There are many ways to invest capital to make a profit. The traditional investing methods involve stocks and shares, real estate, and high yield savings accounts with financial institutions. Cryptocurrencies based around blockchain technology have become a popular vehicle for investing and trading in recent years. NFTs, like cryptocurrencies, revolve around the blockchain. NFTs became well known in 2021 and have become a fashionable investment and trading avenue for those interested in finance, technology, and cryptocurrencies.

Like all investments or any other form of buying and selling, there is no guarantee of profits with NFTs. While there is a possibility of making money, there is also the chance of losing; the more informed the investor, the greater likelihood of making the right calls. With this in mind, let's look at trading NFTs. Speculators buy NFTs because the price will increase and sell as the market price rises. People purchase new projects or ones already launched and established.

Buying And Flipping NFTs From New Projects

Many "paper hands" buy into newly launched projects and sell immediately for a profit. While this was easier in 2021, with the massive number of projects launching daily and the lack of long-term vision from most projects, this strategy is not straightforward. Many people buy NFTs only to find the project fails to sell out, and their NFT has decreased in value. With little chance of the price of the NFTs increasing, it's a losing situation.

Due to the vast number of projects launching regularly, it has become difficult to track down great projects. And competition from other investors makes it challenging to obtain whitelisted spots for good projects to enable early purchase. 

Top collections command a considerable demand. The project owners become picky about who makes the whitelist to purchase during the presale period. Without access to the presale whitelist, public sale purchase is the only option. With the vast competition, the chance of buying in the public sale is slim. People can become aware of good projects through alpha Discord servers which carry out all the research on behalf of the investor.

Websites listing projects coming to the market and information from Twitter is an excellent way to find project launches. Due diligence is required to ensure the project is worth pursuing. For example, checking the project is doxxed, has a big enough community, and has long-term viability utilities.
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‍Buying And Flipping NFTs From Established Projects

Buying into established projects is another trading strategy. But ready access to more significant sums of capital is required. On the Ethereum blockchain, NFTs, which were hundreds of dollars on launch, become thousands of dollars. This kind of capital is not available to everyone who wants to purchase. For instance, in the summer of 2021, it was possible to buy a Bored Ape Yacht Club NFT for ten thousand dollars; these NFTs became worth six figures and beyond within a few short months. 

The alternative is to buy on other blockchains such as Solana with lower prices. But Ethereum remains the number one blockchain, and all big projects focus on the Ethereum MainNet. Many projects on blockchains such as Solana become rug pulls where the founders end the project and disappear with the investor's money. Some allow a slow rug to take place, the developers lose interest, and the project comes to a halt. The price of NFTs falls over the weeks and months; the investor has a loss-making asset. 

Buying any NFTs from projects destined for success is the aim of NFT traders. Investors should ensure a steady trading volume; others are buying the assets, it's no point buying NFTs where the price is high, but trading volume remains low. 

Rarity traits are something people should investigate. These NFTs are likely to increase in price significantly higher than common NFTs. Looking at NFTs near the floor price but with rarity, traits is a good idea. These are incorrectly priced and will see a more significant jump in price as the value of the NFTs and project rise. 

Wrapping Up

NFTs have become an integral part of the blockchain ecosystem; people wishing to trade NFTs for profit are the most significant contributor. The investor will make better trading decisions when possessing greater knowledge and information. Spending time studying the market and becoming more aware of the NFT space is a wise idea. Focusing on one successful project and appreciating all the NFTs and rarity attributes within the collection might be an avenue to pursue. 

Note: This article is not financial advice. Trading NFT or any investment is not risk-free; people should always do their own research before investing. And remember, never invest money you cannot afford to lose. 

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This month will feature International Women's Day. According to Wikipedia International Women's Day "is a global holiday celebrated annually on March 8 to commemorate the cultural, political, and socioeconomic achievements of women.

Technology and finance have traditionally been male-dominated industries with a low representation by the female gender. Unfortunately, the world of NFTs, involving technology and finance, has also seen under-representation. Men are more likely to invest in NFTs and work in this sector. Luckily, this is a problem that's being tackled; many women-led NFT projects seek to empower women and encourage greater participation in this space.

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Here are five women-led projects that aim to tackle the problem and bridge the gender gap:‍

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World Of Women

This project was launched in July 2021 and has become one of the success stories in the NFT world. Launched for 0.07 ETH, the floor price now exceeds 7 ETH. The collections aim to highlight emerging artists from the globe, give back to women-led organizations, and educate women and other underrepresented minorities in the NFT and Web 3 space. Yam Karkai, a digital illustrator and NFT artist who grew up in Europe and the Middle East, is the project's face. The World of Women NFT consists of 10,000 randomly generated NFTs of various rarities on the Ethereum blockchain. 

