Non Fungible Tokens (NFTs) have started getting into all aspects of our life and this has made investment enthusiasts crazy. Everyone ranging from actors to industrialists, is finding a new investment opportunity in NFTs.
NFTs seem to have come directly from the sky to disrupt every arena of our life. From art and music, to tacos and toilet paper, they are selling like hot cakes.
But are NFTs really worth investing in. There is a mixed opinion about it in the investor circles. While some believe that they are over-hyped, but some consider investment in NFTs equivalent of a gold mine. The way they have shown their potential, and the technology underlying them, show that they are going to stay and yield good returns for the wise investors.
Given below is a detailed discussion of why you should invest in NFTs and how you can do so. Check it out.
Why You should invest in NFTs
Before you set out to know how to invest in NFTs in India, lets first of all know, why you should invest in NFTs. We want you to invest in NFTs based upon some logic and not because of Fomo. There are many reasons, why you should invest in NFTs and some of them are discussed below:
1. NFTs are future.
NFTs are going to be the future and you are lucky to be present in the infancy stage of NFTs, where it is providing you an opportunity to turn your money into a gold mine.
NFTs have started revolutionizing the gaming industry, the art industry and investment sector, among others. They are going to be of vital importance in online communities, events, purchase of video game assets, digital identities, and assets.
They are gaining popularity on account of their underlying technology that boosts decentralization and transparency. So far, NFT sales have crossed 12 billion, hence, it’s safe to say the NFT market is growing exponentially.
So, investing wisely in what is going to be the future, is going to shine your future.
2. Their Potential Value Increases
Another reason for investing in NFTs is that their potential value increases over a period of time. To help you understand, how NFTs appreciate over time, let me tell you that an NFT named CryptoPunk 1422, purchased for $74 back in 2017, was sold in October 2021 for whopping $2 million.
However, you need to know that all NFTs are not same and neither are all of them going to gain value over time. So you need to be very cautious, while buying NFTs.
3. Access to Exclusive Bonus Content
By investing in NFTs, you don,t just get the ownership of a token, but it also comes with some exclusive perks.
These perks include brand memberships and invitation to various kinds of events. Some events are meant for Airdrops and invitation to attend them means getting free NFTs. Apart from these, there are social clubs and NFT funded projects, where you can access premium facilities (like getting access to behind the scenes of a movie or meeting the crew of a movie) on account of your NFT ownership.
4. Become Part Of Elite Communities
By investing in high end NFTs, you become part of that elite community that has invested in NFTs. This community comprises of actors, businessmen and content creators. Such a community enhances your chance of joining these famous figures in their future endeavors. An example in this regard is the Bored Ape Yacht Club, which operates a private Discord server.
5. Support Your Favorite Creator
By purchasing NFTs produced by your favorite artists, you are providing support to them. For instance, Amitabh Bachan recently released Madhushala NFT, which is a poetry collection of his father. By buying this NFT, you could have showered love on your favorite actor.
As a token of reciprocation, you could get an invitation for meeting him in person from him any where in the future.
6. Badge Of Ownership
After buying an NFT, you can display it as your profile picture, and it will set your profile different from the others along with an indication that you own that very NFT.
These are some reasons as to why you should invest in NFTs. But, at the same time you nee to know NFT market is still very unpredictable, so you should never forget about the risks involved. So you should always do some research and proceed with caution.
If you are motivated enough to invest in NFTs, the you can check the detailed guide on how to invest in NFTs in India below.
How To Buy And Sell NFTs
NFTs are bought and sold in dedicated platforms called NFT market places or NFT exchanges. These exchanges are driven by blockchain technology and hence keep a fool proof record of all the data.
Some of the marketplaces suitable for NFT investment in India are:
Once, you have decided on which marketplace will you buy your NFTs from, then follow the steps given below to invest in NFTs in India.
1. Create a digital wallet
A digital wallet is a physical medium or a program, where you store your cryptos. Wallet is required to execute transactions on an NFT platform. Choose only such a wallet that is supported by the NFT platform from which you will buy your NFTs.
You can set up your digital wallet by following the steps given below;
- Download any wallet app.
- Create your account.
- Write down and secure your private key. It is a string of alphanumeric characters required to access your digital wallet.
- Add cryptos to your wallet. In order to buy NFTs, you will require to recharge your wallet with cryptos. You can buy these cryptos from any crypto exchange like Wazirx or Binance.
This wallet will also act as a store house of all the NFTs that you are going to buy in future.
2. Select the NFT Marketplace
The next step is to choose a marketplace from which you will buy your Non Fungible Tokens. While choosing the marketplace, keep the following things in mind;
- select only such marketplace that has good customer reviews.
- Select such a marketplace that supports the cryptos that are in your wallet.
- Keep transaction costs in mind, as they vary from one place to another.
Once you find a suitable NFT marketplace, create an account for yourself. Creating account is a free and easy process. On Opensea market place, you can create your account by following the steps given below:
Also Check: Opensea vs Rarible vs Mintable
- Go to opensea.io.
- Click on the create option.
- Now connect your wallet with your opensea account. You can do so by selecting your wallet from the profile option on opensea portal.
- You are all set.
3. Shop for NFTs
This is the last step for investing in NFTs. While buying your NFTs, you should not be driven by emotions but you should do a thorough research about which NFTs you should buy and which ones not.
While shopping for the NFTs, consider the following points;
Points to consider while buying NFTs
|Invest in what you like||It will help you in doing better research|
|Reputation of team and artists||It will help you in avoiding scams and getting good returns|
|Community||Better community means better appreciation|
|Risk appetite||It will help you in avoiding restlessness.|
In addition, you should remember that;
- NFTs are still very volatile. Take every step with due caution.
- All NFTs are not same. Only some of them will increase in value.
- Try to build a community. Doing so will increase the value of your NFTs.
- Check what is the perception of the masses towards your targeted NFTs. Public opinion matters a lot here.
Once, you decide to buy any particular NFT, make sure that it has the verifiable ownership and the verifiable uniqueness.
Also Read: How to invest in Cryptocurrencies in India
Closing Words about Investment In NFTs
NFTs are still very volatile and investment in NFTs is fraught with many risks. However, if you do a proper research before zeroing in on any particular NFTs, then you can surely minimize the risks.
Don’t jump the NFT bandwagon, just because everyone else is doing so. Make sure that you understand the concept of NFTs very well to derive the maximum profits from NFT investment.
FAQs About Investment In NFTs
Yes, many Indian celebrities have invested in NFTs and some have even created their own NFTs. The celebrities who have invested in NFTs in India include Amitabh Bachan, Salman Khan, Rajnikanth, Sunny Leone, Sunil Gawaskar, Dinesh Karthik, Manish Malhotra and Yuvraj Singh.
There is no ban on buying and selling of NFTs in India. NFTs come under the category of VDAs (Virtual Digital Assets) and under Income Tax Act, 1961, income generated from “Virtual Digital Assets” (“VDAs”) shall be taxed at the rate of 30% .
There are around 70 million people in India who own NFTs. It means around 7% of Indian population owns NFTs of one or the other kind. These people include celibrities, business men, celebrities as well as the common men.