If you’re looking to get into investing in the digital world, crypto investing is the place to start. Specifically, understanding digital artwork and how it’s sold will give you a leg up on a lot of other investors.
We’re going to take a look at crypto art today, exploring what it is and how you can get your hands on it. Hopefully, the ideas below will give you a head start on your next big investment strategy.
So, what is crypto art?
What Is Crypto Art?
Crypto art is essentially any artwork that exists online and can get purchased through an NFT.
An NFT is a transaction that exists through cryptocurrency and gets a solid place in the blockchain. Blockchain technology allows transactions to get added to a ledger and solidified there in the most secure way.
In order for a transaction to go through in a blockchain, it has to reference the existing blockchain that consists of every transaction within that cryptocurrency’s ledger. This makes it so that nothing can get altered after it takes place, providing a very secure way to make transactions.
The only difference with an NFT is that your ownership of the digital artwork is referenced within that transaction. You, then, have complete ownership of it along with proof of ownership that can’t be altered.
The Point of Buying Digital Artwork
You might think that physical artwork is the only thing worth investing in because it’s the only kind that can’t be replicated.
While it’s true that others can still see digital artwork (a Tweet, an Instagram post, etc.), they can’t claim ownership over that file if you have the NFT. They can engage with it, but they can’t profit from it.
When you own something that existed online, you’re open to getting whatever someone might pay for it. That value is abstract, and it’s hard to put a number on a lot of NFTs. That said, the right investment could bring in a healthy return.
See here for rare artwork available in the form of NFTs. You can also seek out niche digital things like memes, Tweets, and videos that people of particular groups might really value.
Take, for example, a piece of content from an up-and-coming influencer. If you wait a few years and that person becomes a central figure in popular culture, you could sell that NFT for a significant profit.
The same goes for artwork from new artists. You might also just be someone that values certain pieces of digital culture. For example, an appreciator of Tiktok clips might take a lot of value from purchasing one of their favorite creator’s videos.
Want to Learn More About Crypto Investing?
So, what is crypto art going to do for your portfolio? It could have a significant impact if you’ve got your finger on the pulse of what’s popular, where trends are headed, and what people might pay for certain pieces of content.
We’re here to help you learn more about the market. Explore our site for more insight into finding a crypto art dealer, investing in digital artwork, and a whole lot more.