There is no doubt that in the last year and a half, the non-fungible tokens’ market has totally flourished. It has attracted enormous attention from many crypto and tech enthusiasts and from total laymen asking themselves the question, “What is an NFT stock”, and why should they consider investing in it?
Whether you have some basic knowledge of NFT or are a total beginner in this field, you must first understand that investing in NFT is currently one of the most profitable investments. But we’ll get to that.
Before we touch on why investing in NFT is extremely popular and beneficial, let’s first answer the question “what is an NFT stock” to help you understand the essence.
Get to know what an NFT Stock is
NFT is an acronym for non-fungible tokens, which means an interchangeable unit of data that’s nearly impossible to be hacked or harmed. Non-fungible tokens can be anything from physical to digital assets. Everything is happening on a digital ledger, known as Blockchain technology.
The most popular NFTs come in the form of pictures, audio, and video, but they can also be GIFs, memes, tweets, etc. In general, NFT is built using the same kind of programming as Bitcoin or Ethereum. Even though the tech behind NFTs is the same that maintains Ethereum, there are specific differences between NFTs with these two cryptocurrencies.
NFTs are opposite to physical money and cryptocurrencies because they are “fungible.” Fungible means the ability for money or cryptos to be exchanged or traded for one another. So, when someone asks: “What is an NFT stock,” you can briefly explain it as shares related to NFT trading.
Why are NFTs attracting so much attention?
NFT has been attracting more and more attention lately for some specific and very logical reasons. First of all, non-fungible tokens allow tracking and ownership proving over a digital asset. What does it mean exactly?
People can buy, sell, or store non-fungible tokens, then watch their value change over time, creating a completely new market in digital items, just like any physical asset.
In addition to that, non-fungible tokens also secure physical assets such as physical real estate or physical artwork. What’s interesting about the Blockchain-based system is that it records every single transaction and is impossible to alter by anyone.
Thus, it is one of the most reliable ways to verify ownership and track the provenance of digital and physical assets.
Reason for digitizing rare collectibles
NFTs were created in the first place because of the digitization of rare collectibles ranging from music or art in general to scarce merchandise. NFTs allow artists and creators to monetize their artwork in both ways, digitally and physically.
Thus, the level of NFT security is rather notable among all crypto enthusiasts. If we consider all this, it’s clear that we’d like to know more about investing in NFT stocks.
How relevant are NFT stocks nowadays?
“What is an NFT stock” represents one of the most common questions regarding this industry that’s relatively easy to answer, as we’ve seen. However, how relevant NFT stocks are nowadays is something that requires a more profound understanding that we’d like to point out to you.
Many organizations and investors worldwide are very keen to invest in NFT stocks nowadays. It’s like most hot consumer trends. We can see more and more companies of all sizes making their entrance into the world of NFTs.
Visa and Shopify Examples
Some of the biggest companies there, such as Visa (NYSE: V) and Shopify (NYSE: SHOP), have also gotten into the non-fungible token universe. Visa has managed to buy a $150,000 NFT to better understand the inner workings of non-fungible tokens before offering any related consumer services.
In contrast, Shopify began to allow selecting merchants to sell non-fungible tokens. It means providing a more mainstream platform for NFT devotees. We shouldn’t forget to mention Vinco Ventures (NASDAQ: BBIG), who have gotten into the NFT spice and are involved in the meme stock trade. The BBIG stock is currently up by over 700% year.-to-date.
Should you consider investing in NFT stocks?
There are many reasons you should invest in NFT stocks today, and they differ from person to person. For example, some people are excited to be a part of an unsettling trend, and they would like to have a share in the newest technology.
On the other hand, others realize NFT’s great potential value and are eager to get in on the ground floor. Non-fungible tokens add new value to gaming and generally create and maintain relationships between artists and their fans and supporters.
