What is NFT? Here are the Important Things to Know

If you read tech news regularly and stay up-to-date on social media sites, you might be aware of the NFTs (non-fungible tokens) craze. NFTs have exploded out of nowhere this year.

From art to music, these digital assets sold for millions of dollars. Since the craze of NFTs was so high, many people wondered if they are worth the money, or is it just an exaggeration?

Several experts have predicted a very dark future for NFTs, while others believe they will transform the investment process for the better. So, without blindly following anyone’s advice, why not inform yourself about NFT?

So, in this article, we are going to discuss everything about NFTs. Let’s take a look.

What is an NFT?

Non-expendable assets or NFTs were digital assets that represented real-world objects such as music, art, game items, and videos. Like any other form of investment, NFTs were also bought and sold online, often with cryptocurrencies.

It is a type of digital asset that links ownership to unique physical or digital items. These tokens are not interchangeable as they have unique properties.

Let me give you an example to clarify the basics: you create a digital artwork and tokenize it. That token becomes the unique identity of your work of art; you can sell it or auction it off to the highest bidder to earn money.

The NFTs were also protected by the Ethereum blockchain to ensure that no one could change the ownership record or copy / paste a new NFT.

How is NFT different from Crypto?

How is NFT different from Crypto?

Both NFT and Crypto are different. The market value of the cryptocurrency depends on demand and supply, while NFTs, being non-fungible tokens, are unique in their own way.

Cryptocurrency is dependent on market fluctuation, while NFTs, on the other hand, are tied to asset values. Therefore, you can sell NFT at the 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 most popular NFT stores are OpenSea, Axie Infinity, Foundation, Mintable, Rarible, Valuables, Nifty Gateway, and more.

To buy NFT, you need to register with such sites and buy it. Most of the NFTs these days were bought with ETH, the native currency of the Ethereum network. ETH can be easily converted to US dollars on exchanges like Kraken, Gemini, Coinbase, etc.

To buy an NFT, you must first set up a digital wallet to store your cryptocurrency, which will be used to buy NFT.

Can I create and sell NFT?

Yes, you can create and sell your own NFT as well as. However, non-fungible tokens must be rare and unique.

You will be surprised to learn that Twitter founder Jack Dorsey has promoted an NFT of the first tweet ever, with offers reaching $ 2.5 million. So technically, people can buy your Tweets too, if it makes sense.

Is it a good time to invest in NFT?

There is neither a good time nor a bad time to decide on investments, as each form of investment has its own merits and demerits. Like cryptocurrencies, there are many risks involved in buying and selling non-fungible tokens.

Therefore, you should invest only if you are willing to take the risk. Also, buying and selling NFT is not free.

So this article is about non-fungible tokens. What do you think of the NFTs? Share your thoughts and opinions with us in the comment section below.

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