Each NFT has an image of a woman with diverse features; the project aims to promote inclusivity and diversity. Some of these highly prized NFTs are owned by the likes of Snoop Dogg and Reese Witherspoon. 

Boss Beauties

Boss Beauties is an NFT collection by My Social Canvas, a social enterprise for over ten years. It aims to provide opportunities to high school and college girls worldwide. According to the Boss Beauties website, the project is a "women-led global initiative that creates opportunities for girls and women through cutting edge collaborations."

Consisting of 10,000 generative artwork, the project launched in September 2021, and sold out within an hour. 5% of the initial mint went towards funding the next generation of leaders, with 5% to launch women in the NFT podcast series. The collection became the first NFTs to be displayed at the New York Stock Exchange and has a floor price above 1.5 ETH. 

Women Rise

Women Rise is a project by the Pakistani-American visual artist Maliha Abidi. Maliha advocates social justice, including gender equality, women's rights, and girls' education. Women Rise is a collection featuring 10000 generative NFTs to build a community on encouraging more women to participate in the NFT and blockchain space. 

Launching in January 2022, the project was a sell-out. 2.5% of sales was given to the Malala Fund, with 5% from royalties going to 'Women Rise' and the 'Activist' club. 7.5% of sales proceedings went to organizations supporting girls' education, mental health in marginalized societies, and gender equality. Maliha Abidi has been featured in publications such as The Guardian, The Rolling Stones, and Forbes. Part of the Women Rise team includes Randi Zukerberg, the sister of Mark Zukerberg.

Fame Lady Squad

Fame Lady Squad launched in July 2021 as the first female-led NFT project. Being the first project of its kind, it received much attention. The 8888 NFTs in the collection sold out and made $1.5 million. it soon became apparent the founders were not female. They were some Russian men claiming to be female! The project was transferred to the community, which created a new artwork and reignited the project. 

It's now a successful community-run project with a merchandise store with activities planned for the Metaverse.. The project aims to provide support and help to women in the Crypto / NFT space. 

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Remarkable Women NFT

Remarkable Women NFT is a collection of 6000 NFTs launched in February 2022 by the artist and illustrator Rachel Winter. The sell-out project illustrates women expressing cultural inclusion, fashion, feminism, and self-expression. 10% of the sales were donated to Fund for Women's Equality (FFWE), and 10% of secondary market sales go to the Remarkable Women Impact Fund, a project that supports causes to uplift women. 

The project will feature in-person events for holders, merchandise for use in real life and the Metaverse, and education to help people of all genders learn more about Crypto, Metaverse, NFTs, and Web 3. The projects enable holders to stake their NFTs for a period in return for points that can be redeemed for rewards as part of a loyalty program.

Generative Avatar Projects led the NFT space in 2021 with numerous hugely successful projects. Collections such as CryptoPunks, Bored Ape Yacht Club (BAYC), and Doodles are some of the all-time best-selling NFT projects. Others tried to emulate these projects, with many enjoying a modicum of success.

As time passes, avatar-led undertakings have less impact, but the versatile nature of NFTs ensures other types of campaigns become the trend. 

How Are Crowdfunding And NFTs Connected?

Crowdfunding has become a means to raise capital in the Internet era. It's an alternative way to raise money for businesses away from sources such as borrowing from the bank, business grants, and angel investors. Crowdfunding involves the business person proposing the idea, a group of people willing to invest, and a platform bringing the two parties together to execute the concept.

NFTs have the features to replace crowdfunding and become a better method to raise capital. It eliminates platforms performing the middle man mediator role. With NFTs, there are only two sources involved: the business proposing the idea and the investors willing to buy the NFTs to raise the money required. 

The Changing Nature of NFTs

While NFTs projects evolve from avatars, one part will remain constant. All projects require loyal and committed fans to succeed; the community element continues to be necessary. It's likely projects will evolve to where utility is the main focus and art becomes negligible. In this raising capital example, the business becomes the utility.

Raising Funds Through NFTs

Anyone wishing to start a business could do so through an NFT community, the funding step becomes less difficult. Many lending institutions require people to jump through hoops before offering the finance. Becoming accepted on crowdfunding platforms is no easy task; arduous tests are in place like traditional institutions. 

The Internet has made it easy to build a following. Anyone wanting to start an NFT project can post on Social Media platforms such as Twitter and build a community on Discord. A big enough community with trust in the assignment will lead to the sell-out of the project. 
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The Problem With Avatar Based NFTs
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The novelty factor of NFTs meant early projects with artwork could succeed. The legendary Cryptopunks project continues to be the number 1 project purely based on art. But there is only so much demand for art; the chance of the investment increasing in price diminishes as more JPG artwork enters the blockchain ecosystem. 
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This led to projects seeking to offer metaverse experiences and play-to-earn games utilities. But unfortunately, for the majority of projects, the utility is not ready upon launch. The road maps typically state the project will evolve to offer utilities some months after the launch.

