Interest in non-fungible tokens has grown significantly in 2021. This led to the emergence of a large number of new NFTs. Let’s take a look at ways to deal with this emerging industry effectively. Is it possible to make a profit? Read in our new LATOKEN review!
Non-fungible tokens (NFT) have become one of the trends in crypto investment in 2021. This asset class has experienced several waves of popularity in recent months. The first surge in investor interest in NFT came in the spring of 2021. For the first half of the year, token sales reached a record $2.5 billion — 26 times more than in 2020. At the beginning of summer, interest in the NFT industry decreased slightly, but another boom took place in August. The monthly trading volume on the largest NFT marketplace OpenSea reached $3.4 billion.
Against the background of the growing interest of traders, the supply of NFT also grew — many new tokens appeared on the trading floors. Undoubtedly, many are eager to figure out whether it is possible to make money from reselling little-known NFTs and what to expect from this industry in the future. Is it possible to answer these questions at all?
Many nuances — LATOKEN review
The NFT sphere is one of the most difficult to invest in due to the lack of obviousness of the intrinsic value of assets. Therefore, young and inexperienced investors should not rely on this industry since even professionals cannot always work comfortably with NFTs.
When choosing NFT tokens for speculation or long-term investments, you can be guided by the reputation of the asset issuer. For example, if it is a well-known basketball or football club, then the chances of growth, or at least the absence of a sharp collapse, may be greater. However, you cannot be sure of anything when dealing with NFTs and cryptos on the whole.
In addition to the reputation of the project issuing NFTs, one should also pay attention to the liquidity of tokens in the secondary market. In the primary market, demand is easier to manipulate, while there is a true demand for these assets in the secondary market.
Working with art
Since the technology of non-fungible tokens is already widely used in art, it is necessary to use resources where worthwhile works of art are presented. And to do this, you will have to start studying the art market as a whole, not only crypto artists.
Those wishing to trade NFT in the field of art should find artists participating in the Art Life festival on social networks and subscribe to their updates in order to be the first to receive news about new pieces of art.
When reselling NFT tokens, the name of the author plays an important role. Even in the secondary market, NFT artwork from a well-known artist is highly likely to be bought in no time, unlike a random artist’s art, which can be sold for months.
In addition, it is worth noting that working with NFT in the field of art is not much different from ordinary art. It is believed that a good strategy for non-professional collectors to work in this market is to buy a piece of art that you really like. The main thing is that the price for this work should be profitable.
Development of the NFT industry
Now the NFT industry is just emerging, and for this stage, you can find a large number of “junk” projects, which is normal. Over time, such projects will leave the market, and the industry has a chance to become more stable and predictable. Perhaps the real boom of NFT is yet to come!
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- Board of Directors includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.