Pros and Cons of Investing in NFTs

Are you looking to invest in NFTs? Are you confused about the pros and cons of investing in NFTs? In this article, we will help you to know all about NFTs.

Pros and Cons of Investing in NFTs

In the last decade technology changed a lot. It changed everything, from how we buy groceries to how we invest. In old times we used to invest in FDs then we started to invest in Shares after then we shifted to cryptocurrency. Now we are moving towards NFTs. NFTs are a very new way of investing, and most of us don't know much about them. So to know the benefits of investing in NFTs, first let us get familiar with NFT.

What is NFT?

NFT stands for non-fungible token. Non-fungible means that it cannot be replicated or exchanged. For example, if you have a coin it is fungible because you can easily exchange a coin for another coin. NFT is based on the same technology as cryptocurrency. They both work on the blockchain network.

The main difference is that each NFT is a kind of token, which is linked to some kind of digital objects such as a video, an image, or even a digital piece of land. If we use this non-fungible technology on any kind of object then it becomes NFT. Hence making that piece of digital object non-exchangeable or non-replicable.

Now taking an example, If you have a physical painting you bought it from somewhere and you hang it somewhere in your house, it is non-fungible because you bought it and you have ownership of it, whereas in a digital object this can't be achieved easily because of copy paste. There comes the NFT which makes it non-fungible as it works on blockchain technology, it records all the data of owners who have it. That way it can be said the given person is the owner of the object and if anyone copies it the owner can claim it.

This is all about the basics of NFT. Now let us see the pros and cons of Investing IN NFTs.

Pros of NFT

  • Anyone can invest in NFT. If you have ever invested in cryptocurrency then it is very easy to invest in NFT. As most of the trading platforms which are used to invest in Cryptocurrency, they are allowing you to invest in NFTs as well.
  • As NFT technology works on the blockchain networks. It is very secure to own an NFT because blockchain is decentralized it provides a lot of security. It has a register for maintaining all the transaction records on each NFT which can never be altered. There is a lot of nft tracker available online which will help you to know about a given nft.
  • If you are investing in NFT then you have to learn about blockchain technology. Once you learn about blockchain there are a lot of other things you can do with the knowledge. You can even create your own NFT. 

These were some of the pros of investing in NFT.

Cons of NFT

  • The main con of NFT is that it uses a lot of power. As doing anything on blockchain technology uses a lot of processing power which leads to the usage of a lot of electricity, which is said to be that it uses a lot of power to do a single transaction using NFT.
  • NFTs will generate no revenue. If you are holding any share or cryptocurrency then with time it grows in value and gives you some revenue, whereas NFT does not. Until and unless you transfer the ownership of NFT more than the higher price of which it was bought you will get no revenue.
  • On one hand, as it is said to be it provides ownership to an object. It can be used to do fraud as well. If some artist makes something and he/she does not make it NFT and someone else copies it and makes it NFT then he will be the owner of that object, which is fraud. 

With that, we are done with the cons of NFTs.


As technology is evolving so are the ways how we use to invest. There is a new way of investing now which is NFT. It seems very pleasant to hear about investing in NFT. There are always good and bad in everything, so comes with NFT.  before doing any investment know completely about what you are investing in and invest wisely. I hope this article helped you.