At the moment there are many opportunities for people to get involved with crypto and blockchain product investment. This can in fact be a great way to invest money, but you have to be careful that you select the right products. Experts in this field like Robert Testagrossa have been warning first time investors to ensure that they have a full understanding of what they are investing in before they part with their money.
One particular area which many are getting excited about are NFTs or non-fungible tokens. These are essentially pieces of digital artwork or products, which are uniquely owned by the person who purchased it. We have seen some pieces of artwork sell for millions, and this is why so many are becoming interested. Experts however, are warning people to be careful.
No Guarantee
When some people began to see how much NFTs were being auctioned for they began snapping them up when they were released, thinking that they too could make big money off their purchases. Much like fine art however, there are only some items which can actually fetch this kind of money, and the average person has no or little clue which these will be. The result is that many people could pick up these NFTs, which actually have very little resale value at all.
Buying For Love Not Money
It should be said that there is absolutely no issue with people who wis to buy NFTs for their own purpose, this in fact is a great way to own your very own piece of digital artwork. The problem which many have is that they try to buy thinking they will make a fortune, which as mentioned, is far from guaranteed. If you are buying for your own purposes then there is no problem with this at all.
Over-Priced
Owing to the fact that many are making the mistake of thinking that there is resale value in their items, those who are selling the NFTs originally are bumping up prices. And so even if you are buying for your own purposes, you shouldn’t just assume that the price is low, because you are the first to buy.
Checking How Many
Simply because you are going to be the unique owner of the NFT which you purpose, doesn’t mean that you will be owning the only NFT of its type. What we often see is people releasing an NFT which is 1 of 1000, or even more perhaps. This of course is going to diminish any resale value of the NFT which is something that you should look to bear in mind. If however you are buying something exciting which is 1 of 1 or 1 of 5, then you can expect to pay a little extra because of the fact that the NFT is going to be of limited supply.
Make sure that you know what you are buying and why, when it comes to NFTs.