What is an NFT Collector?

April 16, 2024

Welcome to the cutting-edge world of NFT collecting, where art, technology, and commerce converge. But what is an NFT collector, exactly? 

This is someone who curates unique, oftentimes rare digital assets. These collectors are pioneers in a cultural shift that blends the physical and virtual realms. 

The allure of collecting NFTs lies in the unique ownership and authentication blockchain technology provides, the potential for lucrative returns, and the vibrant community that forms around these digital assets. 

This guide will get you up to speed on what NFT collecting is all about and whether or not it's right for you. If you decide that it is, you’ll be left with a clear roadmap on your next steps to jumpstarting your collection.

Should you choose to get in on the fun of NFTs yourself, you’re in the right place. Pudgy Penguins is a Web 3 project known for our strong community and iconic, collectible art. 

Here, you can begin a collection that's not only valuable but also brings joy and a sense of belonging. So, let’s dive into the world of NFT collecting and discover why your digital portfolio deserves its very own Pudgy Penguin!

What is an NFT Collector?

So, what is an NFT collector, exactly? First, let’s take a step back - what is an NFT? These are non-fungible tokens (hence, NFT) that verify ownership and authenticity using blockchain technology. 

Thus, NFT collectors are those who acquire, hold, and sometimes trade these assets. Unlike traditional collectors who may focus on physical items such as paintings or stamps, NFT collectors focus exclusively on digital art, music, videos, and other forms of creative work that are one-of-a-kind or part of a limited series.

What distinguishes collectors from others involved in the NFT space? They typically maintain a portfolio that consists of multiple pieces at once. Someone who flips NFTs for a living is not a collector.

As you can imagine, collectors play a pivot role in pushing the space further. It’s these individuals that create demand for new, exciting projects. Whether motivated by passion, investment, or both, NFT collectors are at the forefront of this digital renaissance.

But why do people buy NFTs? Let’s take a look at some of the benefits NFT collectors enjoy below.

What are the Benefits of Collecting NFTs?

If you aren’t already familiar with the benefits of NFTs in general, you’re missing out big time. Here’s why you should strongly consider getting in on the fun yourself…

Ownership and Authentication

Collecting NFTs offers indisputable proof of ownership. Each one is a unique digital certificate of ownership for a specific asset, whether it be art, music, or any other form of creative digital content. 

This is made possible through blockchain technology, which provides a permanent, unalterable record of the item's history and authenticity. The blockchain acts as a digital ledger, recording every transaction associated with the NFT, which includes the creation date, previous owners, and sales prices. 

This level of transparency is unprecedented in the art world and virtually eliminates the possibility of forgery, a common issue with physical collectibles.

Potential to Earn Returns From Asset Sales

While we do not view NFTs as a form of “investment” ourselves, it’s true that many are earning returns by buying these digital collectibles and reselling them for a profit down the road. So, how do NFTs gain value?

Value is driven by rarity, the creator's reputation, and overall demand among collectors. While the market can be volatile and unpredictable, some collectors have realized significant profits by selling their NFTs. 

It's important to note that this aspect of NFT collecting requires due diligence, market knowledge, and sometimes a bit of luck, as with any investment.

Sense of Community 

Perhaps the biggest reason to collect NFTs is to gain access to a whole new world with a thriving sense of community.

Many NFT projects are built around strong, supportive networks of artists, collectors, and enthusiasts who share a common interest in the digital arts. These communities often provide exclusive access to events, additional content, and direct interaction with creators. 

Being part of an NFT community also allows collectors to have a voice in the direction of the project, as many creators seek feedback and engagement from their supporters to evolve their work.

Is it Right For You?

Benefits aside, choosing to collect NFTs is a big decision - and we want you to be aware of both sides of the coin before you spend your hard-earned money on a digital asset. So, here are some risks and considerations before we get into how to start collecting NFTs.

Understanding Risks

Engaging in the NFT market comes with its own set of challenges and potential pitfalls. The value of NFTs is highly speculative and can fluctuate wildly based on factors such as consumer trends, technological shifts, and the broader economy. 

So many individuals have bought an asset only to watch it plummet in price after the transaction. This is why we said that you shouldn’t look at NFTs as a form of investment. Only collect an asset if you are passionate about holding it for the long term. We’ll talk more about the long-term commitment later on.

The digital nature of NFTs also means that cybersecurity is a constant concern, so collectors must be vigilant about protecting their digital wallets and private keys to prevent theft or loss. 

It's crucial for potential collectors to research thoroughly, understand the market dynamics, and only buy NFTs with money they don’t need.

Collecting NFTs is a Long-Term Commitment

NFT collecting isn't a get-rich-quick scheme, contrary to what someone on Twitter or TikTok may have told you. Rather, it's a commitment that often requires a long-term perspective. 

While some NFTs have sold for substantial sums, these instances are not the norm. Most collectors find value in the joy of supporting artists and participating in the NFT community over time. 

Building a meaningful collection may involve monitoring trends, networking with other collectors, and staying informed about new releases and platforms. 

Ultimately, it’s a great decision for anyone who is passionate about digital art and the future of collecting. So - without any further ado, let’s get into how to get started collecting NFTs yourself!

How to Get Started as an NFT Collector

If after weighing the benefits and considerations of collecting NFTs you’ve decided that this is something you’re interested in, great! Pudgy Penguins is an excellent guide, as we’re leading the charge with our own NFT collection of 8,888 unique, adorable penguin companions.

That being said, here is how you can start your collection from scratch, either with our digital works of art or something else entirely.

Taking the Time to Learn About NFTs

Before buying any NFTs you should take the time to expand your knowledge. Educate yourself on the basics of blockchain technology and how it applies to NFTs. Learn about the different types of blockchains, such as Ethereum, Flow, and Tezos, and how they support NFTs differently.

