How to Invest in NFT Stocks in 2023
Did you know that last year a non-fungible token (NFT) was sold at a Christie’s auction for $69 million?
With total NFT sales growing from $250 million in 2020 to more than $2 billion in 2021 you can see why investors are keen to find the best NFT stocks to invest in for this year.
In this ‘How to Invest in NFT Stocks in 2023,’ article we cover what NFT stocks are, some of the top NFT stocks to consider for this year and how to invest in them with low commissions.
Table of Contents
What are NFT stocks?
You may not yet be familiar with the terms non-fungible tokens (NFTs) so let’s explain what these are first.
What exactly is an NFT? An NFT, or non-fungible token, is a unit of data that allows digital content to be authenticated on a blockchain (a digital ledger). NFT data units usually come in the forms of digital files such as pictures, audio snippets and videos.
What is an NFT stock? NFT stocks represent publicly traded companies that are directly or indirectly involved in non-fungible tokens (NFTs). These companies could be involved in the creation, distribution or promotion of NFTs or may help to serve the NFT marketplace where you can buy and sell NFTs.
If you’re thinking: Can I invest in NFT companies? Yes, you can! As long as the NFT company, or NFT stock is listed on a public stock exchange then you can invest in it.
Furthermore, you can invest in US stocks with a low commission of just $0.02 per share with a minimum transaction value of just $1!
What are the best NFT stocks to buy?
It’s quite common for newbie investors to ask the question: Is NFT a good investment? It can be but it’s always worthwhile remembering that investments go up and down. Exercising proper risk management is essential – especially in new sectors such as NFTs which can be volatile.
This is why in the NFT stocks list below, we have avoided NFT penny stocks as these are likely to be extremely volatile and not suitable for most beginner investors.
Trying to identify the best NFT stocks to buy needs to involve thorough research. Even then, what is best for one investor will be different for another. It’s important to identify what your own risk tolerance is and the type of positions you want in your portfolio before you choose which NFT stocks to invest in.
Below is an NFT stocks list of some of the top NFT stocks to consider for this year for you to build your research and analysis upon. Let’s dive in!
1. Coinbase (COIN.US) – Possibly the Best NFT Marketplace Stock for the Future
In October 2021, one of the world’s largest cryptocurrency exchanges, Coinbase, announced it is launching Coinbase NFT. This is a peer-to-peer marketplace that will allow users to mint, purchase, showcase and discover NFTs with ease.
Coinbase has already announced a deal with Mastercard which will facilitate the buying and selling of NFTs. One of the world’s biggest payment companies collaborating with – what could be – the world’s biggest NFT marketplaces has some investors very excited.
Currently, the process of buying NFTs is cumbersome and involves different accounts and platforms. Coinbase is an interesting NFT stock that could directly benefit from a boom in NFT sales as they plan to be the one-stop solution as if you already have a Coinbase account you can do it all from just one place.
Coinbase has already announced that the marketplace will be a more ‘social experience’ and will operate like Instagram. So far, the world has listened and there are more than 1.1 million people on the Coinbase NFT waiting list.
Source: Admirals MetaTrader 5, COIN.US, Weekly - Data range: from 14 Apr 2021 to 25 Jan 2022, performed on 25 Jan 2022 at 10:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year performance not available.
Since the Coinbase IPO (initial public offering) in April 2021, the stock price has been very volatile. The recent decline in global risk assets (stock markets and cryptocurrencies) has forced the Coinbase stock price to trade well below its IPO price.
Many analysts are focused on the fact Coinbase needs to diversify its revenue stream, rather than simply rely on the commission from its users buying and selling cryptocurrencies. The company’s plan to build the biggest NFT marketplace could be a very important revenue stream for them.
More and more companies are planning to enter the NFT marketplace and a tie-up with a well-known exchange like Coinbase could help the stock price to grow.
According to 20 analysts polled by MarketBeat, the highest price target on the stock is $600.00 while the lowest is $220.00. With the current price trading around $185.00, there is scope for the Coinbase stock price to rise to even the lowest price target from the analysts that have been polled.
2. eBay (EBAY) - An Established Marketplace Allowing NFT Sales
eBay operates one of the world’s largest online marketplaces and last year allowed the sale of NFTs on its platform. So far, on the eBay platform, you can buy and sell NFTs for digital collectables such as images, video clips and trading cards.
