When NFTs were first introduced to the masses, there were very few people who actually knew what they were and even fewer people who actually traded these digital assets. As non-fungible tokens continue to progress in a variety of sectors, so will the people who purchase NFTs.
The first time I heard of a non-fungible token and actually understood what it was, I had to ask myself—who would want to buy an NFT? After collecting a diverse portfolio of digital assets myself, I have come to understand who wants to buy NFTs and why.
The type of people who buy NFTs are collectors, investors, flippers, fans, and folks all around the world. From celebrities such as Gary Vee, Jay-Z, and Mark Cuban—to your everyday working-class citizen. If you enjoy purchasing from your favorite brands and supporting different communities, then you may be someone who would enjoy buying an NFT.
If you thought collecting digital goods was just for nerds and the elite, you’re wrong. If you or someone you know has ever bought a digital item in a video game such as clothing or other upgrades, then it’s easy to understand why someone may want to buy a non-fungible token.
Aside from the potential monetary benefit from buying and selling digital collectibles, just about anyone may be interested in picking up their very own NFT for their own reasons. This leads us to the next question.
Why Are People Buying NFTs?
As time progresses, more and more people will start collecting non-fungible tokens and for numerous reasons. So, why would someone want to acquire their own NFT?
There are countless reasons you may want to buy an NFT, here are some of the main reasons:
- Brand Perks
- Collectability
- Community Support
- Entertainment/Utility
- Exclusivity
- Investment Opportunities
- Likeability
Brand Perks
Attaining an NFT from your favorite brand may include some really cool perks. Benefits may include discounts, air-drops, merch drops, limited edition items, special invites, and even more digital assets for your portfolio.
Investing in a brand to qualify for this type of utility may be a very wise investment. If you are loyal to the brand you’re buying from, then you’re more likely to buy more often and benefit from the perks, discounts, and collectability that are included in the token.
Buying an NFT from a brand is like owning a small portion of that company. You have your money invested into their product—which you can resell for a profit on various marketplaces. At the same time, the creators will still earn an income even with secondary sales. This means you can reap all the benefits of owning a small portion of a brand, while you continue to support the brand. It really is a win-win situation for both the business and the consumer.
Collectability
Collectability is one of my favorite features when it comes to non-fungible tokens. As a kid, I collected bars of soap, sneakers, Pokemon (in the games), and even sweat-bands. I never bought those items with the intention of flipping them for a profit. I bought them because I liked them for what they were.
To be honest, though, collecting on the blockchain is the best! The blockchain reveals all this historical data of every NFT. This means that NFTs are a truly transparent way of trading and transacting. Not only are the deals decentralized, but they are done practically instantly with a verified signature from both the seller and the buyer—confirming the transaction, prior to pushing any sales through.
Collectibles will always have their place in the community. Collecting has always been something humans have done. Whether you collect rocks or collect cards, it’s always been a way of living and NFTs are sure to keep the stride going steady.
Community Support
When you purchase an NFT you can actually help out a community you want to support. Many non-fungible token brands may offer a certain percentage of total sales to a donation of choice, or they may gather a set percentage of the sales earned and give that money back to the community.
This money could be distributed back to the community based on how many NFTs one wallet holds. For example, if you owned 50 out of only 100 NFTs, you would gain a larger portion of the refund as opposed to someone who holds only 50.
Forget about the money for a second and imagine all the support you can receive from the help of your community. Between social media, discord channels, and the metaverse, the amount of support you can actually find within these communities is stunning.
Furthermore, you can support your favorite community just by simply purchasing a brand’s asset. Putting money into a brand you trust allows them to continue to create new products so that you may continue to support the brand.
Exclusivity/Utility
If you’re an avid NFT collector, you may come across some items which offer exclusivity and utility to the token holder. The way this works is simple, as long as you own the token you have exclusive rights and access to whatever is written in the contract terms within the non-fungible token. The token may be fun and interactive within itself, or it may include awesome perks which may allow you VIP access, interviews, and even mentorship opportunities.
One great example of an entertainment token is Gary Vee’s NFT project—VeeFriends. In the early years of VeeFriends, your NFT also acts as your admission to an exclusive conference held by Gary himself, properly named Veecon. This is just an example of how you may benefit from buying an NFT for entertainment purposes.
Purchasing an NFT solely for entertainment purposes generally means you will receive some of the value instantly, whereas the value of collectible and investments could take longer to see, if ever.
Investment Opportunities
Investing in digital assets such as NFTs can be really fun, but also extremely risky. With high risk can come big rewards, however. Thousands of people are earning a profit creating and trading NFTs every day, many people even earn a full-time income buying and selling digital assets.
There are various ways you can invest money into NFTS and make a nice profit. Buying low and flipping assets for a higher price is one of the most common ways to earn money with NFTs. Another way of investing is by looking into long-term investment opportunities.
Long-term investment opportunities are abundant, mainly because there are many new businesses and brands being built with NFTs as their foundation. Not only does this mean you have the chance to invest early in a start-up, but you can earn a huge profit in the future once the brand builds a solid reputation and becomes a staple in the community.
No matter how you choose to invest your money into these tokens—you need to remember that it is extremely risky. Ensuring you have done adequate research and that you thoroughly enjoy the brand is an important factor when deciding if an NFT is worth the investment.
If you’re curious to learn more about investing in NFTs, check out Investing In NFTs: Everything You Need To Know.
Likeability
Without getting too deep, some people buy NFTs for the simple fact that they like the token for what it is. It may be a beautifully crafted piece of art, music, or maybe even something with a deeper meaning. Buying an asset because you truly enjoy it is one of the best reasons to purchase an NFT in my humble opinion.
Buying something you really like sets you up for success regardless of the outcome. Whether you make one dollar or one million dollars, at least you know you’ll always enjoy the asset you’ve purchased.
Are NFTs Worth Purchasing?
I remember all the thoughts that went through my mind before I bought my first NFT. I often asked myself if NFTs were even worth purchasing. After speaking with many members of the community and collecting my own digital tokens, I found the perfect answer.
NFTs may be worth purchasing if you enjoy collecting, investing, and supporting specific communities, or if you are trying to build your own brand and community. NFTs may provide you with value not found elsewhere, this is due to the frictionless act of transacting on the blockchain. This holds true for both businesses and consumers alike.
Before you purchase any non-fungible assets, it’s important to establish your intent with your investment. Are you buying an NFT because you like it, to make money, or maybe you’re just a die-hard collector? There’s isn’t necessarily a right or wrong answer when it comes down to the reason you’re buying a non-fungible token. However, doing your own research and making certain you understand what it is you’re buying is very important for determining if any NFT is worth buying.
At the end of the day, the desire to collect non-fungibles is different from person to person. Be honest with yourself and with your goals, learn as much as you can on your own, and don’t be scared to ask questions. The crypto community as a whole is so generous and curious—questions are welcomed and even encouraged. Try it out, I bet you’ll learn something new.
If you are curious to find out how I find good NFTs to purchase, then you may benefit from viewing my Collector’s Buying Guide.
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