While making and auctioning NFTs may not seem challenging, is it time for the average user to enter NFT trading?
Unlike cryptocurrencies, NFTs are a relatively newer, much less explored domain of virtual assets.
Many bigwigs like banks, big tech with their complex algorithms, hedge funds, etc., have not seriously entered the arena yet.
As an evolving form of creating, selling, and buying copyrighted items, many pricing and policy-related changes in these transactions are likely.
Experts predict that large companies will cash in on the NFT craze sooner or later, leaving the small fish powerless. It may then be wise to consider NFTs as a serious investment option.
However, here is some data that might indicate the flip side.
According to the 2021 NFT Market Report by Chainalysis, only 44% of the total trades in NFT make money.
Moreover, the report also states that most traders who buy NFTs for their resale value lose money, with only 29% managing to make profits.
The reasons range from fraud to mismanaged cryptocurrency funds and beyond, especially in the case of uninformed traders.
Murky as these numbers seem, whether investing in NFTs will fetch gains is anybody’s guess. Fad or not, it is best to venture carefully.