Non-fungible tokens (NFTs) are the hottest trend in the cryptocurrency investing space right now. If you’re new to the world of blockchain technology and crypto, it can be confusing trying to understand it — especially when you’re just starting out as an investor! With all the buzz around NFTs, you may wonder what all the fuss is about or if this trend will last long enough to make it worth your while.
What are NFTs?
According to the experts at SoFi Invest, Non-fungible tokens are a type of cryptocurrency that represents ownership over digital or physical assets, like baseball cards or land deeds. They’re unlike regular cryptocurrencies because you can only exchange them between buyers and sellers one time; after that, their value is limited in resale and may even lose utility over time. If you’re looking for a new way to capitalize on cryptocurrency’s boom, non-fungible tokens could be an attractive bet.
Invest in Digital Real Estate
Crypto-Real Estate Investment Trust (REIT) owns and operates commercial real estate in popular cities like New York City and Los Angeles. REITs have been incredibly successful as real estate investments, so why not get a piece of that action through crypto? Two more reasons: Cryptocurrency is notoriously volatile, meaning that you could make substantial gains or lose your entire investment in just a few months. Additionally, investing in cryptocurrency comes with tax implications, which can quickly eat into your returns.
Invest in Digital Art
This is a stock tip you won’t hear in business school. While some don’t consider art an investment because it isn’t financially, investing in digital art is just as lucrative as traditional investments. Once you get your portfolio established and maintain it regularly, you’ll experience steady profits over time from your collection of unique digital artworks. But with so many beautiful images online for free, it’s hard to see where value-add lies in digital art. That is until blockchain technology comes into play.
Invest in Video Games
Video game publishers need an avenue for gamers to spend their money, especially as many of them don’t want to use Valve Software’s Steam. Since its launch in 2013, Steam has become a leading video game platform and digital store. But it also serves as a middleman for all transactions, taking 30 percent of revenue from each sale—tokens based on real-world assets. For example, a game company might create a token that’s tied to digital property in its game, like an in-game sword or other items. The same type of asset can be traded between players, much like trading baseball cards.
While these are early days, there are plenty of examples of companies creating new ways of doing business by leveraging blockchain technology. You can transfer cash, bitcoin, or another cryptocurrency and receive credit for it in your SoFi bank account. However, transfers take time—anywhere from two days to up to two weeks—and come with fees depending on how you do it and what type of account you have.