What are NFTs and why should you Invest in it

By Rohan A T Friday, 17 September 2021

Investing in digital assets has been a trend for sometime now and as time moves on, new and interesting investment options have been coming up in digital assets. NFTs or Non-fungible tokens are now the trend among those investors who are particularly focusing on digital assets. For those who don’t have a clear idea what NFTs are- they are a unit of data that is stored on a digital ledger which is called blockchain that certifies that a digital asset is unique and because of that it is not interchangeable. So, NFTs can be different things including videos, photos, and audios to name a few. The vales of these files come from their rarity and depending on how rare they are, the value of an NFT can vary drastically. Before talking about why someone should invest in NFTs, let’s take a closer look at how interested investors can make their investments in NFTs. For people in India, you cannot directly invest in NFTs using Indian rupee, you require transactions that are completed in cryptocurrencies in the NFT exchanges. Now, that is out of the way, let’s look at why one should invest in NFTs.

1. Having a Decentralized Marketplace: NFTs is an unconventional investment option but because it is a decentralized market, NFTs allow the creators to make money directly from their work. NFTs eliminate the middlemen and the commissions that they must be paid which in turn will help the investors as well. Also, owing to this reason, the original creators of an NFT will be able to earn a commission each time that particular NFT exchange hands. Unlike many other marketplaces, this decentralized approach separates the NFT market from many others.

2. The Uniqueness: The rarity of the NFTs is another thing that makes it a unique experience for the investors and the fact that these NFTs can’t be forged makes it even for special and valuable. In the majority of cases, each artist or seller will have a low quantity of NFTs which means that those collectibles will have a better chance of holding their value. Which again is a good thing for an investor.

3. The Ability to Resell: The reason most people invest in NFTs is to resell them and earn money. Owing to the rarity of some of these collectibles, one can earn huge profits if the invest in the right NFT. If you are able to make smart investments, then there is huge potential for you to get impressive returns from NFTs.

4. The Security aspect: For many investors, safety and security of an investment option is a crucial factor that will determine their decision of whether to invest or not. With that being the case, when it comes to NFTs, an investor can be assured of its security. The way in which the blockchain market works, one doesn’t have to worry about the data getting lost and thus, their investments invaluable.

NFTs are a great investment options for those who wants to invest on something unique and fresh and if you make the right decisions, then the chances of you getting a huge return on investment is high.

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