NFT Stocks To Buy – How & Where To Buy NFT Stocks For Beginners In 2022

Fact Checked by Gary McFarlane

The NFT market is thriving! And it’s not just for the crypto enthusiasts. The mainstream hype around NFTs has pushed companies across multiple sectors to get into NFTs by issuing NFT collectibles or partnering and investing in companies directly involved in the NFT space. If you are a mainstream stock investor and wouldn’t want to go through the hassle of getting crypto wallets learning about NFT marketplaces, you can still benefit from the NFT boom. The easiest way is to invest in NFT stocks, and this guide will show you exactly how to. 

What are NFT Stocks?

NFT stocks are shares in companies involved in NFTs, blockchain, and cryptocurrency ecosystems and communities. These companies are either directly or indirectly involved in these ecosystems. That means NFT stocks are not the same as NFT tokens or NFT art. Those directly involved offer services or platforms that aid in issuing, creating, or commercializing NFTs. Those involved indirectly provide funding or investment to companies directly working within the NFT space. 

Some of the top NFT stocks include Coinbase, Mattel, Nike, Dolphin Entertainment, Funko, Cloudflare, and eBay. Virtually any company involved in the NFT market directly or indirectly qualifies as an NFT stock. Although these companies have different core businesses, they all benefit from the hype surrounding NFTs.

So, how can you invest in them?

#1 Broker to Buy NFT Stocks – eToro

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How to Buy NFT Stocks – Step by Step Guide 2022

Here is a simplified step-by-step guide for beginner and expert investors interested in buying NFT stocks. 

  • Step 1: Register for an eToro account: Your journey towards buying NFT stocks starts with registering for an account with eToro – the best overall broker. Go to their website and select “Join Now” on the top right of the homepage. 
  • Step 2: Account verification: After filling in your details, you’ll have to verify the account by providing proof of ID and proof of residence. The document required for proof of ID is your driver’s license, passport, or national ID card, and that required for proof of residence is your bank statement or utility bill. 
  • Step 3: Deposit funds into your account: After verifying your eToro live account, go ahead and deposit funds into it. You can fund your account through a direct bank transfer, debit/credit card, PayPal, Neteller, or Skrill. Click the “Deposit Funds” tab on the bottom left of your dashboard. 
  • Step 4: Buy NFT stocks: Ideally, the funds deposited reflect in your account instantly, and you can proceed to buy the NFT stocks of your choice. Type its name or ticker symbol in the search bar, click the “Trade” tab, then input however much you want to spend and click the “Open Trade” tab if the markets are open, or “Set Order” when the markets are closed.

Where to Buy NFT Stocks – Choose a Broker

With several brokers to choose from, we have narrowed it down to the best three brokers you can use when buying NFT stocks.

1. eToro – The Best Overall NFT Stocks Broker

Buy NFT Stocks on eToro

eToro was launched in 2007 and is operational in about 140 countries with over 20 million active users globally. For over a decade, the broker has been a trailblazer in the global Fintech revolution with innovative trading tools and products, making it the preferred broker for traders and investors for stock trading. 

Security and Privacy

eToro is one of the highly regulated brokers and spares no cost in guaranteeing your privacy and the security of your funds. The broker has round-the-clock security operations center monitoring and protection from any cyberattacks with data encrypted over encrypted transport layer security (TLS). 

eToro complies with strict regulations the EU by the Cyprus Securities and Exchange Commission (CySEC), in the UK by the Financial Conduct Authority (FCA), in Australia by the Australian Securities and Investments Commission (ASIC), and in the US by Financial Industry Regulatory Authority (FINRA) and The Financial Crimes Enforcement Network (FinCEN). More so, FDIC insures funds deposited in clients’ accounts for up to $250,000. It also provides a free private insurance policy for all clients, covering cash, all CFD positions, and securities with losses of up to 1 million in the unlikely event of an insolvency or misconduct by eToro or its employees.  

