The Non-fungible token also called NFTs is perhaps the most profitable block chain at the moment. There are prominent, high profile influencers who are buying nft storage. Recently Twitter CEO Jack Dorsey auctioned off some NFTs.
Understanding this crypto currency can help you make money off it. Since it is one of the most popular trends in the world of block chains and crypto currency, there is some misinformation floating around the internet.
You have to make sure to follow the right guidance to make your first dough from NFTs. Here are some tips and advice you can keep in mind when investing in this cryptocurrency.
Not all NFTs are created equal
Since NFTs have become so popular, people are investing or launching their own NFTs. Not all of them are made equal and you would be surprised to know that some of them can be worthless. But if you consider overall profitability, some individual NFT artworks can be priceless.
First you have to understand exactly what Non-fungible tokens are. These are assets that cannot be reproduced or altered, they are rather a sort of artwork that can only be sold or purchased. Like any artwork in the world, NFT artwork can be sold and purchased.
But they can be purchased using cryptocurrency. Now when you buy a NFT, its transfer is recorded in the block chain just like any other cryptocurrency transaction. This helps in determining who the owner of the artwork is at present.
Understand the value of NFT storage
As you can understand each and every NFT is someway attached to a digital asset on the internet. This in turn means now anything can be turned to a NFT or digital asset. This can be a tweet, a social media post, a picture on Instagram.
Once it has been linked with a NFT then it can be sold or bought by anyone. So you may end up buying a storage that has no value at all. Like any artwork the value of the piece is directly dependent on the consumer interest. A tweet that has got a lot of interest is more valuable than an Instagram post that has no views or attraction.
It is the rarity and interest of the consumer that drives the value of any NFT. That is why you should be careful on what you purchase as the value of the artwork can go up but it can also go down over time.
What you should keep in mind is that all images and artwork in NFT can be freely shared by anyone but you can see the original owner through the block chain.
How to buy NFT?
When you have decided to buy particular NFT storage you can simply use a credit card. But the most common and easy way to buy these assets is through cryptocurrencies. You will also require a wallet for using the currency and mark your name on the block chain.