NFTs, or non-fungible tokens, have taken the art and collectibles world by storm. They allow for unique digital ownership of art, music, and other collectibles, making them a valuable addition to any portfolio. As it has become a norm for people to buy NFT online, portfolio trackers are becoming essential tools for collectors to manage their collections. In this article, we will explore the merits and demerits of NFTs portfolio trackers.
Merits of NFTs Portfolio Tracker:
- Organization: NFTs portfolio trackers provide a centralized location for collectors to store their digital assets. That makes it easy for them to keep track of their collection and ensures that they do not lose or forget about any of their NFTs. Additionally, some portfolio trackers allow for the categorization and labeling of NFTs, making it easier for collectors to search and find specific items.
- Price Tracking: NFTs are a newer asset class; therefore, their prices can fluctuate. Portfolio trackers for NFT alerts investors with real-time price tracking, allowing collectors to monitor the value of their NFTs and make informed decisions about buying, selling, or holding. This feature also provides collectors with a better understanding of market trends and helps them stay updated with the latest pricing information.
- Security: After you buy NFT, storing it can be challenging, as it is vulnerable to hacks, loss, and theft. Portfolio trackers provide a secure platform for collectors to store their NFTs, ensuring they are protected from cyber threats. Additionally, some portfolio trackers offer two-factor authentication and other security features, adding an extra layer of protection to the collectors’ assets.
- Portfolio Analysis: An NFT portfolio tracker provides a comprehensive overview of a collector’s portfolio, allowing them to analyze their investment and determine which NFTs are performing well and which are not. This information can help collectors make informed decisions about buying, selling, or holding their NFTs. Additionally, some portfolio trackers provide insights and analytics on the market trends, giving collectors a better understanding of the market and its potential.
Demerits of NFTs Portfolio Tracker:
- Dependence: Collectors who rely solely on portfolio trackers to manage their NFTs depend on the platform to keep their assets secure and updated. If the portfolio tracker experiences a security breach or a technical glitch, it could lead to the loss or theft of the collector’s NFTs. Additionally, if the portfolio tracker shuts down or goes out of business, collectors could lose access to their NFTs.
- Centralization: NFTs portfolio trackers are centralized platforms, meaning collectors trust a third party to manage and store their assets. That goes against the decentralized nature of blockchain technology, which is the foundation of NFTs. If the portfolio tracker is hacked or experiences a technical issue, it could lead to a loss of trust in the entire NFT ecosystem.
- Cost: Most NFTs portfolio trackers charge a fee for their services, which can add up for collectors with large collections. While some portfolio trackers offer free services, they often have limited features or are less secure than their paid counterparts.
- Limited Availability: While NFTs are becoming more mainstream, portfolio trackers are still a relatively new concept. That means there are limited options available, and some collectors may not have access to a portfolio tracker that meets their needs. Additionally, some portfolio trackers may not support certain blockchains, which could limit the types of NFTs that collectors can track.
NFTs portfolio trackers have merits and demerits, and collectors must weigh the pros and cons before choosing to use one. While they provide a centralized location for collectors to store and manage their NFTs, they also come with a cost and a dependence on a third-party
