Looking to get into NFT stocks? You’re in the right place as we’ll explain to you NFTs in simple terms so that everyone can enjoy trading these digital assets. We’ll also identify some of the most popular stocks that are exposed to NFTs and highlight a few dangers of exploring this new territory. So join us as we see why NFT stocks are so popular right now.
Understanding NFTs
We’ve got a handy guide that answers the question, ‘What is an NFT?’ that you should definitely check out before we delve further into NFT stocks.
What are NFT stocks?
NFTs themselves have no fixed value. Instead, they are assets whose value is entirely demand-based. This means that an NFT for a gaming avatar could be worthless or it could be worth thousands depending on whether anyone wanted it.
As such, an NFT’s value can rise and fall like any regular stock. This has meant that NFTs have quickly become speculative assets that people will buy and trade. So rather than buying or selling standard stocks in companies like Apple or Amazon, you would buy an NFT in the hope that it’s value will rise and you could then sell the NFT for a profit later on.
As well as the actual NFTs, you will also see specific stocks listed at crypto brokers as being particularly exposed to NFTs and cryptocurrencies. Some of these might be stocks in popular cryptocurrency exchanges, or they might be special ETFs (exchange-traded funds) that feature a variety of different assets that are all in some way linked to NFTs.
Where to buy NFT stock?
As well as the actual NFTs, you will also see specific stocks listed at crypto brokers as being particularly exposed to NFTs and cryptocurrencies. Some of these might be stocks in popular crypto exchange sites, or they might be special ETFs (exchange-traded funds) that feature a variety of different assets that are all in some way linked to NFTs.
What are the best NFT stocks?
By definition, the best NFT stocks will be those assets that are due to rise in value so that your investment will have a positive return. This requires a fair amount of predictive power, and obviously, no one is going to know which way the market will turn. However, here are a few examples of NFT stocks that have performed well in recent times.
- Coinbase (NASDAQ:COIN): As one of the world’s leading cryptocurrency exchanges, Coinbase is a great example of an NFT stock. After all, Coinbase lets millions of people buy cryptocurrencies with regular money that they then can use to trade NFTs.
- DraftKings (NASDAQ:DKNG): This might be known as being a fantasy sports platform, but DraftKings has recently taken the surprising step of hosting an NFT marketplace on its web platform. The DraftKings NFT marketplace operates on the Ethereum blockchain and it is primarily related to sports collectibles.
- eBay (NASDAQ:EBAY): It’s not surprising that one of the world’s leading auction sites would eventually turn to NFTs. While eBay has yet to open up to cryptocurrencies, the fact that it is starting to list NFTs for sale is a hugely positive step.
- McDonalds: If you’re asking, ‘What is the best NFT stock?’ a fast food giant like McDonalds might not be the most obvious answer. However, the brand has already created its first NFT for the McRib back in 2021 and it currently has nearly a dozen trademark applications underway. This could see a virtual restaurant being launched as well as a series of other entertainment services. The sheer size of McDonalds makes it a relatively safe bet compared to some other brands featured in this NFT stocks list.
- Dolphin Entertainment: This is one of the rising stars in our NFT stocks list as Dolphin Entertainment provides leading NFT collections for a range of major brands. You’ll probably know about the Creature Chronicles NFTs that sold out in a matter of minutes, and it looks like things are on the up with record revenues reported in 2022 and the brand is widely expected to turn profitable in 2024. Definitely worth a closer look if you want to know how to invest in NFT stocks and get something in return.
- Mattel: This is another famous brand who might not be the first name that you think about when asking, ‘What are NFT stocks?’ but Mattel is worth pursuing. This is because it recently launched its own NFT marketplace and has a massive range of collectible items ranging from Masters of the Universe through to Hot Wheels. Plus with the potential of unleashing NFTs for anything from Barbie to Fisher Price toys, it’s easy to see why NFT stocks for Mattel are looking like a good investment.
- Nvidia: Nvidia is one of the most promising NFT technology stocks and for good reason. This is because the brand is working on a range of metaverse projects such as cloud engines for avatars that could clearly lend themselves to NFT applications. Nvidia has already made good on its development of anything from graphics to networking solutions, and its progress with the Omniverse platform is going to be pivotal in taking NFTs forward. Definitely one of the NFT stocks to keep an eye on.
Are NFT stocks a good investment?
It’s important to note that it can be very easy to lose money with NFT stocks but the same is true for crypto trading. After all, NFTs are equally able to fall in value just as they can rise. While we have a guide that tells you how to make money with NFT, it’s always best to be on the safe side. Plus it’s worth noting that cryptocurrencies are hugely volatile and many people have had their crypto investments wiped out overnight.
You should also consider which NFT marketplace offers you the most secure and trustworthy way in which to trade and manage your digital assets. Finally, we’d recommend using a secure crypto wallet with two factor authentication to store your funds securely.
Conclusion – Your best guide for NFT stocks
By now you’ll realise that NFT trading has the potential to generate some spectacular returns, yet also some massive risks too. The good news is that NFT stocks are easy to get involved with and they can be a positive way in which to build up a balanced investment portfolio. Just remember that anything linked with cryptocurrencies on our blockchains list is likely to be volatile and as such, you should only invest money that you don’t mind losing.