The NFTs ecosystem is still in full development, however, multiple applications have already emerged that allow solving real-life cases. Some of the most relevant utilities of the current ecosystem are:
Increase the earnings of content creators
For content creators, an NFT represents the possibility of maximizing their earnings. In this way, creators are able to sell their pieces of content made in any format and at a higher value. It is an efficient mechanism to ensure your authorship and automatically receive royalties for future resales made by the buyer.
Players will be able to prove ownership of items purchased in a game
NFTs(non-fungible tokens) provide reliable records of ownership of items that are used in a given game. Today you can invest money in your favorite game and later use your non-fungible tokens to resell them outside of this ecosystem.
Even developers could earn royalties for the subsequent resale of optimized items in a game. Here both parties benefit in the secondary market of NFTs, everyone wins.
Domain names for your Ethereum public keys
ENS names are domains that end in “.eth” and each of them represents an NFT. They are touted as the future of decentralized websites. A potential universal login for everything created on the Web3.
They are currently used as a readable alternative to the traditional Ethereum address. This is how an ENS name can receive cryptocurrencies, redirect to a decentralized website: ethereum.eth and even store email addresses or Twitter usernames.
Representation of an asset with a lot of value in real life
Real estate such as houses and apartments can be represented in an NFT. Their value of being unique in the market allows them to take advantage of the properties of non-fungible tokens.
Even its practical applications go much further with the appearance of the Metaverse. At this point, Decentraland allows players to buy land and build real estate in its virtual world. Each parcel represents a unique token that can be resold for more money. This proposal will also be presented by RobotEra, a multidimensional metaverse game launched for pre-sale in the fourth quarter of 2022, and which will have 7 continents where players can invest in land NFTs.
Memorable sports videos as NFTs
Many sports brands such as the NBA and ATP create NFTs with videos that represent the most exciting events in the games or even the masterful moves of famous people. Different plays are recorded in an NFT to later sell their property on the Blockchain.
The utility of NFTs goes far beyond the profitability that you can achieve as an investor, its multiple applications make it an emerging market and in full development. To take your first steps you must obtain Ether and then access the NFTs market in OpenSea.
Why invest in NFTs?
The main reason why a person can invest in NFTs is due to the future profits that they can obtain with their resale. However, there are some additional reasons that we can consider beneficial:
An NFT could become a store of value
The price of non-fungible tokens like a piece of digital art or a high value sporting event, varies around what the surrounding community is willing to pay. They are tokens on demand and their value is determined by the interest they generate in the community that follows them.
They represent highly profitable investment products
The interest in having a unique digital work or piece has been growing since the appearance of NFTs. Even the digital representation can be worth much more than the physical object to which a non-fungible token refers. The objective is to obtain a higher return for having traded at a higher value later.
Has financial applications
In decentralized finance, a mechanism has been developed that allows you to access loans by placing your NFT as collateral. In this way, if the borrower does not return the funds under the agreed conditions, the entity that grants the loan can sell the NFT to recover their money.
Now that you know what an NFT is, what it is for and how it works, you can start to analyze each non-fungible token project and draw your own conclusions. When investing, it is necessary to dedicate enough time to the analysis of each collection of NFTs in which you want to venture.
Remember that one of the safest platforms to start with is eToro, a regulated and reliable exchange to buy the Ether you need to access your first NFT.
Once you have your cryptocurrencies you will be able to access the Open Sea decentralized market to finally obtain your favorite non-fungible token. Here you can also analyze which are the NFTs that most attract your attention before making a purchase decision.
Don’t forget to set up your crypto wallet with MetaMask as it will allow you to link it to eToro and the OpenSea platform. In this way you can make quick transfers and in a few clicks.
The NFTs market is still in full swing, its applications are multiple and currently it allows us to venture into the Metaverse, in video games like RobotEra, the purchase of real estate, assigning property, guaranteeing the authenticity of works and unique pieces. An ideal ecosystem to diversify your investments.