A Beginner’s Guide to NFTs
The craze over nonfungible tokens, or NFTs, has been growing in popularity. And while many people still don’t understand them, there are legitimate ways to invest in this space and make money. NFTs are the hottest thing since sliced bread (and possibly sweeter). CoinMarketCap reports that NFT sales have reached over USD $19 billion!
You may be wondering what are NFTs and that’s a valid question! Non-fungible tokens are a type of cryptocurrency that is unique and one of its kind. In other words, each token is unique and not interchangeable with another token or asset. These tokens can come in the form of a digital image, video, or audio file.
NFTs are usually sold by a seller and can be purchased by a buyer on so-called marketplaces (auction websites). The price for NFTs can vary from just a few cents to millions of dollars depending on the artist and the rarity of the art.
There are a lot of advantages to the new non-fungible tokens, and we hope that these advantages will help you make a better decision, whether you’re looking to invest in one of the many NFT projects being launched or not. Whatever your plans are, NFTs are here to stay. So get ready and start exploring them!
What can an NFT do for you?
It may seem strange to think you can own something digitally and no one else can have it – but that’s what NFTs do for you.
The entire concept revolves around blockchain technology which is what makes NFTs possible. Blockchain is a public, distributed ledger that is used to record transactions securely and permanently.The transaction gets recorded on the blockchain as a group of data called “blocks” that are then linked together into “chains.”
The main reason people are talking about NFTs right now is because they think it could change how we buy and sell things online. For example, if someone creates a piece of digital artwork and sells it as an NFT, they could get much more money than they would if they sold multiple copies at lower prices. Or, if someone creates a limited-edition collectible card on a blockchain, no one else will be able to own another copy in the same way.
How to choose an NFT?
NFTs can be found on a range of different platforms, but it may be more difficult to find ones that are worth investing in. Some of the most popular NFT platforms include OpenSea, Rarible, SuperRare and CryptoKitties. These sites allow creators to ‘mint’ their work as an NFT, which means they put it up for sale.
If you’re looking to buy an NFT, the first thing you should do is research the platform where it’s being sold. This will help you understand the fees associated with buying and selling on that platform — which can be high.
Still wondering what to look for in an NFT? Here are some additional tips from NFT experts:
- Understand what you are buying
- Find creators you like and follow them
- Learn about the platforms that sell NFTs
- Buy early
- Buy low
- Research the history of the art market
If you want to start buying and selling NFTs, you’ll need to set up an account with a platform such as OpenSea or SuperRare. You’ll then need to deposit money into your account before buying an NFT — either with a credit card or by using cryptocurrency such as Ether (ETH), which is the token used by Ethereum, an open-source blockchain platform where many NFTs are bought and sold.
NFTs are a new and exciting technology, but there are a few common pitfalls to avoid.
The first is to consider whether the NFT you’re buying is actually worth anything. It’s easy to get carried away by the excitement of this new market, but some NFTs have been sold for huge sums of money that the artist or creator didn’t see a penny of.
You should also consider how collectible your NFT actually is, because it’s possible to sell multiple copies of one image as different units. If there are 100 copies floating around, it’s probably not worth a lot.
Finally, make sure you understand what happens if the blockchain gets hacked or crashes — because in that case, your tokens might disappear. According to Vault 12,” For creators, in addition to backing up wallets that contain their NFT collections, there is also the option to back up the original artwork itself – this could be an image, video or some other file format.” It’s advised to always save your NFT collections.
Why should I have an NFT?
What are the benefits of owning a non-fungible token (NFT)? The quick answer is that NFTs enable you to do things on the blockchain that you can’t do with other types of tokens. While it’s true that each individual NFT works slightly differently, they all share some core relationships.
The main benefit of owning an NFT is that it’s unique and easy to verify. You don’t have to worry about losing an NFT or having it damaged or stolen, and you can sell it at any time.
Another benefit is that you might be able to take advantage of appreciation in value over time. Some digital artists have seen huge demand for their work, with some pieces selling in the millions.
Whether you own a NFT or not, it’s interesting to see what they have to offer. I think the key takeaway from this should be that Non-Fungible Tokens will become more prevalent in the future. As cryptocurrency technology evolves, along with its applications, more tokens will be classified as NFTs and will likely continue to gain popularity among crypto communities looking for higher levels of security with their coins. In other words, the future looks interesting for NFTs.
Need help getting over the NFT learning curve? You don’t have to go at this alone. Contact Creative Juice – we’ll partner with you and create a master plan.🍑