NFT is an acronym for Non-fungible token, NFTs are more like cryptocurrencies like Ethereum and Bitcoin. NFT has taken the world of blockchain to an explosive stage, where Grimes getting millions of dollars for NFTs or it is the news of Nyan Cat being sold as one, still trying to recover from them. The founder of Twitter put an autographed tweetup for sale as an NFT.
Now, months have passed after all these stories still trying to explain the headline is showing people paying house-money for clip art of rocks and yet some people do not fully understand what an NFT is all about. In this article let me try to explain what NFT is all about.
Like I said earlier NFT is an acronym for Non-fungible just simple as that. For example, a bitcoin is fungible, that be traded for another bitcoin, and you will get the same thing.
Also, NFTs are a collectable digital asset that has value just the same way as physical art holds value, so is NFTs. NFT is unique on its own, it cannot be exchanged like-for-like, which is the place that Non-fungible begins to have value
It stores extra information that increases it above a pure currency and ushers it into another realm. However, any type of reproduced digital file can be stored as an NFT to identify the original copy like photography, videos, tweets, music, art and memes.
NFT can be created out of anything special that can be stored digitally and has value. Also, other items like collector’s items including painting, or a Vintage action figure, but instead of purchasing a physical item, you’re rather paying for a file and proof of original copy owner. Ok, let’s see how NFTs works.
NFT How It Works
The identity and ownership of an NFT are verified through the blockchain ledger. NFT was first launched on the Ethereum blockchain, but other blockchains including FLOW and Bitcoin Cash now do support them.
NFTs ate sold in files, they come in different files like GIF, MP3, JPG and any other files. When NFT identifies its owner it can be bought and sold just like any other piece of art. The price is just like the price of physical art, price is basically determined by the market demand.
Just like the gift shop of an art gallery, where they are replicate prints of famous masterpieces, so are some NFTs that act the same way, there are some integral parts of the blockchain that are totally valid but they wouldn’t have the same value just like the original.
In addition, NFTs comes with a license to the digital asset it belongs to, but this does not confer copyright ownership automatically. A copyright owner may reproduce work and the NFT owner gains no royalties. Alright, then where can one buy NFTs or how can I buy NFTs?
How Do I Buy NFTs | How to Invest in NFT
Here is the question, how do I buy NFTs? From the above explanation so far, any piece of art, image and lots of things can be sold as NFTs. Or don’t think you can hack a system and save any image of an NFT. That’s wired, it does not work like that, you need to have information that is part of the blockchain and identifies the file originally.
NFTs can be bought on various platforms based on what you want to buy. For example, if you buy baseball cards, then you can get them on digital trading cards https://digitaltradingcarfs.com/nft-non-fungible-tokens/ a wallet will be required for this specific task to be performed, on the platform your buy, you will fill the wallet with cryptocurrency.
NFTs are in high demand and they’re in different many forms. NFTs are always released at ‘drops’ like with events, where batches of tickets are released at different times. Due to this, there’s always a rush from buyers when the drop begins, then it’s advised to get registered and have your wallet full ready. Here are a few sites that sell NFTs:
- SuperRare (https://superrare.co)
- Foundation (https://foundation.app)
- OpenSea (https://opensea.io)
- Nifty Gateway (https://niftygateway.com)
- Axie Marketplace (https://marketplace)
- ViV3 (https://vivi3.com)
- Rarible (https://rarible.com)
- BakerySwap (https://wwww.bakeryswap.org/#/exchange/new-artworks)
- NFT ShowRoom (https://nftshowroom.com)
NFTs are not only in artwork but also seen in-game purchases in Video games. They can be purchased and sold by players, they are in assets that can pay for, this includes Skin or avatars, and swords.
In summary, have in mind that NFTs value depends on what another person is willing to pay for it. Therefore, this makes demand the major determinant of fundamental, technical and economical indicators of price and also forms the basis for investor demand. As a new investor, take proper research, understand the risk involved before proceeding with caution.