Features

eToro’s most outstanding feature is the social trading feature. It is a one-stop shop for stock trading, online investing, crypto trading, and everything regarding trading education for beginner and expert traders. As the leading social trading platform, eToro democratizes financial knowledge by allowing users to copy trades or portfolios of the most profitable traders on the platform. Users also have access to personalized social news feeds that incorporate social media aspects with trading, allowing them to interact with other like-minded traders and investors openly. 

eToro Fees 

Fee Type Amount
Deposit Fee $0 
Withdrawal Fee $5 
Inactivity Fee $10 per month after 12 months of inactivity
Commission Fee 0%

Pros 

  • Free investment insurance of up to a million
  • 0% commission 
  • Social trading
  • Easy to use web trading platform 

Cons

  • The insurance does not cover crypto assets
  • Only EU, UK, and Australian clients are eligible for the free investment insurance 
  • The mobile app is only available for crypto traders

68% of retail investor accounts lose money when trading CFDs with this provider.

2. HotForex – Convenient NFT stocks CFD broker

HotForex

Founded in 2010, HotForex has a global presence with over 2.5 million live accounts. A trusted broker, HotForex, is strictly regulated by five well-known financial regulators globally. The broker provides ten asset classes with over 1000 tradeable CFDs, including ETFs, 56 popular shares, and 946 DMA stocks.

Security and Privacy

Most traders tend to be skeptical about the security of their deposits with online brokers. With HotForex, you need not worry. HotForex has taken several stringent measures to ensure that your funds are secure and you can access them whenever you want without any restrictions. As a derivatives broker, HotForex has deployed above industry-standard fund protections. Clients’ funds are in segregated accounts, which means they cannot be tied up in the unlikely event of a liquidation proceeding. This is also why the broker has insurance coverage against negligence, fraud, errors, omissions, and other inherent risks that may lead to financial loss. This Civil Liability insurance program protects against the company’s liabilities in relation to its clients and third parties. The limit for this cover is €5,000,000.

The broker has employed negative balance protection, ensuring that no trader is liable if their trading account runs negative during times of extreme volatilities, when stop loss, take profit, and margin calls may fail. It is incorporated in St. Vincent and the Grenadine as an International Business Company and regulated globally by the FCA (UK), FSCA (South Africa), FSA (Seychelles), and DFSA (Dubai). 

Features 

Although the core activity of HotForex is the provision of online trading services, the broker provides other ancillary services for traders. They include education curated for beginner and experienced traders, market research and analysis, an economic calendar to make traders aware of potentially market-moving news, and several trading tools like Autochartist. Traders can also access HFcopy accounts, which allows them to copy trades from  Strategy Providers at a fee.

The broker offers trading platforms for desktop, web, and mobile variations of MT4 and MT5. It also offers HF Mobile Application for Android and iOS users. Clients who prefer to use the FIX protocol for DMA can access HotForex FIX/API.

HotForex Fees

In CFD trading, trading fees include commissions the broker charges per trade, swaps, and spreads. HotForex does not charge commissions except for Zero Spread accounts. However, swaps and spreads incurred depend on the asset traded and the account type. 

Fee Type Amount
Deposit Fee $0 
Withdrawal Fee $0 
Inactivity Fee $0 
Commission Fee 0%
Rollover Fee Varies depending on contract size

 

Pros

  • Copy trading
  • A variety of trading platforms
  • Negative balance protection
  • Multiple types of trading accounts

Cons

  • High rollover fees
  • Only deal with CFDs

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Robinhood – Easiest to Buy NFT Stock Broker

Robinhood

Robinhood was founded in 2013 but went live in 2015. However, it didn’t gain its current popularity until during the 2020 lockdowns where it gained a cult following, especially from millennials. Its popularity coincided with the rise of meme stocks and stock market gamification, partially thanks to its commission-free trading model. The number of users increased from about 10 million in 2019 to about 22.5 million by Q3 of 2021.

Security and Privacy 

Robinhood is infamous for various data breaches in the trading community, with the latest as recent as November 3, 2021. Despite this, Robinhood has been agile to mitigate the fallout from these breaches, which is nothing short of impressive for a young brokerage. All personal data are encrypted before storing in Robinhood servers. Transport Layer Security (TLS) protocol and ciphers encrypt all communications between the servers and the mobile and web applications. This ensures that any data transmitted to the servers remain private and anonymous. Robinhood has a HackerOne page where users can report any vulnerabilities on the broker’s infrastructure.

