Even though every investor is aware that investing entails risk, many investors prefer to play it safe. That implies no one wants to put money into something that isn’t going to pay off or isn’t profitable. This raises the question, “Are NFTs a safe investment in 2022?” If you didn’t earn money by purchasing and selling NFTs in 2021, keep reading because, in today’s article, I’ll explain why you should buy NFTs in 2022.
Why should you invest in NFTs?
Like cryptocurrencies, NFTs are safe to buy and hold, but that doesn’t imply they’re without danger. What are the dangers? Well, you won’t have to worry about losing your NFT because the technology behind it prevents it from being stolen or changed. However, if you don’t do enough research before acquiring an NFT item, it may devalue in the future, meaning you won’t be able to recover the money you spent. Aside from that, you won’t have to worry about an NFT depreciating over time if you get a popular and limited edition.
Why should you invest in NFTs in 2022?
When manufacturing giants like Nike and Formula 1 entered the market in 2019, the NFT world transformed. A year later, the NFT market had tripled to a stunning $250 million, and the top 10 NFT collectibles had a 400 percent rise in sales from January, accounting for over $400 million in gross sales in February 2021.
It’s clear from the above study that the NFT market has been quickly expanding throughout the years. Will NFTs be worth anything in 2022? The answer is yes, but only because it has piqued the public’s curiosity. There are various ways to get your hands on an NFT these days. You can obtain one by purchasing, creating, or receiving NFT drops.
Without further ado, here are some reasons why you should invest in NFTs in 2022.
NFT allows investors to have more liquidity.
When assets are tokenized, the investor gains more control over the asset. When an asset can be easily turned into cash without impacting its market value, it is said to have liquidity. Because NFTs have more liquidity, you can buy an expensive NFT artwork now and decide to sell it later for the same or even a higher price.
The number of NFTs available is restricted.
Apart from their widespread acceptability, NFTs are popular because they are limited, and understanding the fundamentals of supply and demand will help you comprehend why you should acquire NFTs. If you want to collect one-of-a-kind or limited-edition items, you should look into the NFT market.
The fashion, sports, and gaming industries have all embraced NFTs. Decentral gaming, for example, is establishing a virtual environment where people from all over the world may participate in poker tournaments by buying and selling NFTs. A $1000 NFT piece, for example, can gain you a seat at some high roller tables.
It’ll only be a matter of time until NFTs find their way into other businesses, given their acceptance in the fashion and gaming industries. As a result, if you want to acquire a rare collectible or profit from it in the future, investing in NFTs now is a good move.