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With no firm guarantees, it leads to a lack of confidence from investors. The numerous cash grabs and rug pull further add fuel to the problem. ‍

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How Can A Business Raise Funds Through NFTs? 

Building a solid community on Social Media and Discord and communicating the intentions will gain the investors' trust. Having concrete business plans helps the situation. Various plans can be proposed and implemented to reward investors. Investors could gain a percentage of the profits from the business; all paid through the NFTs. Allocation of discounts is possible for holders.

The smart contract feature of NFTs allows agreements to be programmed with no need for third-party involvement. The holders could even become part of the organization's governance through a decentralized autonomous organization (DAO) setup. 

Why Such A Setup Is An Improvement On Avatar Based NFT Projects?

NFTs are an extension of cryptos, and people buy for investment purposes. Purchases are made in the hope of price increases. Very few invest in NFTs for the love of art and a carefree attitude towards the price. In a business NFT scenario, the utility is the main focal point. The project will need to deliver the utility upon launch. The utility could be up and running on a small scale and the money raised through NFTs allows expansion to occur. 

In this situation, for success, a detailed plan needs to be laid out clearly for the investors to study and analyze. Unlike avatar NFTs, there is no vague notion of a utility launching in the future. This has great use for businesses already in existence. They can raise cash for further expansion. Given the company already enjoys success, it will provide confidence to the investors. 

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This kind of scenario will lead to more people taking NFTs seriously. The cartoon avatar nature of NFT often only appeals to young people and teenagers.
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Conclusion‍

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NFTs have many uses in the commercial marketplace, and a way to raise capital is one example of utilizing NFTs. It will also provide more investment opportunities for the investors to develop their scope. With time, many businesses will use NFTs in many different capacities. 

Marketing is an essential component to launching a successful NFT project. A project could have great artwork, a secure smart contract, and a professional front-end website to facilitate minting. Still, the project will fail to reach its potential without great marketing. So how can a project go about carrying out a successful marketing operation?

Build And Grow A Community  

For people to buy the NFT, confidence in the project is required. Trust is attained by building a loyal community of fans. Discord is currently the favored method to build a community. The app allows conversations in text and voice and features such as Ask Me Anything.

People are encouraged to join the community through Social media platforms or shilling other Discord servers with an NFT presence. Enticements such as the opportunity to enter the whitelist or prize giveaways are common.

Participation in the community is incentivized through chat contests. People with the highest engagement rates are awarded prizes in cryptocurrency or NFTs. Invite competitions are run to increase the size of the community.

An active Discord community encourages others to join and participate; visitors seeing a vibrant community will become members. A thriving community also encourages people to buy NFTs. Experienced investors in the market will only purchase from active communities. The Discord server allows the project to relay information and gain the members' trust. A vast volume of purchases will come from the community; building a solid, engaging community is essential.

Use Social Media

People discover projects through Social Media, with Twitter the most popular medium for crypto and NFT projects. It is a platform where people assess the strength and weaknesses of projects. One way for people to evaluate a project is to examine the following size and content engagement. This evaluation facilitates judgment on whether there is a strong interest in the project.

From an investment perspective, there needs to be demand for the NFTs for price rises. The foundation of investing is buying low and selling at a higher price.

A following is built on Social Media platforms like Twitter by posting quality content that suits the app. For example, written content that reads well with well-spaced, easy-to-read information is essential on Twitter. On Instagram, great images and video reels are necessary to make the page look professional.

A project often builds its following through organic engagement methods such as commenting on other accounts coupled with giveaways. People love freebies and will join Social Media accounts for the opportunity to win.

Social media is used to direct people to the Discord server to contribute to community development. Twitter Space is a valuable tool to deliver more information on the project and how it'll proceed.

Social Media Influencers are commonly employed to advertise the project. Influencers have a vast following; they can inform their followers about the project and spread awareness.

Collaborations with other projects are a great idea and are mutually beneficial; it facilitates followers to discover new projects.

There are numerous Social Media platforms. Twitter should be the primary focus as it has a significant NFT presence. Other platforms such as Telegram, Instagram, and TikTok are worth considering after achieving a big Twitter following.

Other Advertising Methods.

There are numerous websites and blogs to advertise the project; some are paid, others are free. Press releases and websites such as mediums allow content marketing to take place.

Content marketing is an excellent method to bring users to the company website. Through blog posts, traction and traffic from search engines are directed to the Discord server.