While the company has not yet provided any details regarding the performance of NFTs on its platform, it is moving into this field in a big way. Last year, eBay went through a big restructuring process and sold off other business segments such as Classifieds and StubHub.
As eBay has only just entered into the space, they are still using fiat currencies such as the US dollar to facilitate purchases. On other NFT marketplaces such as Open Sea, purchases are made in cryptocurrency – usually Ethereum.
However, eBay has already stated that they are looking at ways to adopt the buying and selling of NFTs in cryptos. But, the fact users can buy or sell NFTs in a traditional currency like the US dollar could help it to attract more users who are more comfortable using this form of currency.
Source: Admirals MetaTrader 5, EBAY, Weekly - Data range: from 10 Dec 2017 to 25 Jan 2022, performed on 25 Jan 2022 at 10:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
EBay's share price went through a long period of consolidation between 2017 and 2020. Since the pandemic, the share price has performed well surging to new record highs. However, the stock price did not escape the global stock market sell-off at the beginning of 2022.
While the stock price has had a difficult start to 2022, analysts still remain bullish in the long term. Of the 20 analysts polled by TipRanks over the last 3 months, the highest price target is $91.00 with the lowest price target at $65.00.
The average price target for the stock is $78.05 which still represents a significant upside from the current price level which – at the time of writing – is around $58.00.
How to Invest in NFT stocks
To start investing in NFT stocks you first need a live trading account. Alternatively, you can also practice on a demo trading account until you are ready to go live. You can open an account in Admirals in just a few minutes which will give you access to the world’s most popular stock trading platform MetaTrader 5 for desktop, web and mobile.
Below is a step by step process on how to start investing from the MetaTrader 5 web platform.
- Login to your Admirals account to gain access to the Dashboard. This area allows you to manage your different accounts, access deposit and withdrawal options and premium analytic features.
- From the Dashboard, click on the Trade icon next to your account name to open the MetaTrader 5 web-based trading platform.
- To view a live price chart and trading ticket, type in the name of the instrument at the bottom of the MarketWatch window. Then drag the instrument name onto the chart where you can then access technical trading indicators and view different timeframes.
- To open the trading ticket, right click on the chart, select Trading and then New Order. You can now enter your entry, stop loss and take profit levels and contract size for risk management.
Source: Admirals MetaTrader 5 Web, 26 January 2022
When to Invest in NFT stocks?
One of the biggest challenges for many beginner traders is knowing when to invest in NFT crypto stocks. This is where technical analysis tools combined with fundamental research can be of value. Chart patterns and technical trading indicators can help traders to identify potential turning points in the market.
However, performing technical analysis properly does take skill and time to build up. Fortunately, Admirals provides you with a potential solution in finding actionable trading ideas on thousands of different financial instruments through the Technical Insight Lookup indicator.
You can access this from the Premium Analytics section in the Dashboard.
Source: Premium Analytics, 26 January 2022
You can search from thousands of different instruments and the indicator will find the different technical analysis events taking place on that market. These are categorised by short-term, intermediate-term and long-term events.
Each event also has a technical description and a small chart explaining what the pattern or indicator is depicting. This is a great way to learn more about technical analysis!
For example, the screenshot above shows a search for Coinbase stock. Currently, there are 16 technical events taking place on the stock price. Each of the events is explained through the visual charts which you can click for more detail and explanation.
Check out this indicator for yourself from the Admirals Premium Analytics section!
Why Invest in NFT stocks with Admirals?
✔️ Admirals is a well-established company authorised and regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Jordan Securities Commission (JSC) and other well-known financial regulators.
✔️ ️ Open an Invest.MT5 account to invest in real stocks and ETFs to build a long-term portfolio with low commissions on US stocks of just $0.02 per share and low transaction fees of just $1!
✔️ Trade on stock and ETF CFDs (contracts for difference) to trade long and short and potentially profit from rising and falling markets.
✔️ Supercharge your trading with the state of the art Premium Analytics section which includes the Technical Insight Lookup indicator which finds actionable trading ideas for you.
Did you know that you can test ALL of these features by opening a FREE demo trading account?
Click on the banner below and get started today! ▼▼▼
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Jitan Solanki, (hereinafter “Author”) based on personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.