The fascination for NFTs is skyrocketing ever since the auctions for the tweet by Jack Dorsey, digital art by Beeple and other digital collectables took the world by astonishment. Creating, buying and selling NFTs is simple, but is it a good investment option? Let’s find out!
Investment in NFTs
NFTs have risen into the general consciousness in recent months, and it is believed that many individuals outside the digital and crypto realms are still trying to figure out what it all means. With careful consideration, these can prove to be a good investment option.
NFTs act as digital assets in many ways:
NFTs, being unique digital assets, hold value due to the scarcity and uniqueness of the tokens that influence their prices. Apart from the aforementioned reason, the utility of an NFT plays a very important role in its value determination.
While searching for crypto investments that can gain profits on a short term basis, it’s crucial to look at how easy it is to convert them to cash or other cryptocurrencies, and then choose the ones with the most market participants. Tokenization of assets provides liquidity to the non-fungible tokens. It is the process of changing the possession rights of a resource into a digital token.
Future Possibility Of Growth Through Real Estate
Just like people buy land and monetize it in several ways, the same can be done through NFTs. One can buy virtual land through NFTs, sell them, rent them, or do any other productive activities possible.
An engagement tool for brands
The brands too are investing in NFTs and making use of it as marketing strategies that help in boosting brand awareness and increasing interaction by providing a distinctive experience. For example, Adidas sold 30,000 NFTs from its ‘Into the Metaverse’ collection. Collections like these cater to the needs of the virtual audience.
Things to keep in mind while investing in NFTs
Portfolio Diversification: Never invest all of your wealth into a single entity so that you do not suffer a 100% loss.
Research Well: It stands to reason that it is crucial to conduct thorough research before any investment is made. While purchasing an NFT, study its future potential and the blockchain it works on. Do a full background check and do join its other social media channels.
Crypto Wallets: Mostly, the NFTs are based on the Ethereum blockchain, but there are other cryptocurrencies too. One must be aware of and keep in mind the crypto wallet requirements while choosing the marketplace for the sale and purchase of NFTs.
Even though this is an early phase for NFTs, investing in the same can be a safe venture. With the growing market and evolution of the Metaverse, the range of NFTs will certainly expand. NFTs offer a lot of benefits such as transparency, authenticity, accountability and liquidity which will allow the applications to grow with time.
About Bolly Heroes:
Bolly Heroes is a limited NFT collection in which you may write, perform, and produce your tales and characters to deliver community-driven movies, games, events, and activities. Bolly Heroes is a platform where you can buy ultra-rare NFTs to collect and preserve as gifts from your favorite Bollywood stars. These NFTs are extremely rare since they do not expire but instead live for a lifetime. The fascinating characteristic of NFTs is that they act as a digital fortune for you. It is a new concept for those who respect the works of celebrities and are passionate admirers of Bollywood’s never-ending enchantment.