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Jan 26 • 24 mins
Blockchain

How to Invest in NFT: Complete Guide to NFT, Stocks & Projects

Introduction

nfts

NFTs (non-fungible tokens) have rapidly evolved from digital art collectibles into a major financial instrument for tech-savvy investors. With new tools, platforms, and use cases emerging, learning how to invest in NFT has become more relevant than ever. Whether you’re curious about flipping JPEGs or backing serious infrastructure, this guide breaks down real strategies, risks, legal factors, and future trends—plus how to navigate related stocks and companies.

How to Invest in NFT: Core Mechanics for Beginners

Minting: Getting in Early (But Not Always Safe)

Minting refers to purchasing an NFT directly from a project during its initial launch. This is often the lowest price you’ll ever see for that asset—but also the most uncertain moment, since the market hasn’t yet reacted.

Pros:

  • Early access, often at discounted prices
  • Chance to land a rare NFT randomly
  • High upside if the project goes viral

Cons:

  • No market history to evaluate
  • Gas wars (especially on Ethereum)
  • High number of failed or abandoned projects

Example: In 2021, investors who minted “Bored Ape Yacht Club” for ~$200 later saw prices surge above $100,000+. But for every BAYC, there are hundreds of forgotten mints.

Tip: Only mint from doxxed teams with a clear roadmap and community engagement.

Buying on the Secondary Market: Smarter, Data-Driven Investing

Buying NFTs on the secondary market (via OpenSea, Blur, Magic Eden, etc.) means you’re purchasing assets that others have already minted. Here, you have more data and tools to evaluate value.

Use These Metrics:

  • Floor Price: Lowest listing price in the collection
  • Volume Traded: How much buying/selling is happening
  • Number of Holders: Spread of ownership (decentralization = good)
  • Rarity Rank: Use platforms like Rarity.tools or Trait Sniper

Pros:

  • You can see how the market values the project
  • Easier to spot undervalued assets
  • Tools available to assist your decision-making

Cons:

  • Popular projects may already be expensive
  • Higher gas or platform fees
  • Risk of buying near the top

If you’re unsure should I invest in NFT at mint or wait—monitor early trading activity for 24–72 hours and jump in only if the project shows strong organic traction.

Flipping vs. Holding: What’s Your Strategy?

NFT investors usually fall into two camps:

Flippers

Buy low, sell fast—often within hours or days. Flipping works well during bullish markets and for hyped drops.

  • Requires constant monitoring
  • Timing is everything
  • High stress, high reward

Holders

Buy NFTs for long-term value appreciation, believing in the brand, utility, or team vision.

  • Lower effort
  • Best for strong conviction plays
  • Ideal when investing in nft to invest in now for future returns

The best NFT investors often combine both—flipping some assets for liquidity, while holding blue-chip NFTs for the long game.

Staking and NFT Lending: Advanced Strategies for Passive Income

As the NFT space matures, staking and lending options have emerged.

NFT Staking

Stake your NFT on platforms like Astro Frens, Karak, or Binance NFT and earn tokens or rewards while keeping ownership.

  • Best for GameFi or utility NFTs
  • Rewards can be used or sold
  • Still relatively new and risky

NFT Lending

Use platforms like NFTfi, JPEG’d, or Arcade to borrow stablecoins or crypto by putting your NFT up as collateral.

  • Access liquidity without selling your NFT
  • Risk of liquidation if you can’t repay

These strategies aren’t for beginners—but if you’re serious about how to invest in NFT long-term, they offer additional earning potential beyond flipping or holding.

StrategyRiskTime NeededBest For
MintingHighShort-term prepHigh-risk takers, early adopters
Secondary MarketMediumMediumData-driven buyers
FlippingHighHighTraders, short-term profit seekers
HoldingLow/MedLowLong-term believers
Staking/LendingMediumMediumPassive income seekers
Summary: Which Strategy Is Right for You

How to Choose the Best NFT to Invest In

Ethereum

What makes one NFT collection skyrocket in value while another fades into obscurity? The difference lies in fundamentals—not just hype. If you’re trying to identify the best NFT to invest in, here are the key criteria to evaluate before buying.

Rarity: Not All Traits Are Created Equal

In most NFT collections, certain visual or metadata traits are randomly assigned. Some are far less common than others — and that scarcity drives value.

How to assess rarity:

  • Use platforms like Rarity.tools, Trait Sniper, or OpenSea filters
  • Look at “Rarity Rank” within the collection
  • Keep in mind that rarity must align with community demand

Be cautious: rarity alone doesn’t guarantee value. A rare trait only matters if collectors care about it. Sometimes, mid-tier NFTs are more liquid and easier to trade.

