The world of cryptocurrency is expanding with new opportunities every day – and one of the latest trends is buying and selling NFTs (non-fungible tokens) – pieces of digital content linked to the blockchain. Unlike cryptocurrencies, NFTs are unique and mutually interchangeable, meaning that no two NFTs are the same, which is probably why they have become such popular investments.
NFTs are typically used to buy and sell digital artworks. One of the most famous NFTs is the Doge Pound, which sells Shiba Inu themed NFTs, one of the most beloved dog breeds in the meme world currently. Read on to learn more about the trending NFTs and currencies on the market today.
What to Decide Before Buying: Marketplace, Currency, and Type!
If you are interested in buying NFTs, you should consider a few things before diving in. First, you need to decide which marketplace you want to buy your NFT from. An essential aspect of choosing the marketplace is what type of cryptocurrency they accept and what type of digital wallet is required.
There are many different NFT marketplaces, which all accept different cryptocurrencies. If you are into the dog meme trend, you can buy the Doge Pound collection with Ethereum. If a different piece or collection has sparked your interest, though, you may need a different currency – so make sure to invest in one of the top three always to have plenty of options to expand your collection with.
The Top Cryptocurrencies Explained
Even though the new year has just begun, we already have a pretty good clue as to what the top three cryptocurrencies of 2022 will be: So far, Bitcoin, Ethereum, and Binance Coin are in the lead. Bitcoin is the most valuable cryptocurrency with a market capitalization of $882 billion, and Ethereum is steadily climbing up there with a market capitalization of $447 billion. The difference in value seems big between these first two, but we see how popular they are when we compare them to Binance Coin’s market capitalization, which is just over $86 billion.
The thing that sets the three apart is how Bitcoin and Ethereum are both cryptocurrencies and blockchain platforms – while Binance coin is just a cryptocurrency that you can use to trade and pay fees on Binance. Bitcoins and Ethereum can purchase things, but Binance coins can only be traded or exchanged.
Problems in the NFT Market
Although the availability of NFTs is rising, and it’s becoming more accessible to buy NFTs and sell them again, it’s not all sunshine and rainbows in the NFT marketplace.
NFT marketplaces offer their users the option of adding “creator’s royalty” if or when they choose to resell their NFT. But these income streams are only available to creators when the reselling occurs on the marketplace where the original NFT was minted.
This means that with all these new NFT platforms emerging and the option of selling NFTs via private events, the original creator isn’t profiting off of their works. If the creators don’t receive credit more than once when the NFT is resold repeatedly, it could impact the creation of new NFTs in the long run.