Is Investing in NFTs the Easiest Way to Make Money Today?
The cryptocurrency market has grown by an astronomical amount over the past year, and it shows no signs of slowing down. As the technology behind blockchain and cryptocurrency becomes more widely adopted, new opportunities to grow your money are developing every day. If you’re looking to invest in cryptocurrency but aren’t sure where to start, non-fungible tokens may be the solution you’ve been looking for.
Is Investing in NFTs the Easiest Way to Make Money
The short answer is YES. As with many investments, some platforms and games will increase in value over time, while others will remain static. The only thing that can be said for certain is that you have complete control over your investment (if used correctly). What makes investing in Non-Fungible Tokens so appealing is its global accessibility. Since anyone can create a game or platform on blockchain technology, it’s possible for anyone from around the world to buy and sell tokens. This eliminates one of the main drawbacks of investing; everyone has access! If your particular investment isn’t increasing in value, you simply won’t sell it – thereby locking up more of your money! So how do you invest?
What are NFTs (non-fungible tokens)?
Non-fungible tokens (NFTs) are digital assets that are unique and therefore are not interchangeable with other like-assets. They can exist as points, badges, collectibles, or other things that we have yet to discover. Over time, NFT ownership may develop its own economy; marketplaces will likely appear where you can buy and sell unique things on a peer-to-peer basis. Most likely these economies will be powered by ERC20 tokens such as Ether.
What are their benefits
Many NFTs can be purchased directly from developers. However, they are also sold on crypto trading platforms like Binance and BitFinex. It’s a good idea to do some research before deciding where you’ll buy your tokens. Sites like CoinMarketCap and ICO Alert offer information about upcoming initial coin offerings, while websites like CoinGecko provide data and ratings for popular cryptocurrencies. Once you’ve figured out where you’re going to buy your tokens, it’s time to decide how much money you plan on investing into each project. It’s important that you never invest more than what is comfortable for you—you don’t want a small mistake to mean that you’ve lost too much money and now have no financial cushion.
Where can you buy them
If you want to invest in NFTs, you can find them on open marketplaces like Opensea and OpenSea. Remember: just because they’re listed on an exchange doesn’t mean that they’re all created equal. We do suggest doing a bit of research about any project you plan on buying before you buy. You don’t have to go crazy with due diligence, but it does make sense for a long-term investment. Check out their team, social media presence, and so forth. At least that way if something does end up going wrong (which is rare!) you know who else is suffering along with you! Haha! For more details about research before purchasing see here .
How do you store them safely
Blockchain assets, or cryptocurrency tokens like CryptoKitties, do a lot of things. They can store value, they can make payments, and they are a potential path to monetary freedom. However, one of their most significant use cases is as a vehicle for making money by simply owning them. The following chart was taken from a fantastic report published by digital asset research firm Diar last October—it’s completely mind-blowing if you haven’t seen it before: It reveals that more than $10 billion worth of bitcoin has been locked up through various utility tokens issued via initial coin offerings (ICOs) since 2017 alone.
How do they make you money
The advantage of using non-fungible tokens is that users will have a limited supply. This means that if you buy something worth 1 ETH, it will forever be worth 1 ETH. In addition, many of these non-fungible tokens are backed by collectibles or items with tangible value. They’re also fungible across different platforms, allowing you access to a network of users who want to purchase your coins. As such, non-fungible tokens can be easily traded for fiat money (USD/EUR) on major cryptocurrency exchanges or websites.
The problem with this investment strategy
Real estate, stocks, and bonds are likely to provide a more consistent return than investing in NFTs. The greater liquidity of these other investment options allow you to convert your assets into cash quickly—cash that can be reinvested at a higher rate of return than most NFTs provide. However, if you are looking for higher-risk/higher-reward opportunities with more potential growth, investing in NFTs might be right for you. This might work well as part of a broader investment strategy that includes more tried-and-true instruments.