Is NFT a Good Investment?
As the blockchain world becomes more and more advanced, exciting new technologies such as non-fungible tokens (NFTs) are emerging. What is an NFT you ask? Well, it all starts with a digital collectible. A digital asset that can be owned and traded in a marketplace.
What makes them special is that they are unique, not fungible. They are tied to a specific asset or something else in the real world. These assets become more valuable when the demand for them increases. This brings us to our take on NFTs in 2019.
The crypto market has been bearish since the beginning of 2018 and it will most likely continue on this way for the first half of the year. As expected, many crypto enthusiasts saw their investments take a hit and are now picking up cheap NFTs to record profits.
Although this might seem like an excellent idea at first glance, there are some things that you should know before you decide to invest in NFTs for the upcoming months.
It is important to keep in mind that the market for digital assets is very volatile and unpredictable, some experts have even said it’s more of a gamble than an investment. As NFTs are becoming increasingly popular, new projects are popping up on a daily basis, all claiming they have created the next best collectible.
With all these different projects, it is easy for investors to get caught up in the hype and believe they are investing in something special. However, there have been many cases where great ideas have turned out to be just another failed attempt at achieving success. It’s important that you stay away from investments that sound too good to be true or that are promised to deliver huge returns within a short period of time.
At the moment, NFTs are not being regulated by any governing body or law so you have to be careful with what projects you put your money into. Although there are some good investments out there, it’s important that you always do your own research before making any decisions.
Now the real question is, is NFT a good investment?
The short answer is, YES.
Since the market for digital collectibles is still relatively new, it has great potential to grow in years to come. With this being said, NFTs are the perfect way for investors that want to diversify their portfolios and minimize risks at the same time.
The world is becoming more digitalized every day and it’s predicted that the value of digital assets will continue to grow in the following years. Non-fungible tokens are here to stay, so why not join the revolution?