Familiarize yourself with terms like 'minting,' 'gas fees,' and 'smart contracts.' Resources like online courses, webinars, and articles can provide a wealth of knowledge. 

Our blog has a ton of great resources like the cost to create an NFT or how much are NFTs worth. You can also learn more about the history of NFTs to get up to speed with key players along the way.

Determining What Types of NFTs You Want to Collect

As we said earlier, there are many different types of NFTs you have at your fingertips as a prospective NFT collector. These include digital art, collectibles, game items, and more. So, consider what interests you and aligns with your goals. Are you more drawn to the artistry, the community, or the potential for financial gain? 

Each category of NFT has its own community and market dynamics. Some collectors focus on emerging artists, while others may collect NFTs tied to established brands or virtual real estate in digital worlds. There is no right or wrong answer for where you begin your journey.

Navigating Wallets and Marketplaces

Before you can buy and sell NFTs, you need to get a wallet setup. This digital wallet supports the cryptocurrencies used in NFT transactions, typically Ethereum (ETH). 

Wallets like MetaMask, Trust Wallet, or Coinbase Wallet are popular choices. Do a bit of research into fees and features to determine which is best for your specific needs. 

Whatever route you take, just ensure your wallet is secure by using strong passwords, enabling two-factor authentication, and keeping your private keys offline. If necessary, you can learn how to transfer NFT to another wallet in our blog.

Next, explore various NFT marketplaces where you can find your first opportunity. OpenSea, Rarible, and Magic Eden are just a few platforms where you can browse and purchase NFTs. 

Each platform has its own features, fees, and user experiences. Some may specialize in certain types of NFTs or offer additional services like auctions. While we prefer Magic Eden ourselves, we recognize the significance of OpenSea and have a guide specifically on how to buy NFT on OpenSea.

Starting Your Collection 

When you're ready to make a purchase, ensure you've done your due diligence. Investigate the provenance of the NFT, which is the history of its ownership and authenticity, easily traceable thanks to blockchain's transparency. 

Assess the creator's reputation and body of work. Are they well-known in the space? Do they have a consistent history of creating valuable work? This research can help you make informed decisions and reduce the risk of impulsively jumping on trends that may not have lasting value.

As you curate your collection, think about your personal tastes and investment strategy. Are you looking to support emerging artists, or are you more interested in the potential for a future return? Perhaps a mix of both? 

Your initial purchases will set the tone for your collection, so choose pieces that resonate with you on multiple levels. But, understand that your desires may evolve as time goes on and new projects come out - which is why managing your collection over time is so important.

Managing Your Collection Over Time

Even if you aren’t in the market to add a new NFT to your collection, stay active within the community to keep abreast of new developments and emerging trends. You never know when you may come across your new most prized digital possession. 

Engage with other collectors and creators on social media platforms and forums. This network can provide valuable insights and opportunities to acquire rare pieces before they become widely known.

You’ll want to periodically review your portfolio as your collection grows. Some assets may increase in value, while others may not perform as expected. This evaluation is crucial in deciding whether to hold or sell an asset. 

Selling NFTs that have appreciated in value can provide funds to reinvest in new opportunities that excite you, keeping your collection vibrant and potentially more profitable. 

Be sure to consider the timing and platform when selling. The same marketplace where you purchased an NFT might not be the best place to sell it. 

Specialized platforms may attract more targeted buyers willing to pay a premium for specific types of NFTs. Auctions, both online and at traditional auction houses that have embraced digital assets, can be an excellent way to sell high-value NFTs.

We have tips on where to sell NFTs in our blog for when the time comes. But before you do that, you need to start with a single purchase - and there are few better places to begin this journey than right here at Pudgy Penguins.

Begin Your NFT Collector Journey at Pudgy Penguins!

If you’re eager to find the first piece for your NFT collection, you can browse our native marketplace. There, you’ll discover live listings available for purchase. But what are Pudgy Penguins in the first place?

Our brand was born in July of 2021 when we minted 8,888 unique, adorable penguin companions. What started as a mission to spread good vibes, positivity, and creativity has blossomed into a worldwide movement with a burgeoning community of like-minded individuals.

Today, Pudgy Penguins are regarded as one of the most sought-after digital collectibles on the market. That’s why we decided to make them more accessible with our Lil’ Pudgies release. These cute miniature Pudgy Penguins may be smaller in size, but don’t underestimate them - they are just as fierce and mighty as their full-sized predecessors!

Joining the Pudgy Penguins family isn’t just about the digital realm, though. We’re the first Web 3 brand to take things beyond the digital and into the physical with our penguin merch, ranging from comfy, cozy apparel to unique penguins toys. Here are some of our most popular collections:

Each item comes with its own digital adoption certificate, so you know you’re getting a toy that’s as unique as its beholder. The best part? You gain access to an online world rife with exciting games, special traits for your penguin, and more. 

So, why not take the first step towards becoming an NFT collector today? Your first NFT is a click away at Pudgy Penguins. We can’t wait to welcome you into the huddle! 

Bringing Our Beginner’s Guide on Collecting NFTs to a Close

So, what is an NFT collector? In closing, this is someone who appreciates the uniqueness of digital assets and embraces the blend of art, technology, and investment. The benefits of collecting NFTs include supporting creators, owning verifiable digital art, and potentially reaping financial rewards

To start your journey as an NFT collector, immerse yourself in learning, define your collecting goals, secure a digital wallet, and explore our marketplace here at Pudgy Penguins to thoughtfully curate your collection.

Don't just observe - become a part of the vibrant NFT community today. Your first masterpiece awaits!

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