NFTs are becoming a great option for young adults looking to invest their money.
A global survey reveals that 52% of millennials and 74% of Generation Z are considering and open to including non-fungible tokens (NFTs) in their investment portfolios. The new survey comes from the Vere Groupone of the world’s leading fintech, asset management and financial advisory firms with reportedly $12 billion under advisement.
The firm said 600 of its clients aged 42 and under were surveyed in Europe, North America, Asia, Africa, Australia and Latin America.
Rapidly growing in popularity with black americans, an NFT is a digital asset such as an image or audio clip. NFTs are often bought and sold with cryptocurrencies as part of the digital economy.
The asset class took off in a big way last year with a digital-only artwork selling for $69 million, deVere reported. According to the firm, since then, a growing number of celebrities, artists along with fashion, music, technology and sports brands have been creating, buying and selling NFTs.
According to the Investor KingCEO and founder of the deVere Group nigel green said: “The results of this survey underscore that digital natives, those who have grown up immersed in a fully accessible digital life, understand that unique, highly portable and transferable digital assets have intrinsic value and that this is a trend that will inevitably grow in the future”.
He explained that the vigor of digital engagement is creating new business models in many sectors.
“Sensibly, the younger generations, who instinctively understand him best, appreciate that he is therefore going to shape the future of to invest.”
o He added: “They are eager to have a stake in this new financial ecosystem by including NFTs in their portfolios.”
Green also reflected on how diversification can mitigate risk and capture opportunity.
“NFTs have a very low correlation with other assets, such as stocks and bonds, and can therefore reduce the overall risk and volatility levels of your portfolio.”
However, people looking to buy NFTs should do their homework and research before investing in the commodity. Experts say potential investors should ask themselves: will they be able to find a buyer for their NFT and how long will it take?
Another point to examine closely is that not all NFTs will be valuable, which increases the risk that it will be a good investment or not.
examining various sites that Diving in NFT mania could be useful.