I understand the advantages of NFT, but what are the things I need to be careful about?
NFT investments are still very risky as a financial asset investment.
This is because the NFT is the foundation of the metaverse and the global web3 economy, both of which are continually evolving. Instead, you can diversify your investments and somewhat lower your risk by using ETFs or related funds.
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Precautions when investing in NFT
1. Don't be fooled by promises of high returns
In Korea, there is a case called "tteokbokki," where a meme coin was deposited as a virtual asset to pay an interest rate of 30%, but now the core team has disappeared.Still, many investors are seduced by these high-yield lures. This is a typical scam, so never fall for it.
2. Invest after understanding exactly what kind of profit structure it is.
It is true that because so many NFTs are issued based on genuine investment assets, it is challenging to anticipate the profit structure. You need to take precautions in particular because there have been cases where investors have lost money despite the issuance of NFTs in industries they are unfamiliar with because they believed their investment would perform similarly to before.
In the case of real estate, rather than NFT, Dipps is a so-called piece investment, similar to small securities that represent shares in real estate, and there are many places where these are made into coins and tokens and traded. In this case, you need to meticulously examine the difference between Dipps and NFT before investing.
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The unclear legal status of NFTs is also controversial. In general, for NFTs, ownership is distinctly different from copyright. However, copyright differs from country to country, and the right to claim is different. Experts also point out that NFT buyers are confused about what they bought and what they can do with the NFT they purchased.
It should also be noted that NFT does not purchase the copyright of the asset.
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Which blockchain NFTs should I buy?
You need to carefully consider which blockchain the NFT you want to buy was issued on.
This is because NFTs are issued on a blockchain with few users, so a buyer may not appear even if resale is allowed in principle.
NFTs issued in Ethereum can only be sent to Ethereum-only wallets, and NFTs issued in Klaytn can only be sent to Klaytn-only wallets.
It is also important to note that each NFT marketplace has different types of supported blockchains.
In OpenSea, the world's largest NFT marketplace, Ethereum, Polygon, and Klaytn, BNBchain is supported.
Only issued NFTs can be bought and sold. At Solsea and Solanart, you can buy and sell only Solana-based NFTs.
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