Should You Bother With NFTs?
Should You Consider Adding NFTs To Your Portfolio?
Just a few short months ago, most people didn’t know what an NFT was. Most people still don’t know exactly what non-fungible tokens are – but that doesn’t mean they’re not some of the hottest investments out there!
Let’s take a closer look at what NFTs are, and then we will give you some information about the hottest NFT investment options out there.
What Is An NFT?
NFTs, or Non-Fungible Tokens, are a type of digital item that is backed by the same type of blockchain technology that is used for crypto currency. This means that once the token for an NFT is issued, it can’t be altered or revoked. That means that when you purchase an NFT, you can be completely sure that you are the only person who owns that particular item.
In a way, this works a lot like buying art. There’s only ever one original, but there might be a series of authorized and numbered prints. Owning the original is what real art collectors want but owning a limited-edition print from a very well-known artist is also a very good investment – and a lot cheaper.
There’s some controversy about collecting NFTs, because the original digital files can still be copied, but there’s still significant cachet involved in owning the original file.
When people like Johnny Depp start turning their art into NFTs, you know that it’s a big deal. Artwork is one of the most common and sought after type of NFT. Think of it as a digital print that can’t be copied or reproduced – so it really is one of a kind.
2. Collectibles and Memorabilia
Collectibles and memorabilia are another hot NFT investment. Imagine knowing that you’re the only person in the world who owns a particular piece of memorabilia? There are digital cards, images and more on offer, and you can buy them for nearly every interest group and sport out there.
3. In Game Loot
Often, popular video game companies release limited edition NFT based loot that you can win, trade, buy and sell like real items. If you’re good at gaming, you could earn this, but there’s also a hot market buying and selling this kind of NFT, so you could just become a game commodity flipper!
Do you remember success kid, change my mind guy and disaster girl? There are hundreds of memes on the internet that are global phenomena and part of our collective memory and culture. Many of the people who own the original pictures are turning them into NFTs and selling them, sometimes at auction.
So you could be the proud owner of the original distracted boyfriend, doge or good guy Greg. That’s worth it just for the bragging rights!
5. Meta Property
Whether we like it or not, there’s a good chance that we’ll be doing more and more in the metaverse in coming years. It’s already happening, and not likely to slow down any time soon.
Which is why you might want to invest in digital “real estate” in the metaverse. Owning a piece of virtual property now ensures that when the metaverse becomes as cluttered as the internet is now, you’ll have a prime position for your business (or whatever else you want to use it for!)
Music is another popular NFT. Some of it is just ordinary, pre release versions of commercial albums, but there are also some artists releasing limited edition NFTs. These might be songs you can’t get elsewhere, or additional content. They’re valuable because not many people have them. Think of it as the digital equivalent of a limited run vinyl pressing.
7. Real World Assets
People area already starting to connect NFTs with real world assets, using a system called Real World asset NFT or rwANFts, that give you virtual ownership of a real world item or asset. This is actually a very smart use of NFTs, because they’re based on blockchain technology, so they can’t be forged or altered – unlike paper and even ordinary digital agreements.
Do Your Research
Perhaps the biggest hurdle for people who are considering investing in NFTs but aren’t sure is that they’re just so new. Even if you understand property, stocks and bonds, NFTs are a completely new type of investment. It can be hard to work out how they work, and how they could appreciate over time.
So do some research. Read about NFTs that have already been sold and follow people who talk about NFTs. Read digital investment news and speak to people you know who are already involved. There’s a lot of great information out there, so you don’t have to invest without first doing all your own research.
The Time Is Now
If you’re still wondering if one of these (or many other possible options) NFTs is a good addition to your portfolio, ask yourself this: if you had bought Bitcoin when it was released, how much money would you have now?
NFTs are still quite new. We’re all still trying to figure out how best to use this exciting technology. But if there’s one thing we do know, it’s that technology like this will only become more valuable and in demand over time.
So if you really want to take advantage of the NFT boom, the time to get involved is now.
Start small. Choose NFTs that really interest you or look for options that are unique and memorable. But all signs point to the fact that the future of investment is digital, and the NFTs you pass up today might very well be tomorrow’s bitcoin.