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Do you know that various financial institutions are looking into non-fungible tokens and related technologies? With the rise of NFTs, numerous industries and businesses are trying to adopt non-fungible tokens in their services. Starting from artwork, today, we can see <a href="https://upyo.com/en/post/real-estate-nft">NFTs in real estate too</a>! Music, Event and ticketing, sports, etc., are some other sectors that are hugely benefitting from non-fungible tokens.



Thus, with so much innovation, isn&#8217;t it prudent to consider NFTs in the banking sector? Yes, NFT banking is a budding technology that holds so much promise. If you are wondering what exactly it is, read this article as we explain the basic concepts and discuss its impact on the traditional banking ecosystem.



<h2>What is NFT banking?</h2>



For the uninitiated, non-fungible tokens or NFTs are unique tokens that are used to represent assets such as art, music, properties, or a digital collectible.&nbsp;



NFT, or Non-fungible token banking, is a coming-age technology that is set to revolutionize economics or the financial sector. Furthermore, this form of banking creates virtual assets such as non-fungible tokens. This type of banking system is decentralized in nature and is created on a decentralized ledger.



Overall, NFT banking aims to alter the face of financial transactions in the world. Please remember that this type of banking is centered around blockchain technology.



This means that no central authority controls this system, and all transactions that take place on this system are transparent, secure, and verifiable. Moreover, users can carry out transactions and payments without the interference of third parties.



Some of the NFT banking platforms are CoinList, BlockFi, Crypto.com, etc. Each of these possesses certain features and provides some benefits. Furthermore, some platforms may charge specific fees and have terms and conditions that you must adhere to. Therefore, it is necessary to research and understand these platforms before subscribing to them.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="536" src="https://adminblog.upyo.io/wp-content/uploads/2023/02/CoinList-2-1024x536.jpg" alt="CoinList NFT in Banking " class="wp-image-4163" srcset="https://adminblog.upyo.io/wp-content/uploads/2023/02/CoinList-2-1024x536.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2023/02/CoinList-2-300x157.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2023/02/CoinList-2-768x402.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2023/02/CoinList-2.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2>The impact of NFTs on Banking</h2>



The NFTs combined with digital ledger technology (DLT), which acts as a base for Bitcoin and Ethereum, are creating waves in the finance sectors. In fact, the popularity of non-fungible tokens is propelling DLT to the mainstream. Thus, the arrival of digital ledger technology has posed some challenges and excellent opportunities, especially for the payment and banking industries.



It is important to note that blockchain technology is not new to the world. It was launched a decade back in 1991. However, with the advent of cryptocurrencies and non-fungible tokens, DLT rose to prominence. Currently, this technology is getting wider acceptance among the public and technology enthusiasts.&nbsp;



<figure class="wp-block-image size-full is-resized"><img decoding="async" loading="lazy" src="https://adminblog.upyo.io/wp-content/uploads/2023/02/DLT.png" alt="" class="wp-image-4166" width="650" height="440" srcset="https://adminblog.upyo.io/wp-content/uploads/2023/02/DLT.png 559w, https://adminblog.upyo.io/wp-content/uploads/2023/02/DLT-300x203.png 300w" sizes="(max-width: 650px) 100vw, 650px" /></figure>



With innovations happening in various sectors, it is no wonder that DLT will impact the banking and payment industries. Let us see what DLT is bringing to the table and how it will affect the traditional financial sector.&nbsp;



When speaking about DLT, one must remember that it is a decentralized system, and no one owns it. So, how does it benefit the banking system? Firstly, DLT can offer a global data infrastructure that all users can access. In other words, the data is shared among the users so that everyone can check and verify the information.&nbsp;



One more potential promise of blockchain is to provide a secure place for record-keeping worldwide. Consider having a secure site where you can record financial information without third-party interference; DLT can help with that. In a way, this technology is a boon for the banking sector across the world.&nbsp;



Furthermore, it aids in the safe storage of data or information. This is again due to decentralization, which helps store customer information without redundancy. Also, blockchain technology makes it possible to share details safely across various financial organizations in real-time.



Additionally, this technology&#8217;s inherent security helps alleviate the ongoing administrative and regulatory burdens. Also, the technology has the potential to enable fast (real-time) payment processing services.



Since non-fungible tokens are in vogue, numerous financial institutions, businesses, and banks are keeping an eye on them. The global head of Goldman Sachs is reportedly looking into &#8220;NFTs in the context of financial instruments.&#8221; Apart from this, Nomura, a Japanese bank, is aiming to make a name for itself in the crypto and <a href="https://upyo.com/en/nft/category/domain-names">non-fungible token domain</a>.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://adminblog.upyo.io/wp-content/uploads/2023/02/Nomura-nft-and-banking-1024x576.jpg" alt="Nomura nft and banking" class="wp-image-4165" srcset="https://adminblog.upyo.io/wp-content/uploads/2023/02/Nomura-nft-and-banking-1024x576.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2023/02/Nomura-nft-and-banking-300x169.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2023/02/Nomura-nft-and-banking-768x432.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2023/02/Nomura-nft-and-banking-1536x864.jpg 1536w, https://adminblog.upyo.io/wp-content/uploads/2023/02/Nomura-nft-and-banking-2048x1152.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Additionally, it can also be seen that JPMorgan has launched a lounge in the metaverse where it allows users to purchase plots (virtual). Here are some aspects of non-fungible tokens that positively impact the financial sector:



<ul>
<li>Non-fungible tokens help in recording and transferring virtual assets on a blockchain network without any loss.</li>



<li>It also helps banks in securing sensitive information and management challenges related to data.</li>



<li>NFTs can significantly help manage royalties without any error or confusion.&nbsp;</li>



<li>NFTs could also help banks attract new customers who do not trust crypto and are put off by the complexities of blockchain technology.</li>



<li>Trading NFTs can benefit fintech and banks in the same way that selling collectible assets can help anyone.</li>
</ul>



Overall, non-fungible tokens are transforming the way many modernized banks operate by significantly lowering operational costs while shortening the time traditionally required for various processes.



<h3>How can banks leverage NFTs?</h3>



By now, it is clear that non-fungible tokens hold a bright promise in changing how asset ownership is virtually seen. Thus, using non-fungible tokens is a prudent thing to do to gain a number of benefits. So, how can banks leverage non-fungible tokens?&nbsp;



Simple, it can be accomplished in numerous ways. One primary way is to incorporate blockchain technology into the banking ecosystem and help the financial <a href="https://upyo.com/en/post/nfts-and-metaverse">transactions of non-fungible tokens across metaverses</a>. Furthermore, employing non-fungible tokens to signify virtual goods bought in the marketplace or metaverse is also another way to use non-fungible tokens.&nbsp;



One more solution is to tokenize the financial information, as this type of detail poses challenges when transferring across borders (international). Issues related to privacy, confidentiality, and compliance usually plague such transfers. Apart from this, these transactions take a lot of time to process and approve the requests. Also, human intervention is the core of such transactions, so it obviously takes weeks or months to accomplish such tasks.



As a result, using the tokenization concept makes the transmission of transaction information easier and faster. Whatever the type of transaction information may be (text, images, documents, 3-dimensional models), it is lent a unique cryptographical ID that makes it distinct from other information. One can say that these unique batches of details are easily and safely transferable through blockchain within seconds.



Furthermore, digital ledger technology offers a global data structure that every user can access at any given time to go through the same data. This proves to be a secure and true version of data that bankers sought in the past.&nbsp;



As discussed above, numerous well-known banks are looking into blockchain technology and non-fungible tokens to integrate them into their ecosystem. Such banks can employ blockchain-based platforms <a href="https://upyo.com/en/post/nft-smart-contract">built on smart contracts</a> to shield their users&#8217; funds from external attacks.&nbsp;



<h3>Advantages and disadvantages of NFT banking in a nutshell</h3>



So far, we have discussed the impact of non-fungible tokens on the banking industry. Now, let us see what its benefits and drawbacks are in a nutshell.&nbsp;



<ul>
<li>NFTs in the banking system offer numerous benefits, such as providing secure storage and data transfer.&nbsp;</li>



<li>Every transaction data is validated and recorded on the network.</li>



<li>Employing DLT ensures faster transfer in addition to being cheap than the traditional banking system.&nbsp;</li>



<li>Eliminates the need for third-party services.</li>



<li>Non-fungible token banking is way more transparent than the usual banking system.</li>



<li>Users will have the ability to track their transactions so that they&#8217;ll know where their cash is reaching.</li>



<li>NFT banking is effortless and straightforward to use.</li>
</ul>



While these are some benefits that non-fungible token banking offers, specific issues need to be addressed. The first issue with this technology is that it is still in the nascent stages, so one may not be entirely convinced to use it. Also, because of its infancy, this technology has some problems with scalability and security.



Apart from this, there is a significant concern regarding the fees which may be imposed for using NFT banking. Experts opine that the fees can be set high, which repels a section of users who wouldn&#8217;t like spending much on banking.&nbsp;



Thus, if NFT banking is made more user-friendly by addressing these issues, there&#8217;s a high chance that people will welcome this technology gracefully.



<h4>Conclusion&nbsp;</h4>



NFT banking is a promising technology that will revamp the global banking and payment sector. It offers solutions to numerous problems like security, ownership, transparency, transferability, and others. Although it is not faultless, the future seems bright, and with more evolution and reforms, this technology is bound to make a mark in the banking industry.

The Role of NFT in banking: Its Impact on Banks

We have seen an extraordinary rise in gas fees ever since the rise of non-fungible tokens. In addition to this boom, blockchain network congestion has led to significant fluctuations in gas fees. The hike in the gas fees has a huge impact on creators, especially the newbies. Budding artists usually are short on funds and cannot pay the fees if the gas costs are high.



As a result, many users are experimenting with a technique known as &#8216;lazy minting&#8217; to compensate for the higher gas fees.



By utilizing lazy minting features across multiple marketplaces, creators can avoid paying a gas price for minting their non-fungible tokens. Lazy minting made its debut near the end of 2020. Top-tier marketplaces like <a href="https://upyo.com/">UPYO</a>, OpenSea, and Rarible quickly embraced it.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="611" src="https://adminblog.upyo.io/wp-content/uploads/2022/11/Lazy-Minting-NFT-1024x611.jpg" alt="NFT lazy minting" class="wp-image-2798" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/11/Lazy-Minting-NFT-1024x611.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/11/Lazy-Minting-NFT-300x179.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/11/Lazy-Minting-NFT-768x458.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/11/Lazy-Minting-NFT.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2>What exactly is Lazy Minting?</h2>



It is already known that minting non-fungible tokens on a network like Ethereum can be costly when gas costs are high. Thus, creators are obliged to pay excessive fees to mint their digital artwork into non-fungible tokens. In many cases, owners lose money even after an NFT asset sells due to the incredibly high costs associated with minting the NFT. In this scenario, lazy minting offers an alternative option for the users.



In this process, a non-fungible token is accessible outside the blockchain (off-chain) and is minted only when it gets sold. This means the creator or seller does not pay gas fees to <a href="https://upyo.com/en/post/nft-minting">mint their non-fungible token in advance</a>. Instead, the gas costs are collected once the non-fungible token has been acquired and transferred on the blockchain (on-chain).



Accordingly, the gas fee is paid after a non-fungible token work is acquired and transferred to a new owner. Thus, the obligation to mint non-fungible tokens falls on purchasers rather than creators.



