With each day rolling by, traders in the NFT space see new reasons to invest in the budding market sector. Although NFT was initially designed for card collectors in games built on blockchains, it has since evolved to represent anything in the crypto market.
With the NFT market still making massive airways, all roads lead back to the first NFT released by a famous platform, cryptokitties, as far back as 2017. When the NFTs were rolled out then, the platform gained massive game that they were responsible for the congestion suffered on the Ethereum blockchain.
NFT market ended 2020 with massive gains
Asides from the congestion that cryptokitties brought to the Ethereum blockchain through its NFT, the firm also saw transaction volumes on its platform skyrocket by a mile. Growing since that period, NFTs are now being adopted by all and sundry to collect rare digital pieces such as in-game artifacts, digital arts, and a few other things.
The end of the year growth report on NFT also buttresses this fact, showing that the sector recorded an immense growth of $338 million to close the year 2020 from a small previous figure of $141.5 million that it ended 2019 with.
While the NFT is being given positive feedbacks, the biggest digital art sale on the budding sector came back in February when Christie’s auctioned off their digital art, which was created by Beeple for as high as $69 million. Even though these are making the sector look like a place for only the rich and wealthy, there are also considerable amounts of cheaper NFTs in the market ranging from arts to sings and others.
Laws should be obeyed when dealing with NFTs
However, buying NFTs is not the main issue; the main thing that a trader is supposed to know when buying an NFT is knowing what it involves in buying them. While it is easy to exchange NFT for cash, one must take general note of the laws of the United States of America regarding the buying and selling of NFT for cash.
The law in most countries worldwide and some American states are not as turgid as crypto laws when dealing with NFTs. Also, it should be noted that this is just legal advice of an individual and cannot be substituted for the United States’ law regarding buying and selling NFTs. Buying an NFT is just like exchange a physical property for cash, in this case, art.
The way a physical buying of art sees the exchange of the art for cash is the same way an NFT goes. While some people would ask how the buyers get the arts, it is simple. The buyers take custody of the art on the blockchain, where it records that it has been transferred to them, and they can view it in just digital form.