- How do NFTs even make sense?
- Why not to invest in NFTs?
- Does staking make sense?
- Is investing in NFTs a good idea?
How do NFTs even make sense?
Essentially, NFTs can represent any form of digital file, whether that's a jpeg of a piece of art, a video, or even real estate. Turning these files into 'tokens' and securing them on a blockchain make buying, selling and trading these files efficient and reduce fraud.
Why not to invest in NFTs?
Some of the disadvantages of NFT investing include: NFTs are not an asset class. NFTs are commonly—and erroneously—regarded as an asset class rather than a technological way to indicate ownership. General misinformation and the hype surrounding NFTs can cause the values of tokenized assets to be inflated and volatile.
Does staking make sense?
Staking has the added benefit of contributing to the security and efficiency of the blockchain projects you support. By staking some of your funds, you make the blockchain more resistant to attacks and strengthen its ability to process transactions.
Is investing in NFTs a good idea?
From an investing perspective, buying an NFT is “even riskier” than buying crypto because it's “almost like a leveraged bet on crypto,” according to Humphrey Yang, personal finance expert behind HumphreyTalks. “It's essentially gambling but people don't really know the difference and they buy them because they're fun.”