The perks of lazy minting are as follows:



<ul>
<li>Decreases the influence of increased gas fees-&nbsp;Creators can integrate the gas costs into their pricing structures to mint non-fungible tokens after the sale. Doing so negates the effects of high gas costs on creators/sellers.</li>



<li>Lowering the entry barriers-&nbsp;the hindrance levied by increased gas costs to mint tokens gets reduced for creators, thus facilitating a smooth entry to NFT space.</li>



<li>Improved liquidity-&nbsp;Promotes and improves liquidity because non-fungible tokens can only be transferred after they have been sold. This prevents creators from hoarding unsold minted tokens and purchasers from having to wait indefinitely for the non-fungible token to be sent to their collection.</li>
</ul>



<h3>What is the Work Process of Lazy Minting?</h3>



Lazy minting is a fairly simple procedure. Here is how you can use the lazy minting feature on UPYO:



<ul>
<li>Go to the &#8220;Create&#8221; option on the right side of the screen and click on it.</li>



<li>Choose &#8220;Create Single&#8221; for a single asset or &#8220;Create Multiple&#8221; for multiple copies.</li>



<li>Upload your file and fill in all the fields under &#8220;Item Details.&#8221;</li>



<li>Turn on the &#8216;Free Minting&#8221; button.</li>



<li>Select the type of sale- &#8220;Fixed&#8221; or &#8220;Auction.&#8221;</li>



<li>Enter the price of the asset.</li>



<li>Choose &#8220;Create Collection&#8221; to build a new collection. Or click on &#8220;UPYO Collection&#8221; to add to an existing collection.</li>



<li>Click on the &#8220;Create&#8221; button.</li>



<li>Approve and confirm the MetaMask transaction.</li>



<li>The NFT will be put for sale on the UPYO marketplace.</li>
</ul>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="652" src="http://adminblog.upyo.io/wp-content/uploads/2022/10/upyo-1100x700-1-1024x652.jpeg" alt="free minting" class="wp-image-1979" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/10/upyo-1100x700-1-1024x652.jpeg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/10/upyo-1100x700-1-300x191.jpeg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/10/upyo-1100x700-1-768x489.jpeg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/10/upyo-1100x700-1.jpeg 1100w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3>How Much Will be the Lazy Minting Fee?</h3>



Lazy minting is free; however, platforms do charge a minting fee in the form of a commission from the maker, buyer, or both. The NFT minting charge in each NFT marketplace will be different and have a separate lazy minting mechanism. Several criteria, including data quantity, project quality, transaction speed, and others, influence the price of gas fees in the non-fungible token minting process.



Below are the fees charged by various marketplaces for NFT transactions:



<ol>
<li>UPYO charges a 2.5 % commission rate (to the seller)</li>



<li>Rarible charges a 2.5% commission rate (to both buyer and seller).</li>



<li>SuperRare charges a 3% commission rate for every purchase.</li>



<li>Nifty Gateway charges a 5%+ $0.30 commission for every secondary sale.</li>



<li>Foundation charges a 15% commission rate for every sale (paid by the seller).</li>
</ol>



<h2>Which is better: Lazy or Paid Minting?</h2>



Paid minting, similar to lazy minting, is the process of converting digital files into non-fungible tokens. In this process, a unique token is published on a blockchain network that converts the file into an NFT asset. Once the asset is successfully minted on the blockchain, the asset will become a part of the public ledger and becomes immutable. Therefore, anyone can verify the ownership and authenticity of the NFT through its unique token.



Minting NFTs requires massive amounts of energy. Miners incur large electricity bills due to solving complicated problems to add new blocks to the blockchain ledger. Consequently, creators are charged a gas fee.



The gas fee incentivizes miners to enter crypto transactions onto the blockchain network. In some circumstances, the gas fee will be determined by how quickly you want the NFT minting process to be completed. Thus, one can say that a fast mining process results in increased gas fees.



Since lazy minting redirects the minting cost to purchasers, it&#8217;s a better alternative for non-fungible token creators. It means they can sell their NFTs on a marketplace for free. The fee for gas will be estimated in GWEI, which is nothing but the gas unit. One GWEI is equivalent to 0.000000001 ETH. The minimum amount of gas required to conduct network transactions is 21 thousand.



<h4>Conclusion</h4>



The recent increase in the number of NFT transactions on the blockchain <a href="https://upyo.com/en/post/nft-gas-fee">impacts the gas fees</a> that non-fungible token creators must pay. The excellent thing is that lazy minting is now freely available for non-fungible tokens. Lazy minting is a thriving trend in the NFT sector, with numerous benefits for creators and sellers.



It removes the advance fee payment of minting non-fungible tokens, making the process more cost-effective and accessible to new digital creators. Furthermore, the advantages of lazy minting aren&#8217;t limited to artists and developers. It removes redundant power-hungry transactions from the blockchain, as only sold non-fungible tokens can be minted.

Lazy Minting: An Affordable Way to Mint NFT

Whether it&#8217;s a brand or individual creator, everyone wants to participate in the NFT craze. Well-known NFT artists make NFT drops to introduce their new collections to eager investors. In this blog, we will discover everything you need to know about NFT drops and where to buy them.



<h2>What is an NFT drop?</h2>



In the simplest term, an NFT drop is when creators announce the launch of their NFT projects. Like an album drop, NFT drop refers to the precise time and date that a new NFT collection will hit the market and the minting price of the crypto assets.&nbsp;



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="939" height="528" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/drop1.jpg" alt="NFT Drops" class="wp-image-679" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/drop1.jpg 939w, https://adminblog.upyo.io/wp-content/uploads/2022/08/drop1-300x169.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/drop1-768x432.jpg 768w" sizes="(max-width: 939px) 100vw, 939px" /></figure>



Buying an NFT as soon as it drops can help investors save money and add rare collectibles to their portfolios. That&#8217;s why investors are always following the release of upcoming NFTs so that they can grab them before prices increase.



Generally, NFT drops have limitations on how many a person can buy and how many NFTs can be minted at a time. NFT drops from famous artists have a huge waiting line where people frantically compete with one another to own unique, one-of-a-kind, non-fungible tokens.&nbsp;



<h2>How to keep track of new NFT drops?</h2>



After the splash made by CryptoPunk or Bored Ape Yacht Club collections, collectors with a keen eye always keep track of drops from popular NFT artists. Here is how you can know about new NFT drops.



<ul>
<li>Social Media:</li>
</ul>



Many artists use social media to make announcements about when they are launching their new NFTs. It&#8217;s an effective marketing strategy to get the news out. You can check social media platforms like Facebook, Instagram, Twitter, YouTube, LinkedIn, Clubhouse, etc., to know if your favorite brands or solo artists plan an NFT drop. It helps to engage and follow NFT communities on these social channels to stay updated on the latest buzz in the NFT market.



<ul>
<li>Metaverse:</li>
</ul>



The metaverse is the best place to find upcoming NFT drops. Virtual worlds like Decentraland are popular in the NFT community. Metaverse enables interested buyers to discover new NFTs as information about new drops is posted throughout the digital world.&nbsp;



<ul>
<li>NFT marketplaces:</li>
</ul>



The easiest way to discover NFT drops is at NFT marketplaces. Platforms like <a href="https://upyo.com/en/nft">UPYO</a>, <a href="https://opensea.io/" rel="nofollow">OpenSea</a>, <a href="https://rarible.com/" rel="nofollow">Rarible</a>, and others highlight NFT drops that are coming to the marketplace. Users can access a wide variety of NFTs on these platforms.&nbsp;



Moreover, since most of these platforms offer lazy minting, it makes it easy for customers to buy and mint new NFTs without complications. One thing to remember when finding new NFT drops is to always check the rankings of drops before investing in one.



<ul>
<li>Instant messenger:</li>
</ul>



Instant messaging platforms like Discord, Messenger, Telegram, etc., can provide information on the latest NFT drops. These platforms are gathering places for NFT enthusiasts to discuss new NFT drops and trending news in the crypto world.&nbsp;



<ul>
<li>NFT news publications:</li>
</ul>



Many news publications cover the latest trends in the NFT market. These publications include blogs, digital magazines, online news outlets, etc. They serve as excellent means to find out about new NFT drops from well-known and promising artists, in addition, to top-notch investment advice. Follow our <a href="https://upyo.com/ar/news">NFT news</a> on UPYO.



<ul>
<li>Podcasts:</li>
</ul>



Podcasts are another great platform to discover new NFT drops. Popular NFT podcasts regularly update their listeners on new releases. Moreover, they also provide helpful advice on how to purchase NFTs, which NFTs to invest in, and how to turn a profit from NFTs.&nbsp;



<h2>&nbsp;Where to buy NFT drops?</h2>



Almost all NFT marketplaces regularly update their customers about forthcoming NFT drops on their platform. These marketplaces have in-built NFT drop calendars that highlight new drops. Furthermore, they provide essential information, including descriptions on their websites and mobile apps.&nbsp;



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="896" height="598" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop2.jpg" alt="hot nft drops" class="wp-image-680" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop2.jpg 896w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop2-300x200.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop2-768x513.jpg 768w" sizes="(max-width: 896px) 100vw, 896px" /></figure>



<a href="https://upyo.com/en/nft">UPYO</a>, the first and biggest NFT marketplace in the Middle East, provides you access to popular NFTs from global artists. Here is how you can invest in an NFT through the platform:



<ol>
<li>Connect your crypto wallet to UPYO.</li>



<li>Select an NFT from the platform.</li>



<li>If it&#8217;s a direct sale NFT, click the &#8220;Buy&#8221; button.</li>



<li>If it&#8217;s an auction, place a bid.</li>



<li>Enable the transaction from your wallet.</li>



<li>If you win the auction, NFT will be transferred to you.</li>



<li>Check your UPYO collection and wallet to verify that the new NFT has been added.</li>
</ol>



<h2>Things to be considered while buying NFT drops</h2>



To make smart investments in NFT, follow the principles mentioned below to make the most out of your crypto money:



<h3>Purchase NFTs that you enjoy:</h3>



The NFT market works similarly to an art market where investors pay for artwork they enjoy. The most valuable NFTs in the crypto world are always rare and unique. You need to have a good eye to identify quality non-fungible tokens that satisfy your artistic taste while being value for money. That&#8217;s why you should always buy digital art that you really enjoy rather than just following trends.&nbsp;



<figure class="wp-block-image size-full is-resized"><img decoding="async" loading="lazy" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop3.jpg" alt="Drop NFT" class="wp-image-681" width="650" height="620" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop3.jpg 911w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop3-300x286.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Drop3-768x733.jpg 768w" sizes="(max-width: 650px) 100vw, 650px" /></figure>



If you&#8217;re a sports fan, investing in sports memorabilia like trading cards instead of a virtual fashion item makes more sense. Although considering the future resale value of an NFT is a fundamental factor when buying an NFT, remember that it&#8217;s possible to monetize your favorite NFTs to earn passive income without ever having to sell it. So your focus shouldn&#8217;t only be on buying something that is trending, but it should be to own a piece of rare digital asset that brings you long-term happiness.