If you’re seeking the best NFT to invest in, look for rare assets that combine scarcity with market relevance.

Utility: Beyond Just a JPEG

NFTs that offer real benefits tend to perform better over time. This is known as utility — a critical element when choosing a long-term investment.

Common examples of utility include:

  • Access to private events, online communities, or exclusive content
  • Future airdrops of related tokens or NFTs
  • In-game use as characters, items, or passes
  • Commercial rights to use the NFT in branding or products

Before buying, check the project’s website or whitepaper for details about actual utility. A Discord FAQ section is often the best place to ask questions and verify promises.

In 2025, the strongest nft to invest in now are those offering multi-platform functionality or real-world rewards.

Community: The Engine of Long-Term Value

NFTs are social by nature. A strong, engaged community can support floor prices, generate buzz, and sustain the long-term growth of a collection.

Signs of a healthy community:

  • High activity in Discord with meaningful conversation
  • Consistent Twitter engagement from real users
  • Regular AMAs or founder updates

Red flags include silent Discords, low-effort Twitter content, or teams that ignore questions. Always spend time lurking in community channels before you buy.

The best NFT projects to invest in tend to have loyal holders and a shared long-term vision.

Roadmap and Team: Execution Matters

The quality of a project’s roadmap and the credibility of its founders are major indicators of long-term value. Promises are easy to make; execution is harder.

What to review:

  • Are the founders publicly known and experienced?
  • Do they have a track record in Web3, gaming, or tech?
  • Is the roadmap realistic — and have they already delivered on milestones?

Transparency is a strong trust signal. Look for teams that post updates, participate in public channels, and collaborate with other reputable projects.

The best NFT to invest in is often backed by a team with both vision and follow-through.

Evaluation AreaWhat to Look ForTools / Sources
RarityUnique, valuable traits with demandRarity.tools, Trait Sniper
UtilityClear, usable benefits beyond visualsProject site, roadmap, FAQ
CommunityOrganic activity, engaged holders, no botsDiscord, Twitter
TeamDoxxed, experienced, responsiveLinkedIn, project site, founder posts
RoadmapRealistic plans with some delivered milestonesBlog, GitHub, public announcements
Quick Checklist for Evaluating NFTs

How to Spot the Best NFT to Invest in Now

To identify promising collections:

  • Use NFTGo, DappRadar, or OpenSea to track top-performing projects by 7-day volume
  • Analyze changes in floor price and number of holders
  • Cross-reference with social activity and community sentiment
  • Avoid chasing pumps — look for sustainable traction

If you’re exploring which nft to invest in now, filter by real value, active development, and cultural relevance — not just short-term hype.

How to Invest in NFT Stocks and Companies

Not everyone is comfortable buying NFTs directly or navigating crypto wallets, gas fees, and marketplaces. For many investors, the better route is to invest in NFT stocks or support NFT companies to invest in through traditional financial instruments.

This method offers indirect exposure to the NFT ecosystem—without holding digital assets yourself—and can be ideal for those looking for regulatory clarity, liquidity, and portfolio diversification.

Public Companies: NFT Exposure via Stock Markets

For those wondering how to invest in NFT stocks, the simplest approach is to buy shares of public companies that are actively building or enabling NFT infrastructure. These firms operate on regulated exchanges and often provide multiple revenue streams beyond NFTs.

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Examples of NFT Stocks to Invest In:

1. Coinbase (COIN)
One of the largest cryptocurrency exchanges in the U.S., Coinbase has launched its own NFT marketplace, giving users access to digital art and collectibles. While NFTs are a small part of its overall business, they reflect the company’s bet on the Web3 economy.

2. Funko Inc. (FNKO)
Known for its physical pop culture collectibles, Funko has entered the digital collectible space by releasing NFTs tied to limited-edition figures. It bridges Web2 and Web3 markets, targeting mainstream consumers.

3. DraftKings (DKNG)
A leader in fantasy sports and sports betting, DraftKings introduced gamified NFT collections, including exclusive athlete cards and interactive experiences. NFTs enhance engagement on the platform.

4. Immutable (IMX)
Although its token ($IMX) is not a traditional stock, Immutable represents the NFT gaming infrastructure powering titles like Gods Unchained and Illuvium. For some, investing in its token is a form of exposure similar to equity.

Choosing the right nft stocks to invest in requires understanding not just NFT hype, but how well NFTs are integrated into the company’s core business model.

Private Companies and Early-Stage NFT Startups

If you’re looking to invest in NFT companies before they go public, the opportunity lies in private equity, venture capital rounds, or tokenized offerings.

