Investments in cryptocurrency have become widespread. One of the main trends in this industry has become NFT tokens. These are unique crypto-assets that allow you to earn money from digital art, games, and other projects.
Some NFTs bring a lot of money to their creators. Some earn by creating unique artifacts. Others are more interested in investment income. Logically, NFT investments have become very popular. This is a very in-demand area, which is joined by a huge number of people. There is a logical question: "can you get interested on bitcoin, and how do it?
Advantages and disadvantages of earning on cryptocurrency
In today's environment, digital currency is gaining popularity not only for investing but also for other options to earn money. However, not everyone knows what the pros and cons of the cryptocurrency trading process itself are. Below are most of the facts that every trader should know.
- Access to projection. Every trader, after gaining enough theoretical knowledge, is quite capable of designing his coin. Of course, no one promises to find investors for it quickly. It takes a special approach to make it work.
- No inflation. It is possible to issue an infinite number of coins. And you don't have to worry about its depreciation. After all, the rate changes according to the rules different from the state economy.
- Preservation of personal information. There is no need to send personal information to anyone to make transactions. Storing digital currency and setting up a wallet is also anonymous.
- The number of money transactions. The amount is not controlled, so even really large amounts can be transferred at a time.
- Level of protection. Digital currency is more secure compared to fiat currency. If you properly configure your wallet, it will not be easy to hack it, and your earnings on cryptocurrency will be safe. You can even ask for help from an experienced trader who the user trusts.
- These are the main advantages of working with digital currency. They apply not only to specific coins but to the entire cryptocurrency as a whole.
- Lack of opportunity to recover lost assets. If funds are transferred to the wrong account, there is no way to get them back. Only if the owner of that account will return the funds at the expense of the sender.
- Lack of control of the banking organizations. In other words, the control of funds is entirely on the shoulders of the owner. The only protection is the digital encryption of the wallet.
- Complete absence of legal control. Most modern services do not accept cryptocurrency as a full-fledged means of payment. Precisely because it is not legally controlled. Therefore, coins are still not used in the daily economy.
- The risk of losing your funds. Since cryptocurrency is usually stored in a wallet or an exchange account, there is always the risk of both a hacker attack and loss of login data. In particular, the password. In most cases, the trader will not be able to get his coins back.
- Frequent changes in cryptocurrency exchange rates. Regularly in the news feeds of traders are published news about changes in the rate of certain cryptocurrencies. The main disadvantage is that the drop can be a few cents or a few thousand. Thus, an untimely transaction guarantees the loss of funds.
Best NFTs for Investments
There are many NFT projects available. In this abundance, an investor can get confused. To facilitate the task, we offer a list of the most promising crypto projects in this direction.
- IMPT - eco-project aimed at reducing carbon emissions.
- Calvaria - a unique crypto game with a fascinating plot.
- Tamadoge - project that combines the meme and benefits of P2E games.
Earnings at the ICO
During the ICO (initial public offering, that is, the initial sale of tokens) you can buy coins for next to nothing. And earn significantly by reselling the cryptocurrency sometime later.
The pros of earning income from participating in an ICO:
- When you participate in the initial distribution of a digital currency, you can earn even with a small investment.
- If you are successful in investing, you will get super profits. It is not uncommon that within a month to a year after the ICO, the value of the token grows by 1,000 - 10,000%, that is, 10-100 times!
- Availability. Anyone can buy cryptocurrency at the initial sale.
- The further fate of the issued cryptocurrency is unknown. And there is no fact that its value will increase significantly.
- You can run into a scam project or scammers and lose all of your investment.
Although these are mostly disadvantages, some traders still consider them to be positives. For example, the lack of control makes cryptocurrency transactions limitless. To eliminate the other downsides, it's important to remain careful when handling cryptocurrencies, as well as keep your registration information secure.
Is it possible to make money from NFT?
There are two ways to make money from non-exchangeable tokens: issuing them or buying them for resale. NFT technology allows you to sell or buy a digital object - a picture, a music track, a text, etc. The price of this type of digital property can reach a million dollars.
The pros of making a profit from selling a unique token:
- You can buy an inexpensive NFT from some obscure collection and after a while, sell the object for a much higher price.
- NFT prices are very volatile. Hardly anyone can tell you for sure if they will be priced in 5 or 10 years.
- There will be a "gas" fee, which can be as high as several hundred dollars when you make a transaction with a non-mutually exchangeable token.