Close menu
Close menu Log in

NFTs have only been around for a few years and have already generated billions of dollars in sales. With all the hype surrounding them, it’s worth knowing how they work.

NFTs, or non-fungible tokens, seem to be all the rage in the world of investing and blockchain these days. Celebrities, artists, and even professional athletes have jumped in on the craze and started offering digital assets to anyone willing to pay. While the idea of investing in something that’s not real may seem absurd, the value of NFTs continues to rise..

The question is, should you invest? It’s possible that NFTs can give you a significant return, but you could also be buying into the current hype that has no real value. Who knows if NFTs will stick around, but there’s no denying that the current investing landscape is happy to include them.

What Are NFTs?

NFTs are digital assets that represent real-world things. For example, a video of a sports highlight or digital art could be turned into an NFT.

These assets are digitally encoded, which makes them unique. As in, there’s only one of its kind or a very limited supply. This is different from a digital file that can be duplicated. Even though anyone can view these images online for free, there’s still only one NFT available, and that’s where people see the value in investing.

You may not be the original artist or athlete, but you can purchase the digital rights in the form of an NFT. This file comes with built-in authentication, so there’s no denying who the rightful owner is.

How Do NFTs Work?

Similar to cryptocurrencies, NFTs exist on a blockchain. Think of this as a public ledger that shows all the transactions. This is how people can verify ownership of NFTs. Generally speaking, NFTs use the Ethereum blockchain, but there are other blockchains in use too.

NFTs can take on multiple different forms, but there are some more common ones you’re likely to hear about more, such as:

As weird as it sounds, both digital and physical assets can be tokenized and sold as NFTs, making them no different from physical collector items. The difference is, they likely only exist digitally and you can only own them in digital form.

Again, NFTs are appealing due to the ownership rights. Sure, you may not have painted that art or dunked over Giannis Antetokounmpo, but you can own the digital rights to that work. For some people, it’s the bragging rights that appeal to them more than anything else. But, bragging rights aside, NFTs are still proving to be a lucrative investment option worthy of our attention. In the first half of 2021 alone, NFT sales amounted to $2.4 billion, which is a huge amount for an asset that’s only been around for a few years.

What Are the Real-life Applications of NFTs?

Let’s be real, NFTs were created to make people money. Blockchain technology and NFTs allow people to profit off their creations. Since anyone can create NFTs for their work, this is highly lucrative for a variety of reasons.

For example, an artist might traditionally rely on an auction house or gallery to sell their work. With NFTs, they can sell directly to consumers. Since there’s no middle man, the profit margins are much higher. Additionally, artists can include royalties in their NFT. That means if the NFT is sold again, they’ll get a percentage back.

As for athletes, it’s an easy way to monetize assets that people are constantly looking at online. Sports NFTs are often created with the league’s partners, so athletes aren’t selling them directly. However, all parties involved are getting additional revenue, which is undeniably appealing.

Technically speaking, anyone can create an NFT. However, it’s usually only celebrities, athletes, social media influencers, or any other people with social relevance who are able to sell their NFTs for a good return.

In the end, it’s supply and demand that drive prices. Some early adopters were able to purchase NFTs at a low price before the hype picked up. But, now that NFTs have become quite popular, there’s much more demand, which increases prices in turn.

How to Buy NFTs

Although some people believe that NFTs are just another asset bubble that will be worthless one day, others say otherwise. NFTs have sold for hundreds of thousands of dollars, and many people are ready to jump in.

To purchase NFTs, you need a digital wallet first. This will allow you to store your NFTs and cryptocurrency. Since most NFTs are usually purchased with cryptocurrency, you’ll need to purchase some of that in advance. It’s a good idea to check with the NFT provider ahead of time to see what cryptocurrencies they accept to ensure you buy the right one.

Purchasing cryptocurrency can be done through platforms such as Robinhood, Coinbase, Kraken, PayPal, eToro, and more. Once you’ve bought crypto, you can move it to your digital wallet.

With the funds in your wallet, you can now browse NFT marketplaces. Some of the most common sites to purchase NFTs include:

How to Sell NFTs

Many of the marketplaces mentioned above allow you to sell your NFTs. This is convenient as you’d be using a platform you’re already familiar with.

If you’re looking to create an NFT and then sell it, you need to look at the different marketplaces available. As long as those marketplaces support the file you’ve made, you can turn it into an NFT. That includes any image, MP3, or event TXT files. It’s as simple as uploading your file.

You’ll also need to provide additional information, such as if your art is an original or part of a collection. Once you’ve paid your fee to create the NFT, you can have it listed on the marketplace within a few seconds.

While creating an NFT is simple, getting people to discover or bid on it is tricky. That’s why celebrities, athletes, and influencers have the most luck as they’re able to promote their NFTs to a large audience quickly.

Most Popular NFTs to Pay Attention to

Things move quickly in the world of crypto and NFTs. What’s popular one week might fall or rise significantly a week later, so it’s always tough to know what’s on top at any given moment. The best way to know which NFTs are highly valued is to make a point of staying on top of NFT news so that you become more familiar with the different tokens and their value over time. Still, it helps to get an idea of what the most popular NFTs are when you’re just getting started with this asset. At the time of writing, these were some of the most popular NFTs available.

