In recent years, the cryptocurrency market has been more volatile than ever. One day Bitcoin is worth $9000 and the next it’s worth less than a thousand dollars. The instability of cryptocurrencies makes them a risky investment for most people. Non-fungible tokens (NFTs) are one way to get in on the crypto craze while avoiding some of its pitfalls. NFTs are tokenized assets that have their own set value, rather than being interchangeable with others like Bitcoin or Ethereum coins. In other words, they’re not fungible, they’re unique. Read on to learn about what sets these digital items apart from others and how you can invest in them today.
What are NFTs and how do they work?
Non-fungible tokens are borderless, digital assets that have their own distinct value. They’re open-source and decentralized, meaning anyone can use them as long as they follow their protocol. In short, NFTs are a quick way to transfer items from one user to another without the hassle of going through an intermediary. NFT protocols are often used for trading assets, such as jungle nft, and they can also be used to collect unique items, including digital art or certificates of authenticity. For example, if you have a rare comic book that only 10 people own, it can be tokenized with an NFT so everyone knows its rarity and value. Tokenized NFTs can be easily bought, sold, and exchanged for other non-fungible tokens or traded for Etheruem or Bitcoin.
The benefits of investing in NFTs
One of the best things about NFTs is that they’re incredibly versatile. In addition to being used for digital collectibles, decentralized apps, and online games, they can also be tradable on cryptocurrency exchanges. These tokens have their own value based on scarcity and demand from gamers, artists, or others who want to purchase items using blockchain technology. With this in mind, it’s not hard to see why NFTs are a popular and lucrative investment opportunity. There is also something called tokenized NFTs which represents an item on the blockchain as a non-fungible digital asset. Here are some of the other reasons NFTs have been so successful:
- NFTs are open-source technology. Anyone can make their own digital asset using this protocol, which means you could literally tokenize anything.
- They’re an easy way to represent ownership of a certain item or collectible. This includes virtual gaming assets, art, company shares, and other assets that can be tokenized.
- They’re flexible and scalable, meaning they won’t become obsolete the way older technology does.
There are also many applications for NFTs in real-world scenarios. For example, you could use them to transfer ownership of a tangible item from one person to another, purchase digital artwork with cryptocurrency, or create a unique coin for your company’s next crowdfunding campaign.
How do you invest in NFTs?
As mentioned above, there are many ways that you can use NFTs as both an individual consumer and as an investor. For example, you could start collecting unique art pieces on the blockchain, invest in NFTs to give your portfolio some variety, or purchase items you can sell on the market for quick returns.
One of the easiest ways to invest in NFTs is by purchasing them with fiat currency at IDEX. This platform allows users to trade Ethereum and other ERC-20 tokens for popular NFTs, including CryptoKitties, Decentraland MANA, and Etheremon.
Another way to invest in NFTs is by selling or trading your digital assets for other NFTs or cryptocurrencies. These tokens can often be sold on EtherDelta or traded for other blockchain-based currencies such as Bitcoin at no extra cost.
How to buy, sell, trade, or collect these tokens
Digital assets are easy to buy, sell, trade, and collect using the blockchain. Here’s how it works:
- Register with cryptocurrency exchanges like IDEX that allow you to trade Etheruem or Bitcoin for other NFTs or tokens.
- You can also purchase popular NFTs like CryptoKitties using fiat at IDEX.
- Once you have your NFTs, trade them with other users on decentralized exchanges such as ForkDelta or EtherDelta. You can also use these platforms to sell or trade NFTs directly for other digital assets, including Etheruem and Bitcoin.
- If you’re interested in collecting these digital assets, visit sites like OpenSea and Rarebits to browse through thousands of NFTs for sale. You can buy or trade tokens on these marketplaces using fiat currency and cryptocurrencies such as Etheruem and Bitcoin.
Where you can find good deals on NFTs
If you’re looking to buy or sell NFTs, keep in mind that this market is often dictated by supply and demand. The more popular a tokenized asset becomes, the higher prices will climb. Because of this, it’s best to purchase popular NFTs when they first hit the market so you can quickly sell them at a profit.
For most investors, the next best option is to find undervalued tokens and buy them before they become popular. This could mean investing in a new blockchain-based platform before it has the chance to gain momentum, or simply buying NFTs that haven’t hit the market yet. NFT Discord channels provide real-time content on upcoming NFTs.
Common types of digital assets that are traded as non-fungible tokens (NFTs)
There are a few different types of NFTs, including:
- Virtual gaming assets such as customizable avatars, power-up points, and gold coins. Popular games like CryptoKitties are built on the blockchain to use this system.
- Artech digital art pieces that can be traded or sold on decentralized marketplaces.
- Tangible assets like company shares and precious metals that can be stored on the blockchain.
NFTs are versatile when it comes to their use. You can buy, sell, or trade them using decentralized marketplaces such as ForkDelta and EtherDelta, or purchase goods like CryptoKitties with fiat currency on IDEX.
Other companies are also beginning to use NFTs as a form of record-keeping. For example, if you owned shares in the social media company Facebook, you could store your assets on the blockchain and sell them to other investors using an Ethereum secured token.
Some companies have even started giving customers tokens in exchange for their products. For example, when you purchase a digital subscription to Xbox Live or PlayStation Plus, you will be rewarded with an NFT that can be sold on decentralized marketplaces like OpenSea.