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Rachel Welch

17 October 2022 237 Read NFT

Is NFT a Good Investment?

There are a number of risks associated with buying NFTs. The first is liquidity risk. NFTs are not liquid and require buyers to pay a premium for them. This means the price of an NFT will increase if it is sold at a higher price than what the owner paid. However, if the seller is willing to accept a higher price for the NFT, the seller can turn a profit.

The second risk is that the NFT may not be fungible. The difference between a fungible asset and an NFT is that a fungible asset can be swapped for another one. The non-fungible nature of NFTs means that investors need to be able to recognize if the NFT will be a good investment.