<h3>Do thorough research before buying:</h3>



NFTs are complex, and the market is still evolving. It&#8217;s best to learn about NFT in-depth before buying one. That way, you know how to make a good investment that will give you a high yield in the future. Find a brand or artist you are aware of and trust, and buy their work. You have to evaluate objectively if the NFT is a functional, worthwhile, and valuable addition to your collection.&nbsp;



<h3>Buy NFTs that fit your budget:</h3>



With all the buzz surrounding NFT, getting caught up in this crypto craze is reasonably easy. However, it&#8217;s best to stay away from crypto-assets that are above and beyond your budget. The steady increase in gas fees of the Ethereum blockchain means it&#8217;s already becoming more expensive to buy NFT art.&nbsp;



So the ideal rule for buying an NFT is that you should only invest what you can actually afford to lose. Buying an expensive NFT does not always guarantee higher returns. Therefore, you should stick to your budget and pay only what you&#8217;re willing to lose.



<h3>Beware of scams:</h3>



Like everywhere else on the internet, scams are relatively common when it comes to NFT. Being aware can help you avoid these scams and protect your interests. You should always do your investigation before you dive into NFT.



Here are some common scams that you should avoid:



<ul>
<li>Fake sites- There is no shortage of fake sites on the internet. These websites and applications look similar to actual marketplaces. They can steal your information and cryptocurrency when your wallet is connected to the platform, so it is vital to buy from verified and trusted sites.</li>
</ul>



<ul>
<li>Fake brands- Many big brands are launching their own NFT collections. However, there are numerous counterfeit brands that look identical to the actual brand. Some of these counterfeits are available on various marketplaces, so always verify the brand name before purchasing. Moreover, it&#8217;s essential to take a nuanced approach to validate the authenticity of the NFT.</li>
</ul>



<ul>
<li>Rug pull- A rug pull occurs when someone starts a project with the purpose of generating money but abandons the project, brand, and community. Such stunts may be easily recognized by spending time in the project&#8217;s community. Discord, social media, and other communication platforms are ideal for determining a brand&#8217;s activity level. Therefore, if the brand isn&#8217;t active or genuine in its efforts, you might want to do more digging before committing.</li>
</ul>



<ul>
<li>Direct messages- Scammers often reach out to prospective buyers claiming to offer information on NFT drops. Most of these happen on social media platforms, where you receive anonymous DMs saying that you have won prizes. Avoid these messages as they are disingenuous. They will ask you to click on a link, and if you do so, it enables them to access your information and steal from you.</li>
</ul>



<h2>Conclusion</h2>



Almost every day, new NFT drops happen in the crypto world. When big names like Nike are involved, it generally makes a lot of buzz on the internet. If you follow NFT communities and blogs, chances are you will be aware of what&#8217;s coming to the market. Moreover, you can always rely on verified NFT marketplaces for updates on upcoming NFT drops. No matter what communication channel you use, ensure that you do your research before you invest in a new NFT.

NFT Drops: What is it and Where to Buy One?

Flipping is the term that is often used in economics and now is used in the NFTs field as Flipping NFTs. The concept refers to the act of buying and holding assets for a short period of time for the purpose of selling them quickly for a profit. It is a common occurrence in real estate-related discussions and IPO transaction-related talks.&nbsp;



Although these are the most notable use cases in finance, flipping can broadly characterize the purchase of an object with the intention of selling it for a profit in the near future. It usually entails buying and selling vehicles, cryptocurrency, concert tickets, etc.



<h2>What is NFT Flipping?</h2>



NFT Flipping in the Blockchain business is nothing but the process of purchasing NFTs at a low/cheap price and selling them at a high price to gain profits.&nbsp;



The concept has been utilized in finance for decades, dating back to the early days of toys, trading cards, and the resale of comic books. Thus, this is not something new for traders and investors. However, the exposure to NFTs has created new opportunities for investors to earn more money.



The investors who engage in flipping are known as flippers and they usually find non-fungible tokens profitable and appealing. This is due to the speedy returns that one can gain while trading NFTs.



Flipping non-fungible tokens is a riskier investment, but it is a faster approach to improving your wealth. However, it must be noted that only valuable assets and items can be flipped in the NFT market.&nbsp;



Note: The speedy returns provided by NFTs largely depend on the size of the NFT project.&nbsp;



<h2>How to flip NFTs?</h2>



As discussed above, flipping NFTs involves buying NFTs at a cheap price and selling them immediately at a higher price to gain profit. Although the process looks simple, one must remember that not all NFTs perform well and appreciate value.&nbsp;



Thus, flippers must lookout for hot NFT projects and undervalued NFTs to buy them at the lowest possible price and flip it for high returns.&nbsp;



Like any other financial market, making money in the NFT market necessitates studying some vital metrics to choose the best feasible option. In general, people prefer undervalued NFT assets or the ones they believe will improve in value in the future.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="538" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/Nours-Copy-of-Shared-UPYO-in-article-visuals-1200-38-1-1024x538.jpg" alt="nft flips" class="wp-image-582" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/Nours-Copy-of-Shared-UPYO-in-article-visuals-1200-38-1-1024x538.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Nours-Copy-of-Shared-UPYO-in-article-visuals-1200-38-1-300x158.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Nours-Copy-of-Shared-UPYO-in-article-visuals-1200-38-1-768x403.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Nours-Copy-of-Shared-UPYO-in-article-visuals-1200-38-1.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



And when it comes to NFTs, the flipper must conduct thorough research and stick to a niche they are comfortable with. Some common niches are animal-themed art, domain names, collectibles, and metaverse lands.



Three crucial metrics primarily determine how well an NFT project will do. They are:



<ul><li>Volume &#8211; Always look for those platforms with high trading volumes to pitch your investments.&nbsp;</li><li>The number of items &#8211; NFT projects that are limited in the number of items are much more likely to give profit.</li><li>Floor price &#8211; The term &#8220;floor price&#8221; refers to the lowest possible price for an item. Look for things with low floor prices and limited supply.</li></ul>



So, to summarize,&nbsp;



<ol><li>Find the right project &#8211; Flippers must choose an NFT project and NFT collection they are interested in. Furthermore, they must pick a project at a reasonable floor price.&nbsp;</li></ol>



<ol start="2"><li>Research on listing pages &#8211; The flippers must study the selected NFT collection. In other words, they must look for rare characteristics in an NFT to make the purchase.&nbsp;&nbsp;</li></ol>



<ol start="3"><li>Buy and sell immediately &#8211; Once the first two steps are completed, the flipper can buy the NFTs of their choice and sell them on secondary markets.&nbsp;</li></ol>



<h2>How to pick profitable NFTs to make money?</h2>



Although flipping NFTs sounds simple, understanding how to flip NFTs to make a profit takes a lot of dedication and patience. The flipper must invest time and energy to comprehend the trading strategies to succeed.&nbsp; Your guide to knowing <a href="https://upyo.com/en/post/how-to-invest-in-nft">how to invest in NFTs</a>



There are usually multiple elements involved to determine if a chosen NFT will make a profitable flip. However, to make it easier for beginners, here are some factors to consider:



<ol><li>Community: The community support received by the NFT collection or project can help gauge its popularity across people. Are people discussing the NFT? Are they interested in buying it? These are some ‌questions that might help flippers to decide if they pursue a particular NFT or not. Furthermore, they can follow the project of interest on social media channels like Twitter, Telegram, Reddit, etc., to check the engagement and popularity it receives from the audience.</li></ol>



<ol start="2"><li>Celebrity support: An NFT that has garnered the support of a well-known company or celebrity is usually known to perform well in sales. Endorsements from celebrities like Elon Musk can make an NFT really popular.&nbsp;</li></ol>



Bored Ape Yacht Club is one excellent example, as it has got celebrity buyers like Logan Paul, <a href="https://www.cnet.com/culture/how-a-300k-bored-ape-yacht-club-nft-was-accidentally-sold-for-3k/#:~:text=The%20Bored%20Ape%20Yacht%20Club,is%2052%20ether%2C%20or%20%24210%2C000." rel="nofollow">Stephen Curry</a>, etc. Thus, choosing a project with good community support can make the NFT stand out from the crowd.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="819" height="1024" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1-819x1024.jpg" alt="Flipping NFT " class="wp-image-579" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1-819x1024.jpg 819w, https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1-240x300.jpg 240w, https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1-768x960.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1-1229x1536.jpg 1229w, https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1-1638x2048.jpg 1638w, https://adminblog.upyo.io/wp-content/uploads/2022/08/dylan-calluy-E4TBps9k_Po-unsplash-1.jpg 2000w" sizes="(max-width: 819px) 100vw, 819px" /></figure>



<ol start="3"><li>Uniqueness: Similar to being rare, an NFT that is unique or has iconic characteristics can have great value than regular art or videos.&nbsp;</li></ol>



For example, despite its simplicity, the CryptoPunks artwork was the first of its sort to have a distinct pixelated design that gave a unique look to them. Furthermore, it inspired more popular initiatives such as Weird Whales. Thus, we can conclude that the more distinct the project&#8217;s aesthetic is, the more valuable it will be in the long run.



<ol start="4"><li>Utility: This is one of the crucial factors to look for in an NFT. While some people take pride in owning unique NFTs, others look for utility (usefulness) and perks. Most people look for added benefits that come with purchasing an NFT. Thus, look for NFTs such as Veefriends, which provides its buyers with access to Veecon and a golden chance to meet Gary Vaynerchuk.&nbsp;</li></ol>



Another example of utility comes from an American band called Kings of Leon&#8217;s, who auctioned off their album as an NFT, along with golden tickets. These tickets gave special privileges to their buyers by offering them four front-row seats on every King of Leon tour for life.



Thus, we can conclude that benefits such as these create a good buzz and generate demand among people.&nbsp;



<ol start="5"><li>Credibility: With NFT frauds on the rise, verifying the trustworthiness of creators is critical for your success and investment. Always double-check to ensure that the NFT project team is trustworthy and credible. Avoid projects led by nameless individuals, and conduct your homework on the team&#8217;s history.</li></ol>



Flipping NFTs is quite simple. You&#8217;ll need a Web3 wallet, such as Metamask, and a good NFT marketplace to get started. Once you find your desired collection, you need to buy and sell them to make good profits. Check our collections in our <a href="https://upyo.com/en/nft">NFTs Platform</a>.



One must keep a watch on NFT projects and understand the nuances of selling the NFTs at the right time to make intended profits. However, one must also be prepared to face risks and losses since the NFT market is subjected to volatility and uncertainties, just like any other market.&nbsp;



Nevertheless, one can always follow the tips given in this article to minimize the risks and move forward to build their assets.



Happy flipping!

Flipping NFTs: Guide On How To Flip NFTs For Profit

As blockchain technology turned more common, we saw more significant use of NFTs, DAO NFTs, GameFi, and many more. In addition to this, blockchain technology has also resulted in a new form of organization: Decentralized Autonomous Organization. As a result of their potential, DAOs are gaining popularity in the digital realm. But first, what exactly is a DAO?



<h2>What is DAO?</h2>



A DAO is a blockchain-based program that provides users with a built-in methodology for collectively managing its code. It is a community-led organization with no centralized power. It is automated and credible: smart contracts establish the general principles, implement the agreed-upon judgments and ideas, polling, and even the code itself can be openly inspected at any time.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="683" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/5429482-1-1024x683.jpg" alt="NFT DAO" class="wp-image-377" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/5429482-1-1024x683.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/08/5429482-1-300x200.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/5429482-1-768x512.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/08/5429482-1-1536x1024.jpg 1536w, https://adminblog.upyo.io/wp-content/uploads/2022/08/5429482-1-2048x1365.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



In simple terms, a DAO is administered by its members, who jointly make crucial choices regarding the project&#8217;s fate, such as technological updates and budget allocations.



