If there is one technology that is rising with a breakneck speed every year, that is blockchain. And its evolution encompasses every industry across the board. Although there are numerous applications of blockchain today, cryptocurrencies and NFTs are by far some of the most successful ones.
But let’s focus on NFTs. Non-fungible tokens have the quality of uniqueness; hence no one can replicate them.
It is solely this quality that makes them ideal for representing rare items. For instance, you can make an NFT of collectibles or artwork.
Investing in non-fungible tokens has become a favorite domain of countless investors today. They do vigorous research on an NFT and then invest in it.
It’s not just the sole investors who experience the NFT craze. Instead, numerous companies and businesses are rushing to build platforms and applications for NFTs. Users can then buy and sell non-fungible tokens on such platforms to make profits.
But is this craze warranted? I mean, there are other forms of digital assets out there, so why is there buzz around NFTs so much?
Glad you thought that.
This is because NFTs are incredibly secure, and no miscreant can mess around with them by counterfeiting. What’s more, it gives its owner the benefit of individual ownership and control over digital assets.
What Are NFTs?
Simply put, non-fungible tokens are unique digital assets that you cannot replicate or counterfeit. What this means is that each NFT has its unique value and history.
Fungible tokens, on the other hand, can be replaced. For example, you can trade a Bitcoin with another Bitcoin; this means they are fungible and of equal value. But you cannot do the same with NFTs.
Nick Johnson was the first person who created the first NFT back in 2017. He made the ERC721 token to represent the digital ownership of a unique asset on the blockchain network.
Today, people are investing in NFTs to make unprecedented profits. And their demand is only growing year on.
Carl Runefelt is a global crypto leader and investor who has poured money into more than 360 crypto startups. He strongly believes that crypto and non-fungible tokens are the future.
While talking about NFTs on his YouTube channel, The Moon, he said, “NFTs are definitely speculative, but as you have seen, there is a lot of demand for them because they are scarce. There is always a new collection coming out all the time.”
The scarcity of non-fungible tokens is massively contributing to their popularity of NFTs.
Why is NFT an Excellent Investment?
Although there are countless reasons why you should invest in NFTs but below are some of the most prominent ones:
- You can monetize your digital assets with non-fungible tokens
- You can make massive profits from NFTs
- You have robust protection against fraud and theft
- You can sell and buy non-fungible tokens any time you want to make profits
- The level of security and privacy of NFTs is unparalleled
- You can transparently store your digital assets
- Non-fungible tokens will not be affected by increasing inflation – your investment is secure
Carl Runefelt explains that NFTs are a recent and exciting opportunity that can quadruple your investment in no time – an ideal return on investment.
That is why Carl has himself invested in NFTs and has bought a number of non-fungible tokens. On purchasing crypto punk NFT, Carl said, “I really think that the crypto punk NFT is a good purchase which I bought for 1 million dollars. I am very certain that I can easily sell it for 1.5 million dollars if I put it out for sale and who knows, in five years, maybe it’s worth 20 million dollars.”
What Are the Benefits of NFTs?
NFTs are galore with benefits. You can heap praise for non-fungible tokens all day, but that wouldn’t be enough. Here are some of the significant benefits of NFTs that make them an attractive investment option for investors:
You can represent a variety of different digital assets with NFTs
Non-fungible tokens are highly transparent and secure
NFTs have the quality of divisibility and scalability
Fast and ease of transactions is another major benefit of non-fungible tokens
You can have global access to markets with NFTs
Lastly, non-fungible tokens are straightforward and easy to comprehend – no complex understanding is required to invest in them
So When Are You Investing in NFTs?
Above-discussed benefits make non-fungible tokens an excellent investment opportunity. Buying NFTs and selling them when their prices rise is one of the trading strategies you can go for.
Carl Runefelt cautions about the investment, “When you see the new NFT collection coming out, you have to make sure that it is of high quality because anyone with a computer can create an NFT collection. You find the right collection either where the artist is the famous one because it gives it value.”
Overall, you can be a millionaire overnight if you do your research and invest in your chosen NFT. Rest assured, prices will definitely shoot up in the upcoming years.