How to Invest in NFT Monkey Art: A Beginner’s Guide
You’ve probably heard of Bored Ape Yacht Club NFTs and the incredible gains early investors have made. As an art enthusiast and tech-savvy investor, you’re intrigued by the idea of getting into NFT art collecting, especially the popular monkey avatars. However, the world of NFTs can seem complicated and risky.
How do you start investing in digital art and ensure you’re making sound decisions? This step-by-step guide will walk you through the process of buying your first NFT monkey avatar, how to spot valuable collections, and strategies to build a profitable portfolio.
With some knowledge and the right approach, NFT art collecting can be an exciting new asset class to explore. By the end of this article, you’ll feel equipped to dive in and start investing in the creative world of NFTs.
Understanding NFT Monkey Art: The Origins and Rise in Popularity
Understanding NFT Monkey Art: The Origins and Rise in Popularity
To invest in NFT monkey art, it’s important to understand where it came from and why it has become popular. NFT monkey art originated with the Bored Ape Yacht Club (BAYC) collection of 10,000 unique digital collectibles on the Ethereum blockchain. Released in April 2021 by Yuga Labs, the BAYC collection features cartoon apes with different attributes like expressions, clothing, and accessories.
scarcity and Community
The BAYC collection is scarce by design, with only 10,000 NFTs available. This scarcity, combined with a growing community of owners and supporters, has led to increasing values on the secondary market. BAYC owners gain access to member benefits and there is an active community on Discord and Twitter.
Mainstream Interest
As news of six- and seven-figure BAYC sales spread, mainstream interest in NFT monkey art grew. Celebrities, musicians, athletes, and influencers have purchased BAYC NFTs, raising awareness. The BAYC collection has become a status symbol in some circles.
Derivative Collections
The success of the BAYC collection has spawned many derivative NFT monkey art collections with different artistic styles and themes. Some notable examples include Cool Cats, Pudgy Penguins, and Cheeky Chimps. While not directly affiliated with BAYC, these collections have also seen substantial interest and value.
Investing in NFT monkey art, especially scarce and community-focused collections, provides exposure to this emerging digital asset class. Values have risen dramatically for pioneering collections like BAYC, demonstrating the potential for high returns.
However, NFTs are volatile and risky, so only invest money that you can afford to lose. With mainstream interest growing, NFT monkey art is poised to continue spreading from internet culture into the mainstream art world.
Getting Started With NFT Monkey Art Investing: Setting Up Accounts and Wallets
Getting started with NFT monkey art investing requires setting up a few accounts and digital wallets to store your assets.
Crypto Exchange Account
The first step is opening an account with a major crypto exchange like Coinbase, Binance, or Kraken. These platforms allow you to easily buy and sell cryptocurrencies like Ethereum (ETH) which is the primary currency used for NFT transactions. You’ll need to provide personal information to verify your identity and link a bank account to fund your exchange account.
Digital Wallet
Next, you’ll want to set up a digital wallet that supports ERC-721 tokens, the technical standard used for NFTs. Popular options include MetaMask, Trust Wallet, and Coinbase Wallet. These wallets generate a one-of-a-kind address where you can send and receive crypto and NFT assets. For security, only you will have access to this wallet’s private key. Write down and store this key in a safe location. If lost, your wallet and assets cannot be recovered.
Connect Wallet to Marketplaces
With funds in your exchange account and an ERC-721 wallet set up, you’re ready to connect to NFT marketplaces like OpenSea, Rarible or SuperRare. These platforms facilitate the buying, selling and trading of NFTs. Link your wallet to the marketplace(s) of your choice. Now you can bid on collectible NFTs like Bored Ape Yacht Club, purchase them outright or trade with other collectors.
To purchase your first NFT monkey art investment:
- Browse listings on a marketplace and find an NFT that interests you
- Ensure you have enough ETH in your connected wallet to cover the purchase price plus gas fees for the transaction
- Place a bid or buy it now to purchase the NFT immediately
- Once the transaction is complete, the NFT will be deposited into your digital wallet where you’ll be able to view and showcase your new digital asset.
Congratulations, you now own a unique piece of NFT monkey art! Be sure to stay up to date with trends in the NFT space to make the most of your investment. The value of NFTs can fluctuate greatly over time, so buy pieces you genuinely appreciate.
Purchasing Your First NFT Monkey: Where to Buy, Estimating Value and Managing Risks
Purchasing your first NFT monkey requires careful consideration to find a reputable marketplace, determine a fair price, and mitigate risks.
Where to Buy
The two most popular NFT marketplaces for Bored Ape Yacht Club NFTs are OpenSea and Rarible. These platforms allow you to filter by collection to view only BAYC NFTs that are currently for sale. You can see details on the monkey, including traits and attributes, as well as the asking price. Purchasing on a trusted secondary marketplace is advised over making private deals to avoid fraud.
Estimating Value
The value of an NFT monkey is determined by the current floor price of the collection as well as the rarity and desirability of the specific NFT’s traits. Floor prices indicate the minimum price to purchase any BAYC NFT, while rare traits like solid gold fur or laser eyes can increase an NFT’s value significantly.
You can check a collection’s floor price and the rarity of different traits on Rarity Tools. Recent sale prices of comparable NFTs also provide a good indication of an NFT’s fair market value. Before bidding or making an offer, compare prices to ensure you do not overpay.
Managing Risks
While the potential rewards of investing in NFTs are high, the risks are also significant. The value of NFTs is highly volatile and speculative. The price you pay today may not be recouped if you choose to sell in the future. Only invest money that you can afford to lose.
Additionally, be wary of scams and fraud. Never share your private keys or send cryptocurrency to someone offering an NFT at a price that seems too good to be true. Stick to trusted platforms and deals to avoid becoming a victim of fraud.
By choosing a reputable marketplace, determining a fair price based on current values and the attributes of the NFT, and exercising caution to avoid fraud, you can purchase your first NFT monkey with confidence. While NFTs are a risky asset class, if demand for the collection remains strong over time, you may be able to sell your NFT for a profit in the future.
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Conclusion
As you can see, investing in NFT monkey art can be an exciting opportunity if done properly. By following the steps discussed in this guide, you’ll be well on your way to building a valuable collection of rare digital assets.
Do plenty of research to find artists and projects you genuinely connect with. Start with a small budget and learn the ropes before increasing your investment. And most importantly, only put in money that you can afford to lose, as the NFT market can be volatile.
If you take a practical, educated approach, NFT monkey art has the potential to be a rewarding investment for years to come. The future is unwritten, so get in now and be a part of this growing movement in digital collectibles.
