If you’ve been paying attention to finance, technology, or the internet, you’ve seen and heard the buzz around NFTs. But, if you’re like many average consumers, you still don’t understand what they indeed are or why they matter to you.
As our world shifts into a highly digital, often decentralized, state of being, new technologies like cryptocurrency and NFTs are more than a fad. These developing ideas have become their own universe, and it’s likely to merge with what we know, sooner than we think.
For those eager to learn and ready to jump in with both feet, we’re here to give you the run-down on why NFTs are important and how you can embrace these excitable assets to build art-inspired investments.
What are NFTs?
According to Coinbase, “NFTs (or “non-fungible tokens”) are a special kind of cryptoasset in which each token is unique… Because every NFT is unique, they can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets.”
Critics of NFTs argue that they don’t hold any inherent value because they can’t be physically held. Someone who buys NFT art can’t hang it on their wall or display it in a physical gallery. But what NFT owners do get is something much more valuable.
An NFT is more or less a certificate of authenticity, proving and maintaining the value of the digital artifact. NFTs shouldn’t be regarded as physical acquisitions as they are assets. Yes, you can display your new piece of art in a digital gallery, but you can also trade that NFT to purchase your digital real estate.
Because NFTs are managed on blockchain technology, there’s no way to erase the true ownership of authentic NFTs, which also means their authenticity is never in question. Even the original artist can continue to receive kickbacks from their work even after it’s sold or traded, earning on each subsequent sale.
How Can They Drive Investment?
So, how can you invest in these increasingly popular crypto assets? The non-fungible nature of NFTs is what makes them such a potentially valuable asset. While coins and tokens in the cryptosphere each carry a particular value, NFTs are in a world of their own. Just like the collectibles we all know and love, like baseball cards and fine art, the value of an NFT can increase (or decrease) all in its own hemisphere.
Investing in NFTs is similar to investing in art. You can’t always be sure that you’re going to turn a huge profit, but in a market growing at a staggering rate, the chances of turning early investment into significant growth are high.
How Do I Get Started?
NFTs can be bought or sold in various marketplaces within the cryptoverse. Digital-artwork NFTs are primarily sold on specialized marketplaces (including Rarible, Opensea and Zora), but can also be purchased directly within some compatible crypto wallets. You’ll want one of those if you’re exploring crypto.
Once you’ve acquired an NFT and basked in the blue glow of your screen, you’re free to do whatever you’d like with it. You could have it printed and professionally framed or continue to nurture its value in the same realm from which it came.
Many art inventors who’ve turned to NFTs to build their collections enjoy creating digital art galleries for other digital users to wander and explore. For others, the main appeal lies in the thrill of buying, selling and trading, very much the same as other asset classes.
The crypto universe is quickly becoming a major presence globally, and NFTs are not far behind. Whether you choose to display or trade your artsy NFTs, logging in to this significant movement can be a rewarding experience. The time has never been better to dive in, explore something new, and put yourself one step ahead of the next big art crusade.