Would it be safe to assume that you have heard about the wonders of NFTs, but you are yet to take advantage of this market?
NFTs are popular, and many are showcasing their NFT collections on Twitter. They are constantly talking about new projects and what is in for them. So, it’s pretty normal to FOMO—Fear of missing out—into this market. Don’t do this without understanding what investing strategy would be best and how to make gains from NFTs.
As a Nigerian, you may have so many questions about NFTs. This guide will reveal credible facts about NFTs, how to maximise the NFT market for your gains, and how to invest in NFTs with small capital.
Let’s dive deep.
Investing in NFTs as a Nigerian
In the beginning, we assumed readers were familiar with NFTs and how they work. For those who are not too conversant, our guide here explains NFTs for Beginners. We won’t also mind doing a quick recap on the meaning of NFTs.
What are NFTs?
NFT is a shortened form for Non-fungible tokens. Non-fungible implies they can not be duplicated, and each token is original. In the simplest terms, NFTs can be tagged as digital arts. When you look at tickets, paintings, unique certificates, etc., you’ll notice that these collectables can not be replicated. Each and every piece is unique. It is in this way that NFTs work.
Although NFTs and cryptocurrencies are digital elements, they are different. Cryptocurrencies are fungible and are replicable, while NFTs are not.
Read our post on 8 Best Cryptocurrencies To Watch In 2022
You may be wondering, is NFT available in Nigeria? Well, the next section will answer your question.
Are NFTs Available in Nigeria
Yes, NFTs are available for purchase in Nigeria. You can buy and sell NFTs through any global NFT marketplace, provided you can use the platform. Centralised platforms like Binance and bybit have their own NFT marketplace. You can also look towards other marketplaces like opensea, rarible, decentraland and so on. Nigerians also build marketplace for Nigerians. Such Nigeria-based marketplaces include QLIP, Minaland, and Presmit.
Are NFTs a good Investment for Nigerians?
Like every other form of investment, there are two sides. You either make money or lose money. How you invest in NFTs, when, and how you do it can impact how beneficial NFTs would be to your portfolio. So, you may ask, are NFTs good as an investment for Nigerians?
Yes, NFTs are good investment options. However, it solely depends on how you approach the market and your level of research. For instance, buying a bored ape NFT as a young Nigerian can have a great impact on your financial status. How? If you are low on capital, buying this NFT may not be the best choice as they are expensive and you don’t know if it will yield returns in the near future.
You can check this post on Credible Online Investment Options for Nigerians (2022 guide)
This leads to the question, how can Nigerians approach the NFT market and be profitable?
Credible Ways to Invest in NFTs as a Nigerian.
Heard of the potentials of NFTs, and you are already seeking ways to make profits from this market? Maybe, you just want to go to opensea, buy a bored ape NFT, and upload it as your new Twitter Avi. Don’t do that.
Getting an NFT can be cool. However, you need to know that there are diverse ways to tap into the market without necessarily buying an NFT, holding it, and hoping that one day the price will go up. That’s too much risk if you ask me, considering that many popular and valuable tokenised art are sold at a high price.
If you are curious like me, keep reading to find the various ways you can start investing in NFTs with or without large capital.
Let’s start with;
Direct Investment in NFTs
1. Tokenising your creation
For those already into creation, you can make profits by selling your creations. Whether you are a painter, photographer, video creator, etc., you can dive into the NFT waters. You can make money listing your creations.
To sell for an incredible price, you need to level up. To level up, you need to sharpen your skills. Then, create unique content. After this, you should connect a story or connect with your potential audience.
2. Hiring freelancers to make art for you
Creating art and content requires specific skills and a certain level of experience, so not everyone can create their own content. However, you can hire people to do the job. You can scout for talents or check on the freelance marketplace to find the right creator. Pay them to create the content you want, tokenise it, tell a story, and start earning.
Have you seen this post on Best Ways for Freelancers to Make Money Online ?
3. Flipping NFTs
Flipping NFTs works the same way as flipping real estate. You find a good NFT, buy it, wait for some time, sell it for a higher price, and you take the profit.
While that may sound simple, it isn’t. To be successful in this, you need to conduct extensive research on a project. Check how rare it is, predict the future price, and buy and sell at the right time. Nonetheless, the more experience you get in flipping NFTs, the more profit you make.
Investing in NFTs without owning an NFT
4. Investing in Blockchains and blockchains scaling solutions
A great way to invest in NFTs is by investing in blockchains. You should know that NFTs are created on blockchains, and blockchain currencies are used for trading and mining these NFTs. Some popular blockchains are Ethereum(ETH), Cardano(ADA), Terra (LUNA), Binance Smartchain(BNB), and Solana (SOL).
Scaling solutions are now used for NFTs to enable fast and cheap transactions. Example of a common scaling solution is Polygon(MATIC) which is frequently used on open sea.
As an NFT enthusiast, it would be smart to invest in these blockchains and their solutions. These blockchains have great potential because they have utility.
5. Investing in the NFT marketplace
NFTs are listed and traded in marketplaces. These marketplaces take a commission on every trade placed, so they make a lot of money. As a beginner in Nigeria, you may not have the capital to build and run a marketplace. Nonetheless, you can invest in these marketplaces. How? You can either buy their Fungible tokens(crypto) or their stocks. Binance(BNB), Rarible(RARI), and FTX (FTT) are tokens you can purchase, while Coinbase($COIN), eBay($EBAY), and DraftKings($DKNG) stock to consider.
6. Fractional Investing in NFTs
Ever invested in REITs or ETFs, then you have engaged in fractional investing. Fractional investing in NFTs involves buying a part or fraction or unit of an NFT. In Real estate or mutual funds, a broker buys the asset then divides it into equal units. However, for NFTs, you buy from a DAO( Decentralised Autonomous Organisations). You can buy from them in two ways. You either buy a unit of the NFTs they are holding or buy their tokens. Head DAO is one of the organisations you can buy fractional NFTs from. Alternatively, you can buy their token $HEAD. A great place to start buying fractional NFTs is Fractional.art
How to Buy and Sell NFTs
First, you need to have an ERC-20 wallet. Why? Because many NFT marketplaces run on the Ethereum blockchain.
What next?
Create an account on any NFT marketplace, then connect your ERC-20 wallet to the account.
After linking your wallet, select an NFT of your choice. We would assume you’ve conducted due research.
On the chosen NFT, you’ll spot a “Buy Now” button, then click on it. Alternatively, you can click on bid, and the network buys automatically when the price gets to your bid price.
After that, a checkout page pops up. Confirm all the details, then click on “Proceed to payment”.
After doing this, go to your linked wallet and confirm the payment there.
When you follow this process, your NFT will appear in your wallet.
Check out this post on 5 BEST Bitcoin Wallet for Nigerians (2021)
To sell your NFTs;
Go to the NFT marketplace of your choice
Link your Ethereum wallet
Click on the NFT you want to sell, then click on the “Sell” button. Sign the transaction and fill in the necessary details. You’re good to go!
Conclusion
NFTs is a recent development in the digital market, and many want to profit from it. For those who want to get into this market, you first need to look for the best ways for your investment type. I have listed the different ways you can make profits from NFTs as a Nigerian, so choose whichever works best for you.