A series of events has brought a lot of attention to the NFT market. Initially, it was considered exclusively in the form of digital art, when works created in electronic form were sold on different platforms. Own non-fungible tokens have already been released by the humanoid robot Sophia, singer The Weeknd, Madonna, and even Donald Trump.
What is so special about NFTs and is it still demanded?
How does it work?
An NFT, or Non-Fungible Token, is a unit of account that creates a digital impression of any unique item. Among them can be paintings, photos, videos, music, gifs – in a word, any content that claims to be at least some kind of uniqueness. They are highly prized among collectors, gamers, and art lovers, and are bought and sold through auctions.
These same tokens are stored in the so-called blockchain – a huge chain of blocks, each of which contains information.
A token is just a record in one of the blocks, and, as a rule, there can be a lot of such records of the same type. For example, each individual bitcoin is an exact copy of another such bitcoin, which makes it possible to compare them with a currency. But what if you need to create a unique token that has no analogs? The answer is NFTs.
What are NFT purchasers seeking?
A prized historical object is what collectors seek. This NFT customer adores anything hip, unusual, or fascinating. According to a survey conducted by Civic Science, 41% of respondents said they wouldn’t expect their NFT to appreciate in value if they bought one.
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Can you make your own NFT?
Of course, there is an opportunity for anyone to create their own NFT. As a rule, one has to pay for it. The average price varies greatly from $0.10 to over $100. The cost depends on different factors. Blockchain’s cost, gas charge, marketplace account charge, listing charge, and so on.
You can make a token on the Treasureland platform. There is no need to pay anything for creating an NFT, even for selling it. All costs are borne by the buyer. You will only be charged a commission if you decide to give the token to another user for free.
How is the value of NFT formed?
The valuation of NFTs is based on three key factors. Rarity, popularity, and usefulness. If NFT is rarely found on sale, while it is quite well known and promoted, these are the main triggers for the growth of its value. At the same time, aesthetic value, as a rule, does not matter much. NFTs, which provide additional and in-demand perks in the digital space, such as club memberships or in-game benefits, are also popular.
When creating an NFT token, the author sets the initial price, focusing on his own expectations. It can be an auction or a fixed price. One way or another, the author himself sets the price range. It should also be taken into account that there are currently many unqualified investors on the NFT market, whose opinion is easily manipulated by scammers, inflating bubbles and luring money out. Do you look for cars for rental for a special occasion? Use the above-mentioned Alamo service. Its customer maintenance would help you with any question. An unreasonable increase in the cost of NFT should arouse suspicion, since it can be fiction when one person buys NFT from themselves from different wallets, just for the sake of creating a stir and driving up the price.
Is an NFT a good investment?
Overall, cryptocurrency investments carry a high level of risk. You should think about whether you are aware of the potential for leveraged losses. Nevertheless, due to their potential for financial gain and the fact that reselling NFTs has been profitable, many people invest in them. For investors, the resale value of NFTs might represent a sizable source of profit. Because of the enormous resale value of these goods. The first buyer, for example, can purchase low and sell high.
Investing in NFT tokens makes sense only if there is a deep understanding of the value of a digital asset from a particular person or organization. It’s necessary to buy NFT tokens when there is confidence in the further growth of its popularity. Need to rent a car for a business meeting? Use trustworthy Alamo services with its cars click away from you.