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

The advantages 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 asset to a digital asset helps simplify supply chains, reduce the number of intermediaries and improve security.

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

Today it is property difficult to divide 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 high-value piece of jewelry or a one-of-a-kind bottle holder. NFTs allow this such as RealT.

3- The blockchain technology behind NFTs is extremely secure

NFTs are made using blockchain technology, which is a method of storing information who can not be neither violated, nor modified, nor canceled.

4 – NFTs can help diversify an investment portfolio

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

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

Disadvantages of NFTs

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

As NFTs are still in their infancy, the it is not extremely liquid. Simply put, NFTs are still poorly understood and there are currently few potential buyers and sellers.

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2 – NFTs present a risk of potential fraud

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

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