Advertising on the Metaverse is also an option. Metaverses such as Cryptovoxels and Decentraland are popular places for NFT fans. Advertising here will help to attract an audience heavily into NFTs.

Final Thoughts

Building an extensive fan base before the launch will help to ensure the project sells out. A sold-out project has the momentum to increase strength and become more comprehensive. A collection that performs poorly on launch will attract negativity from the existing community, drive down the price of the NFT, and become harder for project growth. It'll be challenging to attract new members as people will see the project as less than successful.

 Many NFT collections offer good artwork, with projects viewing it as an important component. Only a few NFT projects are entirely art-based; most provide other benefits in the form of utilities.

Discord Channels.

All major NFT projects have a community on Discord accessible to anyone. Discord has become the most prominent app for community building and information sharing in the crypto and NFT space.

Some NFT projects have special channels only available to the holders of the NFT. These channels are managed by the collab.land bot, allowing a members-only community to provide additional benefits. Some of these are to facilitate free airdrops, provide specific project news, or allow holders to vote on project governance.

NFT projects could offer educational content for users in the form of investing, art classes, and special appearances by industry leaders.

Access To Events.

Some projects have access to networking events, parties, or seminars as a holder. Top projects like Bored Ape Yacht Club and VeeFriends have real-life meetups for holders. There are VeeFriends NFTs that allow in-person access and mentorship from Gary Vee.

Famous and well-known people can launch NFTs where the holder gains signed merchandise or attend events with the founder.

Physical Items.

Some NFTs by artists allow people to obtain the physical version of the NFT. Flipkick is a company that works with artists to deliver NFTs linked to physical art. This space will evolve as NFTs become popular and artists realize the potential of NFTs and blockchains.

Some projects have physical merchandise associated with the NFTs. The infamous Bored Ape Yacht Club sells merchandise and allows NFT owners the right to create sellable merchandise with the NFT they own.

Airdrops.

It's pretty standard for NFT projects to give holders additional NFTs and other rewards.

Bored Ape Yacht Club (BAYC)airdropped Bored Ape Kennel Club and Bored Ape Mutant Club NFT to its holders; these two new projects became valuable as the BAYC project grew.

The top-selling CryptoPunks NFTs were free on launch; anyone holding an Ethereum wallet could claim an NFT.

NFTs are closely linked to Blockchains as this technology enables NFTs to exist. Numerous blockchain platforms give away NFTs as airdrops. For example, Binance Smart Chain, a strong competitor to the Ethereum blockchain, has airdropped tokens.

Breeding

Play-to-earn (P2E) game Axie Infinity facilitates the players to breed new in-game characters. In addition to using the characters in the game, they can be sold or rented, offering the holders the potential to earn additional income. Some non-P2E NFT projects allow the holders to breed and the creation of new NFTs.

Another project that allows breeding is CyberKongz to create BabyKongz. In addition to breeding, CyberKongz contains Kongz Island, a multi-estate concrete jungle built on Sandbox, and its own $banana token, which has contributed to CyberKongz becoming a quality NFT project.

Fractional Ownership

Fractional Ownership of NFTs allows people to purchase a fraction of an NFT. An art NFT by a well-known artist could be split into many components and available for many people to buy shares.

Pak's NFT Artwork 'The Merge' is a well-known example. The NFT sold for over $90 million; it was split into over 312,000 units to ensure many people could buy a stake in the project.

Taking such an approach will ensure the NFT is easier to sell. An expensive NFT is limited to wealthy buyers; fractionation provides greater market access and an easier sale process in the future.

Staking

Financial gains are achieved with many NFT projects when the NFT is sold. Staking allows the NFT to be locked away into the project or another ecosystem to earn a passive income. Such projects are likely to have a greater appeal to investors.

Metaverse Activity

The Metaverse is a trending subject; it will have a significant impact in the future. Offering activities involving the Metaverse is a utility that adds value. Decentraland and SandBox provide Metaverse opportunities that have contributed to their success. Projects providing artwork NFTs could present a Metaverse experience where individuals can view the art in a Metaverse-based museum.

Conclusion.

In the current climate, utilities are an essential part of success. It's unnecessary to have an endless list of utilities, but the greater the number, the more the investors will benefit.

For the project to reach a favorable outcome and give the market confidence, it should have the utilities ready and available on launch. Such scenarios eliminate negative sentiments often seen following the launch.

Top-quality NFTs are not an inexpensive item. On the Ethereum blockchain, paying as much as $500 for a new NFT is not out of the norm. Some NFTs cost even more. This payment does include the transaction (gas) fees which run into hundreds of dollars. Cheap NFTs are available on the Polygon network, but individuals dabbling with NFTs rather than professional projects are the source of these NFTs. The likelihood of such NFTs becoming valuable is low. 

