From tweets to pictures and even music, it looks like just about everyone has gotten aboard the NFT hype train, and given how NFTs have been sold for millions of dollars, who wouldn’t want to miss out on the opportunity to become a millionaire overnight.
And because of this, you’ve probably been tempted to invest in some NFTs of your own. But you’ve also probably heard what some detractors have said about NFTs and how they are actually worthless.
Hence, this is why we’re going to show you everything you need to know about NFTs and whether you should invest in them.
So, first, let’s answer the most important question.
What are NFTs?
NFTs or non-fungible tokens are digital assets used to represent real-world objects – like art, music, videos, or pictures. And from here, traded on specialized platforms such as Nifty.
Other NFTs like Beeple’s Everydays – The First 5000 Days were sold at auction by the Christie’s auction house.
While all of this sounds great, you ought to remember that any NFT can be downloaded right off the web. This website, thenftbay.org, lets you search for and download any number of NFTs that have been sold.
Why are NFTs so highly valued?
Simply put, it all comes down to bragging rights. An NFT certifies an individual as the “true” owner of said work of art. Read more about NFT art here.
While everyone else is free to copy images of the original, you – the holder of the NFT are the actual owner.
Hence, this may seem like something of a stretch, but given how NFTs have taken off in a big way, this may not exactly be the case.
Celebrities like Snoop Dogg and Lindsay Lohan and companies like Nike and various sports teams have taken to releasing their own set of NFTs.
Besides that, NFTs mean that artists no longer have to rely on galleries or auction houses to showcase their work. Instead, they have the option to release their work independently and program in royalties that pays them a percentage every time their NFT gets transacted.
Now that you have a good idea of what NFTs are and how they work, let’s take a look at the:
Types of NFTs
When you think about it, NFTs can be anything. For example, the NBA has released their NFT market called NBA Top Shot, where users can buy, sell, and trade snippets of legendary moments in the NBA.
From spectacular saves to outrageous dunks from your favourite athletes, the NBA gives fans the option to immortalize classic moments in NBA history on NFTs.
Besides video clips of sports, you can trade music, tweets, or even pictures of digital toilet paper. If you have an idea, you can probably convert it into an NFT.
What do you need to purchase NFTs?
NFTs aren’t called crypto art for no reason. Most of the time, platforms that list NFTs require you to make payments in cryptocurrency. And because most NFTs are held on the Ethereum blockchain, you’ll probably need to buy some Ether from a crypto exchange.
Besides Ether, Bitcoin is also accepted by most NFT auction houses. So if you’re looking to invest in NFTs, you’ll probably need to have a digital wallet or an account with any crypto exchange.
Besides crypto exchanges, you can also opt to purchase crypto on payment platforms such as XanPool and PayPal using your credit card.
Should you invest in NFTs?
Ok, now we come to the $69 million question – should you invest in NFTs? Is it worth all the hype and that you take your precious time to dedicate into that pursuit?
The answer is both yes and no. Yes, because the technology behind NFTs is sound, and it could very well revolutionize the way we think about art.
On the other hand, the market for NFTs essentially consists of folks buying and trading images or videos that can be copied with just a click of the mouse, thus making your multi-million dollar asset virtually worthless.
Investing in NFTs is not for the faint-hearted. So if you intend to take the plunge, make sure that you understand all of the risks involved and do your research.
It is important to read a lot about the subject and check in what exactly are you investing. Some websites take advantage of the trends to scam people, so be sure to find reviews to know whether it’s worth your time and your assets.
Nonetheless, NFTs are a trend that is here to stay and there is a complete madness online for it. From games to art pieces, there are so many uses for these tokens that it is possible they will reinvent the way we make online microtransactions.