Just kidding NFT means non-fungible tokens (NFTs), which are generally created using the same type of programming used for cryptocurrencies. In simple terms, these cryptographic assets are based on blockchain technology. They cannot be exchanged or traded equivalently like other cryptographic assets.
Although I am not one to invest in new things as soon as they come. I kind of fear doing so thinking it may result in me losing a lot of money. I missed out on some big investment opportunities with Facebook , Amazon , and Apple from just being to afraid to lose my money, I would probably be rich right now sitting on an Island sipping a Rum Runner if I did invest. However, I do have empathy for the millions of people who did invest in NFTs and are now reading all the news about how they may be worthless.
NFT’s and the word on the street is that the crazy phase has run its course. The popularity of NFT’s exploded with the help of celebrities like Justin Bieber and Paris Hilton investing. It had the masses believing it must be legit if celebrities are investing but that’s another story for another article.
Last weeks report in The Guardian stated that 95% of NFT’s are now worthless. This makes me question if the NFT moment is finally over? We can never truly know if its over with all the talk of inside trading on the internet.
How do we ever know what’s real and what’s not real ? How do we know when to invest and when not to invest. How do we conduct research and know what trends can truly give us a return on our investment? . Like I said I have missed out on many investments do to fear and ignorance. How can we in our community stay informed? Their are so many questions!
I do believe in being around successful, knowledgeable investors to learn when and how to invest. Doing it alone could hurt you in the long run especially if you are not savvy in the world of investing. During the Covid isolation, their were reports that a lot of people lost money. It’s hard to discount the idea that isolation could have played a role in it. People were scared of losing money yet invested in what seemed to be a get rich scheme that could not fail. Purchasing NFTs gave you a community of other people doing the same thing to chat with during the isolation period.
If you are not fortunate to have a friend or associate that you can lean on for investment guidance consider hiring a professional. Charles Schwab offers a starter kit for new investors but for a fee. You have always heard it takes money to make money, right? Well this is true. They give you options for trading advice on apps like Robinhood but it’s all Greek unless you truly understand the stock Market. There are also list of companies and products online for beginners to learn what to invest in and when.
The bottom line is when it comes to investing you have to be willing to take the risk. There are no guarantees of profits when you buy stock, which makes it one of the most risky investments. If a company doesn’t do well its stock can fall in price and your investment dollars could be lost. There’s no insurance against the possible loss of your initial investment when you invest in a stock, bond, or mutual fund. The Insurance that you can purchase protects only against unexpected occurrences such as fire or theft, not depreciation in value. This is the case even if you’re investing in collectibles.