Introduction
There’s a lot of buzz around non-fungible tokens (NFTs). They’re the hottest new thing in the crypto space, and we’ve all heard phrases like “the art of blockchain” thrown around. But what exactly are NFTs? And do they offer any value to investors? In this guide I’ll cover what NFTs are, how they work and why you should consider investing in them if you’re looking for returns on your investments.
To offer an explanation on the blockchain aspect of NFTs, a blockchain is a decentralized system of storing data across a network of computers.
The blockchain is a decentralized system of storing data across a network of computers. In other words, it’s like a gigantic Google Docs spreadsheet that gets updated by thousands of people every second. The reason we’re so excited about this technology is because it has the potential to revolutionize how we store and share information online, but also because it makes things really hard for hackers to mess with your stuff.
The blockchain works by keeping track of all transactions made in the currency (or whatever you’re using) and keeping them in chronological order on each computer that’s part of the network. If someone tries to tamper with one transaction or block on one computer, they’ll mess up all their other transactions and blocks too—so they’ll have no choice but to start over again from scratch! That makes hacking extremely difficult—but also means there are very strict rules about who can add new blocks and make updates
While the NFT industry has only existed since 2017, some highs and lows have been recorded so far.
While the NFT industry has only existed since 2017, some highs and lows have been recorded so far.
- The nft market experienced a sharp rise in popularity in 2021.
- A major crash in 2022, caused by a hack of an online marketplace that sold fake NFTs for cheap prices (and some for free).
- This led to the creation of the [Crypto Art Registry](https://www.cryptoartregistry.com), which lists authentic NFTs from artists around the world.
As it stands today, NFTs are not regulated in any jurisdiction.
As it stands today, NFTs are not regulated in any jurisdiction. This means that there are several important considerations that investors must keep in mind if they want to invest in NFTs.
- First and foremost, if you want to buy or sell NFTs on a centralized exchange (like Binance), there is no legal way for you to do so yet.* While most people might assume that this is because the technology hasn’t been around long enough, the fact of the matter is that it’s just not possible under current laws.* The problem is simply one of jurisdiction: NFTs aren’t currently regulated by any government or central bank and thus fall into an odd regulatory gray area between securities law and consumer protection laws.*
- The only way around this issue would be for each individual country’s legislative framework for financial instruments (such as stock markets) to include some kind of specific statute which allows for NFTs’ existence as a type of investment vehicle.* So far none have done so—but who knows? Maybe someone will soon get creative with their interpretation of existing legislation!
These artists’ work has sold for as much as $6.6 million — and we’re still in the early days of this market.
You can buy an NFT for as little as $0.10, but if you want to invest in the best digital art and collectibles out there, you’ll need to spend more money.
So how much?
Well, an artist named Richter recently sold a digital painting of his own cat on Ethereum’s blockchain marketplace for $6.6 million. So there is clearly a market for high-quality work (we’ll get into that later). But let’s say that your budget is limited and you can’t afford something like this — no worries! There are plenty of other artists who have sold their work for hundreds of thousands and even thousands of dollars since crypto went mainstream in late 2018.
In conclusion, while the NFT market is still new and there hasn’t been enough time to analyze its long-term impacts, its potential is huge – just like its pros and cons
In conclusion, while the NFT market is still new and there hasn’t been enough time to analyze its long-term impacts, its potential is huge – just like its pros and cons.
If you want to invest in NFTs but don’t want to get burned by a poor investment decision, here are some tips:
- Be sure you understand the fundamentals of investing before plunking down money on an asset that’s likely not going anywhere anytime soon. (Don’t do what I did.)
- Research different platforms and exchanges before choosing where to buy NFTs. You might find that one platform has better deals than another or offers more features for your particular tastes or needs – it’s good to know what options are out there so you can make an informed decision about which ones work best for YOU!
Conclusion
The fact that a digital item can be owned and traded is great for the people involved in this new industry. It opens up many opportunities for them to make money from their work, and if you’re looking to invest in NFTs then now could be a good time. But there are also some risks involved so make sure you do your research before spending any money on these assets!
