Blockchain-based, non-fungible tokens (NFTs) are unique digital assets whose authenticity and history are guaranteed by blockchain technology. If you are looking to selling NFT then you should know that NFTs are often made available for sale in online marketplaces as collectibles or as rights to unique digital content. They can be used to represent rare virtual items, such as superhero skins, tokenized artworks, or cryptocurrency-themed memes.
There are many advantages of buying NFTs that make this type of investment interesting and profitable. Here are the top 7 benefits:
- “The only one” effect
One of the most important advantages of buying NFTs is the “one and only” effect. The blockchain property of immutability makes it possible not to create identical copies of a tokenized item on multiple wallets. This means that each buyer receives a unique asset with its own characteristics and features.
- Secure storage
Another advantage is the security of your investments: Your NFT assets are stored in a personal blockchain wallet that is safely protected from third parties and cannot be hacked. You might have heard the term “non-fungible” before, but what does it mean? Fungibility refers to two items being interchangeable because they are identical to each other. For example, a dollar bill is interchangeable because all dollars are worth the same amount of money.
Non-fungible means that something is not interchangeable because it is entirely unique. You can’t replace a Picasso with another painting that looks almost exactly the same — they are two different works of art that have different values. The same goes for NFTs: because each one is digitally signed and tracked on a public ledger; you can be sure that no two tokens will ever be exactly the same.
Non-fungible tokens are unique in their own way. They are one-of-a-kind pieces of work that cannot be replicated with ease. Once an NFT is created, no one else can create another copy of it. This makes them exclusive and gives value to only those who own them.
- Proof of ownership
Owning an NFT means that you are the sole owner of the digital asset or collectable that you have on your Ethereum wallet address. It does not matter where you show it or post it; as long as it is on your Ethereum address, no one can claim ownership over it other than you.
- Decentralized system
The beauty of blockchain technology lies in its decentralized nature. When you buy an NFT, there is no third party involved, just two parties involved in a transaction – the seller and the buyer.
Because NFT transactions are recorded on the blockchain, they’re always traceable and verifiable. What you see is what you get, no matter where you buy from or how much it costs.
- Provable scarcity
Most collectibles — whether physical or digital — can be copied ad infinitum. It’s impossible to tell whether a thousand copies exist or just one, which takes away from their value. NFTs solve this problem by making each token unique and one-of-a-kind. Cryptocurrencies are generally fungible, meaning that each unit of a given cryptocurrency is interchangeable with any other unit. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all follow this pattern.
But not all cryptocurrencies are fungible, with ethereum-based ERC-721 tokens — non-fungible tokens or NFTs for short — standing out as an example.
NFTs are all different from one another, unlike bitcoins which are all the same.
Non-fungible tokens have different uses, but they are most commonly found in the gaming community. For instance, the popular game CryptoKitties allows users to trade and breed virtual cats that they own through NFTs. The cats themselves have unique traits and features that make them valuable to collectors.