Is it Better to Mint NFT or Buy?
You have two possible ways to get an NFT: either you buy it from someone else or create and then mint it yourself.
The option you choose could make all the difference!
If you're keen to create NFTs with VQGAN+CLIP or wish to explore examples of NFT art as a digital investment opportunity, we'll explain everything you need to know both here and in the other posts on our blog!
Minting NFTs vs Buying an NFT Investment
Here's one of the most frequent questions we receive; is it worth it to mint an NTF when you can just buy one on an exchange?
While we'd love to give you a universal answer, the reality is it's entirely up to you, your creativity, and your appetite for immersion into the emerging world of digital artwork.
What is Minting an NFT?
In essence, if you mint an NFT, you build something unique, original, and that's never existed in the world before (that's a pretty compelling challenge right there!).
There are tonnes of options here, including:
- Developing an innovative text-to-image artwork with VQGAN+CLIP or the realism-focused Coherent algorithm, both available from NightCafé.
- Converting things you already own - a meme, poem, music or graphic art piece - into an NFT.
This is in contrast to when you buy an NFT, as in that case you're investing in something pre-existing that's already been minted by somebody else.
What is Buying an NFT?
Our second option is to visit a platform or exchange, select an NFT you wish to own, and pay the going rate.
Many transactions occur in Ethereum, but note that ETH is one of several cryptocurrencies compatible with NFTs, so it's not your sole opportunity.
When you've paid up, the NFT ownership is transferred - and you can prove ownership since the transaction is encoded in the blockchain.
From here, it's all a question of how the perceived value of that NFT changes and whether you can hold your nerve until you're in a good position to make a profit.
Comparing the Risks and Rewards of Minting vs Buying an NFT
The core differential here is the risk - how much you're willing to spend on the potential for your NFT to soar in value.
Buying an NFT can be seen as a lower risk because if you do your research, you'll have a fair bit of information, such as past price performances and an idea about demand.
Minting can be a higher risk because you've little way of knowing whether your NFT will take off, or fall by the wayside, although you can still do some homework to try and seize a trending launchpad.
Here's the caveat - there is NO guarantee, whichever path you take!
NFT investment is a bit like mining for gold. You might be uber-lucky and mint a popular token that hits record highs, or you could lose all your invested crypto.
We would say that minting NFTs can offer a perk - you can potentially set your auction or sale up to reap some neat royalties.
A small cut of future sales can add up, so if you mint something that gains attention or make it to the big leagues and become a collectable artist, the digital sky is your limit.