Prominent Private NFT Companies:

1. Yuga Labs (Bored Ape Yacht Club)
Creators of the Bored Ape Yacht Club and owners of the CryptoPunks IP. They’ve raised hundreds of millions in venture funding and are developing the Otherside metaverse.

2. Dapper Labs (NBA Top Shot, Flow blockchain)
One of the earliest pioneers of mainstream NFTs, Dapper Labs continues to expand into sports, entertainment, and gaming partnerships.

3. OpenSea
The largest NFT marketplace by volume. While still private, OpenSea is one of the most watched candidates for a future IPO or token launch.

4. Animoca Brands
Although based in Hong Kong and not publicly listed on U.S. exchanges, Animoca has stakes in hundreds of NFT and metaverse projects. They offer indirect exposure to dozens of ecosystems.

To invest in NFT companies at this stage, you typically need access to venture capital firms, private funding rounds, or launchpad platforms offering early-stage tokens.

Pros and Cons of NFT Stock Investment

AspectAdvantagesConsiderations
AccessibilityBuy via brokerage platforms like Robinhood or eToroNot all NFT-native companies are publicly listed
DiversificationExposure to crypto without owning NFTsNFT may be a small part of overall business
RegulationStocks are subject to financial oversightRegulatory clarity still evolving in Web3
LiquidityStocks can be bought/sold quicklyPrivate companies have limited exit opportunities

How to Invest in NFT Stock Strategically

If you’re exploring how to invest in NFT stock in 2025, here’s a basic roadmap:

  1. Research companies with real NFT involvement (not just buzzwords in press releases).
  2. Review earnings calls and filings — look for revenue impact from NFTs.
  3. Consider ETFs or thematic funds with Web3 and blockchain exposure.
  4. Track emerging players in the gaming, entertainment, and collectibles sectors.

For example, instead of minting an NFT yourself, you could invest in NFT stocks like Funko or Coinbase, which benefit from broader adoption of NFT technologies and platforms.

Risks of NFT Investing: What You Should Know

Despite the headlines and hype, NFTs are high-risk, speculative assets. Understanding the key dangers is essential before making your first investment.

1. Volatility: Sudden Gains, Faster Losses

NFT prices are highly sensitive to market sentiment. What’s trending today can crash tomorrow. Collections can lose 90% or more of their value in a matter of days or even hours.

  • Unlike stocks or bonds, NFTs often lack intrinsic value
  • Floor prices can swing wildly due to influencer tweets, platform changes, or news cycles

Risk management tip: Only invest money you can afford to lose, and avoid buying NFTs just because they’re trending.

2. Scams and Security Threats

The NFT space is a prime target for scammers, especially new investors.

Common threats include:

  • Fake links that mimic official platforms (e.g., fake OpenSea pages)
  • Phishing emails and Twitter DMs that request wallet connections
  • Airdrop scams that prompt users to sign malicious transactions
  • Copycat collections that look identical to blue-chip NFTs

Use a hardware wallet (e.g., Ledger) and verify every transaction. Bookmark official sites, and never click unsolicited links.

3. Regulatory Risks: The Legal Gray Zone

The legal framework around NFTs is still evolving. In some countries, NFTs may be considered collectibles; in others, certain NFTs could be reclassified as securities—especially if they promise future profits or staking rewards.

Possible regulatory issues:

  • Tax obligations on every transaction
  • Unregistered securities violations (especially with fractionalized NFTs or passive income schemes)
  • Restrictions on who can buy, sell, or hold certain NFT types

Stay informed through updates from regulators like the SEC, ESMA, or your national financial authority.

4. Loss of Access and Custody Risks

If you lose access to your crypto wallet (e.g., via a lost seed phrase or hacked device), your NFTs are likely gone forever. Unlike banks or brokerage accounts, there’s no central authority to help you recover assets.

Precautionary steps:

  • Store your seed phrase offline, in multiple secure places
  • Avoid keeping high-value NFTs in hot wallets
  • Regularly check wallet permissions and revoke unnecessary approvals

Should I invest in NFT if I’m not confident with crypto wallets? Maybe not yet. First, learn how self-custody works and practice with test wallets.

nft investment

Taxes: What You Must Know Before You Buy

One of the most overlooked aspects of NFT investing is taxation. Even though NFTs live on the blockchain, tax agencies around the world are paying close attention.

How NFTs Are Taxed in the United States

  • Buying an NFT with crypto: Triggers a capital gains event on the crypto you spent.
  • Selling an NFT for crypto or fiat: Treated as a sale of property, subject to capital gains tax.
  • Minting an NFT: Considered a taxable event, especially if the NFT gains value and is later sold.
  • Receiving an airdropped NFT: Often classified as income based on fair market value at time of receipt.

