Within the cryptocurrency market, we can find different types of assets. Which ones are the best?

NFT stands for Non-Fungible Token, a non-fungible token. Tokens are units of value that are assigned to a business model, such as cryptocurrencies. And it is that NFTs have a close relationship with cryptocurrencies, at least technologically, although they are opposites, since a Bitcoin is a fungible good, and an NFT is a non-fungible good, but in essence, they are like the two sides of a technological currency.

The cryptocurrency markets have shown a sharp decline in the prices of their assets in recent months. As we well know, the price of Bitcoin reached a minimum value of $20,000 in December 2020.

It is a time of uncertainty, doubt, and fear for many consumers, but a great opportunity for others. In this note, we will explain what NFTs are, how many people are buying them, and if it is a good investment for the crypto winter.  Within the cryptocurrency market, we can find different types.

The well-known NFTs or non-fungible tokens are virtual representations of different types of unique real assets.

The Blockchain allows NFTs to be publicly authenticated without a centralized authority and serve as a digital signature to certify ownership and originality.

Good Time for the NFT Market?

The NFT market is part of the components of the crypto market, although the form of operation is different from cryptocurrencies, it is not independent of the cryptocurrency ecosystem.

The profits of the NFT market during 2021 were exponential; it has generated a profit of 1 billion dollars since 2021.

In recent months the profits of the non-fungible token market have fallen more than 50 percent, if we analyze the profits of OpenSea, one of the largest crypto marketplaces, we can see that its profits fell more than 75 percent from May to the present.

Parties that Interact with NFTs

Within the NFT market we can find different agents that intervene; on the one hand, consumers who are the ones who buy and sell NFTs.

On the other hand, we can find the creators of the NFTs, and the different platforms of the NFTs or marketplace of the NFTs.

Crypto.com, one of the most important exchanges in the region, has an NFT marketplace where users can find different possibilities to buy and sell.

Crypto.com has one of the largest communities of users worldwide, being one of the few exchanges that offer an NFT Marketplace.

Phemex is another of the international exchanges that has conducted initiatives with different crypto artists and has also listed different tokens on its platform. It is one of the largest international exchanges, it has more than 250 different types of cryptocurrencies.

We can conclude that the crypto winter is affecting all the markets that make up the cryptocurrency ecosystem, from crypto DeFi projects, to the traditional crypto market to the NFT markets.

By Audy Castaneda

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