Non-Fungible Tokens or NFTs made the headlines again when it was chosen as the word of the year by Collins Dictionary. NFTs are non-replaceable tokens that exist on a blockchain.
Often representing digital art, NFTs can represent anything digital at all, like music and games. Their uniqueness can be attributed to the fact that NFTs give sole ownership of an asset by creating a unique digital signature, which defines the terms of the ownership and this tokenized asset can be bought using cryptocurrency. So how do you get started?
Most NFTs are Ethereum-based tokens. Hence, you have to pay for the collectables in Eth tokens. This can be done by creating a digital wallet in a crypto exchange account. Following this, you can start investing and make impressive returns with digital collectables.
Here are the top 5 reasons why you should consider investing in NFTs.
A digital artist, Mike Winkelmann, also called Beeple, set a milestone in history by selling his NFT titled “Everydays: The First 5000 Days” for over $69 million to Vignesh Sundaresan, founder of the Metapurse NFT project. But this doesn’t make the latter the copyright holder of the work. Hence, NFTs can have only one owner at a time while the buyer has access to it.
In addition to being popularly associated with digital art, the emergence of NFTs makes a promising gamble for all things digital. This creates a market for a wide range of collectables from art to even a tweet. Proper analysis and investing in digital content is bound to get you, at the very least, satisfactory returns. This diversity ensures the potential for further growth and development, which is undoubtedly good for such a marketplace.
NFT marketplaces provide direct interaction between the seller and the buyer, thereby eliminating extra charges for both parties involved. Since the ownership of the work is unique to the original seller, they earn a commission each time the work is passed. This unique feature is highly favourable for investors.
The unique signature aspect of NFTs guarantees that any type of piracy will not make the pirated version authentic. The working of the blockchain market further shields the work from data loss. This assures a safe and secure transaction between the users.
5. Mainstream Interest
Of late, NFTs have been drawing mainstream interest, especially with big names like Marvel. While at present, it is yet to reach a large section of traditional collectors, it’s highly possible that big investors would expand the market to all kinds of buyers. Hence, it is safe to say that NFTs could be the next big thing.
The growing potential of NFTs is paving the way for the possibility of extending product choice into the real world too. Nothing has been certain so far but in the meantime, you can safely explore areas like OpenSea, Rarible and Nifty Gateway among others. You can also check out the superist NFT collection.