Financial Advice: The Main Benefits Of Collecting NFTs
Unless you have been living under a rock for the past few years, you have likely heard about NFTs. These non-fungible tokens are the latest in a wave of technology shaping how people do business and place value on things. However, many people are still in the dark about what they are and how they provide value. This post will cover why an NFT can be valuable and what advantages come from entering headfirst into the wild world of NFTs!
You Will Become A Part Of History
There is no doubt that by owning one NFT or many, you will become a part of history. You will be a pioneer in the space, and no matter what happens, you will still be one of the few who had the intestinal fortitude to walk the walk. Moreover, when you compare it with those who invested Bitcoin when it was only $1 per coin, you could be in for subnational returns in the future. There will always be naysayers, but those who do, do and those who don’t, complain!
They Can Be An Investment
When you get into something early, you take on more risk, but possibly set yourself up for a profitable exit. If you do your research and check the prevailing trends, you could end up with another Bored Ape #5199 on your hands! You need to use online resources to perform research and due diligence before investing, but with the right attitude, you could end up with something scarce and, therefore, expensive.
In order to buy and sell an NFT, you have to join a particular marketplace. An NFT marketplace is a digital marketplace for virtual goods and assets. They are created using blockchain technology, and NFTs can be exchanged through smart contracts. According to the famous NFT marketplace jungle, you can use these platforms for many things, from setting up your wallet that you will store your NFT in, to minting and listing your own for sale. When it comes to marketplaces, not all are created equally, and it is advised to use the most well-known options if you are just dipping your toe into NFT waters.
You Might Need Them For The Metaverse
While most will currently associate the Metaverse with Facebook’s rebranding exercise, it has been around for a lot longer than you might realize. In essence, the Metaverse is a virtual reality of sorts that is poised to be the next big thing. In this virtual world, you can do almost anything within the boundaries of the rules. The Metaverse is almost exclusively being discussed in relation to the possibilities of blending it with NFTs. In fact, NFTs and metaverses have become virtually synonymous. It is reasonable to infer that virtual worlds will form the basis of the Metaverse, and within these worlds, there will be more need for innovative contract technology as people trade inside these new worlds.
One interesting example could be virtual real estate. Plots of virtual land could be sold as an NFT, and it would work similarly to the real world. For example, more desirable areas would be more expensive to own than less desirable areas. The question remains what would be considered desirable in the Metaverse, but the opportunity is undoubtedly there.
You Can Support The Little Guys
Ultimately, NFTs allow people to sell things and keep the rights to those goods. This is a game-changer when it comes to art, as it means that artists can sell their works without worrying about losing control of them. You can think of it as if Picasso made 20 prints of his famous Girl before a Mirror artwork and then personally signed each of them. These prints would possess a higher value than prints that haven’t been signed and can be sold for a profit.
However, Picasso still owns the rights to his original works, which you can’t infringe on. However, it is even better for NFTs because anyone who makes one can place into the contract that they earn a commission every time it is sold. Because the contract is smart and uses a blockchain, this process would be automatic and inviolable. As a result, if you purchase an NFT from a budding artist, you are assured that you are helping them.
Some NFTs Offer Access To Members-Only Areas
The most popular NFTs have often included a special members-only area to which those who possess the right NFT have access. The most famous example is the Bored Ape Yacht Club, which provides access to members-only areas called the BATHROOM. What is inside isn’t necessarily the be-all and end-all. Instead, you can become part of an exclusive club (more on that in the next point). Other NFTs like Alex Becker’s Neo Tokyo open up an entire digital city on the blockchain that users can interact with.
You Can Become A Part Of A Thriving Community
Usually, you can tell who’s bought an NFT by how they use it as an online avatar for all of their online activities. They will use it for all of their social media channels, and it will almost become a part of them. But why is this so? Well, the most apparent answer is that by owning an NFT, you become part of an exclusive community of first movers. You are connected to other visionaries in the space, and you can use your NFT as a calling card. Because nobody will ever possess your specific avatar unless you sell it (and assuming you have bought into an NFT with individual identities), you can become known online by using it as a handle. In fact, many NFT collectors will hold onto one they particularly like and keep it rather than trading it.
You Can Obtain Something Truly Unique
Once you buy an NFT, you own that specific version of it. While you don’t own its rights, you own something rare and unique. You can think of it as borrowing the last ever Jaguar E-Type and having permission from the owner to display it in your personal collection. OK, that might not be the best analogy, but the point remains that you will have something that nobody else has in your possession.
NFTs are a relatively young innovation, and as such, there is a lot of misinformation surrounding them. However, there are plenty of potential upsides to owning one that ranges from investment opportunities to becoming a part of history.
Fat finger trades happen sporadically in traditional finance — like the Japanese trader who almost bought 57% of Toyota’s stock in 2014 — but most financial institutions will stop those transactions if alerted quickly enough. Since cryptocurrency and NFTs are designed to be decentralized, you essentially have to rely on the goodwill of the buyer to reverse the transaction.
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