As of 2021, the crypto art market has a value of over $5 billion. Analysts expect its value to rise to over $7 billion by 2028.
With that potential for massive growth, now is a great time to collect crypto art. Of course, you’ll need a crypto art collecting strategy to get the best return on your investment.
The following guide will explain everything you need to know about crypto art projects and how to start your collection.
What Is Crypto Art?
Crypto art is art made digitally that offers collectors a way to verify their ownership. This authenticity makes crypto art similar to physical art.
The verification process of crypto art involves using an NFT or a non-fungible token. An NFT is a unique token that symbolizes a special ID that is connected to a crypto art piece.
The ID can’t get reproduced, protecting crypto art from fraud and scammers. The NFT confirms ownership of the authentic file which is kept on the Blockchain. The blockchain works as a permanent ledger that anyone with a computer can access around the globe.
Crypto Art’s Value
The value of different crypto art pieces gets determined by scarcity and the non-reproducible characteristics of NFTs. People and different public figures can give added value to crypto art as well.
Some baseball cards are worth more than others and that’s because they’re more scarce. The same thing can be said for collectibles such as Beanie Babies and crypto art.
There are certain popular crypto artists that have loyal supporters and collectors that help boost their prices. For example, the digital artist known as “Pak” has built a strong following and currently has the highest-valued crypto artworks.
Adding Funds to a Crypto Wallet
You can’t start a crypto art collection until you set yourself up to make transactions on an NFT marketplace. The first step is getting a crypto wallet funded with cryptocurrency to enable any purchases.
There are several crypto wallets available in 2023 and beginner crypto art collectors should choose one with a good track record. MetaMask is a popular option because it’s versatile and easily connects to most crypto exchanges.
You might need to use a crypto exchange to buy Ether (ETH) after selecting a wallet. Consider a basic popular platform like Coinbase or Kraken when first starting out.
Once at an exchange, you’ll swap your fiat currency such as USD for ETH. From here, you’re all set and ready to move on to a crypto art investment platform.
Choosing an NFT Marketplace
Next, you’ll need to pick an NFT marketplace or exchange to use and set up an account. Keep in mind that different exchanges have a lot of similarities, but with subtle differences as well.
In most cases, platforms ask you to add some personal information to set up your account. Then, you’ll get asked to link your crypto wallet to the platform. You can click to read more about crypto art marketplaces and see examples of digital art.
Linking Your Crypto Wallet
As with account setups, different exchanges have different processes for linking wallets. But as long as you use a fairly popular exchange and wallet combination, the process should be a breeze.
First, you’ll get notified to link your crypto wallet to the exchange via your profile. Doing so gives you the ability to engage with the marketplace.
While the specific steps to linking a wallet tend to vary, it shouldn’t take long in any case. Once your wallet is linked to your profile and your correct information gets added, you can begin browsing for digital art.
Choosing and Buying Crypto Art
Using your linked wallet with funds in it, you can start shopping for crypto art the same way you might buy any other item via the internet.
You can search for specific artworks or select a digital art piece that catches your eye. From there, you can review the price which will typically be in ETH or USD depending on the platform.
If you decide that you want the crypto art, you simply press the “buy” button to at it to your crypto wallet. You’ll also notice that the amount you paid gets transferred out of your wallet simultaneously.
Benefits of Crypto Art
Crypto art has many consumers, investors, and artists buzzing in 2023. It’s a fresh and compelling concept with endless possibilities. An example of a crypto art benefit is the fact that every art piece gets minted.
That means crypto art remains on the blockchain forever, which helps prove authenticity and ownership. Serious art collectors want confirmation that they bought a unique work and that it’s indeed rare.
Artists in the world of fine art typically use auction houses, gallery hosts, and pricey advisor coordinations. Crypto art on the other hand lets artists transfer their works to buyers in only a few minutes by using a crypto art marketplace.
Crypto artists even have the ability to add their works to different marketplaces at the same time. This gives them more chances to sell their digital art and puts more eyes on the artist themselves.
Crypto art is also embracing the future by implementing VR and AR aspects. Because of this, crypto art might become the next phase of digital art in general.
Ready to Collect Crypto Art?
Now you can collect crypto art with confidence and diversify your investments. Remember this guide and follow the steps to get started quickly before your favorite art piece slips away to another buyer!
Check out our site’s business and finance section for more investment tips and tricks to grow your wealth.