Where To Find Free NFTs?

For those without the funds to mint NFTs, there are ways to obtain them for free. 

Marketing is necessary to launch all NFT projects. The exception is NFTs released by a well-known name or corporation. The value held by the cooperation is sufficient for viral marketing to occur. For example, if a brand such as Prada or Coca-Cola were to launch an NFT project, the news would spread fast without significant effort.

Normal individuals usually run NFT projects, and a successful launch requires marketing effort. The marketing phase is usually a few weeks to a few months, during which time there are opportunities to win NFTs. Offering prizes and giveaways are the most significant way for projects to advertise, gain exposure and grow the community.

Promotion and marketing take place on Twitter, Discord, and Instagram. Many projects start by offering the chance to win whitelist spots. The winners can mint before others but still need to pay for the NFT. Occasionally the whitelisted people obtain the NFT at a discounted price. 

Twitter is the best place to discover NFT giveaways. Searching under #NFTGiveaways will show projects using giveaways. The more popular the project, the fewer opportunities to win an NFT; there is no need to use enticements. 

Twitter also has promoters not related to projects doing giveaways. They are running giveaways to grow the account and increase the following. Some well-off individuals run contests to give back to the community.

The usual requirement to enter is to retweet, like the tweet, and in the comment section, add several friends who may have an interest in NFTs. Some also ask people to join their Discord server. 

The Discord servers of NFT projects also run giveaways. These run as chat contests; members who chat the most are awarded NFTs as a prize. There are other giveaways in invite contests; members who invite the most people to the server receive NFTs. Some try to cross-collaborate with other projects; the Discord members must join another server to enter the giveaway. Fanart contests are also widely used by more significant projects. It's worth joining numerous Discord servers to discover giveaways. 

Note Of Caution. 

NFT giveaways are very common on Twitter, but not all are real. Promoters run many fake giveaways, which cloud the scene. 

They offer the chance to win an NFT, but the prize will not materialize. Fake giveaways are apparent when winners are not announced in the comments. It's best to go through the promoter's Twitter feed and look at previous giveaways. These promoters seek retweets to gain exposure and followers; the fake giveaways are a means to grow the account which can be monetized later.

The best approach is to identify people with real giveaways and consistently enter the contests offered by these accounts. 

Scams are less likely with giveaways run by projects; these contests are generally honest. The exception is if the project is unsuccessful. It fails to take off with a low mint, the owners become demoralized, and they fail to award the prize. And the chances are people will not want to gain an NFT from a failed project! Many such projects have become abandoned by the founders.

Free NFTs Are Not Free! 

Thousands of others want to win NFTs; the competition is stiff. Many entries are required to win a giveaway on Twitter; it's a time-consuming affair. People are not paying for the NFTs monetarily; compensation takes an enormous amount of time. 

In Discord chat and invite contests, a vast portion of time is required to reach the top positions to win prizes, the same as Twitter giveaways.  

It may be better to seek employment and buy the NFT. But everybody's situation is different. For instance, in low to middle-income countries, winning an NFT and the value associated with it is worth more than the hours spent working. 

Free Mints.

A strategy used by collections with limited marketing budgets is to offer free NFTs. Most have little presence on Twitter or Discord, but people discover the project and mint the NFTs for free. 

The project takes off, and a Twitter and Discord community springs up quickly. NFTs, increase value, leaving the lucky ones with a money-making asset. Within days the initial hype dies, and with little to no road map, the price of the NFT falls. These are a good opportunity for a quick flip.

Some of these collections advertise on blogs and websites. Additionally, they can be found by searching Twitter and Discord communities that discuss NFTs.

Blockchains which started as digital ledgers for record-keeping digital currency transactions are becoming used in other settings. Currently, blockchains show significance in decentralized finance and NFTs. There is also the rise of staking NFTs, a combination of NFTs with finance.

The Evolution of NFTs From JPG Artwork

NFTs have become a common feature in the crypto world; anyone familiar with crypto will likely understand the technology and the inner workings behind NFTs. Many NFT projects are launched daily on various blockchains such as Ethereum, Solana, Polygon, etc. 

But the novelty factor behind NFT artwork is now redundant. In the early to the middle part of 2021, a collection with lovely generative artwork would suffice for a successful NFT project. Now an NFT collection with great artwork as the main selling point will flop. The market has decided that JPG artwork stored on the blockchain has little value. There is endless art flowing in the blockchain with little appetite to become worth thousands. Artwork by a well-known artist or celebrity is the exception; such a collection will sell quickly. 

