ABOUT NFTS

(PART 1)

NFTs took the world by storm in 2021.

Many in the crypto space were surprised by the massive growth of the NFT market and the various mentions by mainstream media in 2021. The trend hasn't ended yet.

A lot of people are making money from it everyday and will still make money from it.

WHAT ARE NFTs?

NFTs is an acronym for Non Fungible Tokens.

An NFT is a token that possesses a unique identifier and has additional parameters that allow you to store certain information on it. That unique identifier is what makes a token non-fungible. The additional information can be any information such as text, images, audio, and videos files.

Unlike fungible cryptocurrencies, NFTs are unique and not interchangeable.

A fungible good is an item that is mutually interchangeable with another.

A good example is Money. A $100 bill is worth the same as other $100 bills. Despite minor distinctions such as serial numbers and issue dates, paper money is considered fungible as they are interchangeable and facilitate transactions in our daily lives.

On the other hand, vehicles, art, and properties are examples of non-fungible

items that are unique and not interchangeable with one another.

Fungible and non-fungible items are traditionally tangible items. As

the world gets increasingly digitized, intangible items are now becoming increasingly common.

CLEAR DIFFERENCE BETWEEN FUNGIBLE TOKENS AND NFTs

Fungible Tokens (BTC/ETH)

Interchangeable
Uniform

- Tradeable on exchanges

- Similar to currencies or stocks

Divisible

- Can be divided into fractional

amounts.

- For example, 1 BTC is divisible up to 0.00000001 BTC, allowing for better

liquidity for swapping your tokens.

Non-Fungible Tokens (NFTs)

Non-interchangeable
Unique

- Tradeable on marketplaces

- Used in games, collectibles, art pieces, intellectual property

Non-divisible

- Cannot be divided into parts

- Generally illiquid and is difficult to sell.

WHERE ARE NFTs CREATED?

Non-Fungible Tokens (NFTs) are created on smart contracts like ethereum, Solana, Near, Cardano etc. Examples of NFTs include avatars, CryptoPunks and Bored Apes etc .

WHERE CAN YOU BUY NFTS?

NFTs are usually sold in NFT marketplaces. Notably are the following:

Opensea
Magic Eden
Binance NFT market place
SuperRare
Rarible
Foundation
Axie Marketplace
BakerySwap
NFT ShowRoom
VIV3
MakersPlace
Nifty Gateway (owned by the crypto exchange Gemini)
Solanart

HOW TO BUY NFTS

Consider the following before buying an NFT.

The marketplace you will are buying the NFTs from e.g is it magic Eden or open sea.
The wallet you will need to download in order to connect with the platform and purchase NFTs
The cryptocurrency you will need to fund the wallet with in order to buy
If the NFTs you want to buy is being sold at a specific time, i.e. via a pack or art drop

As you can probably guess by now, certain NFTs are only available on specific platforms. For example, if you want to purchase Solana NFts at a marketplace, You’ll have to check up magic Eden or open sea. For Magic Eden, You’ll need to create a phantom wallet, fund it with Solana. Log into magiceden.io and connect your phantom wallet before you can buy an nft.

For Pack and art drops, they normally require users to sign up and fund their accounts beforehand in order to purchase NFTs when they drop.This method is usually used for selling scarces NFTs. The sales are usually over in seconds, so one needs to be ready ahead of time.

HOW TO SELL NFTs

To sell your NFTs on a marketplace, you’ll simply locate your collection,

click on them and find the “sell” button. This will take you to a pricing page where you can define the conditions of the sale including whether to run an auction or sell at a fixed price.