Create and sell digital collectibles secured with blockchain. Rarible's software allows digital artists and creators to issue and sell custom crypto assets that represent ownership in their work.
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Asset Class Return•1Y
Rarible is an online marketplace that aims to make the world of buying and selling valuable non-fungible tokens (NFTs) more approachable and affordable for everyday users. On their platform, digital creators can issue and sell custom crypto tokens that represent ownership in their art, and investors can buy and collect said tokens. Each token that creators generate, known as an NFT, is unique. In other words, it's not interchangeable—or “fungible”—like other crypto (e.g. Bitcoin) is. Rarible's software is the first of its kind: a distributed network built on Ethereum that enables community ownership and trading without a middleman.
Things to Know
You make money on
Term of investment
Buy and Sell NFTs
Active users can get RARI Token
Better control over gas fees
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
You can earn a return through buying and selling NFTs on Rarible. Purchase collectibles that you believe are undervalued, wait for them to appreciate, and then sell them in the marketplace. Rarible is also integrated with OpenSea, which allows you to sell your items in an even larger marketplace. It's important to note the royalties on each item. When you sell an item, there is a predetermined royalty paid to its original creator. While it's not investing, you can also make money on Rarible by creating and selling your own NFT. Rarible makes it easy for anyone to create an NFT.
How Rarible makes money
Rarible receives 2.5% on all sales as a service fee. Rarible leverages the Ethereum blockchain to embed within an NFT’s code the full history of its owners and transactions. When a transaction goes through, both the buyer and the seller have to pay transaction fees that go to the Rarible network.
Is it safe?
The solid track record of Rarible should allow you to invest confidently through their platform. The ultimate goal of Rarible is to evolve into a fully Decentralized Autonomous Organization (DAO), where all governance and decision rights belong to the platform users. By providing creators and collectors with the opportunity to propose and vote on platform upgrades, they make sure that the platform becomes responsive directly to its community members. On Rarible, you have a voice, and your voice is heard.
Venture capital firms have shown great confidence in the growth potential that NFTs hold, given that they offer a new path to ownership in the exploding market of digital content. In 2020, Rarible raised its first round of funding from the New York-based venture capital firm CoinFund. In mid-2021, the company closed another $14.2 million in Series A funding.
How you’re taxed
There are two tax considerations to be had when purchasing NFTs:
Buying an NFT using Crypto
When The IRS states that “if you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss.”
For example - if you purchased a unit of ether for $100 in 2018, it would now be worth around $1,700. If you used that ether unit to buy a $1,700 NFT, you would have to pay tax on the gain of $1,600 as part of the NFT purchase. You would owe the IRS — assuming a top capital gains rate of 20% — a tax of $320. You’re not spending currency, you’re spending an appreciated asset.
Selling an NFT for profit.
Profits earned from the sale of NFTs, the same as crypto, are taxed like stocks (short and long term capital gains). Whenever you sell an NFT, you incur a capital gain or loss. For example, if you bought an NFT for $10,000 of ETH (this is your cost-basis) and then sold it for $15,000 of ETH, you would incur a taxable capital gain of $5,000.
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