There’s no doubt Cryptoart is creating a stir among investors in the lucrative NFT marketplace, which was already worth $38.2 billion in 2022 and is still growing rapidly.
If you’re hoping to buy your first pieces and join the growing number of people making a fortune in this area, you’re going to want to do your research before making an investment.
That’s why we’re here, and in this guide, we’re going to take a deep dive into what you should know when buying and selling cryptoart.
Read on for 7 invaluable tips.
1. Choose a Reputable Cryptoart Platform
The most important factor when investing in cryptoart is to only trade on a trustworthy platform. There are plenty of sites offering to help you buy and sell this type of digital art, but some may be set up by criminals attempting to steal your personal details and your cryptocurrency.
You could also come across sites that are legitimate but aren’t capable of handling transactions in a safe and secure manner, again leaving your personal financial information at unnecessary risk.
To avoid this scenario, choose a reputable site such as superrare.com. You can buy and sell on this established platform, safe in the knowledge that your details are protected and that transactions will go through smoothly.
2. Research the Artists
It’s helpful to learn as much as you can about an artist before buying their work. Rather than buying one piece, you may find they have produced stunning digital art over many years and have built up a loyal following, meaning their work is likely to be in high demand.
In contrast, you could learn that a particular artist has only had limited success and seems unlikely to become popular in the near future. If you were to purchase their artwork, you could find that it decreases in value, leaving you with cryptoart that you have little chance of making a profit on when selling.
Having this knowledge in advance will help you make better investment decisions.
3. Know If You’re Buying for Pleasure or Profit
When starting out as a cryptoart investor, your initial plan might be to make as much money as possible. However, you can soon become so impressed with the artwork that you become a huge fan of many of the talented artists whose work you’re buying.
This is not an issue, but it’s best to think about the reasons you’re buying each piece to ensure your judgment doesn’t become clouded. If your main aim is profit, be sure to evaluate if a particular artwork is likely to increase in value. If not, you’ll be buying it for pleasure.
Of course, the majority of the time, you’ll likely make money from cryptoart that you admire and that also becomes more valuable, giving you the best of both worlds.
4. Get Ready to Buy Quickly
Interest in cryptoart is skyrocketing, and this is bringing more investors to the market. Being ready to make a rapid decision and purchase artwork is crucial if you’re to secure the pieces you want the most.
Get used to having a regular schedule when you check out what artwork is available, and be prepared to make a quick bid to boost your chances of getting ahead of rival investors.
5. Determine Your Risk Appetite
Just like with other types of art and NFTs, there are risks when buying cryptoart. Although you can make enormous sums of money, there is also the chance that a piece’s value will depreciate, and this can be hard to take, especially if you are on a tight budget.
It’s vital to consider your risk appetite and to only purchase artwork if you can afford for it to decrease in value. This will make you feel more comfortable when bidding and ensure you continue to enjoy being a cryptoart investor.
6. Take Advantage of Cryptoart Auctions When Selling
Using auctions is a fantastic way to sell an NFT. If there is considerable interest in your cryptoart, this could start a bidding war, with investors seeking to outdo each other to become the next owner. A good tactic is to list your piece on a platform, and then attract even more attention by advertising it on social media with a link to the page where your artwork is for sale.
You can then sit back and watch as the bids roll in!
7. Keep Building Your Cryptoart Investment Fund
You can start small when investing in art if you have a limited budget, but you’ll likely want to build a sizeable budget so you can buy multiple artworks before you have to sell.
A simple way to do this is to place a percentage of each sale aside, allowing you to use it when you see cryptoart that you think will soar in value. You’ll be making smart investments, and the more money you can afford to spend, the more money you could also get back when you make sales.
By avoiding cash flow issues, you’ll have money available to invest whenever you see new opportunities.
Make Your Fortune in Cryptoart
There is plenty of money to be made in the Cryptoart market if you’re savvy. The key is to always trade on a reliable platform and be ready to buy as soon as an NFT with huge potential is available. Don’t risk more money than you’re comfortable with, and gradually grow your investment bankroll so you can expand your collection.
You’ll be eager to rush off and buy cryptoart, but read more of our terrific blog posts before you go.