Other scenarios:

  • Trading one NFT for another is treated as a taxable swap
  • Using NFTs in DeFi protocols (e.g., as collateral or staked assets) may create complex obligations

NFT Taxes in the UK and EU

In both the UK and most EU countries, NFTs are generally taxed under existing crypto and capital gains tax frameworks. However, guidance can vary, and regulations are still evolving.

United Kingdom

According to HMRC (Her Majesty’s Revenue and Customs):

  • Buying and selling NFTs is subject to Capital Gains Tax (CGT) if you profit from the sale.
  • Minting NFTs or earning them via airdrops or services may be considered taxable income.
  • Trading NFTs (swapping one for another) may also create a CGT event.
  • Business use of NFTs (e.g., selling them as a creator) may be subject to Income Tax or Corporation Tax depending on structure.

HMRC does not treat NFTs separately from other cryptoassets but may review this in future guidance.

European Union

While taxation rules vary by member state, general trends include:

  • Germany: NFTs held for over one year may be sold tax-free for individuals (under current crypto rules).
  • France: NFTs are considered digital assets, and sales may be taxed under capital gains or income tax depending on context.
  • Spain and Italy: Treat NFTs as digital assets; CGT applies to profits made on sale or exchange.
  • Portugal: Recently introduced crypto taxation laws that may impact NFT transactions.

As of now, the EU has no unified NFT-specific tax framework, but under MiCA (Markets in Crypto-Assets Regulation), future classifications may change.

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How to Stay Compliant

  • Keep detailed records of every NFT transaction: buy/sell price, date, wallet used
  • Use specialized tools like Koinly, Accointing, or Blockpit that support EU-specific tax reporting
  • Consult a local tax advisor with Web3 knowledge — especially if you’re operating as a creator, collector, or business entity

Tip: When unsure, treat NFTs like crypto — track every move, keep receipts, and assume tax applies.

NFT Trends and Future Outlook

The next wave of NFT innovation is already underway:

  • Dynamic NFTs (dNFTs) are NFTs that change over time based on usage, location, or real-world triggers.
  • Tokenized Real-World Assets (RWAs). NFTs that represent shares in real estate, art, wine, or collectibles with real-world backing.
  • Institutional Adoption. Banks, luxury brands, and asset managers are entering the space—building infrastructure and liquidity.
  • AI + NFT. AI-generated art and metadata enrich the value and complexity of NFTs.

NFT Investor’s Checklist (Before You Buy)

  1. Research the team (doxxed, past projects?)
  2. Join the Discord/Twitter — is the community active?
  3. Check rarity & utility using tools like Rarity.tools
  4. Analyze floor price, volume, holders on NFTGo
  5. Review roadmap and long-term vision
  6. Confirm marketplace legitimacy (avoid fake links)
  7. Store NFTs in a cold wallet for safety
  8. Understand the tax implications in your country
  9. Never invest money you can’t afford to lose
price of NFTs

Tools and Metrics for Smart NFT Investing

Leverage analytics and community platforms for smarter decisions:

ToolUse Case
NFTGoMarket trends, floor price, holder count
DappRadarCollection rankings and dApp usage
NansenWallet tracking and “smart money” activity
Twitter / DiscordReal-time sentiment and updates
Rarity.toolsRarity scores and ranking by traits

Metrics to track:

  • Floor Price
  • Volume Traded
  • Holder Count
  • Listing %
  • Whale activity

Should You Invest in NFT in 2025?

NFTs offer opportunity—but require diligence. If you’re learning how to invest in NFT, treat it like any asset class:

  • Do your research
  • Diversify across projects and types
  • Monitor both Web3 and traditional metrics
  • Understand legal and tax implications

Choosing the right nft to invest in could mean the difference between loss and a long-term win. Start slow, stay informed, and never stop learning.

Conclusion

In general, NFTs are a modern investment and can be a perfect match for those who are interested in art and want to benefit from the latest trends. Although NFTs are gaining popularity, that doesn’t mean they won’t be replaced by something new in the future.

NFTs have several obstacles, including high fees and a limited buyer pool. They’re also too volatile to be considered a safe investment. Remember, it’s never a good idea to invest money you can’t afford to lose. Therefore, you can use non-fungible tokens as a high-risk investment to diversify your portfolio but prioritize low-risk investments first.

If you have any questions or ideas, don’t hesitate to contact on Telegram our blockchain experts.

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    About the author

    Dmitry K.

    CEO and Co-founder of ND Labs
    I’m a top professional with many-year experience in software development and IT. Founder and CEO of ND Labs specializing in FinTech industry, blockchain and smart contracts development for Defi and NFT.

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