Advantages and disadvantages of NFTs: Everything you need to know before buying them

The benefits of NFTs

1 – NFTs contribute to greater market efficiency

The ability of NFTs to increase market efficiency is their most visible advantage. Converting a physical commodity into a digital asset helps streamline supply chains, reduce the number of middlemen, and enhance security.

2 – They can be used to split the ownership of physical assets

Today it is difficult to divide property such as works of art, real estate and expensive jewelry. A virtual copy of a work is easier to divide among multiple owners than a real copy.

The same goes for a piece of high-value jewelry or a one-of-a-kind wine case. NFTs allow this like RealT for example.

3- The blockchain technology that underpins NFTs is extremely secure

NFTs are made using blockchain technology, which is a information storage method who cannot be neither hacked, nor modified, nor erased.

4 – NFTs can help diversify an investment portfolio

NFTs are not the same as traditional assets like stocks. They possess various qualities and bring benefits that we are only beginning to fully understand, as discussed earlier.

If you want to get NFTs, we recommend that you first visit the Opensea platform.

Disadvantages of NFTs

1 – The disadvantages of NFTs are their inconstancy and lack of liquidity

As NFTs are still in their infancy, the industry is not extremely liquid. Simply put, NFTs are still poorly understood and potential buyers and sellers are few at the moment.

Read also Coinbase NFT – Should you buy NFT on Coinbase?

2 – NFTs present a risk of potential fraud

If the integrity of a blockchain cannot be questioned, NFTs can be used to commit fraud.

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