This has led to projects releasing utilities as a significant part of the road map. Utilities come in many forms, one of which is the member communities. The hugely successful VeeFriends offer a community, holders can access seminars and events by Gary Vee. Bored Ape Yacht Club (BAYC) is a social club with parties and events held for members and other benefits. Or the Nike-owned RTFKT enables holders to access the physical version of the NFT represented as sneakers. Real-world utilities combined with confidence from the market ensure the NFTs hold value.

The Rise Of NFT Staking

There are two main reasons why people purchase NFTs. Firstly the novelty factor, NFTs are a recent phenomenon; people are keen to buy a new product. The second reason is the investment possibilities. People purchase NFTs hoping the asset price goes up, leading to profits. 

The majority of NFT projects are flops. It is not unusual for NFT projects to sell out or mint a reasonable quantity of NFTs within the collection. But following the launch, the value of the asset falls. It's a good situation for the founders; the initial mint can quickly raise six figures or as much as a million dollars within a few short months. The investor has an NFT worth less than the initial price. 

Investors can mitigate such situations by researching projects that offer staking opportunities. Staking is a common feature in the crypto and blockchain ecosystems that use the "proof of stake methodology." For carrying out transactions, adding blocks to the chain, and validation, the participants are awarded native tokens of the blockchain. The participants must stake Crypto coins; the more significant the stake, the greater the likelihood of becoming chosen. The holders can pool together to create a node system to carry out the necessary work. This system offers a way to earn a passive income and ensure the coins are used. 

It has become possible to utilize NFTs for staking purposes. The holders offer the NFT to the project or external sources; it's held in return for staking rewards. 

The most prominent proponent of staking directly into projects is NFT play-to-earn (P2E) games. One of these is Axie Infinity. Players purchase the Axie Infinity NFT; it enables them to participate and earn in-game assets that generate a profit. Players can stake in the governance token Axie Infinity Shards ($AXS), giving yields as much as 80% annual percentage rate (APR). Another P2E game is Splinterlands, where holders of the native token have access to rewards, governance of the game's DAO, and other special offers.

External platforms allow NFTs to work with Decentralized Finance (DiFi) to enable staking. The NFTs are locked away in return for a yield. Platforms that facilitate staking include Kira Network and NFTX. Kira Network is a blockchain protocol that enables NFT holders to stake assets in return for tokens. NFTX has been explicitly created for NFTs to generate liquidity without selling NFTs. Holders can stake their NFT in return for NFTX tokens which act in the same manner as altcoins.

Conclusion

Staking NFTs on external platforms is a new phenomenon; the infrastructural foundations are taking shape. It has a great deal of volatility as a new protocol but will evolve. NFT projects can succeed by offering broader investment possibilities within the road map, and staking is one way to achieve that.

Note: This is not financial advice; everyone should research before investing in NFTs or other assets.

NFTs hit the headlines in 2021. In the early part of the year, Jack Dorsey, the CEO of Twitter, sold his first-ever tweet as an NFT for over $2.9 million. The digital artist Beeple sold an NFT collage for around $69 million, and a whole host of others sold their NFTs for fees well into six figures and beyond.

The term 'NFT' was named world of the year by Collins Dictionary and many people jumped into the craze that's NFTs; they could see the enormous potential of NFTs.

Much of the positives behind NFTs are well documented. These include proof of ownership, authenticity, transferability, and security. But what are some other advantages?

Good For The Economy

NFTs have spawned a new industry. For an NFT project to go to the market, it requires people to carry out tasks ranging from creating the artwork, developers to deploy the NFTs onto the blockchain, and marketing staff to execute the plan to sell the collection. All these tasks enable people to earn money plowed back into the economy.

People do not need much experience to become involved in this new industry. Some established industries may seek years of experience, but such people do not exist in the NFT space. This easy-entry enables people with a small exposure to NFTs to leverage their existing skills and take up well-paid roles.

People with an entrepreneurial ethos can start up businesses involving NFTs. They can begin NFT projects, develop technology to enhance the ever-evolving space, and create marketplaces.

Good For Business.

NFTs have seen many billion-dollar corporations enter the NFT space. They range from Adidas, Samsung, Coca-Cola, Gucci, and many more, opening up another avenue to conduct business. Until now, the only mode of operation has been selling physical goods online and offline.

NFTs allow these established organizations to leverage their current popularity to sell digital assets and develop Metaverse-related activities to increase their offering. Organizations like Gucci create Metaverses where people can enter, enjoy a virtual reality experience, and purchase items for their virtual world. It's possible to buy gadgets, furniture, clothing, vehicles, and much more. What is available in the real world will become available to purchase for use in virtual space.

