Approaching NFTs in 2022 - the Complete Guide
April 28, 2022 (Investorideas.com Newswire) Inflation ranks high as one of the main concerns among investors, and those with cash reserves are now showing increased interest in alternative venues. Over the past several years, cryptocurrencies emerged as a promising asset, but as of late Bitcoin seems to be stuck, with a lot of funds being pulled out of crypto ETFs.
At the same time, cryptocurrencies have a decente supply, which puts their value under pressure when there is growing selling interest, such as recently. Non-fungible tokens (NFTs), on the other hand, are unique and irreplaceable assets that have been witnessing exponential growth since 2021.
With the help of MetabaseNFT, one of the leading platforms dedicated to NFTs, we will try to explore how people today can get started in this fascinating field, even with no prior experience.
According to MetabaseNFT, these assets have a high growth potential thanks to the scarcity effect. Once you purchase an NFT, you basically own a one-of-a-kind instrument, with an uncapped upside. Think of it as opposed to the traditional monetary system, where central banks are constantly increasing the supply of money and as they do that, the purchasing power of currencies continues to go lower.
In such an environment, investing in scarce assets can be a more viable approach. Platforms such as MetabaseNFT are a good starting point, since they offer a wide array of NFTs for buying and selling.
What is an NFT marketplace?
Although there are many ways to invest in NFTs, a marketplace comes with multiple advantages. MetabaseNFT, for example, offers its users the ability to either purchase or sell an NFT with a few clicks. For the time being, there are mainly NFTs based on digital art and music, and they range widely in terms of price.
Using a marketplace means access to a specialized platform, designed by experts in the field. For a beginner, that's a major advantage, considering most providers in this field also offer basic educational resources, or even personalized guidance. You can usually connect to a customer support service as well, and get assistance from professionals with experience in NFTs.
How can you generate returns with NFTs?
In 2021, NFT sales topped $25 billion for the first time in history, which is good news for platforms like MetabaseNFT, but also for the average user, given that new potential opportunities might arise in the near term.
Basically, you can generate returns by buying an NFT and selling it later at a higher price. The core principle here is to join when the market has growth potential. Prices are not moving up in a straight line, so pullbacks, like the one that occurred during the first quarter of 2022, can be treated as a chance to set into the market and buy NFTs at cheaper valuations.
Keep in mind that prices can move up or down, which is why there might be occasions when nobody is interested in buying NFTs. This can happen because the market is seen as overbought, or because valuations are considered too high and a correction is expected.
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