If you’re familiar with crypto, you’ve probably heard of NFTs and the tremendous price tags some are selling for in the last couple of years. With more and more artists and celebrities endorsing this marketplace, collectors, investors, and creators could benefit from understanding the advantages of investing in this new marketplace.
What is an NFT?
A non-fungible token is a unique and encrypted token held on a blockchain network that immutably verifies the ownership of a specific real-world or digital asset. NFTs encrypt metadata that contains information about the asset, sometimes a smart contract or even an encrypted copy of the digital file of the asset itself.
Because NFTs are hosted on blockchain networks, they are highly secured and cannot be tampered with or stolen. Though there are still questions about the anonymity of blockchain networks, the essential security of your NFTs or crypto is never in question. More and more digital creators have been utilizing NFT technology to create digital scarcity for their works online and create a new value marketplace for digital artworks of all mediums.
The Marketplace
Today, the NFT marketplace is highly diverse, with NFTs of all digital file types and from creators of all kinds of industries. Gifs, music, videos, photographs, digital paintings, and more can be minted into NFTs and listed through a marketplace.
The diversity of creative assets and the ability to add inherent value to each new digital creation has spurred a highly lucrative creative market that many in the entertainment industry are endorsing.
Some NFTs have sold for millions of dollars each, creating a vast market opportunity for creators who can bring unique NFTs to the market. Because the value of NFTs and cryptocurrencies do not fluctuate with traditional economic factors such as the stock market or fiat money inflation, there is always risk involved in investing in crypto.
Other factors can impact the value of your assets and the overall blockchain you are participating in. These factors can include public opinion and the state of the community around the blockchain.
Keeping this in mind, the fact that many celebrities such as Snoop Dogg, Steve Aoki, and Justin Bieber are heavily endorsing the NFT marketplace is an excellent sign that this market will continue to prosper and sustain its value in the years to come.
Investing
If you’re new to the crypto world, joining a crypto community such as FTX can give you access to a broad knowledge base and help you learn how to invest in NFTs easily. Before making any type of investment, you should always do extensive research to make the best decision for your financial goals.
To begin investing in NFTs, you first need to open a crypto wallet and fund it with the cryptocurrency of your choice. Many digital wallet apps and exchanges have different fees and regulations regarding trade, so finding the right platform is essential.
Once you’ve opened and funded a wallet, you can join an NFT marketplace and begin bidding on and purchasing NFTs. Be sure the cryptocurrency you fund your wallet with is compatible with the NFT marketplace and blockchain you are hoping to invest in. Once you’ve purchased your NFT, it will continue to be stored on the blockchain, and you can access it easily through your digital wallet until you’re ready to sell.
The NFT marketplace has built tremendous hype in the last several years, and with good reason. As more and more celebrities, artists, and digital creators continue to endorse the NFT market, more significant opportunities will arise for creators.
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