NFT and blockchain technology opens up marketing opportunities. Giving away NFTs can help gain new customers, add customer loyalty, and drive new marketing opportunities. It enables new products and enhancements launches. For instance, hotels can offer loyalty schemes for people holding their NFTs.

Good For Investors

NFTs have offered another avenue for investors. The emergence of NFTs has seen people buying NFTs as investment possibilities in the hope of increasing in price. Many traders enter the space hoping for quick flips for huge returns. While there is no guarantee of NFTs going up in price, there are many success stories. Top projects such as Azuki, Doodles, and World Of Women have exceeded their initial mint price. Anyone investing in such projects has seen a significant return on their initial investment. These stories have led people to believe NFTs are the modern gold rush. The evolution of NFTs is fast; what was on-trend a few months ago becomes no longer desired. It's best to stay tuned to the latest news.

Investing in NFTs aside, the technology behind NFTs opens the door to other investment opportunities. Organizations leading the way in the NFT world have sound potential. Companies developing the Metaverse, NFT marketplaces, and crypto coins used to purchase NFTs are excellent bets. For example, Matic, the native tokens of Polygon, has gone up in price. From a few cents at the start of the year to almost $3 by the end of 2021. Mana, the token behind Decentraland, which develops virtual land, has seen significant increases in the last five months.

Note that there are no guarantees in any investment, and people should always do their research before investing.

Conclusion

NFTs are revolutionizing the world. The Internet in Web 1 and Web 2 changed people's communication and spending habits. NFTs are the Web 3 version of the Internet; it's likely to have a more significant effect than previous versions. NFTs and blockchain technology are closely intertwined and open the door for positive financial and societal change. The world is likely to see more benefits as the months pass by.

The COVID-19 pandemic has seen an increasing number of people turn to technology for work and recreational pursuits. It has led to the crypto, blockchain, and NFT technologies experiencing an uplift. A few years ago, blockchain technology was not the norm, and the number of transactions did not match the number seen today. As blockchain technology becomes increasingly popular, environmental effects are becoming a consideration.

Blockchain And How Is It Related to NFTs?

The blockchain is a digital ledger of transactions duplicated and stored over a network of computers (called nodes) in the blockchain system. It allows recording information and data that is impossible to change prevents hacks and manipulation. Every time a new transaction occurs, the data registers to every participant's ledger.

The ability to store digital assets on the blockchain is the appeal of NFTs. NFTs are unique; there's only one version in existence with the possibility of proving ownership. It's feasible to record art, music, video games, and many other things.

Why Does The Blockchain and NFTs Cause Environmental Concerns?

Creating the artwork or the pieces of music or video game does not, depending on the asset, consume a great deal of energy. However, carrying out transactions on the blockchain uses enormous amounts of energy.

Bitcoin set the motion for blockchain technology to emerge; it's the oldest blockchain in use. Bitcoin is a database of accounts with digital currency stored in each one. But NFT transactions are not feasible through Bitcoin.

Ethereum is an evolution of Bitcoin and is more sophisticated with more outstanding capabilities. One of these features of Ethereum is "Smart Contracts," which enables an agreement or contract to take place between the buyer and the seller to allow a change of ownership of NFTs.

The likes of Bitcoin and Ethereum use 'proof-of-work' (POW) to complete transactions. With POW, the computers (nodes) in the system attempt to complete a complex mathematical problem. Proof of Work prevents DDoS attacks, spam, and other fraudulent activities. Hackers and actors with ill-intention do not have the computing power to hijack the blockchain. Many nodes carry out POW per transaction, but only one node is  the "winner." All the other nodes have wasted their energy. Additionally, the nodes must communicate to validate the transaction, further adding the power usage.

Minting an NFT on the Ethereum blockchain can use the same energy as a US household in 9 days. To purchase an NFT, it is not unusual for the transaction fee to amount to some hundreds of dollars. Energy usage is not limited to the initial minting. Further transactions such as listing the NFT and selling on the secondary market also consume energy.

The Solution To The Environmental Concerns

While there are legitimate concerns about energy usage, there are answers to these questions. Ethereum blockchain accounted for over 99% of the NFT transactions by the end of 2021. It is currently moving away from the 'proof of work' concept to a more efficient 'proof-of-stake system.' ETH 2 will roll out in 2022.

'Proof-of-stake system' allows cryptocurrency owners to stake coins in exchange for checking transactions and adding valid transactions to the blockchain. Owners create their validator computer system (nodes) and stake coins to participate. Completion validates the trades to ensure accuracy. Unlike 'proof of work,' endless nodes are not carrying out 'wasted' work, and as a result, energy efficiency increases. It's thought the 'proof-of-stake' system could cut down energy use by as much as 99%.