1. Axie Infinity

This battle and trading game uses a play-to-earn-model where players can collect digital creatures known as axis. This NFT gaming platform generated $2.34 billion so far in annual revenue, making it one of the most valuable NFT collections out there. Axis Infinity is also a prime example of how NFTs and gaming collide, as the game currently has over one million daily users.

axie infinity logo

2. NBA Top Shoot

NBA fans can buy and collect digital NBA collectibles that are made up of exclusive content from players, almost like digital sports trading cards. In February 2021, a shot of Lebron James was sold for $208,000, which was the highest any NBA Top Shoot NFT has sold for so far.

nba stop shot logo

3. CryptoPunks

Launched in 2017, CryptoPunks is one of the earliest NFT launches. The token is an 8-bit pixelated character, and each one is unique in its distinctive features. There are a limited number of CryptoPunks in circulation, making this a highly coveted NFT. To date, the most expensive CryptoPunk sold for over $7.5 million worth of Etherium in March 2021.

nft png

Should You Buy NFTs?

That’s a question only you can answer. NFTs are no different from some other investment products available. If you want to diversify your portfolio and don’t mind taking on the risks, then go ahead.

But, of course, you shouldn’t just buy NFTs blindly. First, look into your portfolio and see if they fit into your investor profile. A good way to do this is to open an account with Vyzer where you can get a detailed overview of all your different investments and see how they’re performing. Next, do your research on all the varieties of NFTs and find one that fits your existing investment profile.

Do you book the next flight out to somewhere sunny, or are you already seeking out your next endeavor? Slow down, there are some important things to consider after selling your business.

Selling your business is bittersweet. On the one hand, the hard work you’ve put in is recognized with an excellent financial reward. But, on the other, you’re letting go of something that’s been a major part of your life. The decision to sell isn’t easy, and what happens afterward isn’t simple either.. but, with a bit of advance planning, you can ensure you’re headed in the right direction after selling your business.

Create a transition plan

Just because you sold your business doesn’t mean you’re going to exit immediately. dds are the buyer has negotiated a transition period where you’ll still be the voice of the company. You’ll want to come up with a plan where your duties are handed over to the new management team.

Keep in mind that it’s not just about you. The employees are also a vital part of the business you built. You’ll want to make sure they understand what this change means and how it affects them. You don’t need to meet with all of them individually, but it’s a good idea to say something to recognize how important they are moving forward and also to address any fears they may have about the transition.

With the work stuff out of the way, you can also create a transition plan for the next stage of your life. Maybe you want to travel, spend time volunteering, or embark on a new business venture. Whatever your goals are, now is the time to pursue them.

Get your finances in order

Throughout the sale process, you should speak with a corporate and tax lawyer. They’ll be able to advise you on how to minimize your tax burden. How the sale is structured can significantly impact how much tax you owe, which is why you want to seek the advice of a professional.

Once you have the cash in your bank account, it can be tempting to spend it, but you may want to wait a bit before you make a major purchase. Depending on how much you sold for you may now have access to wealth managers who deal with high net worth clients. They’ll be able to help you manage your money by diversifying your portfolio with investments such as stocks, mutual funds, real estate, and cryptocurrency.

While there’s no denying the benefits of a wealth manager, their fees can eat into your returns. Some people who sell their business prefer to dive into the world of investing on their own since they now have the time. Plus, there are tools available that make managing your accounts easier. Vyzer is one tool that helps those with multiple assets maintain control of their finances on their own while managing their investments.

Update your vital information

One thing you may want to tackle right away is your online profile. You spent years building contacts, so updating your LinkedIn profile is a quick way to show people that you’ve had a major change in your life and that you’re currently open to new opportunities.

Another thing you’ll want to take a look at is your estate plan. Updating your insurance plans is pretty straightforward, but your will might need a complete overhaul. Do you believe that your current executor will be able to handle the changes with your estate? Although you don’t want to rush things, you’ll want to get your affairs sorted out sooner rather than later.

Consider how you’ll tell your friends and family

While the sale of your company should be celebrated, not everyone will be as excited as you. Some of the people closest to you may become jealous. You’ll need to approach the subject of you selling your company cautiously since you won’t know how everyone will react.

You also need to consider what will happen if people start asking you for a loan. The amount they ask for may seem trivial to you, but it could be life-changing for them. It’s a sensitive subject, and most experts suggest that you should only lend money to friends and family if you’re alright with losing it. If you don’t want to lend any of your cash out, just say your wealth managers are handling your money now.

Learn to let go

Eventually, you’ll have very little or no involvement with the business that you built. You may disagree with the direction that the company is now headed towards, or you may have strong opinions. Either way, it’s none of your business, literally.

Continuing to have an emotional attachment to your business is normal, but you need to learn to let go. Your life is on a different path now, and you’ve got the resources to pursue any direction you want to take.

