3 Unique Reasons to Buy NFTs

3 Unique Reasons to Buy NFTs

Over the last couple years, NFTs have surfaced across a plethora of industries. Consumer goods, food and beverage, fast food, clothing and fashion, electronics, sports, and even politics are all tossing their hats into the NFT industry.

Tons of major companies are jumping into NFTs, and have explored several new avenues that the technology offers. Much of their exploration has given insight into the various streams of value NFTs can help anyone cultivate.

With such widespread adoption, it’s no wonder that new fans and brands are flocking to the innovative technology. And since there are so many exciting developments in motion, it may do you well to ask yourself, “why do people buy NFTs today?”

The NFT wave is here, maaann. Ride it out bro!

In this article we’ll explore three unique reasons why you should buy NFTs. Afterall, NFTs are a tidal wave of digital asset technology, and they’re just starting to gain momentum. There are plenty of exciting opportunities sprouting up with NFTs that go beyond simply buying awesome art.

1. Let your NFTs earn for you

NFTs can act as a jack-of-all-trades when it comes to earning you passive income. Not only can the value of your NFTs grow over time, you can use your NFTs to bring you streams of income while maintaining ownership! There are a few lucrative alleys to consider, but the ones we’ll focus on today are earning yield, renting NFTs, and NFT royalties.

Earning yield with your NFTs

Yield is a term for returns gained from the holding of a security. When you give money to a bank, they generally give the owner an added percentage of that sum each month/year in return for holding the cash.

With the combination of a few clever smart contracts, DeFi protocols, and a handful of NFTs, anyone could start earning yield from their art. First, one must consider NFTs to be just like any other sort of asset that can be used as collateral or for staking purposes. The DeFi protocols are like the bank in the above example and are what provide the yield. The smart contracts facilitate the entire transaction.

When staking NFTs, however, one has the opportunity to leverage upon multiple DeFi protocols, allowing them to essentially earn yield on the yield earned from another protocol. Plus, staking NFTs can prove to be beneficial to the net worth of your NFTs over the course of time. After staking an NFT for an extended period results in a positive revaluation of the NFT.

Rent your NFTs out

A similar, albeit less complicated, concept to yield farming is renting your NFTs out. That’s right, you can both rent and offer NFTs for rent. Many NFT enthusiasts jump at the opportunity to have a super rare NFT in their portfolio (even if it’s just for the month), and are willing to pay to seem like they own it. Afterall, one awesome NFT from the right NFT artist can change everyone’s perception around an entire collection

Thus, buying a sweet NFT can pay for itself, all you need to do is rent it out for a bit. The secret sauce is in the smart contracts whereby you can safely send your NFT to someone else for an agreed upon amount of time, all facilitated by a smart contract. Both collateral and rental costs should be included so that the true owner is not at risk of losing a financial asset.

Once the renting period is up, the NFT is returned to the true owner, the renter receives their full collateral again, and the NFT owner happily walks away with some extra change in their pocket from the rental costs.

NFT royalties

Let’s say you’re perusing your favorite NFT marketplace and an NFT from your favorite NFT brand catches your eye. But this one is a bit different because the NFT creator has initiated an NFT royalties protocol in the smart contract of this NFT. This simply means that every time the NFT is traded, the NFT creator receives royalties for the sale. Cool, right?

Well, sometimes NFT artists want to incentivize their fans to keep selling the art to help it gain popularity, and to do so they’ll create an NTF royalties protocol for the first handful of buyers and sellers to have owned the NFT. This way, whenever the NFT is sold to someone new, the original NFT creator gets paid along with the next two, five, twenty, five-hundred folks who also sell the NFT.

500 people sharing NFT royalties? Must be an expensive NFT!

These three options are just the tip of the iceberg with NFT/financial possibilities, and because NFTs are becoming increasingly more versatile in the world of digital finance and investments, buying NFTs continues to present novel opportunities to earn from an investment. Plus, anytime you utilize NFTs to their fullest, they become an excellent option for marketing.

2. The new marketing strategy

One of the best ways to show your audience that you have good taste and style, that you are keeping up with the times, and that you’re able to innovate is by collecting NFTs. Any company or brand, or even individual that is able to cultivate an NFT community is beholden to some massive opportunities.

Anyone can build an entire NFT brand from an NFT collection, and when it is done properly, you can garner an enormous amount of attention. Not only could your NFTs become more valuable, but you could also start making on-brand NFT releases that speak to your vision. NFT communities are founded on this principle by which they attract attention and then roll out a culture to meet their brand’s vision/mission. But even this is somewhat basic!

Ya, like, get with the program?

In fact, one of the best ways to learn about upcoming technology is through first-hand experience. For example, buying an NFT that comes with a web3 integration could spark innovation in your NFT brand, or may help you better serve your NFT group.

Fayre was one of the first NFT brands to ever launch an NFT web3 integration with RCD Espanyol in which fans received in-stadium activated NFTs. Afterwards, several other major sports organizations followed suit. If you simply read “Espanyol Uses NFT Web3 Integration” as a headline, you might not know what that means.

But buying NFTs to learn offers insight into the mind of the customer beyond any article, and can be inspirational to any business. The best marketing comes from brands that are in touch with their consumers.

3. Diversify your portfolio by collecting NFTs

Perhaps one of the most common reasons the NFT industry has seen such an enormous influx of investments over the last two years is because of inflation (please check one of our previous articles. Inflation is wrought within many of the world’s economies, and is largely responsible for diminishing the quality in many people’s way of life today, especially in developing countries.

Maybe NFTs can help us all afford a second breakfast!

People are in need of safe haven assets, or reliable investments, where they can store their wealth and avoid the inflation which destroys the value of cash. Common “life rafts” that have been traditionally used to escape inflation include gold and other precious metals, bonds, certain stocks, and a few other commodities. Today the options have broadened into things like Bitcoin, certain cryptocurrencies, and NFTs.

NFTs are assets that can be created to be scarce, uncensorable, immutable, and entirely private. In other words, they are assets that can be of supreme value during times of duress (as seen in times of high inflation). A strong option for the average consumer looking to save money might just be investing in NFTs. Plus, you may even earn passive income from your wise investments.

See? NFTs are super useful!

NFTs can certainly be more than meets the eye. While they are often sought after to turn quick profits, NFTs offer long-term investment opportunities. Passive income and portfolio diversification are excellent incentives to consider buying some sweet NFTs, especially as inflation continues to creep into everyone’s purchasing power.

But on the social side, using NFTs to build out a marketing strategy or involve your favorite NFT groups is a very tangible and propelling activity that can lead to innovation and higher revenues. So if you were wondering “Why buy NFTs?” at the top of this article, hopefully you’ll have a new perspective!

Also, buying NFTs will soon be even more straightforward and worthwhile than ever since Fayre will be launching the Fayre NFT Marketplace soon! Buyers can take full advantage of our multichain options, and rest assured their NFTs are legitimate and sold by real people. Plus if you use the $FAYRE Token, buying NFTs is even better since you’ll encounter 0% fees, and be able to enjoy a few other sweet perks.