NFTs are probably the most misunderstood class of assets in the world right now, and there are so many myths floating around about them. The sad thing about this is that a lot of people get afraid to invest in them as a result or downright write them off as a scam. But NFTs are very real and can make you money. You just have to know what NFTs are and aren’t and how to spot an opportunity. You also have to understand what you’re actually purchasing when you’re buying one. Let’s take a look at some of the most common myths about NFTs and the truth behind them.
NFTs Have No Real Value
That is not true. While it is true that a lot of NFT projects out there have no real use case, there are some NFTs that are actually usable and will probably retain their value for a long time as a result. You have projects like the Cyber City Game, for instance, that allow you to buy unique characters and items as NFTs and exchange them on the game’s marketplace for crypto. We can also expect to see some real life use cases for NFTs in the metaverse. So don’t assume that NFTs are just overpriced computer-generated jpegs of apes and start looking at up-and-coming projects that aim to accomplish real things in this world.
NFTs Confer Ownership of the Underlying Asset
This is, again, not true. When you buy an NFT, you need to go into the terms and know what you’re actually getting. You could be buying nothing but an entry on the blockchain. The image it is linked to can be moved to another server and you will be left with nothing but a broken link. So don’t assume that you’re getting anything more than that and look at the fine print. Some NTFs will give you limited ownership and certain rights, but very few actually will give you full rights to the asset they are attached to, so be careful.
NFTs are a Scam
They definitely aren’t. People are passionate about NFTs, and that’s all that really matters. And when people are passionate about something, it will have value. You can make real money trading NFTs if you know what you’re doing, and, if you have an understanding of how stock markets work, then you can transfer those skills to the NFT world.
The most important part is knowing who is respected in the industry. It’s wise to subscribe to a few prominent NFT YouTube channels and join a few credible subreddits. You also have to know about certain developers and the projects they have participated in.
Most of what happens with NFTs happens underground, so you will have to do a lot of digging at first before you truly understand the markets and can gauge the value of an NFT project. But, once you get familiar with them, you can start making some money with them like you would do on any other market.
Conclusion
NFTs offer a genuine opportunity for people who are interested in the crypto world and digitized assets to make money. We can expect them to continue growing in popularity, and be used in a wider range of scenarios, giving you as an investor more chances to capitalize on them.
