Want to invest in NFTs?  Find out how it works and what options are available in the market – Época Negócios

Want to invest in NFTs? Find out how it works and what options are available in the market – Época Negócios

Everyday: The First 5000 Days of Digital Art by Artist Bipal (Photo: Reproduction / Christie's)

Everyday: Artist Bipal’s first 5000 days of digital art (Photo: Reproduction / Christie’s)

For those unfamiliar with the new digital business model, NFT (Abbreviated form of non-fungible token) may seem confusing. But, in reality, the process is simple: it acts like a seal that gives a user the right to place and use a digital image (photo or video) whenever and wherever he pleases.

Last year American graphic designer Mike Winkelman, better known as Bipal, created his artwork “Everyday: the First 5000 Days” for 69. NFTs are widely discussed after being sold for millions of dollars Considered one of the most expensive ever sold, the archive is a collection of photographs taken in 5,000 days.

Then, the tokenization sector jumped on it and news of other sold-out images began to appear. Curiosity about the subject, the involvement of celebrities and the presence of famous brands are some of the factors that follow this market, according to Dapradar, the NFT moved more than US $ 23 billion in 2021.

In a survey published late last year, the company reported a 12,400% increase in users of some of the service’s platforms over the previous period. Items featuring games are the most popular, with prices fluctuating between high and low.

How does NFT trading work?

Buying and selling an NFT takes place in an online environment in the same model as a virtual store. A user chooses a trading platform, publishes his NFT and makes it available to potential buyers in that market.

All NFT transactions are made in cryptocurrency, which may vary depending on the platform on which the file is being transacted. Bitcoin, Ethereum and Solana are the main payment methods for these tokens

The seller is likely to decide how much he wants to sell the product and if interested, the buyer pays and is entitled to the item. Once occupied, the new owner can put it back at a new price or trade.

Is NFT a good investment?

Brazil’s NFT market is still in its infancy, driven by a certain group, especially technology enthusiasts. However, experts point out that growth is visible and could be a good investment strategy.

“Many NFTs value themselves. Sometimes you buy one and a week later it is already worth it. So, it is possible to make a profit in the short and long term, “said Raquel Vieira, an investment analyst at Top Gain.

However, it needs to be verified whether it matches the investor’s risk profile. “The NFT is beginning to appear on the market and is still an investment with a high level of risk,” he said.

For 2022, DappRadar expects continuous growth, especially in the case of NFT associated with Metaverse, a technological experience that connects to the real and virtual world. “These NFTs allow homeowners to create experiences while encouraging creativity and imagination while embracing decentralization.”

How to invest in NFT?

Cryptocurrency exchanges such as Binance and Mercado Bitcoin, as well as some marketplaces such as OpenSea and SuperRare, offer NFT options for acquisitions. To do this, just open a register, transfer funds from your bank account and buy the file through digital brokerage. In this case, the investor will get a return based on the valuation of his personal assets, depending on the needs of other users.

For those who like to bet indirectly on the sector, there are Brazilian brokerage options. Trend XP Metaverso Fund, for example, carries an index with shares of 30 global companies that are somehow connected to this universe. Another option is the Coin NFT Fund, from Vitreo, with a minimum investment of BRL 1,000, a 0.34% operating fee per year and a performance fee.

There is also the NFTS11 ETF, managed by Investo, a B3-listed index fund that invests in media and entertainment sector tokens and replicates the performance of the MVIS Crypto Media & Entertainment Leaders Index.

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