NFT projects have become an exciting investment sector as the marketplace is overgrowing and worth billions of dollars in market cap. Therefore, smart and intelligent traders already took advantage of getting benefits from NFTs trading as early birds.
This article will introduce you to the top three crypto champion NFT projects that are best to invest in 2022. However, it is mandatory to research the best NFT projects according to primary parameters such as active trend, volume, community, project stage, etc. Later, we list the principal upsides and downsides of the projects.
Why invest in NFT projects?
Non-fungible tokens are different from usual financial assets like currencies, commodities, or other fungible crypto assets like Bitcoin. You can exchange any fungible asset with others and receive the same, but for non-fungible, they are unique.
For example, you can exchange your Bitcoin for another one, but you cannot exchange your NFT with another and get the same product. NFTs are digital assets, including digital arts, music, game elements, etc.
How does it work?
The crypto industry enables many options for individuals from several sectors to generate income, including developers, gamers, artists, traders, and investors. When you are a developer, you can create unique elements or collectibles then put them for auctions.
Gamers can unlock characters or gaming elements as NFT tokens and sell them to other gamers who might need them. Artists can create NFT tokens and put them for auctions. Meanwhile, traders and investors can make money by trading these digital assets. Users usually put NFT tokens for auctions in many available NFT marketplace. Moreover, The original creator gets a percentage when re-sell occurs.
How to start?
When seeking to start with NFT to generate income, it is a dependable factor as the sector is broad. When you want to trade NFTs, you can purchase them from the NFT marketplace. Two options are available, as you can buy them at a fixed price, or another option is to bid.
Doing these require opening a crypto wallet and keeping funds. You can also sell these digital assets on the NFT marketplace and create them using various ways, depending on your skills.
Top three champion NFT
The marketplace becomes a billion-dollar marketplace within a short period and contains millions of NFT. It requires doing some research to sort the top projects. The top three crypto champions among them are:
- Axie Infinity (AXS)
- Decendraland (MANA)
- Sandbox (SAND)
52-week range: $2.98-$171.41
1-year price change: 126852.58%
Forecast 2022: $71.92
Axie Infinity is a blockchain-based battling game and trading platform, and players partially own and operate this platform. This platform enables users to raise, collect, battle, breed, and trade axies token-based creatures. Sky Mavis is the creator of this platform and the creation period is 2018. The native token of this platform, AXS, is floating near $46.68 today with a 24-H trading volume of $255,531,720.
52-week range: $0.21-$6.09
1-year price change: 1803.33%
Forecast 2022: $3.5-$6
Decentraland is a VR platform powered by the Ethereum blockchain, enabling users to experience, monetize, and create applications and content. This platform has become so popular in the crypto industry for its functionalities and features.
Esteban Ordino and Ariel Meilich are the founders of this platform, and the ICO period was 2017. This platform uses two tokens, LAND and MANA. MANA is floating near $2.25 today with a 24-H trading volume of $286,049,031.
52-week range: $0.21-$8.80
1-year price change: 3153.52%
Forecast 2022: $9-$10
The Sandbox is a virtual world powered by blockchain technology. Sandbox creates a decentralized platform for a thriving community of gamers by combining the powers of DAO and NFTs. The launching period of this platform is 2011. You can consider Sandbox unique as it introduces blockchain technology in the world of gaming. This platform usually facilitates a creative “play-to-earn” model that simultaneously allows gamers and creators. The native token of this platform, SAND, is floating near $2.69 today with a 24-H trading volume of $411,924,951.
Upside and downside
NFT tokens enable several options for different users to earn money without even investing through play-to-earn games. Moreover, when you have specific skills, you can create, buy/sell NFT tokens and exchange them for fungible assets of fiat currencies. Although there are many opportunities and positive features, this sector involves some drawbacks too. Let’s check the top upside and downsides of NFT.
|Appreciating value opportunity
Physical collectibles such as arts have appreciating value; these digital collectibles can also grow in the future.
NFTs are static assets, so there is no value on their own.
This sector is growing with buyers and sellers more than in the past.
it is not free to create, buy or sell NFT assets.
|Unique and authentication
The “smart contract” feature enables authentication of NFT assets.
Blockchain technology and NFT requires significant energy to create and verify transactions.
The NFT movement is new to the financial world. These are usually speculative investment assets, and there is no rule or guarantee that the value of these assets will rise in the future. When anyone has an eye for collectibles like music, arts, etc., this sector makes sense to them.