More so, users’ securities and deposits are insured by Securities Investor Protection Corporation (SIPC) to a tune of $500,000 for securities and $250,000 for cash claims. Robinhood is regulated by the SEC and is a member of FINRA. However, any crypto investments with Robinhood are not covered by SIPC. 

Features 

Trading on Robinhood is only available on the mobile app. The app has several features, including breaking news and shareholder updates which allow you to constantly keep tabs on your portfolio and make informed decisions on whether to buy or sell. Note that you can turn these push notifications on and off and your convenience. 

Investment-wise, Robinhood allows fractional share trading and gives users access to IPOs. With IPO Access, users get to buy shares at their IPO prices before they are available to the general public. However, only a limited number of shares are sold through IPO Access. And with the dividend reinvestment program (DRIP), investors automatically reinvest the cash dividends received from stocks or ETFs.

Robinhood Fees

Fee Type Amount
Commission 0%
Inactivity fee 0
Spread Variable

 

Pros 

  • Offers several order types, including partial executions 
  • Real-time market data
  • Allows after-market trading 
  • Has dividend reinvestment program (DRIP)

Cons 

  • Frequent data breaches 
  • No live technical support

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy NFT Stocks – Broker Price Comparison

Here’s a quick snapshot of the top three brokers for NFT stocks.

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0  $0  $10 per month after 12 months of inactivity
HotForex 0% on stocks (Rollover fee is applicable) $0  $0  $0 
Robinhood 0% $0  $0  $0 

 

What are the Different Ways to Buy NFT Stocks?

By now, you must have noticed that different brokers specialize in different securities, which means that there are different ways that you can invest in NFT stocks. Here’s how:

Stocks

Buying stocks in a company means buying an ownership stake in that company. When you buy NFT stocks, you become a shareholder in these companies, which means you are entitled to financial benefits and have a say in how the company should be run. However, your voting rights and financial benefits will be prorated depending on the number of shares you buy. Investors usually have a long-term perspective when buying stocks, as they expect the share price to appreciate. That means thorough due diligence is required when choosing which stocks to buy because, in the end, you don’t want to pick a losing stock.

Contract For Difference (CFDs)

CFDs are derivatives of a stock. This means when you buy a CFD, you do not own the underlying stocks but are merely speculating on the share price fluctuation. With CFDs, you can either buy or short a company’s stock allowing you to benefit when the share price rises or drops. Unlike stocks, CFDs are a relatively shorter-term investment. Naturally, trading CFDs doesn’t have the same privileges as buying stocks – you do not have voting rights, nor are you eligible to receive dividends when the company turns profits.  

Exchange Traded Funds (ETFs)

ETFs are also derivatives. An ETF is single security made up of different stocks. Typically, there is no one method of constituting an ETF – it could be made up of stocks based on sector, performance, geographical location, specific investment strategies, indices, etc. Although you won’t receive the voting rights of stocks that make up the ETFs, you can receive the dividends paid out by the constituent stocks. This hybrid property of ETFs makes them ideal for either short or long-term investments. 

Best Ways to Buy NFT Stocks

As we’ve mentioned above, these investing methods in NFT stocks are ideal for different types of investors. Here’s how different investors can buy NFT stocks.

Buy NFT Stocks CFDs

Short-term traders usually prefer CFDs since they can profit regardless of the price fluctuation. The profit potential when trading CFDs is increased by using leverage. Ideally, this strategy requires strict risk management measures and in-depth knowledge of technical analysis – since its short-term trading, fundamental analysis rarely plays a role here. For NFT stocks, the ever-evolving blockchain and NFT space offer higher volatility which short-term traders thrive on.  

Buy NFT Stocks ETFs

NFT stocks ETFs are ideal for investors who do not want to settle on just a single stock but instead focus on thematic investing with exposure to several NFT stocks. The best example of NFT stocks ETFs is the NFTZ by Defiance ETFs. It tracks a market-cap-weighted index of globally-listed companies with relevant exposure to NFTs, blockchain, and cryptocurrency. 

