Unconventional Ways To Invest In NFTs

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Contributor, Benzinga
February 15, 2022

Want to jump straight to the answer? Metaverse games, stocks, NFT coins, NFT marketplace, and alternative investments.

Coca-Cola (NYSE: KO), Walmart (NYSE: WMT), and Mcdonald’s (NYSE: MCD) are all getting into the $40 billion NFT market.

Coca-Cola already made $575k in an online auction with its first-ever NFT. Walmart’s filings with the USPTO revealed it’s creating a collection of NFTs and virtual goods. And McDonald’s recently announced that the McRib is back as a non-fungible token.

With big corporations rushing into the NFT space, it’s no wonder Coinbase CEO Brian Armstrong says NFTs could be “as big or bigger” than the crypto market, which is currently valued at over $1.7 trillion. For those looking to participate in the NFT market, here are five unconventional ways to invest in NFTs right now. 

1. Invest in Metaverse Without Meta/Facebook 

The popular choice to get into the Metaverse is to invest directly in Meta because they have several advantages. They dominate two-thirds of the global VR headset market with Oculus, pour billions of dollars into the Metaverse, and develop their own NFT collectibles.

But you could also consider other alternatives such as Decentraland. Decentraland (MANA), a metaverse game, is also the largest metaverse-related crypto right now. Decentraland’s user base grew by 3,300% in 2021, and it doesn’t look like it’s stopping with new investors jumping into the Metaverse. 

2. Invest in “Under the Radar” NFT Stocks Instead of Microsoft or Adobe

Companies like Yum Brands, Nike, and Warner Music Group are all getting into NFTs. And while investors could get into these big names, there are also lesser-known NFT stocks. This list includes eBay (NASDAQ: EBAY), which allows the buying/selling of tokens on its platform. Dolphin Entertainment (NASDAQ: DLPN), is creating an NFT marketplace for major sports and entertainment brands. And Cloudflare (NYSE: NET), which is creating a video streaming service that supports NFTs.

3. Hold Alternative NFT Marketplace Coins

Many investors are using Ethereum to buy NFTs on OpenSea, the biggest NFT marketplace. But with Ethereum currently at $2,700, investors can consider other coins like Solana which is trading at $112. It not only has faster speeds and lower costs but is one of the most popular cryptocurrencies on Coinbase. Moreover, it’s priced at a fraction of Ethereum’s cost. As more and more people invest in different NFT marketplaces, altcoins have the potential to deliver outsized gains.

4. Launch an NFT Marketplace

While it’s not easy to build an NFT marketplace and even harder to market, there can be advantages. OpenSea co-founders Alex Atallah and Devin Finzer are only around 30 years old but are now estimated to be worth $2.2 billion each. Similar platforms like Coinbase are worth an estimated $42 billion as of this writing.

Another Alternative Investment for Investors

According to The Economic Times, contemporary art auctions reached a record high thanks to NFTs. That could be due to the fact that more ultra-wealthy individuals are investing in art. Examples include The Rothschilds, who sold a painting to the Dutch government for $197 million. Oprah Winfrey grossed $62 million selling her 1912 painting to an undisclosed buyer. And Jeff Bezos sold Amazon stocks and purchased $70 million in artworks.

Contemporary art has appreciated 22.1% on average when inflation is at least 3%. It has outpaced the S&P 500 by 164% from 1995 to 2021. And now, investors can invest in this overlooked alternate asset alongside the ultra-wealthy with Masterworks. There are more than 320,000 members on the Masterworks art investment platform; signup is required for investors.

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