Non-fungible tokens come in all shapes and sizes â€“ a very inclusive community indeed! However, when someone makes $2.9 MILLION off a screenshot image, things have taken a turn. Weâ€™re talking about Jack Dorseyâ€™s sale of the worldâ€™s very first Tweet! This is where knowing what types of NFTs to invest in comes into play! What are the most popular type of non-fungible tokens for making money? Letâ€™s find out!
When youâ€™re starting your NFT journey, it could get pretty overwhelming. There are five main categories of non-fungible tokens that you should definitely invest in. Hereâ€™s everything you need to know about them and more.Â
Also, if youâ€™re interested in learning more about NFTs, you have to join our free hub today! It has everything there is to know about non-fungible tokens and the community! From zero to hero at a click of a button!
THE 5 TYPES OF NFTs
#1 PFPs, Avatars, & Generative Art
First on the list of types of NFTs are PFPs, avatars, and generative art. All three in themselves could represent separate categories. But weâ€™ve decided to put them in one because of how interrelated they all are! This is also related to the format that they use, which online users use the most â€“ especially on social media platforms.Â
PFPs and avatars are profile picture NFT collections like Bored Apes Yacht Club, CryptoPunks, Cool Cats, Doodles, and more. People all over Twitter are flexing their avatars and changing their profile pictures to display their NFTs. This includes a lot of the biggest A-list celebrities like Eminem, Snoop Dogg, and Lindsay Lohan. Also, this is what brings us to generative art, which is computer-generated art collections.Â
Most PFP and avatar collections come from generative art that is based on a single artwork with changing traits. The entire collection uses artificial intelligence to randomly select certain traits together to create an NFT. OR, it could be a non-PFP project like Art Blocks, Lost Poets by Pak, and Fidenza.Â
#2 One-of-One Artwork
Also, there are one-of-one artworks that are popular types of NFTs because of their unique appeal. Having something that is one of a kind is the entire purpose of non-fungible tokens, to begin with. However, some artists decide to split multiple editions of the sane artwork during mint. Now, the only difference between editions would be the number of token IDs in the backend at the blockchain. This allows the artwork to have multiple owners like Pakâ€™s $91.8 MILLION The Merge! So, in essence, theyâ€™re all the same!
But, other people prefer the most customized experience with one-of-one artwork and being the sole owner of the artwork. And ultimately making use of the whole scarcity concept behind non-fungible tokens! One of the most popular examples of one-of-one artwork is Beepleâ€™s Everydays: The First 5000 Days.
And then, there are collectibles â€“ one of the types of NFTs that is truly timeless. The market for trading cards and memorabilia is a long-standing beast, especially in the retail industry! So, it was not much of a surprise that collectibles share part of the NFT boom. Projects like the NBA Top Shot and the Association are the biggest example of collectibles NFTs.Â
Non-fungible collectibles come in different degrees of rarities and value to them. This is definitely one of the most attractive factors to collectors all over the world. Plus, add to that the fact that NBAâ€™s collectibles have a live data feed. So, this means they change depending on each playerâ€™s on-court performance!
#4 Music NFTs
Next up, weâ€™ve got music NFTs. Itâ€™s a no-brainer that the best types of NFTs are the ones that bring together two industries. The idea behind music NFTs was to provide artists with a sustainable medium to make a profit â€“ other than streaming services.Â
A musician tokenizes their music, albums, music videos, or even merch. After that, through blockchain technology, the musician can earn money and retain creative control. Hello, Kanye? A lot of musicians have already capitalized on this method, including Kings of Leon, Steve Aoki, and Snoop Dogg!
#5 Gaming NFTs
Finally, the last one on our list of types of NFTs is gaming NFTs â€“ definitely a fan favorite. This is also one of the most popular ways to make money with NFTs with play-to-earn games. Players can earn cryptocurrencies, in-game skins, weapons, and accessories. Sometimes, you might even get NFT collectibles!Â
Gaming is actually the first legit form of non-fungible tokens dating back to the CryptoKitties. Of course, not all NFT games include P2E systems. But, if youâ€™re going to join the NFT gaming world, you might as well make money off it. Some of the most popular NFT games include Axie Infinity, Gods Unchained, and SoRare!