Before starting, let’s understand the terminology used in “Non-fungible Token”

Fungible- Anything which can be replaced or exchanged for something else with the same value. Eg: a 2000 rupee note can be replaced with four 500 rupee notes.

Non-Fungible- something unique, irreplaceable, and cannot be exchangeable with a similar type of thing because of a unique value associated with it. eg: Monalisa’s painting.

Token- A token is basically an agreement or transaction that uses an existing coin’s blockchain to save its entries.

What is NFT

A Non-Fungible Token is only a digital proof of ownership of any digital property (like Games, Images, artworks, etc.) stored on a blockchain. It contains the unique properties of an item and information about the current and previous owners. NFTs are stored on a blockchain and their ownership can be transferred from the current owner to the potential owner.

NFTs are commonly used to protect the ownership of digital arts, gifs, games, music, and small video clips. This market is currently moving around collectibles, and many people are considering it a speculative investment.

As it is a new and emerging technique, It carries its own pros and cons.

Advantages of NFT

1. Proof of ownership: A creator and artist can secure their digital art with the help of NFT.

2. Decentralized Market: Due to the use of blockchain technology, it operates on a decentralized market through which the actual owner can sell their NFTs directly to the buyers.

3. Unique: Anything that comes under NFTs is by default unique, you cannot find anything similar to that.

4. Resellable: NFTs can be sold and traded easily, through which people can earn money.

5. Collectables: Most people are considering them collectibles which creates hype in the NFT market and results in high prices.

6. Immutable: Due to blockchain technology once an entry is saved on the blockchain that particular entry can never be edited, all you can do is to save a new entry. 

7. Copyright: It is beneficial for the creator because in NFT he only sold the ownership rights of a particular digital asset and not the copyrights. So, he can further make copies of that artwork. 

8. Royalty: A creator of the original artwork can set a digital contract through which he will always get some royalty amount whenever the NFT was sold.

Disadvantages of NFT

1. Copyright Issue: Not beneficial for the buyer because NFT does not come with the copyright of that artwork due to which the original creator can make copies of the artwork.

2. Decentralized Market: Due to the use of blockchain technology, it operates on a decentralized market through which the actual owner can sell their NFTs directly to the buyers.

3. Plagiarism and fraud: Due to its immutable property, many times the fraudsters take the benefit by registering themself as the original owner of an artwork.

4. Platform fees: Platforms that are used to trade NFTs have their own fixed charges. Sometimes these charges are higher than the actual price.

5. Artist’s royalty fees: Many NFTs come with an associated smart contract which is ignored by the buyers and later they got their amount deducted at the time of sale.

6. Environment Harm: NFTs are working on an existing Ethereum blockchain technology that has a humongous network of resources it consumes a huge amount of energy to make a single entry.

7. Volatility in prices: Their prices totally depend on the demand, higher demand means higher price.

Conclusion:

Currently, there is hype and a bubble kind of environment in the NFT market. Lots of news are spread on daily bases about people earning this much by selling their NFT, such type of news creates curiosity in peoples about earning easy money.

In my opinion, It's too early to invest in this market but you can still give it a try by spending a minimum amount of money only to understand how this market actually works.