NFT STARS
  • NFT STARS Vision
  • NFT STARS Introduction
    • NFT Market Problems
    • Roadmap
  • NFT STARS Core Features
    • Technical Features List
    • Management Features List
    • Fractional Trading
    • Augmented Reality
    • Multi-chain solution
    • NFT Pricing Scanner
    • DAO voting
    • NFT Mania
    • NFT STARS accounts
    • NFT STARS drops
    • Initial NFT Offering
  • SIDUS: NFT Heroes Collection
    • What ‘SIDUS: NFT Heroes’ Is
    • How and Where to Buy Your NFT Hero
    • What Galaxy Modificator Is and How to Upgrade Your NFT Hero
    • Collection Rarity and How to Check You NFT Hero’s Rarity
    • What Galaxy Staking Is and How to Stake an NFT Hero
    • SIDUS: NFT Heroes Roadmap
    • SIDUS Lore and Philosophy
  • Native Token NFTS
    • NFTS Token Use Cases
    • Token Allocation
    • Contract
  • Audit
  • Legal
  • Social media
  • FAQ
  • Guides
    • How to buy NFTs on NFT STARS
    • How to apply to be an artist
    • How to create an NFT on NFT STARS
    • What are NFT standards and how to choose one?
    • NFT STARS Submission Guidelines
    • NFT STARS Auctions
    • Which wallet is perfect for buying NFTs on NFT STARS?
    • How to connect a MetaMask account
    • How to connect a WalletConnect account
    • How to connect your MetaMask to Binance Smart Chain and the NFTS token
    • What is an NFT and how do you buy one?
    • What is an NFT and how do you store one?
    • A guide to NFT STARS auctions and drops
    • How the royalty system works
    • How and Where to Buy AVAX for Using NFT STARS on Avalanche
    • How to get MILK2 for NFTS tokens
    • How to buy ETH
    • What is Gas?
    • A guide to NFT STARS types of sales
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  1. NFT STARS Core Features

Fractional Trading

PreviousManagement Features ListNextAugmented Reality

Last updated 3 years ago

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The Fractional Trading feature allows users to buy a fraction of an NFT instead of the whole piece. Fractional trading is a relatively new trend that fiat brokers started to offer, after the shares of large companies had begun to cost more than a thousand dollars. Initially, they were designed for small investors who wanted to buy a stock but did not have enough capital to buy a whole share. So, for example, Amazon’s stock was worth approximately $3,100 at the time of writing. Not all retail investors can afford this. Therefore, investors can use fractional trading, thus receiving a share of the asset.

The cryptocurrency market uses the same practice since some NFTs (like some stocks) cost hundreds of thousands of dollars, making them difficult to buy. Therefore, the same practice started being used for NFTs. This service offers investors the chance to buy a fraction of an NFT asset, which can be resold in the future. This is convenient if you do not have a lot of capital with which to buy expensive NFTs but still want to have a share in the ownership of an NFT.

The NFT STARS platform provides its users with a unique opportunity to own an NFT asset without having to purchase the entire asset. Bidders can buy a fraction of an NFT, gaining ownership rights and all of the NFT’s functions and features in proportion to their share of ownership.

Reasons to use Fractional Trading

  1. Price detection: NFT fractioning helps to determine how the market will value an NFT, by selling only 20% of the total asset, for example.

  2. Liquidity: Splitting an NFT provides the owner with better liquidity.

  3. Financial instrument: F-NFTs (Fractional NFTs) were introduced for ease of use. An investor can easily buy and sell shares of an NFT, making a profit on it without owning the whole NFT.