Crypto collectables or NFTS [non-fungible tokens] are unique and limited in quantity, unlike crypto currencies where each token is equal. NFTs represent unique assets, which can be digital or tokenized versions of physical, real-world assets. Since NFTs aren’t interchangeable, they come with proof of ownership and authenticity online. They are most often traded on online marketplaces, although they can also be sold privately.
There are many different types of crypto collectables, from art all the way to domain names. In this article, you will find a useful guide to understanding the different types of crypto collectables:
Art
It’s not unreasonable to say that art is the most popular form of NFT found online. Some would argue that music or domain names are just as popular, but this is untrue. NFT art can sell for millions of dollars. An example of this is Beeple’s “EVERYDAY’S: THE FIRST 5000 DAYS” which sold for an incredible $69 million. Other NFT art has also sold for millions on online marketplaces. According to Jungle, one of the internet’s most popular NFT marketplaces, online marketplaces provide creators with a place to buy, sell, and create digital art. Most art marketplaces will also offer music, videos, and gifs as well.
Music
Music is also very popular, second only to art. Lots of new, young musicians instead of selling their music in CD format, are selling their music as an NFT. Musicians can make millions of dollars in as little as a day doing this. When musicians market and sell their music in CD format, the record labels that represent them take huge chunks of their profits. This isn’t the case when it comes to NFTs. Musicians can take 100% of the profit, without having to divvy it out to various representatives. This has led many musicians to achieve financial success with very little mainstream industry exposure.
Trading Cards
Trading cards have long been very popular among gamers, particularly older ones. Now, it’s possible to buy digital trading cards on NFT platforms. These trading cards sell, sometimes, for millions of dollars. They are no different to limited edition baseball or playing cards. Companies also create and produce other crypto collectables items, not just trading cards. Anything that can be considered crypto collectables can be sold as an NFT. Out of all collectible items however, trading cards are without a doubt the most popular. They also vary in price wildly, costing anywhere from a few dollars to a few million dollars.
Game Content
At this time, game manufacturers aren’t selling full video games as NFTs, however, they are selling video game content as NFTs. Some of this content includes characters, additional missions, skins, and other items. NFT game content is unique and not like a traditional DLC, because this content is exclusive to the buyer, and can’t be accessed by other players. This gives players the opportunity to show off and use one of a kind content in multiplayer games. Many developers also create limited edition DLCs, which they sell in NFT format.
Memes
Unsurprisingly, memes can also be bought on the NFT market. Many memes that are bought and sold on the NFT market are actually sold by the creators of the meme, or the people who are featured in them, for example, Disaster Girl and Bad Luck Brian. Some of these memes have sold for upward of $500,000. The most expensive meme ever sold was the Doge meme, which sold for $4 million. If you’re a good artist and have a sense of humour, you could make a lot of money by creating and selling unique memes.
Significant History
You can actually buy NFTs that are short clips of incredibly significant moments in history, especially sports history. For example, you can buy an NFT of a footballer making a game-changing goal. Some of these clips can be very short, but can sell for thousands of dollars, and sometimes more. As these short clips become more popular, we can expect to see more and more historical moments captured on them, from the inauguration of the next U.S. president to the coronation of the next British monarch. The rarer the clip, the higher the price.
Domain Names
As mentioned in this article’s introduction, it’s also possible to buy domain name NFTs. Practically speaking domain names sold as NFTs makes a lot more sense and will make the domain purchase process much easier. At the moment, it is quite complicated and laborious, especially if you are trying to track down a website’s owner so that you can buy their domain from them. In addition, when you buy a domain name as an NFT, you take full ownership of the domain. Usually, when you buy one online you have to pay a third-party service to manage it for you. Buying it as an NFT cuts out the middleman.
Fashion
While you cannot wear digital fashion physically, you can dress your online avatars up in it. Fashion is regularly bought and sold on the NFT market. Unique, one of a kind virtual necklaces, items of clothing, and bags are sold for thousands of dollars on a daily basis. These items are often limited in quantity or entirely exclusive to the buyer. There are plenty of applications and games where avatars can be dressed up in these one-off items. With the advent of the Metaverse and VR tech, it’s likely we will see a lot more online fashion being sold in the coming years.
Buying NFTs
If you are going to begin investing in NFTs, then it’s important to do your research. Some will appreciate in value, while others won’t. If you blindly walk into NFT trading, you will end up making some very unwise decisions. It’s always best to buy from content creators who are reputable, respected, and well regarded in the NFT community. While there is some merit to be had in discovering and searching for up-and-coming creators, it’s safer to stick with those who have already achieved exposure and recognition for the quality of their content.
If you want to try out NFT investing, then you need to do your research in order to ensure that you only invest in the best NFTs. There are many other types of NFT, but this article covers the descriptions and explanations of the most popular ones.