Miro Zecevic

An NFT (non-fungible token) is a code that identifies you as the owner of a one-of-a-kind digital asset. Fungible vs. non-fungible An NFT is a type of digital collectible. They were initially released in 2015, but their popularity has lately skyrocketed. To comprehend NFTs, it's necessary to first grasp the distinction between fungible and non-fungible objects: Fungible: It's simple to count and exchange. You can, for example, exchange two $5 bills for one $10 bill and get the same amount of money. Non-fungible: It's one-of-a-kind and can't be replaced. The Mona Lisa may be downloaded and framed by anybody, yet there is only one original painting. The one-of-a-kind quality of an NFT (and the scarcity that it entails) is a big part of why they're so popular (and expensive). Why popular NFTs are popular with buyers in part because they are an investment opportunity. If the price of an item rises in the future, the buyer can sell it and profit. Of course, NFTs are onl...

The ease with which you may sell an investment or asset at a reasonable price is referred to as liquidity. Liquid assets are those that can be exchanged for cash: - Quickly and easily - With little or no transaction fees - At their current market prices (i.e., without having to entice a buyer with a big discount) Something is more liquid in general if: - Many individuals would be interested in purchasing it; - It's simple to determine its value; - It's simple to transfer ownership from one person to another; - The object or investment is more standardized (i.e., less unique) A share of Apple stock, for example, is liquid because it's simple to buy and sell, and many people would want to possess it at the proper price. You can figure out how much it's worth by looking at the stock market's current pricing. Furthermore, the corporation has billions of outstanding shares, therefore it isn't unique. A piece of custom-designed luxury real estate, on the other hand, i...