They are opening new communities of individuals who share the same interests worldwide. In the near future, NFTs could also:
Develop new markets
Form the basis of new models of work
Establish a foundation for democratic states
So, if you have an excellent eye for music or art in general and are a passionate collector, dabbling in NFT investing can be valuable for you. It’s important to consider how unique the piece is, who is the creator of the asset, the history of its ownership, and can be used to generate income or not.
Learn what is an NFT in a stock market
When asked what the NFT Stock Marketplace is, we can look at it as the general market for non-fungible tokens. So, we are talking about NFT in a stock market. We are thinking about one-of-a-kind assets in a digital world that can be sold or bought across the Internet.
It’s crucial to approach NFTs like you are approaching any investment, including doing your research, understanding the risks, and proceeding with a healthy dose of caution.
NFT stocks you should consider investing in
If you are highly passionate about the rising trend of NFTs and you’d like to know what are the best NFT stocks at the moment, we’ve prepared a shortlist of some NFT stocks you should consider buying.
#1 Defiance NFT ETF (NFTZ)
Defiance, or NFTZ, represents an ETF issued by Defiance ETFs rather than one NFT stock. Thus, anyone can own shares in multiple promising NFT stocks with a single investment. EFT refers to an exchange-traded fund almost the same as index funds.
The crucial difference between them is that you can trade an ETF wherever you feel like trading.
#2 Coinbase (COIN)
Coinbase was established in 2012, just a couple of years after the beginning of the crypto revolution. It’s a crypto and blockchain company that operates an “easy to use” crypto exchange platform in more than 100 countries worldwide.
Nearly 73 million verified users and 185,000 partners are using Coinbase. It’s considered a gateway into the NFT universe because it allows users to convert fiat currency into their preferred crypto.
With that crypto, they are able to buy and trade non-fungible tokens. To make it easier for people to trade NFTs, in 2021, Coinbase announced the addition of an NFT marketplace.
#3 Dolphin Entertainment Inc (DLPN)
Dolphin Entertainment represents a conglomerate of both content development and entertainment marketing companies. It includes a majority of digital content creators among their clients. Quite recently, Dolphin Entertainment announced a partnership with the owners of the crypto exchange company FTX.US.
The reason for that is building and programming an NFT marketplace for leading gaming, sports, charity, and brands in the entertainment field to mint and market their non-fungible tokens. Its move into the NFT space gave a boost to its stock.
#4 Silvergate Capital (CI)
Relatively small bank and based in California, Silvergate Capital represents one of the first banks ever to move into the crypto space. Today it’s entirely focused on cryptocurrencies. Among their clients are 93 crypto exchanges.
They’re all using Silvergate’s bank accounts for moving the dollars that underpin their crypto trades. It’s a fact that this bank has captured a significant share of the crypto exchange market.
#5 Cloudflare Inc. (NET)
Cloudflare (NET) is among the top NFT stocks in the stock market. Besides being an enabler in the NFT universe now, Cloudflare connects an incredible array of businesses towards consumers. Its stream service has and continues to support content creators looking to publish their non-fungible tokens.
The Cloudflare Inc. company is a significant player in today’s software-as-a-service industry. Most tech investors are familiar with Cloudfare’s core offerings. One NET stock, at the moment, is sitting on gains of over 65% year-to-date.
Once you’ve answered the question “What is an NFT Stock” how relevant are they, and what NFT stocks you should consider investing in, it’s time to summarise. Here are the most important key takeaways from this article you should remember:
An NFT in a stock market is a non-fungible token. It’s a non-interchangeable unit of data in the form of a digital ledger called “Blockchain Technology.”
NFTs aren’t able to be traded or sold. NFT data units are primarily associated with digital files such as audio, photos, and video.
It’s recommended to invest in NFT stocks because their potential for value growth is enormous.
An NFT Stock market is, actually, the general market for non-fungible tokens.
Some of the most profitable NFT stocks you may consider investing in are Defiance, Coinbase, Dolphin Entertainment Inc., Silvergate Capital, and Cloudflare Inc.
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