Most people have probably had a friend talk their ear off about the endless benefits of investing in cryptocurrencies like Bitcoin or NFTs. But if you are still on the skeptical side of this new phenomenon, you are not alone.
Many struggles to grasp the concept of crypto and why anyone would take the risk of spending their money on pretty much nothing other than numbers on a screen. With all this hype, is investing worth it, considering how risky it is?
What Are Crypto and NFTs?
To understand the hype around crypto and NFTs, we need to understand what these concepts even are. Crypto, or cryptocurrencies, are a form of currency like U.S. dollars or Euros. But the key difference is that crypto isn’t tied to or controlled by banks or governments.
A common example of crypto is, of course, Bitcoin, which you’ve probably heard of. Bitcoins can be used just like a regular currency to buy goods or services, but the most common way to use Bitcoin is for trading. With different tactics, people can grow their number of bitcoins by trading at the right times. In many ways, it’s similar to buying and selling stocks, although the market fluctuates a lot more.
NFTs, on the other hand, are a bit different. NFT is short for non-fungible tokens, and if you own an NFT, you own a specific digital piece such as a GIF, a tweet or a video. These NFTs are unique and can be sold to a new buyer, hopefully for a profit. Owning an NFT is similar to owning an original Picasso: There are copies all around the world, but only you have the original piece.
How Easy Is It to Invest?
Investing in both crypto and NFTs is pretty simple. In many cases, it’s much like any other purchase. To buy crypto, all you need is a “wallet” to carry your crypto and to decide what type of currency you want to buy into.
Some currencies like Bitcoin can be bought with regular U.S. dollars, while others need to be bought with other cryptos. Then all it takes is to transfer money into an exchange account and start investing.
Buying NFTs is also very similar to regular purchases. The main difference is that you need to pay with crypto. If you already own crypto, all that is necessary is to find a marketplace that offers your desired NFT. buynft.com makes it easy to investigate the different markets and make sure that your money is safe.
But Why the Hype?
The hype around these types of things mainly come from money. This is a pretty simple answer, and of course, there is more nuance to it than that – but yes, in short, it’s about money. With cryptocurrencies and their fluctuating markets, anyone can earn or lose big amounts very quickly.
The same can happen with NFTs. You can buy an NFT and realize it’s worth more than twice as much to someone else or realize that no one else wants to buy it from you.
On the other hand, some of the hype over NFTs may also have started in the art community – now that they have the opportunity to sell and appreciate digital art in a way that mirrors how traditional art is valued and distributed around the world.