You have probably heard of NFTs simple for Non-fungible tokens. Some people use them on their socials, and you may wonder what all the fuss is about them. NFTs symbolize ownership of assets susceptible to duplication in the real world. For instance, it could represent ownership of an original piece of art, such as a painting or a photo.
But what is an NFT when it comes to investments? When you hear people discuss investing in NFTs, they mean owning the tokens that represent ownership of a digital file. For instance, an algorithmically generated crypto kitty or a video of Lebron’s famous basketball dunk.
Here is why you should consider investing in NFTs.
It is a money-making potential
Like many other digital investments, owning NFTs gives you a chance to make more money. For instance, if you buy a specific NFT at the beginning of a trend, you will likely benefit if it gains popularity. The more popular an NFT is, the more valuable it gets, and you can sell it for a profit.
Famous NFT projects, like crypto kitties, bored apes, and crypto punks, can be more valuable, and when celebrities invest in them, the value goes up. You have the potential to make more money by choosing the right project.
It diversifies your portfolio.
Diversifying your acquisitions is the best way to avoid making losses as an investor. That means spreading your investments over several projects to minimize your risks. NFTs, give you a profitable way to diversify your portfolio, allowing you to earn profit over time without doing anything. Owning some NFTs puts you on the safer side since you can earn and grow more when your assets become popular in the long run.
Ownership is transparent
As earlier said, NFTs symbolize ownership of digital assets in the real world. Interestingly they exist in the blockchain like digital currency, verifying provenance and making it easier to monitor who holds them. The best thing about NFTs is that even if someone tries to duplicate your digital asset, you can ascertain you own the asset and sell it on a trustworthy exchange.
You get a chance to venture into the world of cryptos.
Many people desire to venture into the world of cryptos and make investments, but they don’t know how. NFTs are a good place to begin if you are one of them. All you need is to study blockchain technology and how NFTs operate. You may discover other areas and trendy technologies to venture into and grow your investments.
The investment is open to everyone.
Did you know that anyone can access NFTs through various marketplaces? You can mint your NFTs, sell them, or buy one and hold it over time. The best thing about investing in digital assets like NFTs and cryptos is that there are fewer gatekeepers than you would encounter in real life. NFTs are also widely accessible, making it easier for anyone to invest in them.
Angela is a senior editor at Dreniq News. She has written for many famous news agencies.