Blockchain technology has been the driving force behind many new forms of investments, and non-fungible tokens (NFTs) have been a particularly exciting new type of investment. While digital collectibles like trading cards and artwork are a much more recent phenomenon, they have already developed into a massive market that is attracting both new investors, NFT agency and established collectors.
What Is An NFT?
Put simply, an NFT is an asset that acts like a stock certificate.
Think of it like a baseball card that verifies authenticity and tracks ownership of the card — or in this case, a piece of digital art — as it’s traded from person to person.
If you’re still confused, think about it this way: An NFT is something with a definitive start and end point; it’s not a copy (and certainly not a counterfeit).
If you have not yet invested in NFTs, it is definitely worth considering. Here are some reasons why you should take the leap.
1. NFTs Are Unique
A major reason why people invest in NFTs is that they offer something truly unique. As the name implies, non-fungible tokens are one-of-a-kind items that cannot be replicated or exchanged for anything else, which means each one is a unique investment opportunity with its own potential for growth. If you want to own something truly special, NFTs might be just what you need.
2. Anyone can buy an NFT
They are not too hard to understand but yes, it is true that they are complex blockchain tokens that use cryptography – but you do not need to understand how a blockchain works to purchase an NFT. All you need is an email address and an Ethereum wallet (or a supported exchange account) and you can own an NFT.
3. Anyone can sell an NFT
You do not need to be a digital artist or have any technical knowledge whatsoever to create your own non-fungible token and sell it on OpenSea or another popular marketplace. You will need to pay some fees (gas costs) for creating your own token and also for selling it on an open marketplace like OpenSea.
NFTs can add a sense of legitimacy to digital assets by proving they belong to a specific person or company. In 2020, the NBA sold used basketballs as NFTs, providing evidence that the ball was used in a particular game. This is particularly useful in the art world, where buyers and sellers are often reluctant to trust each other regarding the authenticity of original works.
Investing in art has traditionally only been open to the wealthy due to high prices and fees associated with purchasing physical objects such as paintings or sculptures. With the advent of NFTs, artists have begun selling works for cryptocurrency and making their work easily available for purchase around the world using platforms like Rarible or OpenSea.
6. Digital assets are on the rise
The first reason to consider investing in NFTs is that the digital art market is booming, and this is likely to continue. NFTs are sold on blockchain platforms such as Ethereum, which means that they can’t be copied or altered by anyone who doesn’t have access to the original seller’s digital wallet. This also makes them easy to track and verify their authenticity.
7. They’re valuable
NFTs aren’t just virtual images — they’re valuable digital assets that can be bought and sold like any other asset out there. Since there are a limited number of them available, those that have been created by popular artists could easily become worth millions of dollars in the coming years.
Read also: 4 Reasons to Invest in a HIT Tool