Another form of cryptocurrency is NFT which is also known as non-fungible tokens. But there are many differences between a cryptocurrency and an NFT. The transaction and transfer of NFT and cryptocurrency remains safe on the lecture of the Blockchain apart from that NFT also means that you have an ownership of a real asset or a digital asset. Anything that you are generating from the computer and then adding it to the trading cards which requires physical artwork is taken as the NFT.
Now the real question is if the NFTs are safe or what their value is. Today we are going to discuss the disadvantages and advantages of the NFTs and if you should invest in them or not.
Advantages
There are many reasons that attract the investors towards the NFT and today we are going to look at all the positive aspects that the NFT holes.
● The nonfungible tokens have potential and a broad marketplace. It is an advantage if you are going to add some value to your NFT. Almost anyone can invest and buy the NFT. If you have an Internet connection, a computer and some knowledge of making transactions in the marketplace of NFT, then you’re good to go.
● Another main aspect is to buy or sell the NFT from trusted sources only such as websites and apps.
● There are compatible technologies and wallets where the investor or seller are hosting their NFT’s. We all know that the Blockchain has high security and almost no one can temper with it.
● If you have ownership of such fungible tokens, then you can easily prove it at the primary market and then sell the ownership to an NFT completely through the secondary markets. Almost millions of investors are working towards the non fungible funds and tokens every day.
Disadvantages
● The NFT does not have clear liquidity within the market of cryptocurrency. There are no special regulations as well as laws that protect the NFT and its consumers from any kind of manipulation.
● The frauds and scams related to NFTs are really common within the cryptocurrency market. Because of this regularity with its liquidity, anyone can make a claim of the ownership of NFT. And criminals can easily copy and sell the documentation of NFT’s under their name.
● Although you can show documents and legal rights of your NFT in the court of law, there are no special rules regarding the operation of the NFTs. If you are the owner of NFT then you cannot waive your right or produce any legal patent towards your NFT. Because anyone can claim it as their own.
● It is most common for the owners of NFT to manage the security regarding their fungible tokens by themselves. But if you have purchased the NFT with complete legal rights, then you can add security to your fungible tokens.