A horse with a rat tail, a rat with a horse tail, pop-tart on a horse head on a pop tart. No, you didn’t come to the wrong place. All of these are types of NFTs or kinds of NFTs that you might find in the future flying around on the internet. You are literally one purchase away to get your life sorted.
The art of mimicry goes a long way. When you consider it in terms of NFT that basically, NFT is just a mimicry of world art galleries, events, pictures, and whatnot with the intervention of any third-party mediators. People tend to combine both cryptocurrency and NFT. However, both are entirely different concepts. Non-fungible Tokens or NFTs are built using the same system as Crypto, and that is where the similarity stops.
Cryptocurrency is fungible, which means that it can be exchanged in terms of value. However, that is not true in the case of NFTs, as each of these NFTs has signatures abide by them; hence transferability is not as simple as one would consider.
Should you buy NFTs?
NFT burst onto the screen during the pandemic. The pandemic brought about many changes, another significant change that it brought was regarding the general idea of investment. The long COVID convinced everybody about: how to change specific terms and conditions of savings and its alternatives. The NFT industry has been attracting a lot of buyers and investors, especially people from Hollywood who are putting out their personal NFTs in the market in order to capitalize the most out of the market gap.
It comes as no surprise that this market is still very young, so one needs to be extra careful while making such decisions.
Having discussed it briefly, we still need to understand why and how did NFT become a phenomenon so exciting and rewarding that people invest millions of dollars in it. There are no specific assets that could be an NFT. The truth is that it could be a tangible or a non-tangible asset as well, which might be one of the following:
- Game assets, including skins & avatars
- Music & Art
Here is a brief introduction to the above mentioned NFTs
It is easy to understand this type of NFT, it is largely based within the sports industry. Many major sports leagues have their own collectibles published for example NBA, NFL and others.
Game assets, including skins & avatars
The latest addition to the NFT market is the assets of the game, some of the assets within the games, especially the metaverse, are attached with assets, and hence they are available as assets, including but not limited to: characters, weapons, upgrades, skins, and avatars.
Music & Art
This is the form of NFTs or non-fungible tokens that are widely publicized and are the ones that are being bought and sold for millions. Also, this is one of the forms of NFT that is vulnerable to money laundering, as pointed out by international regulatory authorities such as FATF.
NFT investment an overview
To better understand the NFT route, it is essential to understand the landscape of the entire situation. It is a fact that the NFT in terms of industrial structure is not only increasing but is also gaining massive popularity with investments from quite some notable celebrities like Snoop Dogg and others. This shows you that the industry is actually booming. However, one cannot guess how well it will do because of the industry structure.
Where to get NFTs from
So from a layman, and to put it simply, where do we get these NFTs from? This is a genuine question and a question that needs to be answered. So, where do you get NFTs from? To bust a myth right here, you cannot get them off google and use it on your own that is not how it works.
NFTs are sold in many different places. There are private auction houses and dedicated marketplaces. Now, if you are just starting out, you can get them from OpenSea and Nifty Gateway. However, there are marketplaces dedicated to niche-based ownerships of NFTs. I mean if you want something from the NBA, you can get it from NBA Top Shot.
Wallet access is mandatory
Now, after you have decided to invest in the NFT, and in game NFT assets, you need to understand the concept of storage. Note this down and hang it in front of your wall: Get a licensed wallet before you choose to buy an NFT. Some of the marketplaces do accept fiat currencies, but it’s better not to take that risk though.
Although you might not have any crypto assets so it will be wise to have access to an exchange medium instead.
Is investment in the NFT really worth it?
This is a question that might just have multiple answers, and each answer would be valid owing to the circumstances. So obviously, investment is a good thing irrespective of the asset. Holding a digital; asset is something that might be a little risky for people who believe in having assets that are tangible. So they might not feel comfortable investing in a digital asset that could be copied. However even if there are a million copies of your NFT you still will be the owner, so duplication of assets is something that certainly exists in the building.
Is it safe? From the looks of it as NFT is based on or is bound by blockchain, they are very much safe. So these are the two significant concerns for investors, and NFT seems to hold good on both of them so we don’t see a reason for it to be not recommended as a smart investment.
Bottomline” NFT is definitely a good investment.”
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