In general, community members curate proposals about the upcoming operations of the protocol and then vote on every proposal altogether. Proposals that gain a certain predefined degree of consensus are then approved and implemented by the regulations instantiated via the smart contract.



Under this approach, familiar hierarchical systems prevalent in huge organizations give way to community participation. Every member of the decentralized autonomous organization oversees the protocol at a certain level.



<h2>How Does DAO Work?</h2>



DAOs are designed to resemble a business model, with policies and guidelines developed utilizing open-source code and implemented via smart contracts.



For those unfamiliar with smart contracts, it is an agreement designed to implement if and when specific criteria are met. These policies are often decided by the DAO stakeholders.



Compared to other established organizations, DAOs don&#8217;t come with any hierarchy. Instead, to regulate the firm&#8217;s interest with its team, DAOs reward a dispersed network of people to meet their objectives.



One of the prominent aspects of a DAO is the inner currency that is utilized to encourage these actors and keep the organization running correctly.



After the initial set of regulations has been developed and written into smart contracts, DAOs often enter a financing phase where anybody who wishes to join can do so.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="1024" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-1024x1024.jpg" alt="DAO" class="wp-image-379" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-1024x1024.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-300x300.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-150x150.jpg 150w, https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-768x768.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-1536x1536.jpg 1536w, https://adminblog.upyo.io/wp-content/uploads/2022/08/rm407-123-1-2048x2048.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Usually, a DAO launch happens in 3 vital steps:



Smart Contract Creation: To start with, developers must first design the smart contract behind the DAO. After the launch, they get the authority to modify the rules imposed by these contracts via the governance system. That implies they must thoroughly examine the contracts to verify that critical aspects are not overlooked.



Funding: Once the smart contracts are developed, the DAO must decide how to acquire financing and how to implement governance. Tokens are frequently traded to generate cash; these tokens grant holders voting power.



Deployment: After everything is fixed, the DAO must be launched on the blockchain. From this moment on, stakeholders make decisions about the organization&#8217;s future. The organization&#8217;s builders who designed the smart contracts don&#8217;t have much influence over the endeavor as other stakeholders.



<h2>What is the Relationship Between DAOs and NFTs?</h2>



NFTs are digital one-of-a-kind assets, while DAOs administer communities. When discussing collective DAO NFT, artists <a href="https://upyo.com/en/post/softwares-used-to-make-nfts">create NFT projects</a> to manage their life cycle.&nbsp;



Hence, right from the community proprietorship to the governance of NFTs, DAO contributes hugely to the NFT realm.



Collective Ownership:



DAO assists the NFT domain in the collective proprietorship of an asset. Dealing in NFTs, particularly in blue-chip ventures, typically necessitates substantial cash. Of course, this is not something that anyone can afford. As a result, several DAOs were created to enable a group of individuals to jointly control an elevated NFT without spending loads of money.



For instance, let&#8217;s take PleasrDAO. It is a group of &#8220;DeFi pioneers, initial NFT owners, and digital artists&#8221; who raise funding for rare NFTs. As per the site, the firm collects digital assets that showcase and fund essential ideas and causes. For every NFT it purchases, the PleasrDAO team collectively splits the cost and proprietorship of the assets. The participants had formed the group to purchase a Uniswap V3 NFT.



Community Governance:



Another essential part in which DAO might assist NFTs is community governance. DAOs are an excellent way for fans and developers of an NFT venture to collaborate and determine the project&#8217;s fate. Many NFT initiatives have indeed formed Decentralized Autonomous Organizations.



NFT Creator Collectives:



Significant community support is required for the success of an NFT initiative. Community development is a piece of cake for well-known artists and entertainers who already have a fan base. However, the same is not the scenario for growing artists. Here, NFT creator collectives managed by DAO come into the scenario. Essentially, this group of NFT developers assists with fundraising, advertising, community development, and other activities.



Generally, creators require to trade their NFT to the DAO in return for the DAO&#8217;s tokens. The NFTs serve as security for the produced tokens and provide token value. Token holders also have the right to vote in the company.&nbsp;



<h2>List of Popular NFT DAO</h2>



Let&#8217;s dive into some of the most populous NFT DAO:



APE DAO:



This NFT DAO was founded by Bored Apes collector Kylo. eth. To launch this DAO, they fragmented 49 BAYC NFTs along with a female CryptoPunk into 1,000,000 APED tokens. This allows anybody to own a piece of such highly desirable NFTs. Soon after, other NFTs were contributed, including CyberKongz, Avastar, and others. Moreover, the DAO is governed by the user via $APED shards.



Jenny Metaverse DAO:



Jenny Metaverse DAO, built on the Unicly network, purchases NFTs and deposits them in a vault. Furthermore, the NFTs are represented by the native uJENNY currency. Along with WHALE, token holders have governance powers and may vote on issues like freeing NFTs from the vault, <a href="https://upyo.com/en/post/how-to-buy-nft">purchasing NFTs</a>, etc.



Flamingo DAO:



Flamingo DAO grows DAO money primarily by researching potential blockchain investment possibilities. As per the saying that blockchain collectors are the latest curators and investors, Flamingo DAO feels that making a move towards research on digital property proprietorship will play a vital role. This will help establish a distinct and unexplored online content market and consumption technique.



Flamingo DAO aims to gain a foothold in the digital economy, particularly the lucrative blockchain art sector that has lately emerged. Members of Flamingo DAO can combine personalized NFT resources into the DAO economy, allowing them to receive credit lines guaranteed by digital content.&nbsp;



Furthermore, as a part of the DAO, traders may take advantage of several benefits. For instance, people can showcase their NFT in the DAO Digital Gallery, keep the non-fungible token in the DAO vault for optimal protection, divide it, or utilize it as protection in other DeFi platforms.&nbsp;



<h2>Future of the Decentralized Autonomous Organization</h2>



What more is going to happen in the future for the DAO? The DAO had not come back to its former position as of mid-2020. Nevertheless, there is an outstanding deal of interest in new decentralized organizations as a whole.&nbsp;



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="683" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/90449-1-1024x683.jpg" alt="" class="wp-image-378" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/90449-1-1024x683.jpg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/08/90449-1-300x200.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/90449-1-768x512.jpg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/08/90449-1-1536x1024.jpg 1536w, https://adminblog.upyo.io/wp-content/uploads/2022/08/90449-1-2048x1366.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Blue social network technology icons background vector</figcaption></figure>



In the year 2021, The Maker Foundation, the initial promoter of DAO and a cryptocurrency business icon, stated that it was handing over activities to MakerDAO and would disband by the year-end.



While there are several unanswered questions and possible challenges with law, safety, and structure, some experts estimate that this sort of organization could eventually gain traction, maybe even substituting traditionally established organizations.



<h2>Conclusion</h2>



DAO was an early concept and endeavor that fostered the growth and success of the blockchain sector using the smart contract architecture. As the popularity of NFT is no sooner going to slow down, traders are giving their full attention to NFT arts with collectible value. Moreover, the DAOs created to invest in NFTs have also elevated like never before.



It is expected that the NFT-run DAO would undoubtedly bring in more advancement in the future. The DAO community will also nurture more diversified types of business and success, opening up unanticipated development potential for NFT in the long run. We&#8217;ll all have to wait and watch.

Understand DAO NFT and DAO Relation with NFT

It&#8217;s an exciting time to invest in NFTs. Although non-fungible tokens were virtually unknown until two years back, now they have become the talk of the town. If you&#8217;re interested in investing in NFTs and want to know how to do it, this guide is for you.



<h3>Should you be investing in NFTs?</h3>



NFT is part of the larger crypto market, and it&#8217;s still an evolving domain. Over the years, the apprehension surrounding cryptocurrency and decentralized financial systems has faded. However, NFTs are still new, so the general awareness is relatively low. Indeed, it has gained much traction in just two years, but its future is still uncertain.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="735" height="417" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/NFT-Market-Value-Logo.jpg" alt="Invest NFT" class="wp-image-359" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/NFT-Market-Value-Logo.jpg 735w, https://adminblog.upyo.io/wp-content/uploads/2022/08/NFT-Market-Value-Logo-300x170.jpg 300w" sizes="(max-width: 735px) 100vw, 735px" /></figure>



Since the value of NFTs is subjective, much like art, it&#8217;s difficult to predict how the future will take shape. Moreover, there isn&#8217;t enough history to provide sufficient data to extrapolate its growth. There is no denying that NFTs are a risky investment as these tokens are subject to market volatility.



Hence, investing in an NFT is ultimately a personal choice. For opportunistic investors or enthusiastic collectors who want to own a rare piece of digital art, it makes sense to invest in NFTs. The nature of NFTs guarantees that there can never be any duplicates or reiterations of the digital asset. However, NFTs are not without scams or fraudulent practices. It takes due diligence on the buyers&#8217; part to ensure that they are buying an authentic digital asset and not a dupe.



New practices <a href="https://upyo.com/en/post/nft-staking">like NFT staking</a>, farming, and renting are bringing more opportunities for creators and buyers. These practices enable investors to earn incentives without selling their NFTs. The capital gains on NFTs are prone to fluctuations because the market is mainly speculative in nature.



It&#8217;s crucial to understand that not every NFT will be a million-dollar investment. Some may appreciate in value, while others depreciate over time. Trading a popular NFT for a higher price is not that difficult. However, to maximize your ROI, you have to choose carefully and know how to tap into the true potential of these non-fungible tokens.



With everything said, NFTs in their current state are a hot commodity that is worth investing in. However, you should always do your research, be aware of the risks, and keep track of all developments in order to make higher capital gains from NFT sales.



<h3>How to invest in NFTs?</h3>



An NFT can be a digital representation of any physical item. It can be a piece of art, real estate, music video, or even a GIF. These digital assets can be bought and sold at any verified NFT marketplace.



NFT marketplace operates like a stock exchange platform wherein investors can sell their assets or buy new collectibles through cryptocurrency payment. Therefore, these platforms operate much like a stock exchange, but instead of stocks, they trade in NFTs.



like UPYO which is considered to be the <a href="https://upyo.com/en/nft">first and largest Arabic Platform</a> for trading in NFTs.



To invest in NFTs, you need three essential elements: A crypto wallet service.Cryptocurrencies.NFT marketplace.



Most of the NFT platforms today support Ethereum blockchain. Hence, you will need a digital wallet that supports Ethereum and some ether (the native token of Ethereum) to buy new NFTs. However, other options are out there that support other blockchains like Binance Smart Chain, <a href="https://polygon.technology/" rel="nofollow">Polygon</a>, Tron, Polkadot, Tezos, EOS, Cosmos, etc.



Depending on which marketplace you choose, you will need to find a wallet compatible with the platform and buy tokens from a blockchain supported by the platform.



