With the growing popularity of NFTs, South Africans have been quick to explore and take advantage of the application by creating their own non-fungible tokens.
NFT platforms allow users to create, buy, and share unique African art with the world.
This guide will discuss why you may want to buy NFTs in South Africa, which tokens are the best to invest in, and outline a simple way to start buying non-fungible tokens in South Africa.
Why buy NFT?
Here are some of the reasons why you’d want to invest in some unique digital tokens.
Return on investment (ROI)
Most speculative inventors buy NFTs hoping to turn a profit once the asset grows in value.
Some saw outsized gains in 2021 as NFTs became mainstream conversations. Celebrities and other personalities acquired some of these assets and displayed them as avatars on their social media pages.
As more people bought into NFTs, the value of some of these tokens skyrocketed.
Not all NFTs are created for aesthetic purposes. Some are used within virtual worlds, such as the metaverse or video games.
These NFTs include special characters, gaming tools, or even virtual properties. Also, NFTs can be used as collateral to borrow loans from some crypto-related service providers.
Also read: Can NFT Art Be Copied?
Buying NFT can be a hobby for some investors who would love to support digital artists or are in the habit of collecting rare art, similar to how some collectors of classic cars or rare paintings go about creating their collections.
Some celebrities and rich investors are using NFTs as avatars on their social media pages. Some are doing this to show that they belong to a certain group.
A good example is the Bored Ape Yacht Club (BAYC), where holders of the 10,000 unique apes are members of the exclusive virtual yacht club.
Is NFT popular in South Africa?
NFT is a very popular topic in South Africa, as some research has shown.
According to the latest survey carried out and shared by Finder.com, as many as 8.3% of 1,205 South Africans polled owned NFTs, and a further 9.4% stated that they were considering acquiring some of these tokens.
The online survey was carried out in September 2021, just as the popularity of NFTs was ebbing. It polled 28,000 people from 20 countries globally.
South African ranked 12th in NFT adoption beating out other more developed countries such as Australia, Germany, the United States, and the United Kingdom.
The Philippines came out on the top, with more than 32% of those polled saying they owned at least one NFT.
Also read: How To Buy NFT In New York
Best NFTs to buy
To get you started on becoming an NFT investor, we’ve selected some of the most desirable NFTs in the market. Although they’re expensive, we hope you’ll use this list as an inspiration while hunting your next collectible.
These NFTs aren’t exclusive to South Africans; anyone can buy them if they go on sale anywhere on public forums or peer-to-peer marketplaces.
Launched on July 22, 2021, the Pudgy Penguins is a collection of 8,888 non-fungible tokens each with unique traits/attributes including headbands, costumes, etc. These NFTs are hosted on the Ethereum network as ERC-721 tokens. Their floor price is currently 1.18 ETH.
The NBA Top Shot is a series of NFTs representing memorable moments of NBS games (also called moments). These are short video files minted onto the blockchain.
Meebits NFTs is another creation from Larva Labs, the organization that created CryptoPunks.
The Meebits are a collection of 20,000 unique 3D voxel characters that were launched in May 2021 based on the ERC-721 token standard. They currently have a floor price of 3.75 ETH and can be bought on marketplaces that support Ethereum.
How to buy NFT in South Africa?
To buy NFTs in South Africa, you’ll need to use a public marketplace where the tokens are listed.
The most popular NFT marketplace is OpenSea, and in South Africa, the other more accessible platform is Binance.
Often, these marketplaces require you to connect to your Ethereum wallet.
Therefore, you will need:
- Ethereum (ETH);
- A web3-compatible wallet;
- An internet connection.
You pay Ether for the NFT and store it in your wallet. Metamask is the usually the preferred wallet for storing NFTs.
In 2021, Binance launched a new NFT platform that integrates with other Binance services allowing users to access the marketplace using their Binance login credentials.
Also read: Does Opensea Work In Canada?
NFTs are an asset class that is growing in popularity across the world. Hopefully, you now understand why these assets are proving popular, how you can get your hands on them and which ones are the most popular.
Always do your research before deciding to invest in any venture or asset, do adequate research. There are several risks inherent in investing in any blockchain-related asset, so be thorough with your research.