Are Non-fungible Tokens (NFTs) a Safe Thing to Buy in 2022?
We are already in the last quarter of 2021, with 2022 on the way, several business owners and investors are looking for markets where they can start investing.
Every investor knows that investing come with risks and even with that knowledge, investors still like to play it safe. That means that no one likes investing in anything that is not capable of bringing returns or that is not profitable. This begs question, “are NFTs a safe thing to buy in 2022?”. If you didn’t make money from the buying and selling of NFTs in 2021 then you should continue reading because in today’s article I will be giving you reasons why you should buy NFTs in 2022.
Is it safe to buy NFT in 2022?
Just like cryptocurrencies, it’s safe to buy and own NFTs but that doesn’t mean that it doesn’t come with risks. What are these risks? Well, you won’t need to worry about losing your NFT because the technology behind does not allow NFTs to be stolen or changed but if you do not carry out enough research when purchasing an NFT item of your choice then it might get devalued in the coming years which means that you may not be able to recover the money used in purchasing. Asides from that, if you purchase a popular and limited edition of an NFT then you wouldn’t have to worry about it depreciating over time.
Why you should buy NFTs in 2022
The NFT world changed when manufacturing giants like Nike and Formula 1 entered the market in 2019. A year later the NFT market tripled to a staggering $250 million and in February 2021, the top 10 NFT collectables had a 400% increase in sales from the month of January and in accounting terms, that’s about $400 million in gross sales.
With the analysis above it’s easy to see that the NFT market is growing rapidly over the years. Will NFTs still be valuable in 2022? The answer is yes, and that’s only because it has captured the interest of the general populace. Today, there are several means through which you can own an NFT. You can own one when you buy, create, or through NFT drops.
Without further ado, let’s look at a few reasons why you should buy NFTs in 2022
NFT provides investors with more liquidity
When assets are tokenized, it gives the investor more liquidity over the asset. An asset is said to have liquidity when it can be easily converted into cash without affecting the asset’s market value. NFTs have more liquidity which means that you can purchase an expensive NFT artwork today and decide to even sell it at the same price or even higher.
NFTs are limited
Asides from the general acceptance, NFTs are popular because they are limited and if you understand the principles of demand and supply you’ll come to understand why you should buy NFTs. If you are interested in collecting unique or limited collectibles then you should consider entering the NFT market.
Usefulness
NFTs have found acceptance in the fashion, sports, and gaming industries. For example, Decentral games is creating a virtual world where people from all over the world can play poker tournaments through the buying and selling of NFTs. For example, a $1000 NFT art can get you a sit on some high roller tables.
Conclusion
With NFTs gaining acceptance in the fashion and gaming industries, it’ll only take a matter of time for them to stretch into other industries. Hence, investing in NFTs today is a wise decision if you want to own a rare collectible or if you intend to gain from it in the future.
