NFTs in Simple Words
NFT stands for Non-Fungible Token, but what does it mean in practice?
- A fungible asset is the one that can be exchanged for something tangible, like cash. You can always exchange 100 dollars for two 50-dollar notes, for example.
- A non-fungible asset has some unique value that makes it impossible to replace. It can be exchanged for other digital assets, though.
As we see, an NFT is a one-of-a-kind digital asset, and you can buy the original rights to it. Copies can be made, of course, but there is one owner of the authentic item, and this could be you.
What items can potentially become an NFT? Well, just about anything: drawings, gif files, tweets, tickets, or photos. These are objects existing in the real world, and an NFT is their representation – just like the figures on the credit card are the representations of your real money.
This aspect raises different emotions, from mistrust to surprise. Well, I own a painting, and it hangs on my bedroom wall. But what do I own in the case of NFTs? But this bewilderment disappears as you gain experience: once people were just as unsure about credit cards as cash was the only imaginable way of possessing money. And you still sometimes see photos of wads of notes paving the floor with a person lying on them. And still, we know that a platinum card can contain much more money than that…
This article is a brief overview of the NFT world. If you want to plunge deeper into it, visit our portal where you can get advice from our specialists to form your crypto portfolio in a competent way.
Making Money on NFTs
The first question we should ask before we decide to sell anything is the target audience.
As for NFTs, they are popular with two groups of people:
- Collectors who are always after something unique, one of a kind, that would occupy a special place in their collection. They actively monitor the NFT market to get the works of independent authors they are interested in.
- Crypto investors (small and large) who are looking for ways to diversify their crypto asset portfolio and see the NFT area as a promising one.
The whole thing of making money on NFTs is as simple as that: you buy an item and resell it later to the target audience we have specified above. Hence the logical questions – what to buy and what do I actually buy?
Here are some points to consider for newly minted NFT buyers:
- Tokens are created in limited series, so there will always be a shortage of them, and you can find a collector who will be interested with a great degree of probability
- You will not find two identical NFTs
- You will automatically get a certificate of authenticity for the NFT purchased
- There are no “serious” and “non-serious” assets when it comes to NFT: virtual real estate is an item that has the same status as a gif file (no matter how crazy it may sound to you)
Risks of Investment in NFTs
Let’s be honest: this is a high-risk investment. Market fluctuations in this case are impossible to predict, and Bitcoin is in the same boat. While more conventional sources of income are dependent on political, economic, and business events, the crypto industry follows its own pattern that no one has studied yet (just because it has not been in existence for long enough).
Are you ready to accept the risk? Well, it’s up to you. What we can do is advise you on the investment portfolio, help you choose a safe and reliable trading platform, and open a business account that will successfully handle your crypto operations which will always have the status of high-risk ones – at least in the foreseeable future.
How to Create an NFT
All you need is some unique content, while the rest is about purely technical matters: a digital wallet, some amount of Ethereum to successfully use the blockchain, and registration in a marketplace to upload your content.
A clip, a portrait, or a football card – anything will do to create a unique piece that can be bought and sold.
NFTs may look like a one-day scheme to the most cautious people, but we currently see no signs of decline. On the contrary, the demand is growing, and it seems to be the right time to act. Contact our experts by following the above link if you need advice.
Is NFT trading worth it?
Well, nobody can give you any guarantees as this is a non-regulated blockchain unit. Its price depends on the demand and may range from a hundred to a million dollars per item! However, there are many people who accept the risk and earn millions of dollars by selling unique tokens. You may wish to join this community or decide to keep away from any risks. However, if you reject risk, you reject the opportunity as well. And this is a choice made independently.
If you decide to have a go, you will need to choose the right platform to avoid paying too many fees. Contact our specialists to receive competent advice and make an informed decision.
NFT opportunities are there for you to take, so it’s your turn now.
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