Now, how do these NFTs work? These tokens work by existing on a blockchain, a public ledger that keeps tabs on transactions. Essentially, they provide a way to prove ownership; think of a collector's item, but this time digital. NFTs are unique, meaning only one owner can "own" one NFT piece, which means it is easy to verify ownership and trade these pieces.
Some say NFTs are wrong, and some say they're good; who's right? NFTs are a bit more complicated than saying they're bad or good. NFTs, just like many other things, have pros and cons.
Here are the CONS of NFTs:
1. NFTs are known to have a high energy consumption background. The most well-known argument against NFTs or crypto, in general, is that these NFTs can sometimes require more energy than a house consumes in 2 days.
2. NFTs are prone to volatility and inflation of actual value. General hype towards NFTs and misinformation may lead to the value of the asset "tokenized" being far from the actual physical value it should have.
3. NFTs can sometimes be a gamble. With some NFT developers having reputations for pulling out of projects and taking investors' money with them, we can say that choosing the right project is a gamble.
Here are the PROS of NFTs:
1. Just about anyone can get into and invest in NFTs. The whole point of NFTs is to decentralized ownership of assets and make it accessible to everyone.
2. NFTs that are finished and minted are secured by blockchain, which means once you buy and own it, it is yours to keep free of fraud.
3. NFTs are a good gateway into the crypto market. With cryptocurrencies and the blockchain gaining popularity, it is not long until this market reaches peak profitability.
Getting into NFTs is an excellent way to start making a profit. So how do you make money using NFTs?
Five ways to make money off of NFTs:
1. Play to Earn games, the most popular and common one!
2. Flipping NFTs. Buying low and selling high, like stocks but with NFTs.
3. Investing in companies with NFT projects, the NFTs are here to stay; companies are taking notice, and you should too!
4. Finding promising projects and investing in them!
5. Minting your own NFTs, yes, you CAN!