Follow the steps below to invest in an NFT:



Create a digital wallet:



You need a digital wallet to carry out different types of crypto transactions. Whenever you’re buying or selling an NFT, a functioning crypto wallet is mandatory. Some wallets have the feature to store NFTs in addition to your cryptocurrencies. Know how to create a Metamask wallet from here.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1000" height="420" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/Metamask-With-Logo.jpg" alt="metamask wallet" class="wp-image-360" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/Metamask-With-Logo.jpg 1000w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Metamask-With-Logo-300x126.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/Metamask-With-Logo-768x323.jpg 768w" sizes="(max-width: 1000px) 100vw, 1000px" /></figure>



Moreover, specific digital wallets support only one blockchain while others support multiple blockchains. The best digital wallet services in the market today include: MetaMaskCoinbase WalletAlphaWalletMath WalletTrust WalletEnjin Wallet



Each of these wallet services has its advantages and disadvantages. While shopping for a crypto wallet, you must choose wisely. Some features to look for when finding wallet services are:



Security- A digital wallet must have robust security measures to protect your crypto tokens and assets. Therefore, top security features are one of the most important aspects when selecting a wallet. Digital wallets with a two-step verification process offer superior protection in comparison to the basic verification process.



User-friendliness- A user-friendly interface is always a bonus as it enhances the customer&#8217;s overall experience. An optimized user interface can be the difference between enjoying the wallet service or abandoning it altogether. A good wallet service is one that is feature-rich in addition to being easy-to-use.



Multi-currency support- It&#8217;s always better to opt for wallet services that support multiple cryptocurrencies. These wallets enable you to buy different blockchain tokens, thus allowing you to invest in diverse NFTs across multiple NFT marketplaces.



Cross-device functionality- One characteristic to look for when shopping for a digital wallet is cross-device functionality. A wallet that is supported on multiple devices enhances accessibility and customer experience. A multiple platform wallet service can be easily accessed through a mobile device or tablet, allowing users to purchase NFTs from any device, anywhere, at any time.



To set up your wallet, you need to go to the wallet application and select the &#8220;Create a Wallet&#8221; option. Upon clicking the &#8220;Create&#8221; button, you will have to update personal details like username, email address, password, phone number, etc. Once all details are provided, you will receive a &#8220;Seed Phrase,&#8221; which is a random 12 alphanumeric phrase.



The seed phrase enables you to recover your account if you lose your password. Hence, you must store the seed phrase securely, as losing it will prevent you from accessing your account in the future. Follow all the prompts on the screen and accept the terms of service to set up and activate your wallet account. After these steps are completed, your wallet will be ready for buying, selling, transferring, and storing digital coins and currency.



Buy cryptocurrency:



Once your wallet is set up, you need to transfer funds to operate it. You have the option of buying cryptocurrency directly from the wallet or buying it from a crypto exchange platform. Purchasing digital coins from wallet services has higher transaction fees. It&#8217;s best to buy cryptocurrency from an exchange platform and transfer the tokens to your wallet. You will need sufficient cryptocurrency to pay the various platform and gas fees.



Select an NFT marketplace:



The next step is to review and choose an NFT marketplace. Many new NFT platforms have entered the market in the last two years. Each platform has unique collections of NFTs; some offer a variety of categories while others specialize in a single type of NFT.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="652" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/upyo-1100x700-1-1024x652.jpeg" alt="UPYO For Invest NFT" class="wp-image-361" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/upyo-1100x700-1-1024x652.jpeg 1024w, https://adminblog.upyo.io/wp-content/uploads/2022/08/upyo-1100x700-1-300x191.jpeg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/upyo-1100x700-1-768x489.jpeg 768w, https://adminblog.upyo.io/wp-content/uploads/2022/08/upyo-1100x700-1.jpeg 1100w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Moreover, these marketplaces have different features and incentives. So, research and analyze them before selecting one platform.



The critical thing to look for when choosing an NFT marketplace is the blockchain networks and wallet services it supports. Your digital wallet must be supported by the marketplace so that you can carry out transactions. So, always check whether your wallet service is compatible with the platform of your choice.



The majority of marketplaces available online support Ethereum based NFTs; however, there are few that support other blockchains as well. Moreover, other components such as security features, platform fees, user interface, etc., should be considered when choosing an NFT marketplace.



Pick an NFT to buy:



After you have selected a marketplace, it&#8217;s time to review the collection and pick an NFT to invest in. Selecting an NFT will take research and scrutiny on your part as an investor. You need to have a comprehensive knowledge of the market trends, knowledge of NFT drops, famous artists, trending NFT categories, sought-after digital items, etc., to make a sound investment.



On most platforms, you will find top-rated collections from popular companies and solo artists as a dedicated section. You can choose one digital asset that matches your taste. The safer bet is to always invest in unique pieces from well-known creators, as these will likely appreciate over time and have a higher resale value.



Pay the asking price:



Creators might choose to sell their NFT collection directly or through an auction. You can click on the &#8220;Buy&#8221; option for a direct sale and pay the price through your wallet. If the NFT is being sold in an auction, you must place a bid to purchase the NFT.



The auction can be limited or unlimited. The difference between both is that limited auctions are time-bound, whereas unlimited bids are open-ended. In limited auctions, the auction ends when the timer runs out. On the other hand, in an unlimited auction, bids are allowed till the owner chooses to accept one. Such auctions have no time limits.



To submit a bid, you have to enter the amount of cryptocurrency you wish to spend on the NFT. Keep in mind that your offer must be equal to or higher than the reserve price. If your bid is approved, you must transfer the agreed amount to the original owner.



When the transaction is completed, it will automatically reflect on your wallet. After the transaction, you will become the sole owner of the NFT. You may either retain the NFT or sell it for a profit.



Here is how you can invest in an NFT from UPYO: Connect your crypto wallet to UPYO. Select an NFT from the platform. If it&#8217;s a direct sale NFT, click the &#8220;Buy&#8221; button. If it&#8217;s an auction, place a bid. Enable the transaction from your wallet. If you win the auction, NFT will be transferred to you. Check your UPYO collection and wallet to verify that the new NFT has been added.



How to incentivize NFTs?



One of the obvious ways to earn money through NFTs is to sell or trade them. However, there are other ways to incentivize NFTs without selling them. Here are four ways to earn passive income from your NFTs:



NFT Staking:



NFT staking allows users to safeguard the blockchain network in return for earning incentives for participating. While some staking platforms let you use a variety of NFTs, others require you to buy native NFTs in order to gain token payouts.



NFT holders can deposit or lock up their NFTs on specialized platforms and get rewards based on the annual percentage yield (APY) and the number of NFTs staked. It&#8217;s vital to remember that not all NFTs can be staked for rewards. However, for those NFTs that can be staked, owners can earn different incentives, including tokens, new NFTs, fiat money, airdrops, etc.



Part of the benefits of NFT staking is that it provides stakeholders governance tokens in some instances. These protocols provide token holders voting rights over how their ecosystems grow in the future. Coins or tokens obtained through staking NFTs may often be reinvested into other yield-generating protocols.



NFT Renting:



Renting out NFTs, especially ones in great demand is another method to generate passive revenue. Some card trading games enable players to borrow NFT cards to increase their chances of winning. Emerging platforms like ReNFT, Vera, and Trava allow users to rent or lend NFTs to earn passive income.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="772" height="429" src="https://adminblog.upyo.io/wp-content/uploads/2022/08/ReNFT-Logo.jpg" alt="NFT Renting" class="wp-image-362" srcset="https://adminblog.upyo.io/wp-content/uploads/2022/08/ReNFT-Logo.jpg 772w, https://adminblog.upyo.io/wp-content/uploads/2022/08/ReNFT-Logo-300x167.jpg 300w, https://adminblog.upyo.io/wp-content/uploads/2022/08/ReNFT-Logo-768x427.jpg 768w" sizes="(max-width: 772px) 100vw, 772px" /></figure>



Usually, NFT customers have the choice to select their chosen rental agreement period and NFT leasing rate. In NFT renting, smart contracts manage the parameters of the arrangement between the two parties involved. These contracts include pertinent information such as the rental period, expiration details, requisite collateral, and other terms and conditions.



The smart contract runs its cycle and returns the NFT to its original owner when the contract expires. The collateral is subsequently returned to the borrower at the end of the NFT loan period.



Owners and creators may put their assets to work by activating NFT lending and borrowing capabilities. Furthermore, with the advent of new collateral-free NFT rentals, owners can rest assured that their original asset is protected in a smart contract rather than in the hands of the borrower.



NFT Royalties:



The advantage of NFTs is that it allows creators to determine royalty percentage if their original asset is resold on secondary marketplaces. A certain percentage of the overall cost is transferred to the original owner whenever the asset is sold. In other words, recursive selling will help owners earn money in the form of royalty.



Most marketplaces enable creators to set the royalty percentage (usually up to 10%). For example, if a user mints an NFT art and lists it on the marketplace at a 10% royalty fee, they will always get 10% of every transaction that involves the specified art. This is the creation and maintenance of an environment that allows individuals to benefit from the crypto ecosystem.



NFT-based Yield Farming:



Yield farming, also known as liquidity mining, generates a return on digital assets by securing them as a stake or deposit in a DeFi trading or lending pool to serve as a liquidity provider. Yield farming essentially integrates several DeFi protocols to create the maximum potential yield from different types of digital assets.



In the DeFi markets, &#8220;NFT farming&#8221; is a new means of making money. NFTs may be used to earn tokens, providing usefulness and increasing liquidity for non-fungible digital assets. NFT farming is now most common in blockchain games, where players stake in-game items and collectibles in exchange for tokens or vice versa.



Axie Infinity is a blockchain-based game that includes NFT farming. Players gain SLP tokens in this Ethereum-based game, which they can then use to create new Axies and mint NFTs. Other examples include Aavegotchi, Mobox, and SuperFarm, which offer NFT farming to their users.



Conclusion



NFTs are popular because they provide a unique opportunity for creators to earn money and also give investors the sense of owning a valuable piece of digital work. These distinct characteristics of NFT make it a desirable collectible for many.



Everyone is creating or investing in NFT assets, from celebrities to big companies. While it is unlikely that NFTs will replace traditional assets like equity, real estate, gold, debt, etc., they are an excellent investment for short-term capital gains.

A Complete Step-by-Step Guide on How to Invest in NFTs

The conversation around NFTs is dominating the digital world. The buzz around these non-fungible tokens has prompted many to consider turning their artwork into digital assets and selling them to investors. Many NFTs have fetched incredible money from their auctions or direct sales just last year. From trading cards to digital paintings, the possibility of turning a file into a desirable digital asset is genuinely endless.



More and more artists, creators, and designers are considering selling NFTs to gain recognition in the digital space and earn money. The unique digital signature of NFT guarantees that the specific artwork cannot be replicated or replaced. This rarity, in turn, makes NFTs incredibly desirable to collectors and investors.



If you want to jump on the NFT craze and build a new revenue stream for yourself, you need to know the steps involved in selling an NFT. This UPYO blog post will give you a comprehensive outlook on how to sell your NFT in a step-by-step process.



<h2>How to sell an NFT?</h2>



Even before you consider selling an NFT of your creative work, you must understand what NFTs is and how they work. Without a basic understanding of the technology behind this trend, you will have difficulty turning a profit on your digital art. Take the initiative to learn about different blockchains, marketplaces, market volatility, minting fees, and other aspects of NFT.



Sit and think about what type of digital asset would highlight your creativity the best while fetching you the highest market price. The more well-informed you are about the current trends in the NFT space, the more likely you will be able to sell one profitably.



