Is It Worth It to Invest in NFTs?

    Non-fungible tokens, or NFTs, have recently acquired popularity as the digital assets have attracted celebrity attention and sold for millions of dollars. An original NFT painting sold for $69,346,250 at Christie’s. Basketball fans may purchase moments from NBA games, similar to video trading cards, for six-figure sums. So, what exactly are these NFTs? Also, is it worth it to invest in NFTs? Let’s look at whether investing in NFTs makes sense for you.

    What are NFTs?

    NFTs, like bitcoin and other cryptocurrencies, are digital assets, but they are fundamentally different. Cryptocurrencies are fungible tokens, meaning they may be traded for other currencies. Non-fungible tokens are one-of-a-kind assets that can only be owned by one person at a time. NFTs are bought, sold, and held via blockchain technology, just like bitcoin and other cryptocurrencies. When you purchase an NFT, you usually keep it in an online account or a cryptocurrency wallet. You can’t carry it around in your pocket because it’s a digital-only asset—unless you have a hardware wallet.

    DO you need NFTs in your portfolio?

    Most people’s portfolios don’t require NFTs. Like cryptocurrencies, NFTs are very new and extremely dangerous. However, unlike bitcoin and other well-known cryptocurrency tokens, your NFT may not have a steady market of purchasers.

    The Securities and Exchange Commission (SEC) published a statement in 2017 warning investors about the dangers of cryptocurrencies, initial coin offerings (ICOs), and the burgeoning digital asset market. NFTs use the same technology as NFTs, but they may pose a greater risk.

    Is investing in NFTs worth it?

    The popularity of NFTs has skyrocketed. You may be thinking if you should get in on the NFT craze after some investors gained millions

    According to Vignesh Sundaresan, the auction buyer of the $69 million artwork, NFTs are a legitimate store of value that signifies a shift in how the world views art and valuable assets. Sundaresan told CNBC that NFTs will become a new commodity class that connects buyers and sellers all over the world.

    The NFT he bought, on the other hand, is arguably just a digital image with a unique asset address that anyone can copy. Many individuals are dubious of NFTs as a result of this. After all, people used to believe that Beanie Babies and tulips should command exorbitant prices. Those fads vanished. Only time will tell if NFTs will outperform a Picasso or a pet rock in terms of value.

    NFTs are being questioned by some in the bitcoin sector. The capacity to reproduce the underlying asset diminishes the value of owning the NFT, according to litecoin founder Charlie Lee in a Twitter discussion.

    He also wonders what will happen to the value of the NBA Top Shot Moments if the website goes down, noting that tangible baseball cards retain their worth long after the producers or leagues have gone out of business.

    How to invest in NFTs?

    If you wish to start using NFTs, there are a few options. You can buy, list, and sell individual assets on various NFT platforms. You may need an account on the platform or another type of accepted cryptocurrency wallet, depending on the platform. It may be preferable to avoid NFTs if you find this method complicated and convoluted. However, if you’re extremely tech-savvy or have prior familiarity with blockchain-based assets, the process should be relatively simple.

    • OpenSea
    • NBA Top Shot
    • Nifty Gateway
    • Rarible

    In the NFT space, fortunes have been made. Although there’s no assurance that this tendency will continue, the current anticipation and excitement surrounding digital assets have led to exorbitant prices. If you’re thinking about buying an NFT, think about your risk tolerance and how much money you’re willing to lose.

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