I got many queries and advice related to NFT like What is NFT, How to invest in NFT, How do NFT work and many more. So here I am with a new blog How to invest in NFT. So lets start with the basic and know about NFT.
What is NFT
NFT – NON FUNGIBLE TOKENS are the tokens which are unique and cannot be replaced with anything. Basically it is the opposite of Fungible (identical). If you trade in any NFT than you will definitely get anything different. For eg. Mona Lisa painting is a NFT if you trade the painting you would receive something else in return.
NFT’s are one kind of digital assets that can be bought and sold but they have no tangible form of their own.
Non-fungible tokens like Jack Dorsey’s first tweet are now being applied to digital art, music, GIFs and virtually anything you can see on the internet. Non-fungible tokens are tokenized versions of digital or real-world assets.
How do NFT work
Traditional art works are valuable just because they are unique and original but the digital files can be easily duplicated. With NFT artwork get tokenised and due to which it can be bought and sold easily. Just like cryptocurrencies, everything is stored on a ledger which is know as blockchain and that cannot be forged just because they are maintained on thousands of computers.
At a very high level, most NFTs are part of the Ethereum blockchain. Ethereum has a native cryptocurrency token called ether (ETH) which powers the Ethereum blockchain network which also supports these NFTs.
How to invest in NFT
The biggest problem with NFT is that they are not like publicly traded liquid tokens which can be easily bought and sold. “Investing in NFTs is like investing in small businesses or playing the lottery – the chances of success are low but the payout is high if a winner is picked,” says Sean Sanders, CEO and founder of crypto platform Revix.
A direct way is to invest in Ethereum or the Smart Contract Bundle. Most NFTs are created and recorded on the Ethereum blockchain, which provides a detailed record of the NFT’s chain of ownership. Ethereum are hack-proof so don’t worry.
Why to invest in NFT
Due to following reasons investing in NFT have proven to be profitable form of investing:
- Creates Value for the Tokenized Asset
- It provides Investors more Liquidity
- Potential for growth and development\
Hope you all find out my blog HOW TO INVEST IN NFT useful and helpful. If you found any questions/ queries/ suggestions/ advice connect us anytime via comment section or mail. We always welcome your response.
Disclaimer: This article is not investment advice. Individuals and corporations are solely responsible for any venture they decide to take on.