Whether you fully understand the world of NFTs (non-fungible tokens) or not, they’re not going away anytime soon, so you might as well get used to them and learn a bit about them.
An NFT is a digital asset representing physical, real-life assets, like music, art, videos, and in-game items. They’re traded online – usually with cryptocurrency (a digital currency) and often encoded with the same software as many cryptos.
In 2022, which is currently seeing the development of Web3 and the Metaverse, it’s worth looking into NFTs for your future. Here are four pros that will help you make up your mind.
1. They Have the Potential to Make You More Money
Just like any investment, buying an NFT gives you the potential to earn more from it in the long run. Some of these digital assets have sold for incredible amounts of money, too – just look at Paris Hilton’s scribble of a cat that sold for $17,000.If you purchase an NFT at the beginning of a project, you have the chance to benefit from it if it increases in popularity and value. This means you’ll be able to sell it for more than you bought it. Many hedge funds are investing in NFTs these days, too, which shows that they have heaps of potential. These investors, for example, have a portfolio of alternative asset classes and help people to participate in the rise of NFTs, crypt, and Web3 (amongst other things).
2. Anyone Can Invest in NFTS
Anyone can access NFTs via various marketplaces, like OpenSea or Rarible. With such an open door, you’re able to find NFTs for sale, and you can also mint and sell your own NFTs.
When you invest in digital art – especially these days – you have an advantage due to there being fewer gatekeepers in the digital world than in the physical one.
We will say that NFTs aren’t typically cheap, but their wider accessibility means that you’re more likely to get your hands on one than a rare classic car or a famous painting.
3. You Can Track Ownership
NFTs exist on the blockchain, a system that records transactions made in bitcoin or other cryptocurrencies. That means their ownership can be tracked as they change hands, therefore verifying their origin.
Even if you find copies of the NFT you own, you can still prove that you are the original asset owner. This tracking and accountability make things a lot easier, as it can be a lot harder to prove the provenance of an original piece of physical art.
This transparency also ensures that if you want to list it later on a reputable exchange platform, you will be the person that receives the payment for it. You will also be able to verify its authenticity easily and without relying on expensive consultations.
4. You Can Diversify Your Portfolio
For those who value asset diversity in their portfolio, trading NFTs is an increasingly popular route to go down. They allow you to add an alternative asset to your current portfolio and benefit from any growth that may happen in the future should they become even more popular.
Invest in Your Future
Investing in new things can be scary, especially if you’re not used to digital assets. However, taking some time to do your research and reaching out to experts in the field will make you feel more at ease about the masses of opportunities that are out there in the digital world. These four reasons to invest in NFTs may inspire you to go out there and learn about other alternative assets that can increase your holdings.