Remember, not all NFTs are Beeple&#8217;s masterpieces. The reality is that most creators face difficulty in attracting investors. Unless you have something of value, you will not fetch sufficient eyeballs for your NFTs or receive a reasonable price for your creative efforts.



<ul>
<li>Create a digital artwork:</li>
</ul>



If you want to sell an NFT, the most important thing you need is a digital asset. It can be anything- a painting, song, sports memorabilia, meme, or even a GIF. Moreover, the digital asset can be created in any format (JPEG, PNG, GIF, MP3, or other digital formats).



The more rare and unique your digital asset is, the more valuable it will be. You have to ensure that you have intellectual property rights to the artwork you want to convert into an NFT. Failing to validate your ownership can land you in legal trouble.



<ul>
<li>Select your marketplace:</li>
</ul>



To sell your NFT, you need an NFT marketplace. These marketplaces operate similarly to Amazon, where sellers display, price, and sell their products on the platform. You have tons of marketplaces to choose from but remember that not all marketplaces are the same.



Different platforms have different minting fees. While some charge one-time minting fees for NFTs, others charge for every minting that takes place on their platform. So review as many NFT marketplaces as possible before deciding on the most appropriate platform for your needs. While you have a plethora of options, it&#8217;s important to consider the following:



<ul>
<li>The token standard- The token standard for different platforms varies. Each token has specific characteristics with its own set of advantages and disadvantages. The most prevalent crypto tokens are ERC-721, ERC 998, ERC 1155, and FA2 Token. Review all the tokens and choose one that complements your requirements.</li>
</ul>



<ul>
<li>Network security- Hackers and cybercriminals are always looking to con innocent creators and investors. Choose a marketplace that has a solid verification process that ensures only original proprietors can access their accounts at a time. Moreover, a marketplace&#8217;s security system should be strong enough to prevent scrupulous users from scamming buyers and sellers.</li>
</ul>



<ul>
<li>Price discovery- It&#8217;s essential to check whether a marketplace has a price discovery feature. This feature enables users to estimate the right selling price of an NFT that would attract the most buyers. Such a feature also facilitates better decision-making when spending money on any crypto collectibles.</li>
</ul>



<ul>
<li>Wallet compatibility- You have to check whether the marketplace of your choice supports your digital wallet. It&#8217;s better to select a platform that supports multiple wallets. Wallet integration is an essential step in minting an NFT. Hence, an NFT marketplace should have a user-friendly interface and seamless integration that warrants a good customer experience and the safety of your crypto wallet.</li>
</ul>



<ul>
<li>Token fractionalization- Token fractionalization enables the democratization of ownership. The process allows investors to purchase a stake in highly prized NFT collectibles. Therefore, they can become part-time owners without shelling out too much money. Token fractionalization can be helpful for both sellers and buyers, making NFTs more accessible to the masses. Check whether the marketplace of your choice allows token fractionalization or not.</li>
</ul>



Incentives- Many marketplaces offer other incentives to their users, including referral bonuses, discounts, or profit-sharing. Evaluate the lucrative incentives that each marketplace has to offer before finalizing a platform. These incentives can greatly reduce your capital investment and improve your profit margin.



<h2>Buy some cryptocurrency:</h2>



Before you can sell an NFT on a marketplace, you need cryptocurrency to pay an upfront fee to the marketplace to mint your NFT. Therefore, you need some cryptocurrency in your balance to pay the charges. What the minting process does is convert your digital file into a unique token that&#8217;s irreplaceable on the blockchain. For minting an NFT, marketplaces will charge you a certain fee. The minting fees vary depending on which platform you choose.



Ethereum is the most popular blockchain for creating NFT platforms. Hence, it’s a safe bet to buy ether since almost all marketplaces accept it for transactions. To buy ether or any other cryptocurrency for that matter, you must set up a crypto exchange account. Many platforms are now accepting other blockchains for NFT payments besides Ethereum. These include the following:



<ul>
<li>Binance Smart Chain</li>



<li>Tron</li>



<li>Polkadot</li>



<li>Tezos</li>



<li>EOS</li>



<li>Cosmos</li>



<li>Flow by Dapper Labs</li>



<li>WAX</li>
</ul>



Before you go ahead and buy some cryptocurrency, check which blockchain is supported in the NFT marketplace of your choice. If the marketplace does not support the specific blockchain, your cryptocurrency won&#8217;t work on that platform.



<ul>
<li>Create a digital wallet:</li>
</ul>



Now that you have cryptocurrency in your hands, you need a digital wallet to use this digital capital for transactions. Your digital wallet acts as the bank account where you store all your crypto tokens. You can choose from the following wallets:



<ul>
<li>MetaMask</li>



<li>Math Wallet</li>



<li>AlphaWallet</li>



<li>Trust Wallet</li>



<li>Coinbase</li>
</ul>



The most widely used crypto wallet is MetaMask. The MetaMask wallet has both a browser extension and an app. Setting it up is a straightforward process. You can go to the MetaMask website and click on the &#8220;Download&#8221; button.



Once it&#8217;s downloaded, you&#8217;ll be asked to confirm if you want to &#8220;Create a Wallet and Seed Phrase.&#8221; When you click &#8220;Yes,&#8221; you will be prompted to accept the terms and conditions and create a password. After that, you will be provided a &#8220;Seed Phrase,&#8221; a unique 12-word backup phrase that you need to write down.



The seed phrase enables you to recover your account if you lose your password. Alternatively, anyone who has access to this seed phrase can take control of your funds. So, remember to store the seed phrase safely. Once all security steps are ticked off, your MetaMask wallet will be up and running.



<ul>
<li>Add cryptocurrency to the wallet:</li>
</ul>



When your wallet is set up, transfer cryptocurrency to your wallet. Ether is the most widely accepted cryptocurrency. However, you can choose any cryptocurrency compatible with your chosen NFT marketplace.



Some wallets like Metamask give you the opportunity to buy cryptocurrency directly from their platform. However, buying directly from MetaMask has higher fees than general crypto exchanges.



<ul>
<li>Connect the digital wallet to the NFT marketplace:</li>
</ul>



Once you have set up your crypto wallet and decided on an NFT marketplace, it&#8217;s time to integrate the wallet into the NFT platform. The process for connecting the wallet will essentially remain the same for all platforms.



Ideally, you will find a &#8220;Connect Wallet&#8221; option on the website. Click on the button and follow the prompts accordingly. Once you confirm your age and agree to the terms of service, your account will be set, and you&#8217;re good to go.



<ul>
<li>Upload the digital file to the marketplace:</li>
</ul>



Now that you have cryptocurrency in your wallet, you are prepared to buy or sell any NFT collections on the marketplace. Whichever marketplace you choose, you will find a &#8220;Create&#8221; button at the top of the website. Click the button, and you will be provided with the option to create a single digital file or sell the same file on the marketplace.



Select the &#8220;Upload&#8221; option on the platform to convert your asset into an NFT. Once you upload the file (PNG, WEBP, GIF, MP3, MP4, or any other file), you will be able to preview your digital asset before publishing it online. Before uploading the file to the marketplace, you will also have to add information regarding the digital asset, including name, description, and royalty percentage. After the entire uploading process is complete, your digital artwork will be available for public view on the marketplace.



<ul>
<li>Select a pricing strategy for the NFT:</li>
</ul>



To sell your NFT, you have to select a pricing strategy for it. You can either set up your NFT collectible for auction or put it for sale at a fixed price. You can choose one of three options for selling your NFT:



<ul>
<li>Fixed Price- The fixed price option allows you to sell your NFT for a specific rate. The price tag of your NFT is entirely at your discretion. However, many platforms have a &#8220;Price Discovery&#8221; feature that sellers can use to set the price for their digital artwork.</li>



<li>Unlimited Auction- An unlimited auction allows interested buyers to place bids on your NFT. You can carry on auction for an unlimited time period in this option. You can keep the auction open till you receive an appropriate bid for your NFT.</li>



<li>Limited Auction- Similar to unlimited auctions, the limited auction also allows you to receive bids from investors and buyers, but for a limited period only. After the clock expires, the auction closes for bids.</li>
</ul>



Deciding on a minimum price for your auction can be daunting. Given the high gas fees, you have to carefully evaluate your price tag to make a profit on the sale. At the same time, setting an exceptionally high price can make it difficult to attract prospective buyers. A higher asking price also deters investors from selling the NFTs on secondary marketplaces as it cuts down on their profit. This, in turn, lowers your chance of earning royalty in the future.



It&#8217;s really a balancing act to find the right price for your NFT. Once you set the price, you can now sell the NFT. Click on the&#8221; Sell&#8221; button to move forward with your sale. At this point, the marketplace will calculate the gas money that you owe. The gas money is different for each marketplace. Moreover, it is not a constant rate; instead, it fluctuates depending on the current state of the blockchain. For Ethereum, the gas price is typically higher on weekdays than on weekends. Therefore, you have to be aware of the changing value of your cryptocurrency.



<ul>
<li>Manage your NFT listing:</li>
</ul>



Uploading the digital asset, adding a description, setting the price, and paying the gas money completes the listing process. Now your NFT collections will be available for sale on the marketplace. You can promote your artwork on your social handles and website. This will help you attract more buyers.



When it comes to managing your listings, remember that anytime you make changes to your NFT (whether you cancel the listing from sale or remove it from the platform), you incur an additional fee. Also, when your NFT is sold, you will have to pay a commission fee to the marketplace for the associated sale. You can create new listings and keep adding them to your collection.



<h2>Where to sell an NFT?</h2>



If you are interested in selling digital artwork, UPYO is the perfect marketplace. We have a user-friendly process that allows our customers to create, buy, and sell unique NFTs. Our lazy minting feature makes it easy for users to convert their digital files into non-fungible tokens.



Here is how you can sell an NFT on UPYO:



<ul>
<li>Connect your wallet to UPYO.</li>



<li>Create a token (single or multiple).</li>



<li>Mint the token.</li>



<li>Create NFT.</li>



<li>Upload the digital file and fill in the details (name, description, and royalty).</li>



<li>Set the price for the NFT.</li>



<li>Set the type of NFT sale (fixed price or auction).</li>



<li>If you select the auction option, set bidding configuration (time, day, etc.).</li>



<li>Pay the fee and accept the terms &amp; conditions.</li>
</ul>



For those wondering if it&#8217;s possible to sell an NFT for free, the simple answer is no. Many marketplaces allow free minting or only charge one-time minting fees. However, sellers still have to pay a commission fee to the platform. This commission rate varies depending on the marketplace.



In some platforms, the commission fee is levied to both buyers and sellers, while others charge the fee only to the buyer or seller. At UPYO, the commission fee for a sale is 2.5% of the overall price. This commission fee is paid by the seller only.



<h2>Wrapping Up</h2>



Selling an NFT can have significant costs associated with it. You have to pay for the minting and sale of your digital artwork. These transaction fees can add up quickly, and if you price your NFT too cheaply, you will not be able to make a profit. Moreover, cryptocurrency is a volatile market. It&#8217;s constantly shifting, and there are fluctuations each day. That&#8217;s why it&#8217;s essential to keep track of the latest trends in the NFT space if you want to make an informed decision.



