Are you a blockchain enthusiast who also loves sports? Those two qualities are all you need to become a part of one of the fastest growing investing communities, non-fungible sports tokens. The name sounds funny, but it’s a serious way to earn income. Step one is learning exactly what NFTs (non-fungible tokens) are and how they are related to sports.
Once you realize that the tokens are bits of intangible data that exist on the same blockchain used by cryptocurrency, you’re halfway there. Sports-related NFTs can take the form videos, audio files, or photos, and this new asset class holds a lot of potential for investors. Here’s how to acquire the core facts about non-fungible tokens and begin trading the ones that are connected to all types of sports.
It is crucial to understand exactly what an NFT is and that the tokens are not tangible and are not interchangeable. Each one is nothing more than a data unit that happens to reside on a blockchain. In other words, it’s a special kind of asset that exists only on the digital blockchain ledger. Luckily for traders and investors, the tokens can be traded, bought, sold, and held in accounts. There are numerous types, including those connected to sports, celebrities, poetry, art, and more.
Cryptos and NFTs
The sporting arena is one of the most active fields in which people trade NFT assets. One of the essential characteristics is that it uses the same kind of blockchain technology as cryptocurrencies do. In fact, the huge rise in the popularity of crypto trading in the past several years has propelled the world of tokens into super-drive. For more information about crypto trading, click here.
To get started in the relatively new world of sports based NFT trading, you’ll need to acquire cryptocurrency. That’s because in order to purchase and NFT, typically from an online sales platform known as a marketplace, you’ll use crypto to complete the transaction. In nearly all cases, Ethereum is the altcoin of choice for NFT enthusiasts. After buying your preferred amount of Ethereum via a crypto exchange, you’ll need to find an NFT marketplace online. These platforms are where traders congregate to buy, sell, and haggle over prices. If you are just starting out and simply want to buy an NFT related to your favorite sports team, a marketplace is where you’ll complete the deal. Note that some listings are sold auction style, while others are listed with buy it now type pricing.
As sports tech emerges onto the scene, perhaps the most important skill traders of NFTs can acquire is knowledge of a specific niche. You can leverage the power of Google’s popularity rankings to discover which non-fungible sports tokens are selling well, which ones are trending, and which are declining in value. In much the same way social stock traders use internet trend analysis, investors in sports tokens do their daily research to learn what’s hot and what’s not.