What are NFTs?

NFT stand for non-fungible tokens, they are a type of cryptocurrency created on a smart contract platform such as Ethereum. 

They are unique digital objects that can be cool to own or even profitable to trade. Think of them as digital collectible cards.

You are still not clear right? The word “Non-fungible” is used when something is unique and can’t be replaced with something else. 

Cryptocurrencies like Bitcoin & Ethereum, Fiat currencies like USD or EUR are fungible.

NFTs are unique assets that do not have a one-to-one value with other NFTs. Meaning that while $1 equals $1, one NFT does not equal another NFT.

The value that an NFT has is based on how valuable it is to people who are willing to buy it.

How do NFTs work?

The way it works depends on the platform. But given the vast majority of NFTs are created and traded on Ethereum.

Ethereum is a cryptocurrency, like bitcoin, but its blockchain also supports these NFTs, which store extra information that makes them work differently from, say, an ETH coin. It is worth noting that other blockchains can implement their own versions of NFTs.

Types of NFTs you can buy

- Digital artworks

- Music 

- Digital collectibles 

- Tickets to events

- Domains

- In-game items and challenges

How do I buy or trade NFTs?

NFTs are bought and traded just like any other cryptocurrency based on Ethereum, only instead of buying some amount of tokens, you buy a single token. 

Why would someone buy an NFT?

NFTs can be a financial investment, a sentimental purchase, a collectible item or a way for the buyer to feel more connected to the NFT’s creator, like an artist or a brand.

It is similar to how people collect baseball cards, sneakers or even Beanie Babies.

Sometimes that desire is tied to brand affinity. Loyal fans of Kanye West might try to buy one of only a few thousand pairs Yeezy sneakers when they drop.

So similarly, if Yeezy decided to drop a collection of 25 NFTs of a Yeezy logo gif, those same diehard fans will try and buy one of those as well when they drop.

What are the most expensive NFTs? 

In the early days, a blockchain game like CryptoKitties sell virtual cats for tens or even hundreds of thousands of dollars. Also music producer 3LAU sold a collection of 33 limited edition NFTs for more than $11M

The risks of buying and selling NFTs...

Like any new asset that is in the early stages of development and adoption, NFTs carry some risk as are a long way from mass acceptance.

I’ll advise before getting into it.. Do more research and ask questions 

All the best! #NFTs #nftart