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NFTs have taken the world by storm over the past year, with tweets selling for millions of dollars and digital art fetching astronomical prices at auction houses. As a result, many investors are looking to add NFTs to their investment portfolios. However, before diving into the world of NFTs, it’s important to understand what they are and how to best manage them. In this article, we will discuss everything you need to know about NFTs and provide tips on how to effectively manage your NFT portfolio.
What are NFTs?
NFT stands for non-fungible token. Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are unique tokens that cannot be interchanged with each other. They are represented by distinct, trackable tokens on the blockchain, which is a public ledger. Currently, most NFTs exist on the Ethereum blockchain.
NFTs can represent any digital property that can be tokenized, including downloadable art, audio files, videos, and more. They function as a way to provide exclusive ownership of digital assets.
The Purpose of NFTs
The main purpose of buying an NFT is to have exclusive ownership of a digital asset. While it is true that anyone can copy an NFT, just as anyone can reproduce a print of a famous painting, owning the original NFT provides a sense of ownership and authenticity. Additionally, many people purchase NFTs because they enjoy the art or content and want to support the creators. NFTs also provide artists with a new medium to work with and a new way to sell their art.
Where to Invest in NFTs
There are several online marketplaces where you can purchase NFTs. Some popular options include OpenSea, Nifty Gateway, and NBA Top Shot. These platforms offer a wide variety of NFTs, allowing you to find the ones that align with your interests and investment goals.
NFT Portfolio Trackers
Once you start investing in NFTs, it’s important to effectively manage your portfolio. Tracking the performance and value of your NFTs can help you make informed decisions and optimize your investment strategy. Here are some of our favorite NFT portfolio trackers:
Kubera: All-in-One Tracker for Crypto, NFTs, DeFi, and More
Kubera is an all-in-one wealth tracker that allows you to manage a diverse portfolio of assets, including NFTs. With Kubera, you can easily add your NFT holdings and track their real-time value. The platform also offers features such as ROI calculation, performance analysis, and integration with popular indices and cryptocurrencies. Kubera provides a comprehensive view of your NFT portfolio and helps you make informed investment decisions.
DappRadar: Popular NFT Portfolio Tracker
DappRadar is a platform that allows users to discover and track various decentralized applications (dapps), including NFTs. It provides a portfolio portal where you can connect your crypto wallets and monitor the value and performance of your NFT holdings. While DappRadar lacks advanced analytics and notifications, it is a good option for those who want a simple and user-friendly NFT portfolio tracker.
NFTBank: Informed NFT Portfolio Tracking
NFTBank stands out for its robust Explore page, which allows users to view and search NFT collections on different blockchains. It provides detailed statistics on collections, such as current and former floor prices, daily additions, and 30-day volume. NFTBank also offers a portfolio tracking feature that connects to your crypto wallet and provides insights into profits, losses, and ROI. Additionally, it provides an activity log and downloadable tax filing documents.
DeBank: Track NFTs Across Blockchains and Protocols
DeBank is a portfolio tracker that supports nearly 20 blockchain networks, including Ethereum, BSC, and Polygon. It allows you to monitor the value and holdings of your NFTs across different blockchains. In addition to NFT tracking, DeBank offers features such as exploring DeFi projects, comparing rates, and analyzing risk. If you have a diverse portfolio that includes various DeFi assets, DeBank is a useful tool for managing your NFTs.
ArtCentral.io: Analytics-Driven NFT Portfolio Tracker
ArtCentral.io is primarily an analytics resource for NFT investors. It offers a Marketplace Explorer where you can view millions of digital art pieces for sale across different marketplaces. The platform uses machine learning to uncover trends and identify underpriced deals. ArtCentral.io also provides a basic NFT portfolio tracker that allows you to monitor profits, losses, and overall portfolio value. If you are data-driven and want to make informed decisions when investing in NFTs, ArtCentral.io is a valuable tool.
Conclusion
As NFTs continue to gain popularity, it’s important to understand what they are and how to effectively manage them. By investing in NFTs, you can have exclusive ownership of digital assets and support artists in the digital space. To manage your NFT portfolio, consider using a reliable portfolio tracker such as Kubera, DappRadar, NFTBank, DeBank, or ArtCentral.io. These platforms offer features that allow you to track the performance and value of your NFTs, helping you make informed investment decisions. With the right tools and knowledge, you can navigate the world of NFTs and effectively manage your NFT portfolio.
Note: For more details on how to use Kubera to monitor the IRR of your NFTs and the rest of your portfolio, refer to the Kubera Help Center article. If you’re working with a financial professional, Kubera offers an affordable platform for documenting all your assets and empowering your advisor to provide informed wealth advice. Request a demo or contact the Kubera team at hello@kubera.com for more information.