Consider other routes

Sometimes, selling doesn’t mean completely parting ways with your business. There are many business owners who, after selling, stick around to contribute to the company in other ways. Selling a business doesn’t always require an exit, but rather might be done for strategic or budgetary reasons.

Consider whether or not you can work with the new owners in a consulting capacity. After all, you know the business better than anyone else, so who better to guide it through a transition and offer advice on future endeavors than yourself? Keep an open mind when it comes to retaining a role within or adjacent to your old company. Chances are that after selling, it might take you a few years to find a new project you’re excited about, so continuing to work partially as a consultant might not be a bad idea.

Take a well-earned break

As a business owner, you likely put in countless extra hours hustling to see your venture succeed. After selling, many ex-business owners find themselves with a wealth of extra time, and they often don’t know what to do with it.

Once you’ve tied up all the loose ends that are involved with exiting your business, it might be a good idea to take that vacation you’ve been pushing off for a while. It’s probably even worth taking that bucket list trip you’ve dreamt about. Think of this time off as an opportunity to spend time with your family and reassess your priorities. You might be ready to jump right back into being an entrepreneur, but no one ever regrets spending more time with their family.

A saying that often gets thrown around is that earning your first million is the hardest. Take a look at your own financial journey and there’s no doubt that you put in hard work and endless hours to find success.

As you likely know, having money gives you access to opportunities that may have been out of reach otherwise. You’ll have more buying power and there will be a ton of people who will want to work with you. Increasing your net worth year over year or getting double-digit returns is achievable, but is that your true objective?

Somewhere along the road, you could end up losing focus. Instead of being motivated by opportunities, you become obsessed with making more money. This obsession can be toxic to your health, ruin relationships with friends and family, and cause many regrets further down the road.

Here are some ways people keep themselves in check and remember what really matters in life.

Focus on your health

It doesn’t matter how much money you have, if you don’t focus on your health (physically and mentally), you could set yourself up for failure.

Dwayne Johnson, arguably the greatest action star of the current generation recently opened up about his battle with depression. He talked about how he was crying constantly and didn’t want to do anything.

Find an activity that you enjoy and stick to a routine. Bike to work, go for a swim or play competitive sports. Do whatever makes you feel good and gives you a break from your job.

If you’re depressed or have anxiety, don’t be afraid to open up. It can take some time to realize you have a problem, but once you start talking about it, there can be a huge sense of relief.

Spend time with your family

Back in 2019, Jeff and MacKenzie Bezos divorced after 25 years of marriage. Shortly after, Bill and Melinda Gates separated after 27 years of marriage. These were some of the richest couples in the world, so it goes to show that maintaining a healthy relationship takes more than money.

Many experts say that a strong relationship is built on the three C’s: Communication, Compromise and Commitment. It’s easy to keep that in mind, but when you’re focused on making money, you can quickly neglect the ones closest to you.

Talk to your partner (and your kids) about what makes them feel needed and appreciated. Although communication usually refers to what you say, non-verbal actions can also go a long way. Compromising can be difficult if you’re used to getting your way, but in a relationship, it’s about two individual experiences so you need to find common ground. As for commitment, you need to put your relationship first. There will be times where going to work feels easier than spending time with your family, but no one said marriage is easy.

Avoid FOMO

The idea of having any fear of missing out when you’re wealthy may sound ridiculous, but there’s always going to be someone with more money than you. Instead of trying to keep up with appearances, wouldn’t it be nice to just live life without having to worry about what other people think about you?

Take a look at Warren Buffett, he still lives in the same Omaha, Nebraska home that he bought in 1958. Then there’s Mark Cuban, he’s the billionaire owner of the Dallas Mavericks, but you’ll often see him in athletic wear instead of expensive suits when he’s not on TV.

There’s nothing wrong with spending your hard-earned money, but saving your money or even being frugal is effortless. You’ve already got the money, there’s no need to show it off.

Do charity work

Giving back can go a long way. There are a lot of people and organizations that need help and any contribution you make can go a long way.

Writing a big fat check will help charities, but how does that help you? The most rewarding part about doing charity work is when you do things hands-on. Giving your time can have a meaningful impact on others and enrich your own life at the same time. It doesn’t matter if you’re sorting food or building homes, find a charity that matters to you.

Find your purpose

The odds are you’ve spent a lot of time building your career and business. Every decision you’ve made has led you to where you are now, but have you found your purpose?

Robin Sharma, one of the top leadership experts in the world wrote The Monk Who Sold His Ferrari, which focuses on the seven virtues required for a life of inner peace and joy. One of his key ideas is to find your purpose and follow it. The problem is, you won’t know you’re on the right path until you find your purpose. The idea is, your destination is your purpose.

Once you’ve figured out your goals or purpose, write them down. Sharma believes that an unwritten goal is not an actual goal. Set a timeline for your new goal and stick with it for at least 21 days. Creating this positive pressure on yourself can inspire you to do better.

The bottom line

Take a step back and examine your life. The decisions you make can have a lasting impact on you and the people around you. If you streamline the process of managing your wealth, you can make smarter personal choices. Focus on the person you want to be.

×