NFTs, or non-fungible tokens, are the most recent cryptocurrency craze to hit the mainstream. NFTs have unexpectedly captivated the world’s attention when Christie’s auction house sold the first-ever NFT artwork — a collage of pictures by digital artist Beeple — for a stunning $69.3 million.
So, what exactly are NFTs?
NFTs, in their most basic form, convert digital works of art and other valuables into one-of-a-kind, verifiable assets that are simple to trade on the blockchain.
Although this may be difficult to grasp for the layman, the payback has been enormous for many artists, singers, influencers, and others, with investors paying top cash for NFT copies of digital pictures. For example, a video clip of a LeBron James slam dunk sold for almost $200,000, while a decade-old “Nyan Cat” GIF sold for $600,000.
NFTs, on the other hand, aren’t quite new. One of the first NFTs was CryptoKitties, a digital trading game based on the Ethereum cryptocurrency platform that allowed users to buy and trade virtual cats that were both unique and saved on the blockchain.
So, why is the NFT craze gaining traction now?
“Some of that interest comes from folks who like purchasing the work of independent producers,” Artsy CEO Mike Steib told CNN Business. “Others are attracted by the prospect of claiming ownership of a digital work that anybody may replicate. The recent headline price records for NFTs appear to have been pushed mostly by freshly minted crypto millionaires and billionaires trying to diversify their bitcoin holdings and increase their interest in the crypto ecosystem.”
Here’s what more you should be aware of:
What are NFTs? | NFTs in a Nutshell
NFTs, or non-fungible tokens, are digital content pieces linked to the blockchain, the digital database that underpins cryptocurrencies like Bitcoin and Ethereum. Those assets, unlike NFTs, are fungible, which means they can be replaced or swapped for another identical one of the same value, similar to a dollar note.
NFTs, on the other hand, are one-of-a-kind and not interchangeable, meaning no two NFTs are the same.
Consider Pokémon cards, rare coins, or a pair of limited-edition Jordans: NFTs establish scarcity among otherwise eternally accessible assets, with a certificate of authenticity to prove it. GIFs, tweets, virtual trade cards, photographs of tangible goods, video game skins, virtual real estate, and other digital artwork may be purchased and sold using NFTs.
How to buy an NFT
The majority of NFT transactions take place on a specialized exchange. Here’s a brief walkthrough on how to purchase these NFT from there.
- The Ethereum network is now used by the majority of markets to power their transactions. To purchase an NFT, you’ll need Ether, Ethereum’s native coin. If you don’t already have one, you may establish an account with a cryptocurrency exchange like WazirX or Binance and buy the tokens there.
- You’ll also need to set up an Ethereum-compatible crypto wallet. A cryptocurrency wallet is a digital address where you may save your coins. Wallets may be created on sites like as Metamask, Binance, and Coindesk. To open a wallet with the platform of your choice, you must first go to their website and register. You’ll need to transmit the ether you acquired from the exchange to the wallet’s address after you’ve opened the wallet.
- Select the marketplace where you wish to purchase the NFT. NFTs can be found on a variety of platforms. OpenSea, Rarible, SuperRare, and Foundation are some of the most popular NFT marketplaces.
- Create an account on the marketplace of your choice. The registration procedures for various markets varies.
- Make a connection between your wallet and the marketplace. On most markets, there is a simple ‘Connect wallet’ option.
- Look through the marketplace for an NFT that appeals to you. For purchasing NFTs, most markets use an auction system; you must bid for the NFT you desire.
- You will finish the transaction after a successful bid, and the required amount will be deducted from your wallet. Remember that the marketplace may charge you a transaction fee, which will vary depending on the site.
How to sell NFTs?
NFTs are also traded in markets, however, the method varies by platform. Basically, you’ll post your work to a marketplace and then follow the procedures to convert it to an NFT. You’ll be able to enter details like a task description and price suggestions. The majority of NFTs are bought using ethereum, however, they may also be acquired with other ERC-20 tokens like WAX and Flow.
How to make an NFT?
An NFT may be made by anyone. All you’ll need is a digital wallet, a little Ethereum buy, and access to an NFT marketplace where you can upload and convert your work into an NFT or crypto art. Isn’t it simple?