NFTs, or non-fungible tokens, have attracted a lot of interest recently. This thing is understandable, in light of reports which show that artists have made millions of dollars from the sale of a single NFT.
According to the market, NFTs have increased dramatically, if we talk about price just during the last year. According to the DappRadara tracking company, trading in NFTs soared from $22billion in 2021 to an astounding $600 billion in 2022, and the top 100 NFTs sits have more than $54.5 billion combined worth.
Now the question arises here is what an NFT is and how you can make an investment in it?
Understanding the concept of NFT can be a little difficult. But don’t worry; we will walk through every essential stage as well as how to create and mint your own NFT. After this, we will do a deep analysis on NFT as a good investment.
Introduction to NFT
NFTs are digital assets that are stored and verified as having a unique identity on a blockchain (a digital ledger). Each NFT is non-fungible, which means that it cannot be easily converted into another asset of a comparable value. Images, videos, music, GIFs, and collectibles are typical NFT assets.
NFTs are valuable since there has only ever been one production run of the asset. In other words, no one can mint the same NFT on the blockchain or change its ownership; an NFT can only have one owner at a time. NFT developers and owners have the authority to decide the prices at which their assets are valued because of their rarity.
NFTs are very important because asset versions are not changeable. In simple words, no one can create the same NFT on the blockchain or change its ownership; an NFT can only have one owner at a time which makes it very useful among people. In this way, NFT developers and owners have the authority to decide the prices at which their assets are valued.
NFT a Good Investment
Although collecting NFTs still primarily requires cryptocurrencies, there are many instances where a relatively little investment has the potential for significant rewards. For instance, traditional artist Trevor Jones switched to crypto art in 2019. EthGirl, a digital painting of an animated collage of the Ethereum logo that reveals a face, was his first NFT artwork. The original price of the NFT artwork was 70 Ether (ETH), which was equal to $10,000 in 2019. With the hype of NFT, two years later after its creation, the artwork was valued at nearly $8 million in 2021 which shows that NFT is a means of huge profit.
The worth and price of an NFT are determined by the old supply and demand principle. Demand rises over time as the online investors, purchasers, and collector’s community expands. The supply also grows as more artists choose NFT art as a superior medium for their works.
NFTs are an extremely interesting option for art collectors and art lovers because you are both investing in the art itself with a new revolution.NFTs, according to some, will completely change the art world in the same way that Bitcoin (BTC) and Ethereum (ETH) change the financial industry.
Although NFT is the best place for investment but as an investor, you must thoroughly research and analyze the NFT market before making any investments. Not every NFT marketplace and platform is as secure and trustworthy for an investment, like OpenSea, Foundation, Nifty Gateway, and SuperRare. There are well-known and efficiently managed NFT-only art trading platforms including SuperRare, Nifty Gateway, Rarible, and Foundation available for potential investors. Additionally, the NFT market is relatively open for investors. So make sure to research for a secure marketplace.