Step-by-Step Guide to Purchasing a Music NFT:
There is no doubt that NFTs are among the significant investment sources in the cryptocurrency ecosystem. However, the world has moved beyond artwork or image NFTs to more advanced NFT use cases. So far, fashion NFTs, music NFTs, and even movie NFTs have been developed. However, the focus of this article is music NFTs.
What is Music NFTs?
As the name implies, music NFTs are non-fungible tokens linked to music. Unlike regular NFTs, which are linked to artworks or images, music NFTs can be sold as a single song, a music video, or an album. Music NFTs have become more prevalent in recent years, with many artists releasing their NFTs linked to their music.
In 2021, the famous American rock band Kings of Leon sold their “When You See Yourself” album as an NFT. The band got over $2 million from the NFT sales. However, one of the most successful music NFTs was created by DJ 3Lau. The artiste tokenized his album and auctioned 33 NFTs which included unreleased music. The NFTs were sold within 48 hours, and DJ 3Lau got about $11 million from the proceeds.
Music NFTs have numerous benefits for the artists and the fans. For instance, the artiste can get direct proceeds from their music without needing intermediaries like record labels. This ensures that artists can gain full proceeds from their work. On the part of the fans, music NFTs are a good method for investing in the creation of an artiste you admire.
Music NFTs can also be a great source of investment. This is because collectors can get a share of royalty payments. For instance, a producer recently offered one of Rihanna’s songs as an NFT. The NFT will grant collectors a portion of the producer’s share in the song’s royalties.
How to Purchase a Music NFT
- Pick a Marketplace That Offers Music NFTs: There are numerous NFT marketplaces, but only a few offer music NFTs to users. Some major NFT marketplaces that sell music NFTs include Nifty Gateway, SuperRare, and Rarible.
- Download a Cryptocurrency Wallet: Ensure you have a cryptocurrency wallet before purchasing a music NFT. This is because your NFTs will be stored in the wallet. You will receive your wallet address and a seed phrase when you set up your cryptocurrency wallet. The seed phrase is a set of random words you can use to recover your wallet. Thus, you must keep your seed phrase and ensure you do not lose it. If you do, you run the risk of losing your NFTs.
- Exchange Your Fiat for Cryptocurrency: NFTs can only be bought with cryptocurrency. Thus, you must have enough cryptocurrency to purchase your preferred music NFT. Since most NFTs are hosted on the Ethereum blockchain, you will likely need to convert your fiat to Ethereum. Afterward, you can proceed to purchase the NFT.
Music NFTs are highly beneficial for both fans and artistes. As a cryptocurrency enthusiast seeking new investment channels, music NFTs can be a great option.