How You Can Profit From The NFT Craze

As the number of digital items grows worldwide, NFTs are becoming more popular for companies and individuals to raise funds both privately and publicly. The development of new technologies enables individuals like you to create, sell, and buy a range of unique, valuable assets, such as art, music, and sports tickets. In addition, since the creation of NFTs uses blockchain technology, anyone can review the contents of an NFT's chain and verify the ownership.

An NFT is a unique digital asset that can be bought and sold online using cryptocurrency. It is a certificate that identifies the owner of a digital asset. Like a stock that trades on an open market, the worth of the NFT is not determined by the actual value of the NFT but the perceived value. This is an important distinction you must not only understand but accept.

Remember collecting sporting cards (baseball, football, etc.) as a kid and getting the Beckett Monthly, which showcased the worth of card sets and certain individual cards? I remember meticulously tracking the worth and how I was filled with excitement to see the worth of my collection growing each month until one day, reality struck me hard.

My father drove me to a card dealer shop with my entire collection. It was worth just over $8k. I can still remember the musty smell of all the aged cards when I walked in. This was my huge payday, and I was going to prove my father wrong by spending all the money I made mowing lawns buying baseball cards. After perusing my vast collection, the stained t-shirt wearing shop owner blurted out, "52 bucks."

I brought my notebook with all the data from Beckett written neatly and showed the total of $8k. "Kid, that magazine is worthless. It doesn't matter what the cards are worth; what matters is what people THINK the card is worth."

And that was the first of many tough lessons I would learn about investing, but this was no doubt the best lesson. An asset's value on the books means nothing. What matters is the cash someone is willing to depart with to acquire your asset, and coming full circle, this is exactly why the Beanie Baby market crashed. Very few bought the collectibles at the high stated value, and when the inventory sat on auction sites such as eBay, the prices came crashing down.

By following the advice here and other places I recommend, you won't go through what so many have over the last few decades and probably centuries, with fads driving prices to unrealistic amounts.

These NFTs can be bought and sold by people or businesses worldwide. Then, the owner can sell the token to other investors or collectors. And, the selling party can keep the money in their digital wallet.