Fundamental Analysis applies to NFTS
Fundamental analysis is a technique that is used to determine the value of an asset by focusing on underlying factors that affect the company’s future aspects and its actual business
This is how you can break down NFTs into different underlying Factors
- What Blockchain?
- Volume and Price
- Expertise and Partnerships
- Holders Diversification
- Utility and Copyright
Pros of Investing In NFTs
Investors have many reasons to want to buy assets that are tokenized into NFTs.
Some of the advantages of investing in NFTs include:
Anyone can invest in NFTs: Investing in tokenized assets is accessible to everyone. Asset ownership that is tokenized into an NFT can more easily and efficiently be transferred among people anywhere in the world.
NFT ownership is secured by a blockchain: Using blockchain technology to digitally signify ownership can make an investor’s ownership of an asset more secure. Blockchain tech can also make ownership of assets more transparent.
Opportunity to learn more about blockchain technology: Investors can become more knowledgeable about blockchain, while diversifying their portfolios, by allocating a small sum to tokenized assets.
NFTs generate efficiency with (smart) contracts by streamlining processes and eliminating Third Parties.
They empower a new marketplace for artists & Entrepreneurs allowing them to sell directly to collectors and receive royalties whenever the NFT is resold.
NFTs can potentially add diversification to your financial portfolio, as the economy and companies prepare for what’s next in a post-pandemic world.
Some NFTs give you real-world perks such as access to high-end events, groups, or associations depending on who the creators are.
If you don’t see the long-term value in a project, it’s wise to keep researching other projects.