What are NFTs- an asset worthy of your money or a hyped concept close to collapsing? Let’s find out!
Looking back to when bitcoin was introduced, many dismissed it and saw it as a worthless idea, a concept that could never materialise, but here we are, after more than a decade, and there is no better asset to invest in than bitcoin.
Similarly, NFTs are quickly gaining popularity, some believe it’s the future of investing while others are adamant on the fact that it is a scam. Which side are you on?
If you think NFTs are the next big thing, you are correct! If you surmise that they are a trend that would soon die out, we are here to make you stop, think, and steer you in the right direction.
If you have ever caught yourself thinking what are NFTs, we are sure that a million questions popped into your head, and we are here to answer them all.
What are NFTs?
GIFs, tacos, and toilet paper- what do all these digital assets have in common? They are all NFTs and are being sold for millions. Non-fungible tokens or NFTs are digital assets representing real-life objects that can be bought and sold online. More often than not, these exchanges are done with several kinds of cryptocurrency.
However, simply answering the question- what are NFTs is not enough. Before you start investing in these digital assets, you must understand how you can profit from it.
How Can You Profit from NFTs
The basic idea behind NFTs becoming worth millions of dollars, is that they are a digital scarcity, unlike every other digital creation that can be found in infinite supply. Even NFTs can be found and downloaded on your computers for free, so the question arises, why are people spending millions of dollars of images you can simply screenshot?
This is because the sole buyer has full ownership over the original item, which is proven by the built-in authentication. This allows the original file to be owned by one person, just like a collecor would hang an oil painting in their foyer.
Now that you have understood what are NFTs, you too, can sell or buy them online to make a profit. The first step to do so is to invest in different types of cryptocurrencies, or select one based on what the NFT provider is accepting.
Once this is done, you can get started! If you want to understand NFTs in extensive detail, you can visit Investment Simplified for this and anything investment-related.
One of the best ways to ensure a profit, is something that we’ve all heard many times, which is to start investing early as this approach will help you get a great return. It is important to assess the market, before you make an investment.
You must have observed that many of the NFTs that are selling for millions today were worth close to nothing when they were first sold and purchased, this means that the value of almost any NFT can increase exponentially in a short period of time.
Another fun way to profit from NFTs is to invest in NFT startups which will allow you to invest in NFTs indirectly, by joining these companies at the start you can become a part of a revolutionary future.
If you are looking for another way to invest in NFTs which promises better returns in the future, we’ve got you covered. Play-to-earn (P2E) NFT games are the new in-thing when it comes to investing, if you are a gamer then this is perfect for you.
You can generate rewards through your skilled gameplay, the tokens you receive can be used to get more in-game rewards that are structured as NFTs or can be re-invested into better items. This can be used to generate a regular income as well!
Once, you get a hang of what are NFTs and how the world of digital assets work, you can start, what the finance bros call- “Flipping.” This is a process that refers to buying for less and selling for more to get a positive return. It can take a while to get the hang of this, but once you do, gaining profits with NFTs would be easier than ever!
Invest In the Future
After understanding what are NFTs and you can gain profit from it, you might want to start investing in NFTs already. The growth of digital assets like NFTs is directly dependent on the amount of money people invest, this means that as the popularity of NFTs grows, it will become more mainstream, increasing its profits.
If you’ve read this entire article, we are sure that your knowledge about NFTs must have increased a lot, so the next time you are standing in a group and someone asks – what are NFTS, don’t hesitate to show -off your NFT knowledge!