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Investing in NFTs

You need to start investing in NFTs.

If you haven’t been living under a rock then you may have seen the recent craze surrounding NFTs.

We’re here to tell you why some folks are paying house-money for clip art of rocks and why you should consider buying into this craze.

WHAT IS AN NFT?

If you’re the privileged few who is disconnected from the internet, simply put, NFTs are non fungible tokens. “Non-fungible” more or less means that it’s unique and can’t be replaced with something else. For example, trade one bitcoin for another, and you have still have exactly the same thing you started with. A bitcoin is fungible.

You give up a an original Monet for an original Wharhol, those two are considered non-fungible. You traded two pieces and ended up with a completely different original.

If you really want to dive in, you can read our guide – NFTs Explained.

WHAT’S ON THE NFT MENU?

NFTs can really be anything digital (such as drawings, music, clip art of rocks), but the excitement is really about the ability to use tech to sell digital art.

Recently, rapper Tory Lanez released an full album as an NFT. He sold 1M copies for $1. The album sold out in less than a minute.

The resale value of Tory’s album sky-rocketed, almost instantly with copies selling as high as $100,000.

Imagine turning a $99,999 profit nearly overnight.

“But I can just download the photo on my computer!”

Yes, you can copy a digital file as many times as you want, including the art that’s provided with an NFT.

However, NFTs are designed to provide you with something that can’t be copied: ownership of the work. To put it in terms of physical art collecting: anyone can buy a Monet print, but only one person can own the original.

This one is unbelievable: Until October, the most Mike Winkelmann, the digital artist known as Beeple, had ever sold a print for was $100.

In March 2021, an NFT of his work sold for $69 million.

When investing in NFTs you really need to do your research.

Not all are created equal.

IS EVERY NFT UNIQUE?

Simply put, yes, every NFT is a unique token on the blockchain.

But while it could be like a Picasso, where there is only one original version, it could also be like a trading card where hundreds are circulating or in existence.

WHERE TO INVEST IN NFTs?

There are several marketplaces that have popped up around NFTs, which allow people to buy and sell. These include OpenSea, Rarible, and Grimes’ choice, Nifty Gateway, but there are plenty of others.

Investing in NFTs has been a craze in recent months and it doesn’t appear to be slowing down, and with this new territory we highly recommend you do your research.

We recommend treating the investment of NFTs like art purchases. Find an artist that you like and purchase something that is original or a limited ‘print’… Or YOLO your life savings on a $300,000 pet rock.

If you have an extra few bucks lying around, give it a shot. It’s always nice to diversify your portfolio.

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