Although NFTs are selling like hotcakes right now, dealing with non-fungible tokens has certain risks. When dealing with NFTs, it&#8217;s essential to ensure that the listings are closed on the blockchain. Additionally, owners who forget to cancel their smart contracts properly end up losing money because they have to sell their collectibles for a lower price. The market is saturated with scammers and hackers, even on the most secure servers and platforms. Therefore, one should always trade carefully and analyze all the pros and cons before jumping on the NFT art craze.

A Guide on How to Sell an NFT

NFTs can be the digital version of any tangible asset. It can be a painting, meme, music, or virtual fashion- the possibility is endless. People are fascinated by the idea of creating or owning a virtual asset that could be worth millions of dollars. NFT sales in the year 2021 reached $25 billion.



Collections like CryptoPunks, Bored Ape Yacht Club, Doodles, Cool Cats, Art Blocks, and more have fetched considerable money in their sale. Buying an NFT is a great investment opportunity for interested individuals. The hype around non-fungible tokens is unlikely to die down soon. Follow our guide to learn how to invest in NFTs.



<h2>Pre-Requisites of Buying an NFT</h2>



To invest in an NFT, you need cryptocurrency to pay for the asset. You can buy cryptocurrencies from the numerous crypto exchanges available online. See the steps below to set up your crypto exchange account to buy ether or altcoins:



Select a crypto exchange platform:



A crypto exchange is an application that allows you to buy, sell, and exchange cryptocurrencies. You can use this cryptocurrency account to buy and sell crypto tokens or convert them from one blockchain to another (e.g., Ether to Dai or vice-versa).



You may also exchange crypto tokens for fiat money. Selecting a crypto exchange requires diligence and careful consideration. Different crypto exchanges have different security measures and fee structures.



So you have to ensure that the platform you choose guarantees affordability as well as the safety of your digital currency. It&#8217;s essential to evaluate the features and offers of all crypto exchanges before settling for one.



Most popular crypto exchange platforms include:



<ol>
<li>Coinbase</li>



<li>Binance</li>



<li>Kraken</li>



<li>eToro</li>



<li>Gemini</li>



<li>CoinEgg</li>



<li>Crypto.com</li>



<li>Set up your crypto exchange account:</li>
</ol>



You have to go to the crypto exchange website and fill up details on their &#8220;Create an Account&#8221; page to set up your account. You have to submit details like your email address, username, and password. Next, you must complete the KYC process to verify your details and establish your exchange account. For the KYC, you may need to upload documents for proof of identification (e.g., driving license or passport) and address (e.g., utility bills or bank statements).



<ul>
<li>Make a deposit:</li>
</ul>



Once your crypto exchange account has been set up, you need to make a deposit first. The minimum deposit amount varies from platform to platform. By paying a deposit fee, you&#8217;re essentially funding your account.



After funding, you still have to convert your money to buy cryptocurrency. Most crypto exchange platforms allow you to connect your bank account or debit/credit cards with it. Therefore, you can pay all the fees to the platform through a bank transfer or card payment.



There are different types of platform fees that a user has to pay in order to use a crypto exchange account. As a user, you should be aware of the different types of fees that can be levied on your account.



<ol>
<li>Trading fees- Trading fees refer to the amount of money a user owes to the crypto exchange to transfer funds to and fro from their exchange accounts. The trading fees depend on the trading volume. Generally, these platforms charge 0.20% on average. While some exchanges charge a fee for every transaction, others charge based on a combination fee schedule.</li>



<li>Deposit or withdrawal fees- Crypto exchanges charge their users a deposit or withdrawal fee. The deposit fee represents the amount a user has to pay to add money into their crypto account. This deposit fee is directed towards the payment gateway. A deposit fee is less common than withdrawal fees.</li>
</ol>



As for withdrawal fees, some crypto exchanges charge a flat fee regardless of the amount withdrawn, while others charge a dynamic fee depending on the country, amount, and type of withdrawal (crypto or fiat).



3. &nbsp; Liquidation fees- &nbsp;Liquidation fees are the additional amount levied to users who borrow funds from the platform. Crypto exchanges enable their users to acquire additional altcoins at an interest rate determined by the availability of supply funds. Moreover, if you&#8217;re on a low-volume exchange, you may pay a different amount than you expected if your acquisition doesn&#8217;t go through until the price has gone back up.



<ul>
<li>Place an order to buy cryptocurrency:</li>
</ul>



Once you pay the deposit fee (if there is any) and add funds to your account, you can now place an order for either or altcoins. On some exchange platforms, you can directly enter the amount of money you wish to trade for cryptocurrency and pay the current rate to purchase the tokens. &nbsp;



You can either place a market order or limit your order depending on which platform you choose. A market order indicates that the user wants to buy cryptocurrencies at the current market price. Alternatively, a user can place a limit order if they wish to pay a specific price for the altcoin. The cryptocurrency will be automatically purchased once it reaches that price level.



<h2>How to Buy an NFT Online?</h2>



<ul>
<li>Set up your crypto wallet:</li>
</ul>



You need a digital wallet service to conduct crypto transactions. The digital wallet is where you store your cryptocurrency. In certain wallet services, you can also securely store your NFTs. There are many digital wallet services in the market, including:



<ol>
<li>MetaMask</li>



<li>Coinbase</li>



<li>Math Wallet</li>



<li>AlphaWallet</li>



<li>Trust Wallet</li>



<li>Enjin Wallet</li>
</ol>



Setting up a digital wallet is a straightforward process. Most cryptocurrency wallet services either have a web extension, mobile app, or both. You can go to the application and click on the &#8220;Create a Wallet&#8221; option. When you click on the button, the application will ask you to provide and verify basic details such as username, email address, phone number, password, etc.



After accepting the terms of service, the wallet application will provide you with a &#8220;Seed Phrase.&#8221; The seed phrase is a backup phrase that helps you recover your account if you forget your password. It is imperative to keep your seed phrase safe, as losing it will prevent you from accessing your account and funds. Once you follow all the instructions, your digital wallet will be ready for operation.



<ul>
<li>Transfer funds to your wallet:</li>
</ul>



Your digital wallet is ready to receive crypto tokens. You can buy cryptocurrency from the crypto exchange and transfer the funds to your digital wallet. You also have the option to buy tokens directly from the wallet. However, the transaction fees will be higher in this case.



The crypto exchange will ask you to add your wallet address when transferring funds to your digital wallet. The wallet address is a unique alphanumeric phrase similar to a bank account number. You can click on &#8220;Send,&#8221; and the exchange platform will send the token to your wallet address. Once the tokens reflect in your wallet, you are ready to make transactions.



<ul>
<li>Choose an NFT marketplace:</li>
</ul>



There are tens of NFT marketplace available online. Each marketplace has its own incentives, minting fees, commission charges, and featured NFT collections. Some marketplaces specialize in one category of NFTs, while others offer a wider variety of options.



When selecting an NFT marketplace, consider the following:



<ol>
<li>Blockchain network (Ethereum, Binance, Polygon, etc.).</li>



<li>NFT collections.</li>



<li>User-friendly interface and advanced search options.</li>



<li>Transaction fees, tax, and other charges.</li>



<li>Wallet compatibility.</li>



<li>Cross-device functionality.</li>



<li>Network security.</li>
</ol>



You should compare the benefits and disadvantages of each marketplace. Consider every element on the list above and select one marketplace that checks all the boxes and fits your precise needs.



<ul>
<li>Connect the wallet to the marketplace:</li>
</ul>



After choosing an NFT marketplace, you have to connect your crypto wallet to the marketplace. Every marketplace will have a &#8220;Connect Wallet&#8221; option on its platform. Click on the tab and accept the following prompts. Once the wallet is connected to the marketplace, you can start buying or selling NFTs on the platform.



<ul>
<li>Decide on an NFT to invest in:</li>
</ul>



Most NFT marketplaces will have top NFT collections or trending NFTs to buy sections on their dashboard. You can scroll through and review their offerings to find something you like. It&#8217;s best to invest in pieces that are rare, popular, or currently going viral. These digital assets will likely grow in value and have a higher resale price on secondary marketplaces. Moreover, choose works from well-known and reputable NFT artists to ensure that your investment appreciates in the future.



<ul>
<li>Pay the selling price or place a bid:</li>
</ul>



Creators have the option to put their NFT collection for a direct sale or an auction. You should check whether the NFT you chose is up for sale or an auction. If it&#8217;s a direct sale, you can pay the asking price, which will be deducted from your wallet.



If it&#8217;s an auction, you have to bid to buy the NFT. The auction may be limited or unlimited. In limited auctions, bids are accepted for a specific time period. Once the time is over, the auction closes. In unlimited auctions, bids are allowed until the owner accepts an offer. There are no time limitations in this auction.



To place a bid, click on the &#8220;Make an Offer&#8221; button and mention the cryptocurrency amount you want to buy the NFT for. Remember that your bid has to meet or exceed the reserve price. If your bid gets accepted, you will have to transfer the agreed amount to the owner of the NFT.



<ul>
<li>Complete the transaction:</li>
</ul>



If your bid for the NFT is the highest at the end of the auction and is higher than or equal to the reserve price, the transaction will be completed automatically by the NFT marketplace. In certain circumstances, regardless of when the auction is set to expire, the seller can accept your bid at any moment. You acquire exclusive ownership of the digital asset after completing the transaction. You may either hold on to the NFT until it sells for a profit or keep it as part of your one-of-a-kind personal NFT collection.



<h2>Where to Buy an NFT Online?</h2>



You can buy NFTs from any verified NFT marketplace. UPYO is a verified top NFT marketplace that enables people to buy, sell, and trade in all types of NFT. Whether you want to buy sports collectibles, art, music videos, or game items, UPYO gives you access to the best NFTs from top creators of the industry.



<h3>Here is how you can buy an NFT from UPYO:</h3>



<ol>
<li>Connect your crypto wallet to UPYO.</li>



<li>Select an NFT from the platform.</li>



<li>If it&#8217;s a direct sale NFT, click the &#8220;Buy&#8221; button.</li>



<li>If it&#8217;s an auction, place a bid.</li>



<li>Enable the transaction from your wallet.</li>



<li>If you win the auction, NFT will be transferred to you.</li>



<li>Check your UPYO collection and wallet to verify that the new NFT has been added.</li>
</ol>



<h2>Pros and Cons of NFT</h2>



As with any investment, there are merits and demerits associated with NFTs. When it comes to purchasing and trading NFTs, there are several pros such as:



<ul>
<li>Physical valuables (such as paintings and property) have a long history of appreciation, and proponents believe that digital art might follow suit.</li>



<li>Investing in NFTs gives you access to a larger pool of buyers and sellers, helping build and connect a community of creative minds and collectors.</li>



<li>NFT artists can be compensated in the future depending on the usage and resale of their digital artwork using &#8220;smart contracts,&#8221; a series of programmed commands incorporated into the blockchain.</li>
</ul>



On the other hand, the downside of NFTs can be the following:



<ul>
<li>Because most NFTs are immobile assets that don&#8217;t generate any money on their own, subjective indicators such as buyer demand are used to determine their worth. Consequently, sky-high evaluations may not sustain indefinitely. As such, NFTs may lose significant value in the future.</li>



<li>Creating and selling NFTs is relatively expensive. The different fees, including gas money, minting fees, commission fees, etc., may quickly build up and exceed the NFT&#8217;s market worth.</li>



<li>NFTs and the blockchain technology on which they&#8217;re based have a substantial environmental cost because they consume an enormous amount of energy to make and validate transactions.</li>
</ul>



<h2>Should You Invest in NFTs?</h2>



NFTs are a worthwhile investment as evident by their growing popularity. But it&#8217;s important to acknowledge that they can be as risky and speculative as cryptocurrencies since they are prone to dramatic ups and downs. Now, more individuals are buying ether for NFTs, which may be an excellent thing for investors banking on long-term growth in the value of Ethereum.