Other blockchains do not employ a 'proof-of-work' methodology; these include Cardano, Flow, GoChain, Solana, and Tezos. They utilize the 'proof-of-stake' system and are more efficient. But these blockchains do not enjoy the same popularity as Ethereum.

Layer two networks can improve efficiency and cut down energy wastage. Polygon is a layer two network that works with Ethereum. On Polygon, the transactions are fast and use less energy with lower transaction fees. Such techniques could be adopted until more environmentally friendly solutions become common.

A further solution is for blockchains to use renewable energy sources such as solar, wind, and hydroelectric. These energy sources will not run out, are more environmentally friendly, and do not negatively impact public health.

Conclusion

In recent times the environmental effects of NFTs have been highlighted, leading to people questioning the validity of NFTs. But some technologies alleviate the situation, and a more environmentally friendly solution will become the norm with time.

Everyone involved in NFTs is aware of the technology behind them. Blockchains act as the driving force for NFTs; these blockchains are used to store data and verify ownership. Unlike cryptocurrencies, the NFT is unique with no other version, where each coin is the same. Numerous blockchains allow NFT transactions to take place. These include Ethereum, Cardano, Flow, Solana, and Tezos. Ethereum accounted for over 97% of the NFT transactions of all the blockchains by the end of 2021. Layer 2 solutions for Ethereum that support NFTs are available with Immutable X and Polygon.

Ethereum Blockchain: Advantages and Disadvantages.

There are numerous reasons why Ethereum accounts for the vast majority of NFT deals. In the short history of cryptocurrencies and blockchains, Ethereum is an early pioneer. It has developed protocols and standards that lead the way. Ethereum is an open-source, decentralized blockchain with innovative contract features to ensure a secure platform. Such capabilities allow the recording of high-accuracy transactions.

The popularity and the size of Ethereum have led many developers to work on the platform; its capabilities continue expanding. Many NFT collections utilize Ethereum as the choice of blockchain for NFT project development.

But its popularity has led to setbacks and issues. Due to the enormous demand, congestion within the network is an issue causing a high transaction fee (called the gas fee).

It's not unknown for the gas fee to cost more than the NFT itself! This issue has led to NFT projects looking at alternative blockchain sources to execute and store digital data. Unless Ethereum can address the problems, its market share will fall in the future.

The popularity of the Ethereum blockchain has meant the existence of many secondary marketplaces to cater to Ethereum NFTs. For those running NFT projects, Ethereum opens up more marketplaces to trade and promotion opportunities. There are other costs involved with Ethereum NFTs after the initial purchase. People need to pay gas fees for listing and auction sales on the secondary market.

Polygon Network: Advantages and Disadvantages.

Polygon is a side chain secondary network residing above the Ethereum blockchain network - the primary layer. Polygon cannot complete the transaction on its network; it uses bridging to connect to the Ethereum network and use smart contract features. Polygon aims to alleviate and address the issues faced by Ethereum. It's less popular than Ethereum and does not face congestion problems. The secondary network has the infrastructure to ensure

faster and more efficient transactions.

The most significant advantage Polygon has over Ethereum is the low gas fees. Transactions occur quickly on Polygon, with no need for the same mining power leading to nominal transaction fees. Less congestion also contributes to lower expenses.

Polygon network is less secure than Ethereum. It opens the door for assets to become lost. For the sake of speed, there are fewer checks and balances in place.

Ethereum is the second biggest cryptocurrency after Bitcoin, and the coin associated with Polygon (Matic) is in the top 15. New people entering the market are more likely to purchase on the Ethereum blockchain than Polygon as they have a greater familiarity.

Purchasing Ethereum NFTs on marketplaces such as OpenSea is not tricky. But to buy Polygon NFTs, extra steps are required to bridge the Ethereum and Polygon network. For people without tech know-how, the process is not straightforward. People concerned about crypto scams going through lengthy processes may discourage participation. There are fewer marketplaces that cater to Polygon NFTs.

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Conclusion

Ethereum is the premier blockchain for NFT transactions; it's the preferred option for most projects and individuals wishing to buy NFTs. Ethereum is perfect for high-value transactions as there is less likelihood of the NFTs becoming lost in the system.

Polygon acting as an intermediary has its use for low-cost NFTs and the budget-conscious. It is a good choice for smaller artists not wishing to pay high gas fees to list their NFTs and people wanting to buy inexpensive NFTs with low transaction fees.

The high demand for Ethereum NFTs has created congestion and high gas prices, which has seen the emergence of Polygon. The situation may change with the launch of ETH 2.0, which intends to solve the current problems faced by Ethereum. But the last 18 months have seen Polygon become significant, and the trend is set to continue in the near future.