What is a NFT ?
Most of the time, people are confused about NFTs and crypto currency and assume they are the same. Like crypto currency, NFTs are also based on block chain technology. NFT, by definition, is a non-fungible token that has unique digital properties that cannot be replaced, copied, or exchanged. The unique identifier present in the block chain determines the authenticity and ownership of the NFT, on the basis of which these can be further, sold and traded.
Let me try to explain NFTS in a simpler manner. Suppose you bought something digital online, like a game, a video, an audio file, or a digital painting.
And also received a digital identifier, which signifies your authority over and ownership of that digital file. In this case, this digital file would be called a NFT.
How do I buy NFT?
There are numerous online market places that offer the sale and purchase of NFTs. Some of them are Binance, SuperRare, and OpenSea. In some markets, you can buy NFTs using credit cards, whereas in other markets, you need crypto currencies to purchase NFTs.
Are NFTs worth investing in?
The market for NFTs is growing day by day, has seen a huge increase from 2020 to 2021, and will continue to grow until the year 2030. Experts say with the coming of Metaverse, this may be worth three times its current market value and has a great future.
Let us come to the main point of this article, i.e., are NFTs worth investing in or are NFTs a good investment? Definitely, it is a good investment, but there are some points that need to be considered before one invests in NFTs, and we can say that NFTs are a high-risk, high-return asset.
1) First of all, buying a NFT is itself a hectic thing to do. Someone who has not dealt with crypto currencies before won’t be able to do it.
2) Secondly, NFTs are highly secure, but that does not mean they are risk-free and cannot be hacked; there have been severe incidents in the past of NFT scams.
3) The government’s regulation on NFT is also very limited and is currently being worked on due to the fact that market manipulations like wash trading are very common.
4) Plagiarism and Money Laundering: There have been numerous instances where the artist’s work has been plagiarized and resold at a higher price. Like Crypto currencies, such as NFTs, have also been accused of being used in cases of money laundering.
Storage of NFTs?
As NFTs are rare, high-value assets that are vulnerable to hackers, their security is very crucial. There are different options available on the market. But the one we found most secure is cold storage, or a hardware wallet. When this method is used to store the NFT, it stays completely offline so that no hacker can access it.