- Insider asked two experts about investing in NFTs. Both emphasized the need to investigate the artist.
- Mike Hager was one of the first buyers of Bored Ape Yacht Club NFTs, now worth six figures.
- Jacob Pabst is the CEO of the online art marketplace Artnet.
This is a translation of an article that originally appeared on Business Insider Germany on March 23, 2022. It has been edited.
Insider asked two experts, the CEO of an online art marketplace and an author who was one of the first to buy NFTs now worth hundreds of thousands of dollars, about what people considering investing in NFTs should do to earn money.
More about the NFT community
Jacob Pabst, CEO of Artnet, urged people to “be cautious” when deciding which NFTs to invest in. “You have to read carefully, compare prices and watch for price trends,” Pabst said.
Mike Hager, investor and author of the book “Reich mit NFTs” (“Rich with NFTs”), said that, as with any investment, the most important thing is to first develop your knowledge.
“You shouldn’t blindly buy something, you should learn the tricks first. YouTube videos, books, Twitter and
They are all good teammates here.”
Hager was one of the first to purchase NFT from Bored Ape Yacht Club. In May 2021, Hager paid around €1,800 for 10 NFTs. Now the 90-day average price of a single NFT in the collection is about 104 ether, or about $335,000, according to the OpenSea market.
Hager advised joining the NFT community to understand the market, adding that platforms like Discord are helpful to see what NFT auctions are going on and which ones look promising.
Research the artist before investing
Both Hager and Pabst said it’s important to take a close look at the artists behind NFTs.
Pabst advised people to ask, “How long has the artist been working? For what price have their other works of art sold? How have prices changed, and over what period of time?”
He added that “if you can see that all of that makes sense, then it’s a good investment.”
He said that if you want to be more sure, make sure that the artist has already been listed on the market and has been active for a longer period. Pabst advised beginners considering NFTs as an investment not to buy works by unknown artists with no background.
But he said “if you really like an NFT and it’s not that expensive either, then go for it.”
He added that investors need to understand that the NFT market is subject to “very large” fluctuations and is a risky investment. “If you want to be conservative, you have to be careful,” she said, “and then NFTs might not be for you.”