Non-fungible tokens or NFTs are surging in demand, thanks to the trend set by Bitcoin and altcoins like ETH and DOGE whose value exploded in just months, giving huge returns to investors. And now, people looking to get fast returns are moving towards NFTs.
Well, it’s true that good NFT can give significant returns in a very short period, but one should know that it’s about the demand. Some NFT’s may have good demand today, but may eventually lose their appeal and value with time, which is why it’s important to invest only in good NFTs that have real use cases.
Not all NFT are valuable…
The NFT market is still in the nascent age, and most of it is just hype. For example, paying millions of dollars for just a tweet from a famous celebrity is not worth it, in my opinion. Similarly, paying billions to own digital rights to a cartoon character from some unknown artist is probably not worth it. But again, not all investors are in it for money.
Since NFTs represent unique content such as arts, graphics, images, videos, music, coins, etc., these can be really valuable for collectors, even if not in monetary terms. Also, there are investors who want to buy NFTs just to support new artists and their content in specific industries.
But, what about regular investors looking to make profits from a growing asset? Can they benefit from NFTs? Well, the answer is yes. But, the key to making good profits from NFT is investing cautiously.
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NFT and Cryptocurrencies
NFT or non-fungible token is a type of token (cryptocurrency) that uses the same blockchain technology to safely store the ownership information of an NFT-linked asset on the distributed ledger.
Though NFTs have the same fundamentals as cryptocurrencies, there are many crucial differences between the two. NFT, for instance, can only be used to represent something unique and specific. Also, unlike cryptocurrencies, NFTcannot be exchanged with one another since each NFT is unique.
Since NFT are stored on the blockchain, they can be uniquely verified and authenticated and are not possible to corrupt. Each NFT represents a unique digital or physical asset and increases its liquidity to make it easy for owners to monetize their unique creations.
Investing in NFTs
Overall, Non-fungible tokens are a nice initiative and can turn out to be one of the best use cases of blockchain given the right purpose is found. You can think of NFT like purchasing a classic collectible. Necessary research is required to ensure the purpose will turn out to be valuable for you. There are some really good crypto projects working in the NFT space that are beneficial both for investors and users.
For example, the HUMU marketplace is a crypto project that utilizes the power of NFT to provide a fair means for creators in the fashion industry to monetize their content. Fashion industry creators can sell their unique designs, concepts, models, arts, images, etc. through NFTs on the HUMU marketplace and earn fair and timely payments. Find out details at https://humutoken.wordpress.com.
To sum up, yes, it’s worth investing in NFT. There are some really good crypto projects using NFTs to solve industry problems and help creators monetize their unique creations, art and content.
Find and invest in these NFTs if you are looking for extraordinary returns.