The cryptocurrency market has been a huge moneymaker for those trading at the right time with currencies like Bitcoin increasing value by thousands of times its original holding. But there’s an emerging market that slightly differs from the model, but is vastly proving itself to be a big money earner for a lot of people. That is the Non-Fungible Tokens market.
What is a Non-Fungible Token?
NFT, Non-Fungible Tokens, are essentially digital assets that are completely unique. This can be anything from a digital art piece to online real estate. Most recently and NFT made news when the creator of Twitter successfully sold a link to his first-ever tweet for $2.5 million dollars.
Similar to cryptocurrencies and ETF’s, they can be traded. Unlike cryptocurrencies, however, peach is unique meaning none are the same value. One is not transferable with the other, but traders still have the option to buy low and sell high like any other asset they put money into. This seems to be a good earner for many in the know (but more in the figures later).
Where did the idea come from?
NFT’s are a brilliant concept that further evolves the simple formula of trading cryptocurrency. The idea of physical assets represented by digital assets accompanied by a strong blockchain has made it a winner for many investors by making a streamlined process to trade assets. NFT’s are an innovative, new way that makes dividing up assets simple. This probably is part of the reason it’s so appealing to investors as it can be useful to diversify any investment portfolio.
Here are some numbers
So how much money can NFT’s really be worth? In a lot of cases, NFT’s have been valued at over a million dollars. As of 2020, the market was estimated to be worth a total of $250 million. The investments in the NFT market that very same year rose by an impressive 299%.
Where can you get started?
Here are some sources you may want to check out if you are wanting to get investing:
- OpenSea is the largest marketplace for NFT’s. It hosts over 4 million items including trading cards and real estate;
- DappRadar is a useful tool for any NFT investor. It’s a site that analysis decentralised applications so you don’t have to. Like any market, it requires you to do your due diligence in your research.
Unique assets
Any investment book will tell you that it helps if you’re interested in what you buy. Another benefit of NFT’s is it has made unattainable assets available.
A prime example of this is the increasing popularity of a site called NBA Top Shot. This site sells NBA video highlights as NFT. To date, they have sold over $260 million worth. Sports fans... now you can invest in something important to you!
Similarly, a lot of younger investors would never have near enough funds to invest in an entertainment complex or any real-estate for that matter. NFT has made it accessible and easy to do so.
Final consideration
NFT’s have quickly become a market to watch. It has cleverly engineered a whole new marketplace that is quickly growing. For more info on getting started go to the sources mentioned and YouTube also has some great basic explanations if I didn’t quite break it down enough.
NFT has created opportunities where there was none. Stakes in physical assets are now easily tradable. This has opened avenues for investors that otherwise wouldn’t really think about the possibility of owning a piece of sports footage, for example.
As mentioned, it is no get rich quick scheme. You have to research and look into the options before laying down your money. However, this is the right time to get into the market whilst it's on the rise. If the trend so far is anything to go by, this market is here to stay and grow.