Summary
- NFT Cryptocurrency is used in a wide range of fields
- NFT Cryptocurrency focuses on "service content," "market capitalization," and "overseas forecasts
- Recognize the risks and rewards in NFT Cryptocurrency
In recent years, cryptocurrency-related NFT has gained momentum among Cryptocurrency.
Axie Infinity, one of the top NFT Cryptocurrencies by market capitalization, increased in price by about 16.8 times from the beginning of July 2021 to the beginning of October 2021.
As you can see, NFT Cryptocurrency started to attract much attention in 2021.
What are NFT Cryptocurrency and related issues?
How to choose NFT Cryptocurrency
- Features and services of NFT Cryptocurrency
- Market capitalization
- Focus on overseas price forecasts
The market capitalization of NFT Cryptocurrencies
Prospects and Cautions for NFT Cryptocurrency
- The future of NFT Cryptocurrency
- Points to note about NFT Cryptocurrency
What are NFT Cryptocurrency and related issues?
NFT (Non-Fungible Token) is a token that cannot be counterfeited or duplicated, called a non-replaceable token.
The main feature of NFT is that each token retains its unique ID and purchase history, making it a particular token.
Until now, digital data could be easily copied and reproduced on the Internet.
However, with the advent of the NFT, the scarcity of digital data is now guaranteed.
"Now, NFT is widely used.
Most NFT Cryptocurrencies are based on Ethereum!"
NFT and other virtual currencies is that NFTs are irreplaceable and cannot be divided or exchanged for a fixed value.
One bitcoin is interchangeable with another bitcoin and does not change in value.
On the other hand, since each NFT has its unique character, no Cryptocurrency has the same character, and scarcity is an added value.
NFT, which is unique in this way, has rapidly gained attention since 2021, and NFT Cryptocurrency and related issues have also become the focus of attention.
How to choose NFT Cryptocurrency
There are more than 150 NFT Cryptocurrencies and associated issues, and it is not easy to decide which Cryptocurrency to invest in.
So here are three points you should check when investing.
Three points on how to choose an NFT Cryptocurrency
- Features and services of NFT Cryptocurrency
- Market capitalization
- Focus on overseas price forecasts
Let's look at each of these in detail.
Features and services of NFT Cryptocurrency
There is a wide range of NFT Cryptocurrencies, including those linked to games and those used for application development.
Many NFT Cryptocurrencies disclose the details of their services and features on their websites, so check the features of the blockchain and the services they offer to determine whether they have potential.
For example, if the service deals with the works of famous artists, it is likely to attract more attention, and the price will rise due to increased demand.
"Just like with stocks, it's essential to check out the service!"
Market capitalization
It is also essential to look at NFT Cryptocurrency quantitatively.
Just as we look at market capitalization in the world of stocks, we also have a market capitalization in the world of Cryptocurrency.
It is an important indicator that helps us make investment decisions.
The market capitalization of a Cryptocurrency can be calculated by multiplying the market price by the number of units issued, so a relatively high market capitalization indicates that the Cryptocurrency has a high trading volume and is widespread.
A Cryptocurrency with a low market capitalization can fluctuate wildly in price. While its price may rise significantly, the low trading volume may make it difficult to let go of Cryptocurrency when you want to.
"If you're a Cryptocurrency beginner, first look at the NFT Cryptocurrency, which has a large market capitalization, to ensure your safety!"
Focus on overseas price forecasts
Most NFT Cryptocurrencies were created overseas, and many are traded on overseas Cryptocurrency exchanges.
As a result, many investors overseas publish information and price forecasts for Cryptocurrency.
"Those price predictions aren't always correct, so they should be viewed only as references!"
The market capitalization of NFT Cryptocurrencies
Now that you understand choosing an NFT Cryptocurrency, I would like to introduce you to three different NFT Cryptocurrencies.
First, let's look at the market capitalization ranking of NFT Cryptocurrency.
NFT Cryptocurrency Market Capitalization(*As of February 1, 2022)
Decentraland
Axie infinity
The Sandbox
Theta Network
ECOMI
Flow
Gala
Enjin Coin
Chiliz
WAX
Prospects and Cautions for NFT Cryptocurrency
Finally, we briefly summarize the prospects and cautions for NFT Cryptocurrency.
The Future of NFT Cryptocurrency
There are currently more than 150 types of NFT Cryptocurrency, and they are expanding into the virtual space of games and art and the actual space of real estate transactions.
The main feature of NFT is that they can still prove their uniqueness, which has attracted attention as the difference between them and other cryptocurrencies, and the price has been rising.
As a result, the demand for NFT is expected to increase, as NFT is likely to spread to other fields.
Points to note about NFT Cryptocurrency
The price of NFT Cryptocurrency has been rising rapidly since 2021.
The NFT market, which can still be described as an emerging market, is not very liquid with high price volatility.
Therefore, there is a possibility that prices will rise significantly, but there is also a good chance that prices will fall significantly.
Cryptocurrencies still have so-called "speculative" characteristics, so it is essential to be aware of their risks.
"Let's keep the risk/reward relationship in perspective!"
Ethereum fees (gas prices), often used for NFT, saw their costs skyrocket more than 20-fold from October 2020 to October 2021.
If the demand for NFT continues to increase, the fees will rise accordingly.
"Please understand the advantages and disadvantages of NFTs before investing in them."
Summary
We have provided an overview of NFT Cryptocurrency and how to choose one.
NFT were overgrowing in 2021, and demand is expected to increase in the future.
Finally, I have summarized the three main points of this post
- NFT Cryptocurrency is used in a wide range of fields
- NFT Cryptocurrency focuses on "service content," "market capitalization," and "overseas forecasts
- Recognize the risks and rewards in NFT Cryptocurrency
