Yes, an NFT is a speculative asset meaning that you are speculating (hopeful/guessing) that the NFT increases in value over time. Especially a new, novel asset like an NFT most of the market is guessing whether an NFT will increase or decrease in value. Here are some things you should consider when buying an NFT:
- What is your risk appetite? Are you willing to lose 100% of the currency that you bought the NFT for? If this NFT loses all its value will it affect your ability to pay for other things that you need?
- What is the historical price trend of the NFT or collection or Artist?
Alternatively, you can ignore risk altogether and buy an NFT because you LOVE IT and the value/joy it brings to you is not measured financially.
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