack of liquidity and the need to maintain adequate margins,” according to Investopedia. We urge you to research extensively which type of investment best suits your needs.
A short list of NFT stocks to buy
meta
Let’s start with something obvious. Regardless of your feelings on Facebook, there’s no doubt that the company has made significant strides in mainstreaming virtual reality over the past decade. When Facebook acquired Reality Labs — the original developer of the Oculus VR headset — in 2014, little did the general public know that would be the first step in a year-long quest to make the Metaverse a mainstream reality.
However, Metaverse has taken meta far beyond just the Web3 concept. Meta has indicated a strong interest in Facebook and Instagram integrating NFT. In fact, NFTs are already on Instagram today, which should benefit artists, photographers and other creatives who use the platform to promote their products and services. It is likely that NFTs will continue to evolve on the image sharing platform, as Instagram has expanded support for NFTs to 100 new countries.
Ebay
You can buy almost anything on eBay. And yes, that includes NFTs. In addition to hosting oneoff drops — like its Muhammad Ali collection — the web auction giant also sports an NFT marketplace of its own. With the acquisition of known origin eBay, one of the best success stories of the dot-com bubble appears to be coming along for the ride as the Internet fully transitions to Web3.
At the heart of eBay’s Web3-centric strategy is a deep understanding of itself as a platform. Since one of eBay’s most popular use-cases is buying and selling collectibles, it only makes sense to expand its market into digital collectibles. “eBay is the first stop for people around the world searching for that perfect, hard-to-find or unique addition to their collection, and with this acquisition, we will continue to be a leading site as our community increasingly adds digital collectibles. ” eBay CEO Jamie Iannone said in a press release.
GameStop
Remember that wacky story last year that saw Redditors turn GameStop shares into a certified meme stock? GameStop certainly does. However, even taking that into account, the gaming retailer’s recent forays into NFTs show the company’s commitment to keeping itself relevant for the future — meme stock status be damned. Couple that with the declining popularity of physical games, and it’s easy to see how important GameStop’s new strategy is to securing its future as a company.
So what has GameStop done? For one, it launched its own NFT marketplace and crypto wallet. Despite the middling reception to its new NFT marketplace, the company hopes to further contribute to the growing NFT ecosystem by offering gift cards to FTX – its first officially partnered NFT marketplace – at select stores.
Nike
Unsurprisingly, one of the first big legacy brands to hop on the NFT hype train was Nike. After some speculation, the sportswear titan announced in December 2021 that it would acquire RTKFT Studio – a company best known for its tools that enable users to create unique digital sneakers and, of course, “artifacts”.
Since that acquisition, Nike has pushed to expand its reach in the metaverse. Given the cultural cachet that Nike enjoys as one of the world’s leading sneaker and apparel brands, it’s a safe bet that Nike continues to be a leader in the increasingly apparel-focused NFT space. And they’re far from the only apparel company to have shown interest in Web3. Recently, Puma also unveiled a Metaverse experience at New York Fashion Week 2022.
Are NFT stocks right for your portfolio?
Well, it depends on you. Basic investment advice still applies here.
However, the most relevant piece of investment advice when it comes to NFT stocks is to make sure you never invest in a business you don’t understand.
Yes, the companies we discussed have fairly straightforward business models But what about their NFT initiatives? This is the key factor to consider. These are is NFT stocks, after all. So instead of looking at them as regular stocks, consider investing in NFT stocks as your commitment to learn more about NFTs. Keeping up with how these companies are doing – especially with regards to their NFT initiatives – is a great way to take your first steps into the wider world of NFTs.
Disclaimer: This article is a descriptive explanation of some of the essentials to start investing in NFT stocks, and should not be construed as official financial or investment advice. Please rely on your own research and analysis before investing.
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