NFT cryptocurrency is becoming increasingly popular today. More and more companies, especially in the gaming, sports, and entertainment industries are beginning to create their own NFT coins. Having these NFT coins in your wallet can generate a profit for you.
Are you wondering yet how NFT coins can be profitable for you? This article will explain how NFT coins work, and why we should keep NFT coins in our wallets. But first, we need to understand what NFT coins are.
NFTs or Non-Fungible Tokens are special coins that use Blockchain technology to enable us to see the ownership of a particular digital asset. For example, cards or rare in-game items are like digital real estate (products on that platform that are limited). These items are bought and sold with the coins of each platform.
The most popular NFTs are built on Ethereum, as it was the first Blockchain Platform to sell NFT products. However nowadays, many Blockchain Platforms are starting to bring NFTs on their own platforms. These platforms include Binance Smart Chain, Solana, Polkadot, and many more. These token assets are unique assets, such as card games, artwork, collectibles, or even the artist's reputation. This is the wonder of digital assets– the asset itself can be just about anything. The world of NFTs is incredibly diverse.
To make things easier to understand, Cointelegraph has explained the difference between each NFT coin, which can be summarized into 3 differences:
As mentioned above, NFT coins have their own value. Because of the unique, rare, and indivisible nature of the coin, NFT coins are very popular with many people. There are several types of NFT coins. NFTs are not Limited to being only works of art. Here are some more examples of NFTs:
NFTs in the gaming and fitness industry is becoming very popular in the crypto market as these industries can make a lot of money for a lot of people with the Play to Earn or Exercise to Earn model. These are activities that allow anyone to mine for cryptocurrency through gaming or working out, allowing users to accumulate their digital investments.
You can read more details about NFT Exercise and Gaming here >> 5 NFT Games Activities You Shouldn't Miss
For real estate NFTs, take Decentraland for example. Decentraland is a virtual world powered by blockchain like Ethreum, that gives its users the freedom to dress their avatar the way they like or to play games. Decentraland has its own in-game properties and players can earn rewards from them. In the game, players can buy real estate and develop their land into a business in the virtual world. Moreover, on the platform, users can also build buildings or attractions where they can earn money from renting or advertising. If at any point the player no longer wants to own their land, they can sell the land in the Marketplace and make a profit as well.
There are many different games and assets that are of the NFT cumulative type. This includes digital art, video games, rare cards, and various in-game items. An example of this is the Cryptokitties game. Cryptokitties are built on Ethereum where players can purchase cats to breed in order to create new cats. This game has quickly gained popularity. Players have traded more than 70,000 cats with a volume of up to $9M currently. The average price for a digital cat is $130, and some can go for as high as $100,000.
As you can see, NFT allows us to use Blockchain technology in more ways than ever by turning digital assets into collectibles and creating games where assets can be bought and traded more easily. It helps to reduce fees, and more importantly, every NFT coin has its own value. If the underlying business is able to develop its platform, it makes holding the NFT Incredibly useful as it will increase the value of our wallet.
NFTs are becoming hugely popular in the crypto market because there is much in the NFT world that is interesting and the platform itself is always evolving. These activities will continuously increase the value of the coin. And if we hold NFT coins, then we can make speculative investments and use these coins as a means for extra income.
Therefore, if anyone is hesitant about having NFT coins in their wallet, we would like to suggest that you start by earning coins the easy way. For example, doing coin mining exercises like Exercise to Earn or playing games like Play to Earn can be a very rewarding investment.