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NFT guide to get started investing in 2022

NFT guide to get started investing in 2022

 

If you've been on some social media in recent months, you may still be wondering what NFT is after all. Today we will explain everything to you. Come and see!

Step by step: what is NFT and what is not NFT?

Here's how we go: what is NFT in practice?

To answer your question, imagine a common currency, a real one. How many millions of coins equal to yours are in circulation? And how much is each worth? A real one, right? Okay then. Based on this assumption, we already know what a fungible token is. "What do you mean?" maybe you're asking yourself. Let's get to the answer.

A fungible token is one whose value is exactly what is minted in it. A real one is worth a real one. A dollar coin is worth a dollar. Okay, we know there are anniversary editions of all kinds of coins around the world. They, for collectors, will have a slightly different value, right?

For example, the less circulation a commemorative coin has, the harder it is to find it on the market. Thus, the value associated with it tends to be greater. But despite this, this only applies to those who know that the coin is a commemorative coin, right? For those who do not know, it will continue to have the same market value: a real one.

Now that you know what a fungible token is, what is NFT?

The abbreviation NFT stands for non-fungible token, in English. In a direct translation, we are dealing with the famous non-fungal token. A non-fungible token is one that has its market value assigned to it according to the value that a person - its author or its owner - will give it. In this way, its value is totally dissociated from a "market value", as in the case of the currency of a real.

Thus, an NFT is a unique article, belonging to a single person, which has a unique code and can not be replicated. It is therefore non-fungible, as it is completely different from the currency of a real since its perception.

Is this an investment?

In practical terms, everything we buy, fungi or not, has a specific market value. Therefore, we can understand that, yes, a non-fungible token, an NFT, can be considered an investment.

Because it is a unique product, there is a shortage of it in the market. Thus, the valuation of this token, unlike the currency of a real one, is virtually "infinite". Why infinite? Imagine that there is a single Ronaldinho Gaucho figure printed by the World Cup album maker. Just one and nothing else. What value would it have, since everyone would need it to complete the album?

And what would be the value of a more ordinary figurine that had a million impressions? Do you understand now? The smaller the quantity of an item on your market, the more expensive it tends to be when there is a demand for it. In this way, we explain the law on supply and demand. Supply is everything that is on the market, while demand is the number of people looking for it in the market.

Thus, an NFT can be an excellent type of investment when there is DEMAND for it, because when it comes to supply, it will always be unique. That is why, we can say, there are so many collections of NFTs on the market. Finally, there is a wide range of collectors looking for these digital assets, willing to pay large sums in exchange for a single asset.

The question that almost always comes after this is whether it is safe to invest in NFT. Well, all kinds of investments involve risk. And since you and only you know where your money came from and how hard you worked to get it, only you can assign a security level to an investment, okay?


Why have NFT games become so popular?

NFT games have become so popular precisely because of this dynamic that we talked about: each NFT is a unique object, with very limited circulation. Thus, NFT games represent a sensational form of investment, as in order to play, it is necessary to acquire a certain number of NFTs in order to make the game possible.

Another aspect of this type of game is that most of them pay you to play. You make an initial investment by getting some NFT from the game and from there you start earning in cryptocurrencies, which pays back your investment.

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