If you are reading tech news regularly and staying updated on social networking sites, you might know the craze of NFTs (Non-fungible tokens). NFTs have exploded out of nowhere this year.
From art to music, these digital assets were being sold for millions of dollars. Since the craze of NFTs was very high, many people were wondering whether they are worth the money – or it’s just hype?
Various experts have predicted a very dark future for NFTs, while others believe they will transform the investment process for the better. So, without following anyone’s advice blindly, why not educate yourself on NFT?
So, in this article, we are going to discuss everything about NFTs. Let’s check out.
What is an NFT?
NFT or Non-fungible assets were digital assets representing real-world objects like music, art, in-game items, and videos. Like every other form of investment, NFTs were also bought and sold online, frequently with cryptocurrency.
It is a type of digital asset that links ownership to unique physical or digital items. These tokens aren’t interchangeable since they have unique properties.
Let me give you an example to clear the basics – You create a piece of digital art and tokenize it. That token becomes your artwork’s unique identity; you can sell or auction it to the highest bidder to earn money.
NFTs were also secured by the Ethereum blockchain to ensure no one could change the ownership record or copy/paste a new NFT.
How NFT is different than Crypto?
Both NFT and Crypto are different. The market value of cryptocurrency depends on the demand and supply, whereas NFTs, being Non-fungible tokens, are unique in their way.
Cryptocurrency depends on market fluctuation, whereas NFTs, on the other hand, are tied to asset values. Therefore, you can sell NFTs for any price you choose.
Where Can I Buy NFT?
Well, there are many popular NFT stores available on the internet to buy NFT. Some of the popular NFT stores to name are OpenSea, Axie Infinity, Foundation, Mintable, Rarible, Valuables, Nifty Gateway, and more.
To buy, NFT you need to sign up with such sites and purchase it. Most NFTs these days were purchased with ETH, the native currency of the Ethereum network. ETH can be easily converted to U.S dollars on exchanges like Kraken, Gemini, Coinbase, etc.
To purchase an NFT, you first need to set up a digital wallet to store your cryptocurrency, which will be used to buy NFTs.
Can I Create and Sell NFTs?
Yes, you can create and sell your own NFT as well. However, the Non-fungible tokens should be rare and unique.
You will be shocked to know that Twitter’s founder Jack Dorsey has promoted an NFT of the first-ever tweet, with bids hitting $2.5M. So, technically, people can buy your Tweets, too, if it makes sense.
Is it a good time to invest in NFTs?
There’s no good time or wrong time to decide investments as every form of investment has its own merits and demerits. Just like cryptocurrencies, there’s a lot of risks involved in buying and selling Non-fungible tokens.
Therefore, you should invest only if you are willing to bear the risk. Also, buying and selling NFTs isn’t free.
So, this article is all about Non-fungible tokens. What do you think about NFTs? Please share your thoughts and opinions with us in the comment section below.
NFTs are digital assets. Nice article for non-cs background students.