CNFTs — A Beginner’s Guide to Cardano NFTs
Thanks to the rapid growth of NFTs in 2020–2021, investors are now exploring other popular blockchains for better user experience and new investment opportunities. Among those blockchains we also find Cardano. The vibrant community and price growth of the Ethereum competitor have led to a growing interest in Cardano-based NFTs.
In this article, we give a 5-minute introduction to CNFTs, where to buy and store them, as well as some tips to keep in mind. Ready to delve in? Let’s get started.
What is a CNFT?
CNFT is an acronym that describes Cardano-based NFTs. Similar to NFTs hosted on Ethereum, CNFTs are non-fungible tokens tied to specific wallet addresses, but they are instead hosted on the Cardano blockchain.
Where to buy CNFTs
The most popular Cardano NFT marketplace is CNFT.io. The platform does not only contain the largest number of CNFT collections, but it also has a Launchpad that enables users to acquire non-fungible tokens at their minting price.
That said, there is one difference compared to Ethereum NFT marketplaces, and that is the level of centralization. Since Cardano is only now starting to roll out smart contracts, their NFT marketplaces still rely on centralized structures. This means that CNFT.io is not yet utilizing smart contracts for the exchange and distribution of CNFTs.
The following video offers a good breakdown of the platform’s functions, and how to navigate around them:
Tips before you buy a CNFT
- Establish the value of your ADA: Due to the extreme volatility in the crypto markets, the floor price of CNFTs may look significantly different, even if their price tag remains the same. This is especially true if you’re looking to “flip” them for profit. It is important to keep in mind the value of ADA at the time of your purchase and adjust your selling price accordingly.
- Discover popular collections: CNFT Tools and CNFT Analytics show different trading volumes, rarity, and sales data across all platforms that are involved with the buying and selling of Cardano-based NFTs.
- Check policy IDs: Use Cardanoscan.io to review token policy IDs, follow transactions, and check the minting status of ongoing project sales.
- Be part of the community: Use the #CNFT hashtag on Twitter to discover communities and influencers that can improve your investment decisions. Also, try to join Discord servers of the CNFT projects that most interest you.
Wrapping up
At its current stage of development, Cardano is cheaper and faster than Ethereum. These advantages, paired with the repeated delays of the Ethereum Merge, have made a large portion of NFT investors curious about the potential of CNFTs. If anything, the majority is currently priced out of Ethereum NFTs due to their high fees.
CNFTs appeal to the average, “not yet rich” investor, adding a democratic layer that most buyers appreciate. We agree with these principles and believe that NFTs should be accessible to everyone, irrelevant of their economic background. This is why we created Cardano Lands, a highly rewarding, play-to-earn experience. If you want to learn more about our project and its gameplay, make sure you visit our official website.
