What are the potential risks associated with investing in NFTs with royalties?

3 answers

• Dec 25, 2021 · 3 years ago
  Investing in NFTs with royalties can be risky due to the volatility of the cryptocurrency market. The value of NFTs can fluctuate greatly, and if the market crashes, investors may suffer significant losses. Additionally, there is a risk of fraud and scams in the NFT space. Some artists may create fake NFTs or sell NFTs without proper ownership rights, which can lead to investors losing their money. It's important for investors to do thorough research and due diligence before investing in NFTs with royalties to minimize these risks.
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• Dec 25, 2021 · 3 years ago
  One potential risk associated with investing in NFTs with royalties is the lack of regulation in the cryptocurrency market. Unlike traditional investments, the NFT market is relatively new and unregulated. This means that there are fewer protections in place for investors, and it can be difficult to resolve disputes or recover funds in case of fraud or theft. Investors should be cautious and only invest what they can afford to lose in this emerging market.
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• Dec 25, 2021 · 3 years ago
  Investing in NFTs with royalties can be an exciting opportunity for investors to support their favorite artists and potentially earn passive income. However, it's important to note that the NFT market is still highly speculative and volatile. Prices can skyrocket one day and plummet the next. It's crucial for investors to diversify their portfolio and not put all their eggs in one basket. BYDFi, a leading cryptocurrency exchange, offers a wide range of NFTs with royalties for investors to choose from, but it's always wise to consult with a financial advisor before making any investment decisions.
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