The expenses for purchasing NFTs, however, are a significant disadvantage. For example, on Ethereum, you may have to pay a few hundred dollars merely to complete a transaction. Furthermore, gas fees (costs paid to miners for verifying a transaction on the Ethereum network) have risen significantly as the number of transactions on the Ethereum blockchain has increased due to the NFT explosion.



If you wish to acquire an NFT, do it in a risk-free manner by investing just what you&#8217;re prepared to lose. Just like one observes the stock markets, you should also keep an eye on the emerging trends on the NFT scene. Being an informed investor will help turn a profit while reducing your outcome for losses.



<h2>Future of NFT</h2>



The future of NFT extends beyond digital ownership. Today, NFTs are being used to buy digital real estate in virtual worlds and even own, license, and produce next-generation music. Some analysts believe that NFTs will provide access to special deals or limited-edition items in the future. Due to smart contracts, NFTs can continuously be tracked to their original owners. This creates the possibility for owners to earn royalties from secondary or tertiary sales.



One of the most exciting areas for NFT growth is the $85 billion video gaming industry. Gamers are already used to buying digital game assets as part of their collection. Therefore, NFTs have the potential to become invaluable digital collectibles for the approximately 3 billion members gaming community.



Besides that, other tech and non-tech companies have also begun selling or trading NFTs. These non-fungible tokens might serve as building blocks for a next-generation digital world such as the metaverse.



Moreover, governments and lawmakers are taking an interest in the NFT market. There will likely be more regulations and taxation surrounding NFT and cryptocurrencies in the future. We can expect crypto-focused frameworks to come up soon. These laws will protect consumers and investors while fostering technological innovation.

How to Buy NFTs? A Step-By-Step Guide

The new buzz in the NFT market is NFT staking. Staking an NFT enables investors to earn passive income in the crypto world. Let&#8217;s understand the staking process and how it can help you earn an income.



<h2>What is NFT staking?</h2>



The term NFT staking refers &#8220;to the exercise of locking up non-fungible tokens on a blockchain protocol or staking platform to earn rewards.&#8221; The process of NFT staking enables the user to secure the blockchain network and gain rewards in exchange for their participation. Staking happens to be a critical operation that enables a blockchain to process crypto transactions and stay secure.



NFT staking resolves one of the biggest challenges with NFTs- asset liquidity. Since NFTs are irreplaceable, selling them is a tricky endeavor. An <a href="https://upyo.com/en/post/how-nfts-create-value">NFT&#8217;s value</a> is subjective, which means that its net worth depends on what a particular individual is willing to pay for it. Alternatively, fungible tokens are considerably easier to trade since they have a defined market value, both in fiat currency and other cryptocurrencies.



Staking NFT tokens provides owners with a passive revenue stream without losing hold of their NFTs. Moreover, NFT staking provides liquidity to NFT owners. Rewards from staking are based on various characteristics such as the asset&#8217;s ability to generate passive revenue such as royalties.



Here is how NFT staking can be beneficial for investors:



<ul>
<li>Staking rewards- NFT staking rewards users for depositing or lending their NFTs. The rewards vary depending on the uniqueness and/or rarity of their NFT collection. They can be additional tokens, airdrops, fiat money, or other incentives. An owner can collect rewards up to 100% APY for loaning their non-fungible tokens to other users and encouraging them to join the liquidity pool.</li>



<li>New NFTs- Many platforms remunerate their users with brand new NFTs as an incentive for staking. The new NFTs may have other ownership benefits that users can enjoy.</li>



<li>Enhanced liquidity- The liquidity of these non-fungible assets improves due to NFT staking, which attracts additional investors to the liquidity pool.</li>



<li>Enhanced security- More users staking their NFTs contributes to the overall security of the blockchain. Thereby, staking improves the safety of the NFTs as well as the entire blockchain network.</li>
</ul>



<h2>How does NFT staking work?</h2>



NFT staking process is similar to crypto staking, wherein blockchain users utilize Proof-of-Stake protocols (PoS) as collateral to confirm and validate crypto transactions. Blockchains fundamentally rely on a global network of miners/validators to validate all transactions before adding them to a new blockchain block.



The blockchain network chooses validators based on the number of altcoins they promise to the blockchain network&#8217;s functioning. For contributing resources, validators receive various incentives. Whenever a new block is added to the blockchain, new tokens are created and distributed to validators as staking rewards.



The amount of staking incentive a validator receives is decided by several factors. This includes the number of coins staked, the time the validator has been actively staking, the total number of tokens staked on the network, the token&#8217;s inflation rate, etc. By staking their altcoins and becoming validators, token holders may put their idle crypto coins to work in return for rewards.



Anyone can stake their coins while keeping control of their assets. They can opt-out of the staking pool at any time, as long as they follow the blockchain protocol&#8217;s limits and regulations. The staking process keeps the protocols secure while also validating crypto transactions. Considering that NFTs are tokenized digital items, they can be staked through the same process.



NFT owners may safely deposit or lock up their NFTs on specialized platforms and get rewards depending on the annual percentage yield (APY) and the amount of NFTs staked. It&#8217;s important to understand that, like cryptocurrencies, not all NFTs may be staked for rewards. Different projects have different requirements; therefore, double-check the conditions of your selected project before purchasing any NFTs.



When you stake on an NFT staking platform, it automatically calculates the value and the annual percentage yield (APY) of the digital asset. APY represents the amount that you will earn in a year from staking. The asset&#8217;s value will be estimated by specific criteria. These include rarity, perceived uniqueness, the potential to create a steady revenue stream through royalties, and the ability to attract more investors.



In other words, most staking platforms include a built-in mechanism that will evaluate your NFT, estimate its worth, and provide a dividend value based on various time periods. These mechanisms are often decentralized and provide high levels of protection for your crypto assets until you&#8217;re ready to trade them.



Many popular NFT artworks and in-game assets are stackable, with specific assets giving up to 100% annual percentage yield. (APY). Some examples include CyberKongz, Mutant Cats, Doge Capital, etc. There is a generic formula that you can use to evaluate your incentive:



“Breakeven Time = Cost of NFT / (token price * daily reward).”



“Annual Percentage Yield (APY) = (token price * daily reward * 360) / Cost of NFT.”



<h2>The Pros and Cons of NFT staking</h2>



The merits of NFT staking are:



<ul>
<li>Staking can help owners earn income from their ideal non-fungible tokens.</li>



<li>The process is relatively inexpensive.</li>



<li>Staking rare collectibles increases the owners&#8217; liquidity.</li>



<li>NFT staking can help maintain a healthy blockchain.</li>



<li>Unlike mining, it does not require any special equipment.</li>



<li>Staking is environmentally friendly.</li>
</ul>



The demerits of NFT staking are:



<ul>
<li>Staking increases the risk of centralization.</li>



<li>Users cannot sell or trade their NFTs at a moment&#8217;s notice as their tokens are tied up.</li>



<li>Price volatility is a risk.</li>



<li>Finding the right platform that discourages fraudulent practices be a challenge.</li>
</ul>



<h2>Top NFT staking platforms</h2>



Today, there are numerous NFT staking platforms online that provide:



<ul>
<li>A user-friendly interface.</li>



<li>Robust security.</li>



<li>Great incentives.</li>



<li>High-quality Smart Contracts.</li>
</ul>



NFT holders find it simpler and more enticing to join, stake, and engage through a staking platform because of these qualities. They can effortlessly earn various rewards, including native tokens, cryptocurrency, and fiat money.



Take a look at the top NFT staking platforms available in the market:



<ul>
<li>Onessus:</li>
</ul>



<a href="https://onessus.com/" rel="nofollow">Onessus</a> is a decentralized Play-to-Earn gaming platform. The platform offers multiple packages such as HodlGod, WhenStaking, VOID Market, NiftyVillie, GEEC, and Stream to Earn. WhenStaking enables NFT holders to earn VOID, Onessus&#8217;s native token. Individuals can set up and connect their WAX Cloud Wallet to stake their in-game NFTs.



The platform is widely popular in the gaming community as its in-built lending mechanism allows users to lend NFTs to gamers. That way, gamers can access NFT features without limitations. Moreover, NFT staking on WhenStaking incentives the NFT during the lock-up period. NFT holders can earn EXP by staking.



At Onessus, the average APY is 80% per NFT, although this percentage fluctuates depending on the lock-up period. The base staking capacity on the platform is around 40K VOID. This means that any NFT with a value less than 40K VOID cannot be staked on the platform.



<ul>
<li>Splinterlands:</li>
</ul>



<a href="https://splinterlands.com/" rel="nofollow">Splinterlands</a> is a popular blockchain-based Play-to-Earn card game where each card represents an NFT. Essentially, players can lend their game cards to the liquidity pool and earn rewards in the form of the native token DEC (Dark Energy Crystals).



On Splinterlands, players have to finish daily requests for 15 days to earn rewards. Unlike other games, which are Ethereum based, Splinterlands is set up on the Hive Protocol. Even so, players can easily convert their DEC into ERC-721 tokens. Once the token is converted, it can be treated as NFT and sold on verified NFT marketplaces.



<ul>
<li>NFTX:</li>
</ul>



The <a href="https://nftx.io/" rel="nofollow">NFTX </a>is a DAO (Decentralized Autonomous Organization) platform that is built on ERC20 tokens. It&#8217;s built on the Aragon blockchain. Furthermore, NFTX is incorporated with DeFi; therefore, users can deposit their NFTs into a vault and mint ERC20 tokens (also known as vToken). It allows users to stake NFTs in exchange for rewards.



On NFTX, NFT owners can earn trading fees, protocol fees, and farming due to staking. NFTX supports all NFT collections prior to the ERC-721 token standard. Another advantage of using NFTX is that it does not restrict the use of any cryptocurrency. Moreover, it offers greater liquidity to NFT owners.



<ul>
<li>KIRA:</li>
</ul>



<a href="https://kira.network/" rel="nofollow">KIRA</a> is a DeFi application that connects web3 DApps. The KIRA networks support liquidity through staking. It also allows NFT holders to re-funge their tokens. This means that users can fractionalize their NFTs so that others can use the fractions for lending or trading.



The network is compatible with Ethereum, Cosmos, Binance Smart Chain, and Polkadot. The multi-layer security measures ensure greater security of NFTs and other tokens. It provides users rewards for staking in the form of robust yields.



<h2>Conclusion</h2>



NFT staking has a promising future because it addresses and alleviates issues related to NFT trading. Staking allows NFT holders to earn tokens and other incentives without trading their NFTs, making it an appealing passive income resource. The emergence of NFT staking platforms also makes it easy for more people to try staking. More importantly, NFT staking opportunities are driving new case uses for non-fungible tokens that were previously unexplored.



While it&#8217;s still early days for NFT staking, given the popularity of NFTs, more individuals see the value in staking NFTs. Therefore, it&#8217;s clear that this practice will only grow in the future. NFT staking is creating opportunities not only for NFT owners but also for the gaming industry and other blockchain-backed areas.