NFTs: Are profitable or not?

in LeoFinance2 months ago

For a couple of years the phenomenon of NFTs has been very much in vogue; and we can see it very highlighted through news, trending in social networks and through the growth of the sector itself. But... Are NFTs profitable?

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A matter of perspective

If we look at the current year for cryptocurrencies (of permanent price decline), it is easy to see that nothing related to crypto seems to be profitable in the short term, and this includes NFTs. And this even knowing full well (as in fact everyone knows), that NFTs (or Non-Fungible Tokens), are different in nature and characteristics from cryptocurrencies or fungible tokens.

In the long term is another story, but anyway, on the other hand, we find the perspective of many people who believe that the best time to create and also buy and sell NFTs (and bet on that sector), is when Bitcoin and altcoins are in the middle of the crypto winter.

But again, the fact of seeing profitable or unprofitable the NFTs in a scenario like the current one in the market (or under any other possible scenario), depending from the glass with which we look at the matter; because, for example, being a creator of NFTs is not the same as being a speculator in the NFT market.

And this is so because whoever creates NFTs must be an artist (or at least act as an artist), for which they must know (albeit at a very basic level) about photography and use of graphic design software. As if that were not enough, he must also know about Marketing, to promote his project.

When someone creates an individual NFT or a collection, it is creating a personal work, and as such, can be seen as a project that its must promote as would be expected of any product or service someone wishes to sell.

On the other hand, NFT speculators are those individuals who, although they do not create NFTs, buy and sell them in the markets. The dynamics of these speculators is the same as that of speculators in any other type of market, they simply buy low and sell higher, thereby making a profit.

Now, for someone to be a speculator in the NFT market, they must know very well what they are doing, that is, they must know how to choose the projects with the greatest growth potential and the greatest possibility of being attractive to the general public. But knowing how to choose the projects requires, as is logical, that the speculator study very well each of those what it decide to invest; therefore, you must have a very deep technical knowledge of the entire business side of NFTs and the specific project you are going to put money into.

Acting on this way, the speculator, get some kind of confirmation of a very probable return of its money investing and the most probable recuperation time on it; what it is very important in such sense

So, at a personal level, in my oppinion, the profitability or non-profitability of NFTs is not so determined by the NFTs themselves and how the sector is working, but by knowing how to act correctly in the area in which we find ourselves. In the first instance, as I said before, we must completely distinguish whether we are creators of NFTs, or whether speculators of NFTs; but then, in the second instance, we must be efficient in what we do so that NFTs can give us great profitability.

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What do I mean exactly?

Well, fFor example, I can be a creator of very beautiful and artistic NFTs, and my NFTs can be true masterpieces of art; but if I don't promoted them properly, they will not be profitable (economically speaking), for me; nor now, nor middle term and for sure not in the long term.

On the other hand, if I am a speculator in the NFT market and I don't know how to rightly chosen the projects what I do invest; and I start buying NFTs that just seem nice or cute to me without doing a deep and proper investigation of their potential, then, I will start losing money because I will be investing in NFTs that I will not be able to sell later.

So, the fact that NFTs can be profitable or unprofitable for us NFTs can be for us on a personal level is ultimately dictated by how good we are doing what we do. Therefore, to know exactly what we do, and the most important things about it, got capital importance for us in such sense.

Summarizing

In the world of NFTs, just as in the world of business in general, we must know very well what we are doing to obtain a true return on it.

Therefore, if we do not know anything about Marketing, we better not dedicate ourselves to creating NFTs, but if we are still going to do it anyway, we must be aware that we must be determined to pay people who do know Marketing to be able to properly promote them, since it will depend the success and profitability that we will obtain in the process.

And if we are speculators, we must study NFTs projects very well at a very deep level; and if we do not have the knowledge and/or the means to do so, then it is better not to engage in speculating with NFTs until we have learned what is necessary to do so.

By the way: Maybe someone thinks I forget to talk about NFTs on the Gaming and others topics (like staking and apps). Without a doubt, the NFTs linked to games and applications and those linked to Stake are also very important in all senses, but we will talk about them on another occasion, because they can be considered as topic appart within the universe of NFT.

Well, what do you think about the topic discussed. Please comment.

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Well I would say nft is profitable tho because it adds values either you buy or you mint it yourself you will actually get a better price for selling.

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I agree with you, undoubtedly that is the case, but what I mean is that managing to sell and obtain said profitability requires a certain level of promotion that not everyone knows how to do.

In my experience, when you are an NFT creator, you must also know about marketing or social media promotion, because if you don't it will be impossible (or very hard) to sell anything. In my oppinion the only exception to this is in the case that you are already a celebrity and everyone wants to buy the NFT from you as soon as you create it for simply being someone famous.

Thanks for comment. Greetings! ;)

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Well that true tho... Some times hard to get it sold or getting it to get to the right buyer.. connectivity is the main goal about selling nft

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NFTs called my attention since last year, but I did not still put my feet in any NFT. It looks complex to me understand how it works and takes the best way to get good profits. Understand the staking with rewards, from creation of a wallet and the process to stake takes me lot of time to get how it works. So I feel like NFTs requieres more time to read and understand how it works.
However, your description makes me think again about NFTs, in the mean time of the bear market I should learn the most possible about it.
Thanks for sharing!

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