Buy NFT Stocks

For NFT stocks, the potential is limitless. Remember we mentioned that these companies have separate core businesses and are doubling in NFTs by either issuing NFT collections or partnering with NFT marketplaces. And since the applications of NFTs are yet to be fully explored, NFT stocks offer an ideal vehicle of speculating on the future of NFTs but having the safety net of investing in a company whose business model is already proven, like eBay or Nike. You don’t have much to lose.

Are NFT Stocks a Good Investment?

Over the past couple of years, NFTs have taken the crypto market by storm. Admittedly, their popularity is majorly due to pure speculation on works of art, and skeptics may argue that this created a bubble that is inevitably bound to blow up in our collective faces. With that said, here’s why NFT stocks make for a good investment. 

Untapped Potential

While works of art popularized NFTs, their application, just like blockchain, is unlimited. NFTs have become synonymous with speculative crypto art assets, with sales on the top marketplace topping $2.5 billion a month. And although the market for speculative NFT assets is booming, this is barely a scratch on the potential of NFTs. 

The most interesting and ultimately consequential aspect of NFTs is the fact that every NFT is unique. This is bound to revolutionize content ownership in the entertainment industry, property ownership – both physical and virtual, proof of identity, and much more. To put it simply, NFTs have the potential to fulfill the promise of the fourth industrial revolution – putting every aspect of our lives on blockchain and bringing metaverse to life! This means investing in NFT stocks effectively puts you on the ground floor of all this.

Buying NFT Stocks – What are the Risks?

Although blockchain technology has been around for over a decade, the concept of NFTs is still nascent and comes with its fair share of risks, the biggest of which is failed adoption.

Failed Adoption

Blockchain enthusiasts believe it is undoubtedly the future; the same goes for NFTs. As we’ve mentioned, their potential is limitless. However, there’s a chance that mainstream adoption of NFTs in our daily lives may not catch on. It may be more likely that NFTs’ biggest use may remain in digital arts and gaming, with very little impact in real life, which could spell doom for investors in NFT stocks.

How to Buy NFT Stocks with eToro

Now that you understand what NFT stocks are and how you can invest in them, let’s dive into how you can buy them on eToro. 

Step 1: Open an account with eToro

The first step is to create an account with eToro, which in our opinion is the most convenient broker – you can trade NFT stocks, CFDs, or ETFs with eToro. Go to eToro, click on the “Join Now” tab and fill in the required details. 

eToro open account

Step 2: Verify your account

Once you’ve signed up, you must verify your account before starting trading. All you need is to submit proof of identification and address. The document required for proof of ID is your driver’s license, passport, or national ID card, and that required for proof of residence is your bank statement or utility bill.

eToro verification

Step 3: Fund your account

After your eToro live account has been verified, go ahead and deposit funds into it. You can fund your account through a direct bank transfer, debit/credit card, PayPal, Neteller, or Skrill. Click the “Deposit Funds” tab on the bottom left of your dashboard. 

eToro fund account

Step 4: Buy NFT stocks

Ideally, the funds deposited reflect in your account instantly, and you can proceed to buy the NFT stocks of your choice. Type its name or ticker symbol in the search bar, click the “Trade” tab, then input however much you want to spend and click the “Open Trade” tab if the markets are open, or “Set Order” when the markets are closed.

Where to Buy NFT Stocks – Conclusion

NFT stocks provide a fantastic way to diversify your portfolio by investing in companies with proven core business track records. We’ve broken down everything you need to know before investing in NFT stocks, how you can invest in them, and the best to use. However, note that the future of NFTs is still somewhat uncertain despite the hype surrounding them. Therefore, if you choose to invest in a pure blockchain company, the amount you invest should depend on how much risk you’re willing to take.

eToro – Best Broker to Buy NFT Stocks

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

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About Samwel Fedha PRO INVESTOR

Fedha Samwel is a freelance financial analyst with over 5 years of experience covering the global stock market, Forex, crypto, and macroeconomics. He is currently pursuing a CFA charter and is an avid champion of simplifying the intricate world of finance for all.