Crypto collectibles, or crypto-collectibles, are digital assets that are owned and traded by crypto enthusiasts. They are similar to physical collectibles, such as coins, stamps, and artwork, but are completely digital and exist on blockchain-based platforms. Crypto collectibles have become increasingly popular over the past few years, with investors and collectors alike looking to diversify their portfolios and take advantage of the growing digital asset market. This article will explore the history of crypto collectibles, the benefits of investing in them, and the process of investing in them.
The History of Crypto Collectibles
The concept of crypto collectibles dates back to the early days of cryptocurrency, when the first digital cats, CryptoKitties, were launched in 2017. CryptoKitties are digital cats that can be bought, sold, and bred using Ethereum tokens. The game was an instant success and sparked the creation of other similar crypto games and collectibles.
Since then, crypto collectibles have become increasingly popular, with investors and collectors alike looking for ways to diversify their portfolios and take advantage of the growing digital asset market. In 2018, the total market cap of crypto collectibles was estimated to be around $300 million, which has grown exponentially since then. In 2020, the total market cap of crypto collectibles was estimated to be approximately $2.3 billion.
Benefits of Investing in Crypto Collectibles
There are several benefits to investing in crypto collectibles. First and foremost, they are a great way to diversify your portfolio. Unlike traditional investments like stocks and bonds, crypto collectibles are not subject to the same level of regulation, making them a great way to hedge against market volatility.
Another benefit of investing in crypto collectibles is that they have the potential to appreciate in value over time. Unlike traditional investments, which often depreciate in value over time, crypto collectibles can increase in value due to their rarity and popularity.
Finally, investing in crypto collectibles is often a lot cheaper than traditional investments. Since there is no need for intermediaries such as brokers or exchanges, the cost of investing in crypto collectibles is much lower than conventional investments. This makes them a great way to diversify your collection without breaking the bank.
The Process of Investing in Crypto Collectibles
Investing in crypto collectibles is relatively straightforward. The first step is to set up an account on a blockchain-based platform such as Ethereum, EOS, or NEO. Once your account has been created, you can choose which crypto collectible you want.
Once you’ve chosen a crypto collectible, you’ll need to purchase the token representing the asset. This can be done using fiat currency or cryptocurrency. Once you have the token, it will be stored in your account on a blockchain-based platform like OKX’s NFT marketplace.
After the token is stored in your account, you can then buy and sell the crypto collectible on the platform. You can also trade the token with other users on the forum.
Conclusion
Crypto collectibles are a fascinating asset class that is gaining popularity among investors and collectors alike. They offer investors the opportunity to diversify their portfolios without breaking the bank, and they have the potential to appreciate in value over time. It is vital to do your research and evaluate the asset before investing and be aware of the taxation implications of investing in crypto collectibles.