NFT (Non-Fungible Tokens)
What Are NFT (Non Fungible Tokens) and Why Do We Care So Much? Today we’re gonna take a dive into the world of Non Fungible and learn about these tokens. The concept may seem a bit foreign at first. But by the end of this guide, you’ll understand how NFTs work, how to buy and sell them, and hopefully, get started on your path to buying some!
What are Non Fungible Tokens (NFTs)?
NFTs are assets that are not identical (or fungible). Take baseball cards for example. The sports cards in your collection, assuming they’re all the same brand, age, pertinence, and/or popularity, are all theoretically interchangeable with one another; they’re all 1/1 copies of the same card. The digital nature of video games has led to a whole range of new item types that are available as collectibles. These range from simple digital sports trading cards like those from the E-Sports Entertainment Association (ESEA) to complex digital game assets that can be transferred between games, such as TF2 hats. While game developers and publishers have experimented with all kinds of different usage models for these items, one category of collectibles has emerged in recent years which is particularly interesting – what we can call Non Fungible Tokens (NFTs).
Can you make money with NFT’s?
The answer to this question is ‘Yes’. There are numerous ways to monetize NFT’s. Here we will outline a few of the ways the community is currently doing it and hope that this will inspire you to come up with new ideas on your own.
The potential for profit when trading non-fungible tokens (NFTs) is very exciting. But, like with any other type of crypto trading, there are a lot of risks involved as well. You must be aware of the risks and come to terms with the fact that you might lose your entire investment in NFTs. However, if you approach NFT trading the right way, you can make money.
Treat your NFT portfolio like a real stock portfolio If you have ever invested in stocks or made money on crypto trading you are already familiar with the concept of diversification. The same principle applies to purchasing NFTs. It’s important to not put all your eggs in one basket.
When you diversify your portfolio with different types of tokens, you protect yourself from market fluctuations. This also allows you to take advantage of opportunities that may present themselves in the future. For example, if you own a NFT that is only listed on one exchange, it may become harder to sell it in the future if that exchange suddenly shuts down. By owning many different types of NFTs, will not affect your portfolio in any serious way.
How do I buy NFT’s?
There are two ways on how you can buy NFTs. The first one is to buy them from an existing holder who is selling them at a price he set himself. The second way is by participating in the auctions (that will be organized by the developers of the game). At these auctions, NFTs will be sold to the highest bidders. However, these auctions will not happen for quite some time (after all, it’s still a work in progress and needs some time to mature)
What are the risks to buying them?
Since the program started in 2016, the number of NFT’s being used has increased exponentially. This is because they are a great way to make money. You can buy an item and resell it for more money than you bought it. Some NFT’s are also really rare, so they increase in value over time as well. But there are risks to buying them and that is why you should be careful. If you do your research, though, you will be able to find the right NFT’s to buy and flip for a profit.
There are many wallets that support NFT’s and they are not that mainstream yet. So you will probably not be able to sell them regularly at first. However, unlike typical crypto-currencies, these NFT’s that you own actually hold a sort of tokenized value and therefore have some sort of price if you were to ever decide to sell them. This also means that NFT’s are entirely tradeable. And like all crypto-currencies, the price changes over time. The recent spike in value is due to the fact that more people have found out about this asset class and it appeals to a new crowd of investors. Hold on for dear life, buy low and wait until it spikes again and sell high!
Further Resources for What Are NFT (Non Fungible Tokens) and Why Do We Care So Much?
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