Should You Invest in Non-Fungible Tokens (NFTs)?
If you’ve heard about non-fungible tokens (NFTs), then you might have thought about investing in them. But what does it really mean to “invest in NFTs”—and what are the pros and cons? It’s a good idea to understand any asset class before you start investing in it.
For starters, “investing in NFTs” is a misnomer because NFTs by themselves are not exactly an asset class. Non-fungible tokens use blockchain technology to digitally signify ownership, making an NFT more like the title to a car rather than the car itself. Just like you wouldn’t buy a car just for the paper title that comes with it, it’s not smart to buy an asset just because it’s been tokenized into an NFT.
That doesn’t mean that investing in tokenized assets is strictly a bad idea. If you identify an asset that appeals to you, and have the funding, then maybe you should buy it. If ownership of the asset happens to be tokenized, then you can likely enjoy the additional benefits associated with NFTs. But make sure to also understand the risks, too, of NFT investing.
Investors buy NFTs for many reasons. Some are keenly interested in owning the underlying asset, while others may perceive value in the asset being tokenized into an NFT. Others may invest in NFTs as a way to learn more about blockchain technology.
But investing in an asset just because it’s tokenized in an NFT isn’t automatically a good idea. NFTs by themselves are not investments, so it is important to make sure you understand the value of the underlying asset you are buying before buying the NFT.
APS NFTs: the new frontier of “decentralized” finance
Each APS NFT has particular characteristics and unique. Many features attract attention to them, because they affect the risk / benefit analysis of the investor, unlike other digital currencies.
Investors have many reasons to want to buy intangible assets that are tokenized into NFTs. Some of the advantages of investing in APS NFTs include:
- Anyone can invest in APS NFTs: Investing in tokenized assets is accessible to everyone. Asset ownership that is tokenized into an APS NFT can more easily and efficiently be transferred among people anywhere in the world.
- APS NFT ownership is secured by a blockchain: Using blockchain technology to digitally signify ownership can make an investor’s ownership of an asset more secure. Blockchain tech can also make ownership of assets more transparent.
- Opportunity to learn more about blockchain technology: Investors can become more knowledgeable about blockchain, while diversifying their portfolios, by allocating a small sum to tokenized assets.
- Stable value. Many investors also have valid reasons to be wary of investing in tokenized assets. NFTs are commonly—and erroneously—regarded as an asset class rather than a technological way to indicate ownership. General misinformation and the hype surrounding NFTs can cause the values of tokenized assets to be inflated and volatile. Instead for their peculiar attributes, APS NFTs is protected by dangerous speculative strategies and their market value is linked to underlying intangible assets whose asset value can be verified in real time on the APS Platform.
- Tradability. APS NFTs are available for purchase on a number of cryptocurrency exchanges.
- Liquidity. One can trade APS NFTs in a non-stop regime. That is why their liquidity is rather high. A great range of customers might have an interest in buying or selling these APS NFT tokens.
- APS NFTs are issued in limited quantities that are impossible to alter after once launched.
- Every non-fungible token is an original digital asset with a unique metadata set.
- All changes in ownership are recorded on the smart contract with their exchange value, while the intangible assets underlying the APS NFT are monitored in real time on the APS platform
APS NFTs: an excellent “investment vehicles” for diversify portofolio
With the arrival on the crypto financial markets of the APS NTFs, innovative investment management tools are available, which guarantee levels of transparency, control and stability in the long term, like no NFT before.
The first exclusive advantage offered to investors by APS NFTs is their use to diversify their portfolio: can represent ideal investment vehicles for investors who want reduce risk.
It is easy for investors to diversify their portfolio because each APS NFT is unique, has its own peculiar attributes in terms of risk analysis and return forecasts, as their future value is strongly linked to the growth of the beneficiary’s Human Resources assets.
The criteria of matching with APS intangible assets are completely automated in smart contracts, and therefore the investor is guaranteed to pay the fair price in relation to the certified value of the underlying intangible asset, monitored in real time, on the APS Index platform (www.assetpointsuite.com).